Well, sir, on that, the third day of the rise, I sold Consolidated
Stove; and on the fourth day and the fifth; and the first thing I
knew I had sold for Jim Barnes the one hundred thousand shares of
stock which the Marshall National Bank held as collateral on the
three-million-five-hundred-thousand-dollar loan that needed paying
off. If the most successful manipulation consists of that in which the
desired end is gained at the least possible cost to the manipulator,
the Consolidated Stove deal is by all means the most successful of my
Wall Street career. Why, at no time did I have to take any stock. I
didn’t have to buy first in order to sell the more easily later on.
I did not put up the price to the highest possible point and then
begin my real selling. I didn’t even do my principal selling on
the way down, but on the way up. It was like a dream of Paradise to
find an adequate buying power created for you without your stirring
a finger to bring it about, particularly when you were in a hurry. I
once heard a friend of Governor Flower’s say that in one of the great
bull-leader’s operations for the account of a pool in B. R. T. the pool
sold fifty thousand shares of the stock at a profit, but Flower & Co.
got commissions on more than two hundred and fifty thousand shares and
W. P. Hamilton says that to distribute two hundred and twenty thousand
shares of Amalgamated Copper, James R. Keene must have traded in at
least seven hundred thousand shares of the stock during the necessary
manipulation. Some commission bill! Think of that and then consider
that the only commissions that I had to pay were the commissions on the
one hundred thousand shares I actually sold for Jim Barnes. I call that
some saving.
Having sold what I had engaged to sell for my friend Jim, and all the
money the syndicate had agreed to raise not having been sent in, and
feeling no desire to buy back any of the stock I had sold, I rather
think I went away somewhere for a short vacation. I do not remember
exactly. But I do remember very well that I let the stock alone and
that it was not long before the price began to sag. One day, when the
entire market was weak, some disappointed bull wanted to get rid of his
Consolidated Stove in a hurry, and on his offerings the stock broke
below the call price, which was 40. Nobody seemed to want any of it. As
I told you before, I wasn’t bullish on the general situation and that
made me more grateful than ever for the miracle that had enabled me to
dispose of the one hundred thousand shares without having to put the
price up twenty or thirty points in a week, as the kindly tipsters had
prophesied.
Public-domain text, read in full here on John Shaqi.
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