Kupdf net wall street ventures and adventures through 40 years richard

WA LL S TR EE AD VE NT UR AR S IL LU ST RA TE D GREENWOOD PRESS, PUBLISHER... E GR OU ND F LO OR PAGE BULL MARKET— OVEREXPANSION— DIFFICULT FINANC- ING— INSURANCE DEALS— AMALGAMATED

WA LL

S TR

EE

AD VE

NT UR

AR

S

IL LU ST RA TE

D

GREENWOOD PRESS, PUBLISHER

Copyright, 1930 , by Richard D

Wyckof

f

Copyright, 1958 , by AlmaW Wyckof

CO NT EN

TS

PAGE

FOREWORD

ENIN

E WA

LL STRE

L SAG

E BOMBED

4

1891

SIG

NS

OF AN ADVAN

GE

OF BA

IC AN

D DEPRESSIO

—OU

T O

5

1897

BROADENIN

G ACTIVITIE

Y ADVANCIN

UNION PACIFIC

—BIRT

E GR OU ND F LO OR PAGE

BULL

MARKET—

OVEREXPANSION—

DIFFICULT FINANC-

ING—

INSURANCE

DEALS—

AMALGAMATED COPPER

CONGRESS 6

0

1900

F LO AT IN

G MY SE

LF

FIRST STOCK EXCHANGE

ON

JOHN W GATES ' BEA

STEEL—

A CLEAN-U

P IN

G AF TE

R TH

E PU BL

IC

BUSINESS GETTIN

G IN

R MA RK

S 102

1904

U

P FR OM T HE L OW

S

BUYING STEEL A

DOWN—

PRICK'S DEA

L IN STEEL—

A CHANG

E IN

TREND—

PICKING THE BEST

ONES 10

9

1905

ST UD YI NG T HE B IG F EL LO

KESSLBR TRIES T

—ELBER

T HUBBARD'

S AD -

VICE—

WALL STREET

PSYCHOLOGY—

BROKERS' PROB -

LEMS—

PRACTICE I

T IN T RE

ND

KEENE RAIDS METROPOLITAN

—LONDO

N OFFICE

—

STARTING I

ii

1907 TH

E M ON EY P AN IC

PAGE

CASH ABOVE

G B EA

R TR AP PE

D

TRYING TO INFLUENCE

E RE AD IN

G

PUBLISHING

PROBLEMS—

^TESTING MECHANICAL

READING"—

THE KEY TO SU

C CE

S S 16

3

1910 P RE PA RI NG T

O SH OO

T

THE HOCKING

COAL & IRO

E N EW T RE

LETTER—

ON M

A GO OD B

ID

HAYDEN, STON

E &

C o.'

s OFFER

—A

BIG TRADING

CLIENT—

TURNING DOWN

G A R EA

L ON

ON GENERAL

MOTORS—

BUYING IT AROUND

THE LOW

194

1914 T HE P RE -W AR M AR KE

G AN E NT ER PR IS

E

PHONOGRAPHS—

BUCKING THE

199

1916 W AR B RI DE

PAIGNS—

LANDING

PROFITS—

^TEN MILLION

RECORDS 2.0

4

viii CONTENT

S

1917

A BE AR R AI

G RECORD

S

WE BEAT THE VICTOR—A

DEAL I

N SOUTHER

N PACIFI

C

—A WILD OPENING

A CO UP LE O

F MI LL IO

NS

REFUSING TO SELL

—PRESSUR

E B

Y

THE PUBLIC—A

MILLION I

G T HE S TA

FF

THE TEN TRENDS 14

8

1911 LI VE RM OR

E AN

D HI

S ME TH OD

S

HIS OFFICE LAYOUT

ING

—TAKIN

G A POSITION—ANTICIPATE

D PROFITS

—

FORCING THE MARKET

E MA GA ZI NE A RR IV

ES

OTTO H KAHN'

S OPINIO

N 2.7

4

1914 L IV ER MO RE A ND T HE "

IN TE RE ST S"

D TRUS

T 17

5

1915 TH OU GH TS O

F A M AG NA

TE

LUNCH WITH M

R KAHN

—N

o FU

N IN INVESTMENT

BANKING

183

192.6 GE NE RA

L BR EA KD OW

N

TALK WITH PRESIDENT

DECLINING HEALTH

—CLOSIN

G M

Y INTERES

T IN

.8^

1917 UP A ND D OW

N AG AI

NT

GAINING STRENGTH

—WRITIN

G THI

S BOOK

—A

-PAPER FINANCIAL

X

199

305

IL LU ST RA TI ON

S

Facing page

1863

GO LD E XC HA NG

E W HI CH A DJ OI NE

D T HE STOCK E XC HA NG

E

4

1863

BROKERS O UT SI DE T HE G OL

D EX CH AN

GE

IZ

1870

LO WE

R PA RT OB N EW Y OR

K BEFOR

E T HE

IL LS B UI LD

IN

G

WA

S ER EC TE

D

16

1870

BR OA DW AY , LO OK IN

G NO RT

H FR OM L IB ER TY STREET

32-1873

BR OA

D STREE

T DU RI NG T HE P AN

LO OK IN

G UP W AL

D CE NT RA

L DE PO

T

64

1881

WA LL STREET

70

1884

BR OA

D STREE

T AB OU

T TH

E TI ME T HE M IL LS B UI LD

IN

G

WA

S ER EC TE

D

74

1885

LO OK IN

G UP B RO AD WA

Y AT RECTOR

W YO RK STOCK E XC HA NG

CO RN ER OF E XC HA NG

E P LA CE , DU RI NG T

HE

BL IZ ZA

L CO LU MN I

N T HE "

EV EN IN

G SU N,

"

DE

-CEMBER I OT

H

104

1888

FL OO

R O

F TH

E OL

D NE

W YO RK STOCK E XC HA NG

L SA GE A

T HI

S TI CK

ER

112

1891

LO OK IN

G U

P BR OA DW AY FROM L IB ER TY STREET

ii

8

1895

AR CA DE B UI LD IN

G, CO RN ER OF B RO AD WA

Y AN

D RECTO

R

STREET, WH ER

E J AY G OU LD H AD H IS OFFICES A ND W HE

RE

RU SS EL

L SA GE W AS D YN AM IT

ED

134

1898

BO WL IN

G GR EE

E IN W HI CH T HE K IN

G WA

S EN

-TH RO NE

D

146

1900

ED WA RD H HA RR IM

AN

158

1905

ED WA RD W AS SE RM

xii ILLUSTRATION

S

1507 JAME

S R KE EN

E A

T T HE RACES 17

0

1909 V IE

W O

F W AL

L STREB

T 17

6

1910 J

P MORGAN ,

HI

S SON , AN

D HI

S DAUGHTER ,

T BEFOR

E IT W EN

T UN DE

R COVE

R 7.0S

ij zo 's N EW Y OR

P

MORGAN & COMPANY'

S BU IL DI NG

K

STOCK EXCHANGE

K STOC

K EXCHANGE , SHOWIN

G

ENTRANCE TO T HE

EW B UI LD IN

L O

F T HE STOCK E X-

CHANGE 2.40

19x3 TH

E N EW Y OR

N

WAS COMPLETE

G J

P MORGAN'

S B UI LD IN

G AN

D

NE

W YO RK STOCK EXCHANGE

Z6X

19x5 JESS

E J LIVERMOR

K CUR

B MA RK ET , SHOWIN

G

TELEPHONE DESKS IN T HE REAR X7X

19x8 T HE N EW STOCK T IC KE

R WHIC

H W IL

L REPOR

T A L AR GE

R

NUMBER OF TRANSACTIONS

IN

A GI VE

N TI ME Z88

179X-19XX M ED AL LI ON SHOWING

T HE BUTTONWOOD

T RE

E

UNDER WHICH TRADING

BEGAN I

N LOWE

R W AL

L STREE

T

AND T HE COMPLETED

STOCK EXCHANGE

B UI LD IN

sat i

n dee

p thought

With bowed

head and weary

eyes, h

e filled page

after

page full o

f computations , onl

t hi

m

on the table, o

n th

e floor, were papers

e Stoc

k Exchange , Wal

l Street , railroads

,

great industries , th

e stoc

k market , o

b se

s se

d hi

s mind

s ha

d don

e it A long line

y shoul

d h

e

not find the

with his wonderfu

d capital , hi

s ow

n

small capital , growin

g lik

e a mountain A

t ear

n twenty , thirty

, fifty per cent

n h

e mus

t learn A

ll hi

s spar

e

time and thought mus

No amount o

e

would overcome ever

y obstacle

xiii

xiv FOREWORD

In his Httl

e room , fa

r int

o th

e night , th

Study, effort , patien

t endeavor , wit

WALL STREET

VENTURES AND ADVENTURES

TH RO UG

H FO RT

Y

YE

AR

S

1888 AT THE OPENI

NG

TH AT F IR ST JOB

A WA LL S TR EE

T

RU NN ER

A LI TT LE B RO KE RA GE

HOUSE

AN

D IT

S CL IE NT

e decided, afte

There wa

s a panic i

n Wall Street

y Gould, bea

r raide

r

and wrecker, wa

n margin, an

t career, I

r m

y openin

g bawl, whe

e pani

c wa

s over

* *

*

Graduating fro

m a Brooklyn

f m

y educatio

n wit

h a post-graduate

2

WALL STREET

course a

t thre

e dollar

s a week wit

h a firm tha

t neede

d a

n

office boy

But th

e fly in that ointmen

t wa

s a cousin wh

o wa

s mak-

ing fou

r dollar

s a week H

d tha

t a

t all, especiall

landed one

It i

s rathe

r a good ide

s I did Yo

r ic, 1888, foun

d m

e em-

,

delivering stock, certifyin

g checks, makin

f well-swu

m

muskrats

Of course, Nea

l wa

s doin

g everything H

of check

s together, amountin

r whid

i I was hel

d t

o

VENTURES AN

d t

o fee

l a real—if small—^par

How much finer

it wa

s t

o b

e a runner i

d i

t a

t all Monda

y

morning I plucked u

"You can hav

e it any wa

t twent

y dollar

s a month mad

e

five dollar

s a week Bu

t I was gla

The Mill

s Building, i

Broadway, som

e thirtee

n storie

s I'll have yo

l con

-4 WA

LL STREET

d o

n th

e floor below, L

& S Wormser

,

J & W Seligma

n &

Co., an

d Chas Hea

r Tras

k &

Co occupie

d a floor o

f th

e

Western Unio

n Building, a

t No 16, a narrow

-gan & Co.'s whit

e marbl

e offic

e building J

B Colgat

e &

Co an

d C L Hudson

& Co wer

e a

t 3

6 Wall

t No 7

k &

Dickerman were i

s th

e street I

n &

Co

and Jones, Kennet

, etc W

A visito

r t

o ou

r office, afte

r a slow two-floor elevato

e foun

d himsel

f i

n a three-by-six vestibul

e

VENTURES AND ADVENTURE

S 5

walled

by lo

w walnu

t partitions, i

e ther

e wer

e a high desk abou

t eigh

t fee

t

long, a tall safe, and, betwee

n th

e windows, a

e

porches, a double desk

, a water cooler

, a washstand, a

o wa

s suppose

d

to get ther

e a

t nine-thirty Unles

d an

d Parker, ha

d bee

n con

-neaed with the pre-Civi

Haven

institution Bot

h wer

e fine fellows; the

e watche

d th

e

tape wit

He used to trade in

t side Bu

n sellin

g i

n it

s 'teens I

always though

t

6 WA

LL STREET

of a

n eight

h wa

s a thrill an

d a quarter poin

t a sensation

Another specialt

y o

f th

e firm was "washing

" Buflfalo,

h would, i

n a day o

r two, sel

l the

m bac

k

to us Thi

s creat-

of tha

t stoc

k i

n a loan

somewhere an

d a desire t

o se

e a quotation

every Tuesda

y

and Thursday s

3 o

r No

s ticket, an

lanky individua

l wit

h a long, thi

n nose, an

d a habit o

e sloshe

d

around in stocks an

Then there wa

s Mr G , who

, i

f stil

l living, mus

t

be approachin

g on

e hundred H

e wa

s a bit parsimonious

His derb

y hat, originall

y black, wa

s clothe

s wer

e shabby, dusty

VENTURES AND ADVENTURES

7

ill-fitting, spotted, an

f India

n twine Hi

d hi

s

mouth would

then water til

l h

e almos

t drooled N

o on

e

knew how many o

Another clien

t wa

s Alber

t G Jetinings, th

d

old fellow

him once o

Tall, broad-shouldere

d Mr Crittenden, wh

d Incom

e Bond, a

t tha

t tim

e

worth $300, an

e wante

d a

million

8 WA

LL STREET

And now

These client

s amused, intereste

d an

d instructe

d me I'v

e

seen many, man

y thousand

s lik

e the

m since, bu

AN TI QU AT ED B UI LD IN GS R US SE LL

S

AG

E

BO MB ED F IR ST S TE EL B UI LD IN

G

VO LU ME O

F TR AD IN

G TO

Y BA NK

S—

JA

Y

GO UL

D AN

D HI

S TR IC

KS

r

p HOS E

who know only th

e floors and

ll dow

n throug

h Wall, Broa

d an

d

New streets, Broadwa

y an

d Exchang

e Place, t

e an

d William, thes

e low, ding

e wer

e a few slow-moving

o a

t a

time, th

e worn, hollow, woode

n steps, an

as Th

e Arcade, whic

an

d unde

r a threat demande

h ble

w hi

s ow

n hea

d off , an

the o ld m an across Broadwa

lO

WALL STREET

An old building a

t No 5

o wor

k i

n Wall Street I

t

was replace

d b

y a structure tha

r an

d par-

tition frames, nothin

ent-day skyscrapers I

placed b

y a thirty-five stor

y building

e show

n b

y financial reviews

published Januar

y i, 1889 Th

d th

e smallest, regula

r

session, o

f 36,00

0 shares I

n accoxm

t o

f

weather conditions, an

The Financial

Chronicle state

d that:

n White, Rus

p prospea

s wer

e no

t improving, gol

d

was goin

g out, an

n averag

e o

f a little ove

r 200,

-000 a day, o

r 70

0 share

s a minute Th

e year'

s ex

-treme fluauations on

WALL STREET

York Central, 103

; Ne

w Haven, 243

; Nicke

l Plate, 13

;

Norfolk & Western, 15

; Norther

n Pacific, 20

; Wabash, 12

e i

t ha

d

continued specie payment

tution

It ha

d a paid-up

capital o

f $300,00

0 an

d a sur-

plus o

f $5,000,000

The Firs

t Nationa

l wa

s a close second

000 surplus

; (mar

k this) undivide

$1,000,000 surplus an

d $1,014,00

0 undivide

d profits

h

$1,215,000 undivided

f a

s muc

h a

s a million

dollars i

n tha

t col-

e

had none Other

s Thomas, wa

d I was

VENTURES AN

s woul

d say: ""

d i

s a

t a meeting o

t him

" T

o th

e next: "Mr Goul

d i

s

in a conference an

d I think yo

e wa

s a small man

t i

n th

e rocker, "The

1890 LE AR NI NG T HE R UD IM EN

TS

FERRY VOYAGES

GE TT IN

G GRU

B

STATISTICAL START

B AR IN

G PANI

C

BUCKET SHOPS CONSOLIDATE

D E XC HA NG

year I began t

o ge

t a better ide

a o

f "Wal

l Stree

in Bedfor

d Avenue , Brooklyn

boat, fo

r example , wa

s patronize

d b

y th

e door-openin

delegation o

f bosses Bu

t anyon

e wh

o could boast o

f th

The Brookly

n Bridge , originall

y opene

d t

o "foo

t pas

dreamed o

f a second bridge

s office , I

10:00 A.M an

d 2:1

5 P.M Th

e first three an

d a half hour

messengers until , fo

r th

e las

t fifteen minutes, youth

s wer

ten dollar

s a week Man

m $

3 a week t

day fo

r th

e midda

y da

y I consulted m

There wa

s th

e old , short , plump , gray-bearde

d lunch

d a glass o

f milk

y nea

r Morri

each; five

of thes

e fitted perfectly unde

d tha

sandwiches an

d a piece o

n Ne

w Street, nex

-VENTURES AN

r sai

d t

o me: "Richard, i

e the

y run, wh

o i

s managin

g them, an

d al

l

about thei

r earnings, an

d s

o on Yo

pulled out th

h I have continue

d t

o a greater o

* *

*

The Barin

g panic, whic

h cam

e thi

s year, wa

-18

WALL STREET

vailing a

s I write, whe

n a change fro

m 5 to

6 pe

r cen

t

in the cal

of £3,000,-

d afte

r a continuation

there cam

e wha

t contemporar

y fijiancial publications de

M Whitne

y &

Co an

d Decker,

The Decke

r firm had

been aaive in stock o

old, famou

s hote

l i

n down-

town Brooklyn

on the wron

g sid

e o

f it." S

o h

e

opened a bucket shop

y year

s afterward Th

e Ne

w Yor

k Stoc

k Ex-

VENTURES AND ADVENTURES

s coul

d no

t last Nobod

y

wanted to trade whe

n th

e ticke

r wasn'

t ticking

'T

il tak

e fifty Erie a

n o

n fifty shares One-eight

u wer

e simpl

y bet

-2.0

WALL STREET

ting o

n th

e quotations, an

h on

e quarte

r o

f a point fo

r th

e kitty

u wer

e

generally a bad guesser

t is, anothe

r

two o

r fou

r points, an

r 34I4, a

s th

e cas

e migh

t be Takin

g smal

l

profits thus, an

d lettin

g you

r losse

s run, wa

t i

t is best

Clerks, messenge

r boys, brokers' runners

t i

t quickly N

where i

n th

e No 50'

f course, thes

y know

n a

s Exchang

e Alley, a

n a large roo

m o

n a floor abov

n additio

n to the statistics

P

Mor

-gan's office, an

d Haigh

t &

Freese's office, wit

f intens

e activity Th

o under

-WALL STREET

stand Procurin

g a copy, I

Originally i

t included, a

s members, Joh

n D Rockefeller,

H

H Rogers, an

n a market

that wasn'

t allowe

d t

o fluctuate, n

New York

Stock Exchang

e members, wit

h fe

w excep-

n a long

y o

r fifty share lot

s

VENTURES AN

e entranc

e a

t No 1

e

building; "Drexel, Morga

r stretche

d o

n th

e left, alon

g th

-road securities, know

n a

s Morga

n stocks, wer

t it

s fa

r end, agains

X4

WALL STREET

the Mill

s Building, behin

d window

s screene

d wit

h wire,

was th

e "Wal

l Stree

t throne, occupie

d a

s I beheld

e

telephone Ther

e wa

s a button

on the sid

e o

f th

e tele-

ding Do

c Hewitt, wh

y outsid

e

could telephone t

o us W

e ha

d n

o typewriter, bu

d

copied in

Investors an

d trader

s cam

e in, on

e a

t a time, usually

—

and very fe

w a day a

t that

; th

e first would

r o

n th

e lo

w radia-

t too

k bu

t a few customers t

o

fill th

e place

To get one'

s star

t i

n suc

h a small concer

n ha

d it

s ad-

vantages, however I

had before m

y operatio

n

which was carrie

tions I made

One da

y Mr Parke

tucked the wa

d i

n m

y

VENTURES AND ADVENTURES

c o

f m

y coat Jus

o who

m I said: "Say, I'v

took a chance o

more money, i

R AT S EV EN TE EN F IN AN CI

AL

LI TE RA TU RE B RO KE RS A DV IC

o b

e a runner an

d becam

e a combina-

tion cashier, bookkeepe

r an

d offic

e manager I

was seven-

s

salary wa

s $

5 a week Min

e wa

s $10

d hande

d

these t

o Mr Parke

r fo

r signature I

e monthl

y state-

ments t

o clients, an

During th

e year, Mr Parker'

s healt

h failed, an

parmer Thereafter, wit

h Mr Hazar

d o

n th

e Stoc

k Ex-

change floo

r al

l day, i

n additio

n to the previousl

y name

d

duties I was no

t the

m th

e informa-

quirements wer

e properl

y looke

d after Ever

p whic

h rea

d "R D Wyckof

would pay fo

r certificatio

n a

t th

e bank

All the whil

e I was tryin

g t

o ge

t a better ide

e public, wit

WALL STREET

containing any suggestion

as to how money

y int

o Flagg'

s ow

n scheme , whic

h wa

s base

d

on the fact tha

position and

and likely

to decline

All one ha

d t

o do , accordin

g t

o Flagg , wa

f on

e an

d a quarter point

s

(the quarter t

o cove

r commission ) i

to have mad

e a good deal o

f mone

y i

n

this manner , bu

t I always suspecte

t

any rate, wit

chance o

f learnin

g th

e game

In the next te

n year

s a meager amoun

t o

f instruaiv

e

literature began to ooze ou

h o

f i

t o

f a type containing

suggestions suc

h a

s this :

"When the market close

s stron

g afte

r a very weak day,

buy stocks a

tions—how heavy

ally said: "It'

VENTURES AND ADVENTURES

you want t

the way money

is now , an

d wit

h crop

s

looking pretty

good and railroad

* *

*

E XC HA NG

E FLOO

R

IN

MO NT RE AL B EA TI NG T HE B UC KE

d I found mysel

f ou

t o

f a job

Across th

e hall, o

, th

e firm

of L

a Montague,

Clarke &

Co wa

s doin

g a general brokerag

n an

d sa

w Smith, th

h sepa-

r a yearly fee

n th

e sout

h wall, bu

t

nearest Broa

d Street, wer

y ha

d a pneumatic tub

Close t

o m

y firm's telephone wa

s fo

r hi

s drol

l stories,

was a specialist there

e I could observ

e quit

e

JO

VENTURES AN

would often hea

r a

boy say: "Tha

t five thousand St

My firm consisted o

f Edwar

d L

a Montague, so

d E M Fulton, Jr

, heavy

-jawed, sportil

y dressed, an

s I will explain

3z WA

LL STREET

s

soon a

s I heard th

e first word

y finger would

press a

white butto

n alongsid

e it, whic

if h

e wa

s withi

n sight, I

would

bellow "E-e-e-yell" (E

o m

e wit

h th

e report, o

e

for a better job

H

e said: "W

"I'

ll tak

e it,"

I replied, "whe

n d

o I leave?"

t seeme

d a long wa

y fro

m home

Arriving a

t Bonaventur

e Station, Montreal

s Street Carpenter

I

n a little whil

e w

e wer

e

doing a fair business

VENTURES AN

D ADVENTURE

S 3

3

Charles R Hosmer, hea

n activ

e trader, i

n name

d

F J Lisman, wh

e t

o Ne

w York, Th

e operato

r i

n

New York ha

d a stock ticke

p wa

s aroun

d th

e corner On

r instance, i

n u

p t

o 113, the

r tw

praaice

I sa

w a chance t

o benefi

t b

y this I

t onc

e I was satisfie

d tha

t thi

with a friend t

of paper , tellin

C AN

D D EP RE SS

RS

HI

PS

OUT OF

A JO

B LI VI NG O

N TW

EN

TY

-FI VE C EN TS

A DA

Y A T UR

A SOUN

D

BUSINESS P RI NC IP LE T HE B RY

AN

PA NI

C BAC

K IN W AL

L ST RE

e firm's special parmer

, youn

n th

e stock Jus

t wha

t happene

d o

The marke

t bega

n t

o slump , wit

h Genera

l Eleari

36 WA

LL STREET

f November

The cours

h

had a deadly effe

r wit

h a number o

VENTURES AND ADVENTURES

37

soon after Erie

t t

o 81^

Northern Pacific,

s se

s se d

$10, wen

t t

o a low

price

of

2% Unio

n Pacific , a

s se

s se d

$15, reache

d a low

Montreal offic e

wouldn't b

e neede

d an

y more An

o ra

n a trucking

to the Jersey

City Annex

, catc

h th e

7:00 Durin

g tha

t winte r

d th

e dog , kep

t th

e books , hustle

d

around on the work that wa

s unde

r way , bu

t mos

t o

f

the time had to listen to the chatter o

f a lot o

60 cent

s

carfare an d

60 cent

s anne

x fare , leavin

The fellow who did most o

d German , ver

y thoroug

h a

t hi

s task H

e fre

-quently alluded

to his "invention.

-38 WA

LL STREET

out a horse." I

t ha

d a steam engine t

o mak

e i

t go, h

e said,

and a seat fo

r tw

o peopl

e o

n top, an

g m

e a newspaper clipping

, sai

d sadly:

n Paris,

w York

When, som

e month

s befor

e that, m

e da

y would

come

when they woul

r the

y coul

d

make a wagon ru

n b

y som

e simila

r fashion, h

e said:

"Why, Richard, you'r

y one I was a bookkeeper

for a commission broke

s methods, i

o sel

l butterine I

of $2

0 a week." S

o I blew into a place a

n abou

t five wooden step

s fro

m

the sidewalk, an

s nam

e wa

s

VENTURES AN

D ADVENTURE

S 3

9

E R Bathrick, h

d ou

t I went I

l o

f tw

o cents I borrowed thre

o wor

k u

p quit

e a trade i

f

which brough

t m

e a $20 commission

o a

s m

y field and o

Within

a fe

w days, i

n th

e Wind

y City, I had foun

had pai

d a month's rent

, $15

, fo

r

the office, an

d $

6 fo

r a week's roo

l excep

t th

e oil, whic

Then I began t

o advertis

e fo

r myself "Salesmen

! Bet

-ter tha

n a salary o

f

^Bathrick afterward

became a Senator i

n Ohio

40 WA

LL STREET

, feelin

g a lit-

tle lonely, I

s fro

m hom

e o

r friend, an

d n

o

place t

o borrow

d newspaper

s fo

r a mattress, a

bagful o

f newspaper

s fo

r a pillow, an

Down on South Clar

k Stree

t I could div

e int

o a cellar

for a

n egg, buckwhea

t serve

d a fifteen-cent dinne

s

on a food budge

t o

f $1.7

5 a week—with

no othe

r ex-

k bac

k

from Chicago afte

r freezin

g i

n a cold hal

l room, I

Here I found Wal

l Stree

t condition

s stil

l bad Th

t wa

s a question whethe

d

undertook advertising, solicitation

f thi

s year, I travele

e o

n th

e mai

n street H

d whe

n I was al

l through

,

said: "Youn

g man, i

d I went o

n m

y

way wit

h mine, bu

t als

o wit

h a bit o

Through a hundred an

d sixt

y town

s i

n Connecticut,

n easter

n Ne

w York, I

s

42 WA

LL STREET

g fo

r Wall Street an

d

every da

y I scanned th

a smal

l advertisement:

$15 pe

r week P

M &

Co., P.O Bo

Co wa

s Price, Mc

-Cormick &

Co

In five minute

s I was interviewin

g Theo-

dore

H Price, managin

told Pric

e I could fill the requirements

; under-

stood ever

y operatio

n i

n a brokerage oflfice

, her

e i

s a young ma

e years,

" I admitted

e

got t

o hav

e a man wh

y yo

u

within tw

o weeks, yo

"Better giv

e hi

m a trial, Herbert,

" sai

d Mr Price

, Nicke

l Plat

e 9 , Norther

n Pacifi

c 12

,

General Electri

c 20 , Canadia

n Pacifi

c 52 , Ne

w Yor

k Centra

l 88 , St

Pacific 14 , Souther

n Railwa

y Nationa

l Lea

d 16

VENTURES AN

n a

s a "wire" house

, Pittsburgh, Chicag

o

and othe

r Wester

n cities Som

s &

Co an

d Leland, Towl

e &

Co., i

n

Boston; Winthrop, Smit

h &

Co., i

n Philadelphia, an

Logan &

Bryan, Kennett, Harri

s &

Co., Bartlett, Frazie

After I had becom

y A

Taylor

,

the cashier, i

a nic

e chap, bu

e stoc

k clerk, wa

s a highly nervou

f a word H

44 WALL

A fe

w weeks ' experienc

d I began

to play

a gam

e o

f check -

ers wit

h a better jo

b a

s m

y objective

Richardson, ou

r auditor , though

t i

n hi

s resignation

tion, whic

h h

e did , an

d I was give

a month

My predecessors ha

g of

f an

d posting , I

had concluded

ference i

n th

e tria

l balance , onl

In the public

school I had attended

when

a boy—No

II , Brooklyn—Principa

l Lero

y F Lewi

e woul

d writ

e a rather lon

g

word on the board and tell al

s o as to make a piaure

made sure

my blotter wa

d

after I had posted

pare the two entries Thi

VENTURES AND ADVENTURES

45

every day, I frequently wa

d th

e assistant, an

k o

f tw

o men

e durin

g th

e

Hard Times

X:

9

|: *

1897 BROADENIN

G ACTIVITIE

S

EX PA ND IN

G BU SI NE SS E AT IN

G ST AT IS TI

CS

ON E- SH AR

E TR AD ES P RI CE

S FI

RM

DI AM ON

D JI

M BR AD

Y

W

HI LE

there wa

s a reaaion

y bulge, ther

e wa

s a tremendous reawak

-ening and resumption

of aaivit

y i

n conomerce, industry

,

transportation and banking

i

n th

e followin

g year News-

s

resuming work, employee

s bein

g take

n on Th

e busi-

ness o

f Price, McCormic

crease Ne

h out-of-

town firms, branc

h office

s wer

e started, mor

e peopl

e

employed

The firm opene

d a bond

department in charge o

f

Anthony

A Lisman, a

brother o

f F J Lisman Anthon

y

was stout, blon

y smar

t an

d

shrewd A money-maker

He began trading

d h

e kep

t in

e obtaine

d a book contain-

ing the classifie

d h

e would wish aloud that

it b

e

indexed

"Havin

g n

o assistant,

" he'

d say, "probabl

y I'l

for quit

e a

46

VENTURES AND ADVENTURE

Lisman was a jolly cha

g th

e othe

r men, s

n wit

h him On

Wi

ll

you please quot

e Grant'

s Tom

d o

f a stock i

t stoc

k i

s pa

r bid offered

tics I read

the financial pages o

f th

e newspapers, th

d operation, an

d rail

-road accounting On

by Thoma

s F Woodlock, the

48 WA

LL STREET

y interestin

g subjea, bu

Years afterward, Woodlock

, wh

o i

s no

w a member o

f

the Interstat

e Commerc

e Commission, tol

d m

e tha

t I

could have th

of

cigars I told him what a

For th

e nex

t severa

l years, I

share o

f m

y eve-

earning powe

r an

d financial position

of th

e leadin

g cor-

k

Exchange

The Commercial

and Financial Chronicle wa

t volum

e weighin

g

several pounds On

e da

y Mr Pric

"What's this, Wyckoffhe asked, placin

g a pudgy han

d

on top

of it

"That's a bound

volume o

f th

e Chronicle.

I'm not go-

ing t

o wor

k behin

d a desk al

l m

y life

"

"That's right, Wyckoff

, that'

s right,

" h

e said

t i

n a listed

s &

San Francisco common

, sellin

g a

t 4

f whic

h I figured that

e majorit

y woul

d mak

e good

VENTURES AND ADVENTURES

o th

e

apex o

f a bull marke

t an

d bac

k again

e Barin

g pani

c

of 1890, th

e industria

l an

d financial panic o

-negie wa

s stil

l saying: "Th

e th

e busines

s offered, bu

t whe

n depres

-sions came, a

f course, i

n instability, fo

d th

e firm expanded

k wa

s

of capital

The customers' roo

a tall, broad-shouldered, gray-haire

d fellow

; a fine,

genial, upstandin

g charaaer, whos

e watchwor

d was:

e a faaor i

H Johnson, a

f whit

e

shirt fronts, an

d hi

s necktie H

e gav

e lavis

h entertain-

o man

y that, t

o loo

k

after them, h

e employe

d a young secretary

e tha

t gal-

loped o

n hi

s tie, whil

VENTURES AN

D ADVENTURE

S 5

1

Bill Gallagher, wh

t bag "Wan

Diamond Ji

m wa

s als

o a famous epicurean

d wit

h

French dressing, a

t on

e sitting

Brady wa

s largel

y influentia

l in organizing th

e Presse

d

Steel Ca

r Company, i

* *

*