Frenzied Finance, Vol. 1: The Crime of AmalgamatedLawson, Thomas William
History
Frenzied Finance, Vol. 1: The Crime of Amalgamated
Lawson, Thomas William
Amalgamated Copper Co.; Gas companies -- Massachusetts -- Boston; Insurance -- United States; Speculation; Standard Oil Company
This is where I sat up amazed. "But, Mr.--," I gasped.
I remember reading somewhere that New York's infamous Boss Tweed, at the
zenith of his extraordinary corrupt career, actually began negotiations
with a syndicate composed of his friends to sell them the New York City
Hall on a long-time note. When some curious heelers asked where the city
fathers should conduct the affairs of the metropolis, he beamed on them
in a paternal way as he explained: "Oh, a detail of the sale will be a
hundred years' lease back to the city at a rental which will give us
enough each five years to pay the purchase price."
Absurd, you say. Not so far-fetched as you may think, if you will
remember the conditions under which the National City--the "Standard
Oil" Bank--acquired New York's old Custom House on Wall Street. They
bought it from the United States Government, credited the purchase price
to Uncle Sam on their books, then rented it for a good round price to
the Government, whose new Custom House was not ready for occupancy, and
because it remained in Uncle Sam's possession, evaded municipal taxation
on the investment. They got the property absolutely without paying a
cent, and have ever since collected a splendid interest on the million
they did not invest.
But this deal which Mr. Rogers outlined to me seemed to go both of these
transactions a point or two better, inasmuch as neither of the parties
were corrupt city or government officials, but merely private citizens
in a country where all are free and equal, and where the Constitution
guarantees that no man's property shall be taken from him without due
process of law.
Before I could get my breath, Mr. Rogers, as if he divined my thought,
quietly said:
"One of the inducements I offer will be to allow them to reinvest the
money we pay them in the new consolidated company's stock, at a good big
advance over what it will cost us."
This was too much. I roared and roared, and even he had to laugh as he
quietly remarked: "I said you would find we had done better for you than
you could do for yourself, Lawson, for you must remember you are in on
this at actual cost."
I stopped laughing. "How is that? I thought you intended the new copper
company to have the fifty-one per cent. of the selling company?"
He looked at me with something akin to disgust. Then his voice changed,
and he let me have it straight from the shoulder:
Public-domain text, read in full here on John Shaqi.
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