Still, I had given Jim my word, so I sent for Kane, Gordon and Wolff.
Their two hundred thousand shares was the sword of Damocles. I thought
I’d like to substitute a steel chain for the hair. The easiest way,
it seemed to me, was by some sort of reciprocity agreement. If they
helped me passively by holding off while I sold the bank’s one hundred
thousand shares, I would help them actively by trying to make a
market for all of us to unload on. As things were, they couldn’t sell
one-tenth of their holdings without having Consolidated Stove break
wide open, and they knew it so well that they had never dreamed of
trying. All I asked of them was judgment in timing the selling and an
intelligent unselfishness in order not to be unintelligently selfish.
It never pays to be a dog in the manger in Wall Street or anywhere
else. I desired to convince them that premature or ill-considered
unloading would prevent complete unloading. Time urged.
I hoped my proposition would appeal to them because they were
experienced Wall Street men and had no illusions about the actual
demand for Consolidated Stove. Clifton P. Kane was the head of a
prosperous commission house with branches in eleven cities and
customers by the hundreds. His firm had acted as managers for more than
one pool in the past.
Senator Gordon, who held seventy thousand shares, was an exceedingly
wealthy man. His name was as familiar to the readers of the
metropolitan press as though he had been sued for breach of promise by
a sixteen-year-old manicurist possessing a five-thousand-dollar mink
coat and one hundred and thirty-two letters from the defendant. He had
started his nephews in business as brokers and he was a special partner
in their firm. He had been in dozens of pools. He had inherited a large
interest in the Midland Stove Company and he got one hundred thousand
shares of Consolidated Stove for it. He had been carrying enough to
disregard Jim Barnes’ wild bull tips and had cashed in on thirty
thousand shares before the market petered out on him. He told a friend
later that he would have sold more only the other big holders, who were
old and intimate friends, pleaded with him not to sell any more, and
out of regard for them he stopped. Besides which, as I said, he had no
market to unload on.
The third man was Joshua Wolff. He was probably the best know of all
the traders. For twenty years everybody had know him as one of the
plungers on the floor. In bidding up stocks or offering them down he
had few equals, for ten or twenty thousand shares meant no more to him
than two or three hundred. Before I came to New York I had heard of him
as a plunger. He was then trailing with a sporting coterie that played
a no limit game, whether on the race track or in the stock market.
Public-domain text, read in full here on John Shaqi.
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