Mr. Teague was on the job just a week when he cut loose with an attack
on United States Senator George S. Nixon of Nevada in a front-page
story headed "Goldfield in the Grasp of Wall Street Sharks." The
article declared that Senator Nixon, needing $1,000,000 to conclude the
merger plans of the Goldfield Consolidated, had got it through B. M.
(Berney) Baruch of the New York Stock Exchange, factotum of Thomas F.
Ryan, at terrible cost. The loan was made at a time when Goldfield
Consolidated was selling around $10 per share. In consideration for the
loan, Senator Nixon, acting for the company, gave Mr. Baruch an option
on 1,000,000 shares of treasury stock of the Goldfield Consolidated at
$7.75 per share. At the time Mr. Teague commenced his onslaught
Goldfield Consolidated shares had slumped from $10 to $7.50. Mr. Teague
alleged that the market on the stock was being juggled and speculators
were being milked. Mr. Baruch, he asserted, had sold the stock down to
$7.50 per share on the strength of his option, and was now tempted to
break the market, sell the stock short and cover all at much lower
prices.
Within two weeks after the publication of Mr. Teague's exposé of the
terms of the outstanding option to Mr. Baruch, Goldfield Consolidated
shares dropped to under $6. The story evidently had its effect.
The issue of the paper which chronicled the break to $6 contained an
editorial headed "Nixon in the Rôle of Brutus." It demanded of Senator
Nixon that he stand behind the stock and support the market, and also
called upon him to declare the payment of dividends which he had
promised to stockholders in his annual report dated two months prior.
People in Nevada began asking, "Who is Teague?" Mr. Teague caused
the publisher of the _Nevada Mining News_, who was Hugh Montgomery,
formerly business manager of the _Chicago Tribune_, to explain over
his signature that Mr. Teague had been the political editor of the
_Baltimore American_, later an editorial writer for the _Philadelphia
North American_, and that while on the _Philadelphia North American_ he
had crusaded against get-rich-quick swindlers who had headquarters in
Philadelphia, with the result that the Storey Cotton Company, the
Provident Investment Bureau, the Haight & Freese Company and other
bucketshop concerns were put out of business. On evidence furnished by
him, it was stated, Mr. Teague secured the conviction by the United
States Government of Stanley Frances and Frank C. Marrin as chief
conspirators in the $400,000 Storey cotton swindle. Finally, the
article said, Mr. Teague was engaged by a far-famed magazine to expose
bucketshop iniquities in the United States. This series of articles had
appeared in 1906.
Public-domain text, read in full here on John Shaqi.
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