CHAPTER V

THE POWER OF DOLLARS

At no time in the history of the United States has the power of dollars been as great as now. Freedom and equity are controlled by dollars. The laws which should preserve and enforce all rights are made and enforced by dollars. It is possible to-day, with dollars, to "steer" the selection of the candidates of both the great parties for the highest office in our republic, that of President of the United States. It is possible to repeat the operation in the selection of candidates for the executive and legislative conduct and control of every State and municipality in the United States, and with a sufficient number of dollars to "steer" the doings of the law-makers and law-enforcers of the national, State, and municipal governments of the people, and to "steer" a sufficient proportion of the court decisions to make absolute any power created by such direction. It is all, broadly speaking, a matter of dollars practically to accomplish these things. I must not be misunderstood as even insinuating that there are not absolutely honest law-makers and law-enforcers, nor that there are not as many of them in proportion to the whole body as there were at the creation of our republic. I believe there is at the present time as large a percentage of honesty among Americans as ever there has been, but it is plainly evident to any student of the times that at no other period in the history of the United States has honesty been so completely "steered" by dishonesty as at this, the beginning of the twentieth century.

I shall go further and say that there to-day exists uncontrolled in the hands of a set of men a power to make dollars from nothing. That function of dollar-making which the people believe is vested in their Government alone and only exercised under the law for their benefit, is actually being secretly exercised on an enormous scale by a few private individuals for their own personal benefit. This, I am well aware, is a startling statement, but not more so than the facts which support it. Throughout the country we have all grown accustomed to the spectacle of men who, poor yesterday, to-day display more dollars than the kings and queens of olden times controlled. In flaunting this money these men proudly boast: "We made all this yesternight, and are going to multiply it five-or fifty-fold to-morrow night."

The fact that there must be in this country some secret method of gaining vast fortunes gradually dawned on the minds of the people. This method, they argued, must be outside the laws of the land which they themselves had made, and they were confronted with the fact that the possessors of these fabulous fortunes were creating a power not recognized by their Government and which practically placed the Government in the hands of the fortune-owners. They realized that in some way the magic of this fortune-making was connected with, or seemed to be compounded in, institutions called corporations and trusts, and that among these the head and centre was a great affair called "Standard Oil." Wherever this "Standard Oil" was, all knew that strange wonders were worked. Within the sphere of its influence dirt changed to gold, liquids to solids, and what was, was not, and what was not, was. Whoever became a part of this mysterious "Standard Oil," at the same time was rendered "powerful"; as though touched by a fairy's wand, he changed from pauper to millionaire. But what was "Standard Oil"? The people knew that at the beginning it was only an aggregation of men, private individuals, who had accumulated much money by securing a monopoly of selling oil, and that these men were "Rockefellers," and that Standard Oil and "Rockefellers" had been cute and cunning in the conduct of their oil-selling to a degree greater than had been rival sellers of oil or of other necessities. And as time wore on much more was heard of the cleverness of Standard Oil and "Rockefellers," as the victims of the cuteness and the cunning "hollered" in public places, and the newspapers and writers of books exclaimed against their practices and exactions. But many other things were happening simultaneously, and to the great bulk of the people it was interesting rather than portentous that there existed in the country a giant oil-thing whose owners were reputed the richest men in the world.

It was not until the beginning of the twentieth century that the monster "Standard Oil" loomed up before the people as the giant of all corporate things and that its ominous shadow seemed to dwarf all other institutions, public or private. In multitudinous forms it was before the people.

In awed whispers men talked of its mysterious doings and canvassed its extraordinary powers as though "Standard Oil" were a living, breathing entity rather than a mere business institution created by men and existing only by virtue of the laws of the land.

About the time that the world had begun mistily to take in the tremendous forces which radiated from "Standard Oil," there occurred a financial crash, and the people saw their savings, invested in what they supposed were the legal and absolute titles of ownership in the material things of their country, suddenly decline in value and contract to prices representing a loss to them of billions of dollars. Throughout the misery and suffering this terrible collapse occasioned, "Standard Oil" remained undisturbed as before and amid all the confusion kept sternly on its dollar-"making" way. Indeed, it seemed to gain in bulk as other institutions diminished or disappeared. Then it was that the people first began to demand, what they are still to-day fiercely demanding, "What is this 'Standard Oil'?" "What is its secret?" "Whence came it?" and, "Can our republic endure if it, too, endures?"

To-day "Standard Oil," the "Private Thing," is the greatest power in the land—more powerful than the people individually or as a whole, and its secret is the knowledge of the trick of finance by which dollars are "made" from nothing in unlimited quantities subject to no laws of man nor nature. The dollars that "Standard Oil" makes are of the same value as the dollars of the people as made by the Government, which dollars we know can be coined and put into circulation only in accordance with law and for the benefit of all the people.

For the better understanding of those readers not versed in the technical phrases of finance and economics I shall in my narrative make use of certain terms of my own which will convey meanings readily grasped when the sense in which they are used is once comprehended. In speaking of "Standard Oil," for instance, I will speak of it as a "Private Thing." By that term I desire to typify the active, private identity of a corporation which comprehends, but exists independently of, its legalized functions. Some corporations have a real personality in addition to that which their name and the corporation laws prescribe for them, an inherent power, or individuality, which exists above and apart from their physical functions as sellers of oil, of coal, or of ice. This may be an incarnation of the power developed in the transaction of their legalized occupations, but the "Private Thing" is uncontrolled by any of the restrictions by which the law defines and curbs the corporation whose name it bears. Already I have distinguished between "Standard Oil" which wields all the powers of its subsidiary companies, and Standard Oil, the seller of oil. In the same way we have "American Sugar Refineries" and "United States Steel," the "Private Things" which are not one whit better than nor different from "Standard Oil," the "Private Thing." Though this narrative will deal only with the "Private Things," Bay State Gas and Amalgamated Copper, I have no hesitancy in saying that the methods employed and the results, good or bad, which accrued in the case of any of the other "Private Things" with which the public have had to do, differ only in details from those with which I shall deal in my story.

In speaking of dollars brought into existence by the trick of finance I have referred to I shall call them henceforth "made dollars," to distinguish them from dollars coined by the Government and legitimately acquired by the individual or corporation. These "made dollars," it must be remembered, are really "made" for all purposes of use as surely as if they had the Government's stamp, yet they are not made in the sense of the known volume of the people's money being added to. So, however many of these "made dollars" are brought into existence by this trick of finance, only the men who "made" them can know and profit by their existence. The people are no wiser nor can they adjust themselves to the change of conditions brought about by the creation of all this new money; yet if "unmade" or lost, the entire volume of the nation's wealth would be contracted.

I can set before my readers better by an illustration than by any process of definition, the trick of finance by which "made dollars" are brought into existence. Let us suppose that the United States Government at Washington, the only power legally entitled to issue money for circulation among the people, puts forth a particular $10,000. All the conditions prescribed by law have been followed, and all the people in the country are benefited by the issue and circulation of this particular $10,000, each in the proportion the laws prescribe.

"B," a Western farmer, tills his soil and receives, by the sale of his wheat, the particular $10,000, which he then deposits in The Bank. The Bank, being a part of the Government machinery, only receives, holds, and uses the $10,000 under safeguards provided for by the laws of the land, so hereafter "B's" material life is conducted on the basis that he is the full and actual possessor of $10,000. He knows, further, that his $10,000 cannot be expanded nor contracted, nor its relation to any of the other money of the people which is in circulation altered without his knowledge, because he knows such changes cannot come about except through the Government. I say he knows this—he has every right to believe he knows it—but, in fact, it is not so, because of the working of the secret financial device of the Private Thing. At this stage enters "C," the Private Thing.

"C" purchases with $3,300 ("B's" money) which he borrows from The Bank, a copper-mine, depositing the title which he receives from the seller with The Bank as collateral for the $3,300. After purchasing he arbitrarily calls the copper-mine worth $10,000—arbitrarily because his act is not controlled nor regulated by any of the laws of the land—arbitrarily because the actual cost, $3,300, is his secret and his alone. Then, arbitrarily, "C" organizes his $3,300 of copper property into the Arbitrary Copper Company, and issues to himself a piece of paper, which he arbitrarily stamps "10,000 stock dollars." This he takes to The Bank, and by loan or other device exchanges it for the remaining $6,700 belonging to "B," and thereafter "C" conducts his affairs on the basis that he is the possessor of $6,700, his "made dollars" in the transaction. At this stage there is actually in use among the people $16,700 where "B," the legitimate factor, and his kind, the people, suppose there is but $10,000—$10,000 which is recorded, known and legal, being used by the legitimate factors, "B" and The Bank, and $6,700 which is unrecorded and unknown to any but "C" and The Bank, being used by the illegitimate Private Thing "C."

Right here is the secret device, the financial trick, by which the greatest power in the land has been created, and by which the people can be absolutely plundered of their savings for the benefit of the few.

At this stage the two-thirds of "B's" $10,000, of which he later is to be plundered, has not been actually taken away, so he cannot possibly have any evidence yet of the process of pillage which has been begun, or that the volume of money which he supposes is all that exists has been tremendously expanded. The next step is where "C" sells his $3,300, stamped "10,000 stock dollars" (which, as already shown, he has exchanged with The Bank for the $10,000 deposited by "B"), to "B" for $10,000, which $10,000 "B" withdraws from The Bank by simply making out a check in favor of "C." ("B's" inducement to exchange his dollars for the stock dollars of "C" is the high rate of interest that they will return in the form of dividends, which rate is much larger than The Bank can afford to pay.) "C" deposits "B's" check with The Bank and hereby liquidates his $10,000 indebtedness to The Bank.

At this stage "B" is still the possessor of $10,000, but it is "10,000 stock dollars." "C" is the possessor of $6,700, and "D," from whom the copper-mine was purchased, is the possessor of $3,300; but the two latter amounts make up the 10,000 real dollars, and The Bank remains where it was at the beginning of the transaction. The people, however, are no wiser; but they know, because they have been most carefully educated to such knowledge by "C's" agents, Wall Street, and the press, that their country is tremendously prosperous—that its great prosperity is evidenced by the $6,700 added wealth in the form of 6,700 new stock dollars. At the next stage the financial trick accomplished by the secret device is complete. "B," the farmer, who has contracted for new machinery and other necessities and luxuries to be paid for "next season," attempts next season to turn his 10,000 stock dollars into real dollars, and "C," the Private Thing, knowing their real value to be but $3,300, refuses to make the exchange, but instead, by proclaiming their real value, compels "B," who must have real dollars to meet his debts, to sell them for what "C," the Private Thing, is willing to pay. "C," the Private Thing, is willing to pay their worth, which he alone knows is $3,300; he repurchases them at that price from "B," that he may repeat the operation at the return of the next "wave of the country's prosperity."

By this operation "B," the farmer, has lost, as absolutely as though they had been taken away from him by a Government decree, $6,700 of his own making, and "C," the Private Thing, has "made," as absolutely as though the Government had allowed him to coin them for his own benefit, 6,700 real dollars, and The Bank, created, regulated, and controlled by law, and existing because of the people's deposits of money, has been the instrument by which "C," the Private Thing, has deprived "B," the farmer, of his savings, because "C," the Private Thing, is at one and the same time during the operation I have outlined, himself and The Bank.

A careful study of this illustration, by even laymen unacquainted with financial or corporation affairs, will clearly show that the foundation of this transaction was The Bank's putting in jeopardy $3,300 of "B's" deposited $10,000, and that if the $3,300, after being put in jeopardy, had been lost, "B" would have been the loser,[2] which, in turn, means that the compensation for the jeopardy in which the $3,300 was placed was the possibility of $6,700 profit; and that, therefore, the $6,700 profit when made should have gone to the owner of the $3,300, "B," instead of to "C," the user of it.

It is therefore in this sense that I shall use the term "made dollars"—wherever they are "made" or "unmade" through one set of men using the dollars of another set of men without that other set knowing that their dollars are being so used; and wherever the result of such use is that when dollars are "made," they are "made" by the ones who use others' money, and where dollars are "unmade," they are lost by the ones who own the dollars which they don't know are being used.

FOOTNOTES:

[2] I say "B" would have been the loser because all money lost by a bank must eventually be lost by the depositors, the people, or the surplus or capital of the bank which belongs to the people, through their ownership of the stock in the bank. Of course the loss of individual amounts such as $3,300 would not come directly on the people. But when the aggregate of the money put in jeopardy by the four classes of institutions I name—national banks, savings-banks, trusts, and insurance companies—runs into billions and is lost, the loss must fall on the people, because the only other ones involved are the managers and controllers of these institutions, who always see to it that when the losses which would wreck the bank are actually made, they, the managers and controllers, have no deposits and none of the stock.



CHAPTER VI

CONSTRUCTION OF "STANDARD OIL'S" "DOLLAR-MAKING" MILL

I believe "Standard Oil" was the first to utilize this secret device for circumventing the safeguards which the law has erected to protect the savings of the people. It was the first practically to apprehend that, a large proportion of all the moneys in circulation, which belong to the people or the Government, being in the custody of the national and savings-banks and trust and insurance companies, it would only be necessary for a set of men to obtain control of sufficient of the principal national and savings-banks and trust and insurance companies to control practically unlimited amounts of such funds. Once in control of these funds dollars could be absolutely "made" at will by the three following steps: 1st. Using the money in these institutions to acquire properties. 2d. Consolidating such properties on an inflated basis, and selling them to the people (who, in fact, already owned them; because they owned the funds with which they had been purchased); and, 3d, by stock-market trickery scaring their owners into re-selling them at an enormous shrinkage from the price they had paid. To understand a situation with "Standard Oil" is to act, and twenty years ago it began to weave a net to secure control of the four classes of institutions I have named.

Its first move was to establish a great corporation, the Standard Oil Company, and make its stock, 1,000,000 shares, sell at from $650 to $800 per share, or $650,000,000 to $800,000,000. It kept its affairs mysteriously secret, it paid enormous dividends, and from time to time it caused to be published broadcast throughout the world the statement that it was held in such value by its creators, the Rockefellers, Rogers, etc, that they continued to own all but a few shares of the entire capital. To prove that there could be no doubt of such continued ownership, the public's attention was repeatedly called to the fact that the Standard Oil Company was the only great corporation which did not allow its shares to be traded in upon any of the stock-exchanges. As a matter of fact, though they are not traded in on the regular stock-exchanges, they are actively bought and sold daily on the New York "Curb."

At the height of the recent financial storm word went round that the crafts of three over-night-made multimillionaires, men foremost in the seventh group of "Standard Oil" votaries, were in the trough of the financial sea and headed for the breakers, which were already strewn with the wrecks of the people's savings. Following closely on the heels of these stories came the astounding one that each of these enormously rich men had, in his endeavors to raise large amounts of cash, disclosed among his assets blocks of "Standard Oil" stock ranging from 5,000 to 20,000 shares each. Hardly had the public heard this before all financialdom knew that the storm-tossed crafts had received succor, and that the crisis had passed. For one brief day the financial press of the country printed the item: "Standard Oil came to the rescue by buying for cash large blocks of Standard Oil stock which had long been held by this or that interest for investment," and no more was thought of the incident. Even the most alert financiers never suspected that the most important stock secret of the age had been on the verge of becoming public property.

Planted deep in the minds of the public that watches the comings and goings of the Street is the conviction that Standard Oil is the holy of holies among stocks. The world has been taught to believe that the owners of Standard Oil regard the shares of the great oil corporation as their most precious, most sacred possessions. Yet while "Standard Oil" has been so scientifically spreading abroad the impression that the public would never be permitted to own Standard Oil stock, secretly it has been engaged in exchanging that stock for the securities of the people in the form of banks and trust companies, railroads, and other assets of definite value. So completely has "Standard Oil" pulled the wool over the eyes of the votaries of finance that there cannot be found in or out of Wall Street a single great financier who would not laugh to scorn the suggestion that "Standard Oil" is engaged in a campaign for the distribution of its Standard Oil stock to the public. Yet pin your great financier down to the facts, and he'll admit that he himself has quite a block of the stock, and that institutions of which he is a director include among their assets in one form or another good-sized parcels of the inestimable security. But so completely are these very wise men held by the spells woven over them when for this or that special reason they were allowed as a favor to acquire their holdings, and so impressively have they been shown that their ownership in Standard Oil stock must be kept secret, that no suspicion has ever entered their minds that they were playing the part of lambs in its purchase.

Nor was the episode I have described above allowed to disturb their serenity. It soon became known to the innermost circle of Wall Street that the stock the three men had resold to "Standard Oil" represented the share of each in some of the gigantic deals to which he had been a party during the last ten years, and that with its acquirement had gone a pledge that it would always be kept in the purchaser's "tin box," and whenever inspected by "Standard Oil" would be free from "pinholes." And so, adroitly, dangerous deductions were prevented.

For the uninstructed I may say that a capitalist's "tin box" is the receptacle for the stocks and bonds that largely represent his fortune, and pinholes in a stock certificate are in Wall Street conclusive evidence that such certificate has, at some period, temporarily passed into other's hands as collateral for loans, for there has been pinned to it a memorandum or note stating the details of the transaction in which its owner parted with it. Pinholed securities are looked upon by the upper crust of big financiers with much the same horror as that with which members of the American social upper crust look upon their No. 10 boots and gloves—reminders of their peasant ancestry.

But to return to "Standard Oil's" financial weavings: Their next move was to use Standard Oil stock as the basis for loans, that is, as collateral for money borrowed from the banks, trust and insurance companies, and treasuries of other great corporations and estates. The money thus acquired was paid out to purchase the control of banks and trust and insurance companies in all parts of the United States, the Standard Oil ownership being represented by dummy directors and officers.

The next move represents another of the dazzling devices of finance in which "Standard Oil" is adept, and brings the process of artificial expansion still further along. Control of a certain number of these savings and national banks and trust and insurance companies having been acquired, the funds of each were so manipulated by depositing those of one institution with another, and the latter's in turn with the first, as to swell the deposits of all and create in all of them an apparently legitimate basis for increases of capitalization. At the same time there was shown an apparently legitimate necessity for the establishment of additional banking and trust companies, which were duly organized and their assets juggled around by the same process. The result of all this manipulation defies description. Throughout the series of correlated institutions loans and deposits are multiplied in such an intricacy of duplication that only a few able experts, employed by the "System" because of their mathematical genius, are able to unravel the tangle to the extent of approximating the proportion the legitimate funds bear to those which have been created by the financial jugglery I have indicated.

When "Standard Oil" had gathered into its net sufficient of the important private institutions of finance there still remained the federal Government, the largest handler of money in the country. It was not hard for "Standard Oil" to introduce its expert votaries into the United States Treasury and thus to steer the millions of the nation into the banks subject to the "System's" control. This accomplished, the structure was complete and the process of "making" dollars proceeded on a magnificent scale.

That there may be no possible doubt in the minds of those of my readers who are unacquainted with such matters that I am citing every-day, actual happenings, I will tell just how the Daly-Haggin-Tevis-Anaconda-Amalgamated transaction was worked out, showing that but for the existence of the National City Bank of New York, or a like institution of the people, it could not have been brought about.

When Mr. Rogers and William Rockefeller "traded" with Messrs. Daly, Haggin, and Tevis for the Anaconda stock, and with others for like stock or other properties which I have already named, the price agreed upon was $24,000,000 to Daly, Haggin, and Tevis, and $15,000,000 to the others, or $39,000,000 in all. This was to be paid by "Standard Oil" and received by Daly, Haggin, and Tevis, and the others, but one of the stipulations in the "trade" was that instead of the money's being paid to Daly, Haggin, and Tevis, and others direct, it was to be credited to them on the books of the National City Bank of New York and was to be, by agreement, not withdrawn from the bank before a given time, the bank agreeing that the new owners of this money should receive interest at a low rate upon it while it so remained deposited. At the same time the bank agreed to loan Mr. Rogers and William Rockefeller the $39,000,000 at the same rate of interest upon the collateral which the $39,000,000 was used in purchasing. Therefore the first part of the transaction was as follows:

The bank, having $39,000,000 on hand belonging to the public in the form of savings deposited, or having a fictitious $39,000,000 in the form of book-keeping accounts made possible by the deposits of the public and the manipulation of the funds in other banks and trust and insurance companies belonging to the public or the Government, caused an entry to be made in its books showing that this $39,000,000 had been loaned to Mr. Rogers and William Rockefeller, and that they, having transferred it to Daly, Haggin, Tevis, and others, were, upon the books of the bank, the real owners.

The second part was the summoning into the City Bank of certain "Standard Oil" lawyers, office-boys, and clerks, and the organization by them of the Amalgamated Copper Company. The lawyers drew up the papers and the office-boys and clerks signed them. First, the papers certified that "whereas we (the office-boys and clerks) are desirous of taking advantage of the corporation laws of the State of New Jersey, we (the said office-boys and clerks) do so take advantage of the said laws and form ourselves into the Amalgamated Copper Company, which will have a capital of $75,000,000, and which will be allowed by said laws to own copper-mines and other things, to mine copper and other things, to manufacture, buy, sell, and trade in copper and other things, and to do numerous and variegated other things; and that whereas we (the said office-boys and clerks) have now become the Amalgamated Copper Company, one of our number will purchase the entire capital stock of the said Amalgamated Copper Company for $75,000,000 cash, which $75,000,000 cash we herewith certify to have been paid in the form of a check for $75,000,000, herewith delivered to the treasurer, one of our number, by the clerk who drew it; and the treasurer, herewith certifying that he has received the $75,000,000, herewith delivers unto said clerk the $75,000,000 capital stock of the Amalgamated Copper Company, and we (the said office-boys and clerks) herewith certify that there is within the treasury of the Amalgamated Copper Company $75,000,000, and we (the said office-boys and clerks) vote that it, the said $75,000,000, shall be used in the purchase of certain stocks and properties, and said certain stocks and properties shall be the same stocks and properties previously purchased by Mr. Rogers and William Rockefeller, and now owned by them, and we (the said office-boys and clerks) herewith certify that we have paid from the treasury $75,000,000, that said $75,000,000 is in the form of a check, and said check is the one previously received, or its equivalent, by our treasurer, from one of our number, to wit, the clerk referred to earlier in these papers, and said $75,000,000 has been paid to Henry H. Rogers for his and William Rockefeller's use." Henry H. Rogers, now having $75,000,000, where formerly he had stocks and properties which had cost him $39,000,000, and being desirous of investing it, purchased from the clerk the $75,000,000 of Amalgamated stock which he, the clerk, had previously purchased from the treasury of the Amalgamated Company, Mr. Rogers promptly paying for said purchase with the $75,000,000 check or its equivalent, which has already done such yeoman service.

The organization of the Amalgamated Copper Company of New Jersey now being complete, and the company being in possession of all the property which had formerly belonged to Mr. Rogers and William Rockefeller, and which had cost them $39,000,000, and the clerk having again come into possession of his $75,000,000 check, and Mr. Rogers and William Rockefeller being the sole owners of the $75,000,000 of Amalgamated stock, the second part of this transaction was completed. The third began by the office-boys and clerks resigning from their positions as directors and officers of the Amalgamated Copper Company of New Jersey in favor of the more responsible and better known "Standard Oil" votaries. Mr. Rogers and William Rockefeller then had the National City Bank of New York offer for sale to the public the $75,000,000 of stock in such a way that, although it was then the private property of Mr. Rogers and William Rockefeller, the public were led to believe it was the property of the Amalgamated Copper Company. Simultaneously, the National City Bank of New York offered to loan the public its deposits at the rate of ninety cents on the dollar, on any amount of the Amalgamated stock it, the public, purchased; whereupon the public, taking advantage of this offer, agreed to purchase from the National City Bank of New York the $75,000,000 of stock for $75,000,000, thereby enabling it to certify upon its books that the $39,000,000 it had loaned to Messrs. Rogers and Rockefeller had been repaid, and enabling Mr. Rogers and William Rockefeller, after paying said debts to the National City Bank of New York, to become the absolute owners of $36,000,000 of money, none of which they had owned before, and which they had "made" as absolutely as though they had coined it by permit from the Government of the people who had parted with it.[3]

The fourth part of the transaction began when months afterward the public, who had borrowed their money from the National City Bank of New York and other banks and trust and insurance companies to buy Amalgamated stock at 100 cents on the dollar, were compelled to repay it, and to do so were obliged to sell the Amalgamated stock which they had purchased at $100 per share for the best price they could get, which was $33 per share; and if we suppose for a moment that the "Standard Oil," after repurchasing it at $33 per share, at a later day repeated the operation of selling it for $100 per share, it will be seen that "Standard Oil," the "Private Thing," would thereby "make" an additional $50,000,000, as absolutely as though they had been allowed by the Government to coin it.[4]

This explanation is not the creation of an extravagant fancy. It is not romance, but reality. The thing described was a supreme manifestation of the "System," of the perfect working of that tremendous financial machine which reaps, grinds, and harvests for its own benefit, the earned savings of the American people.

In showing how these thirty-six millions were made in the brief space of this creature's (Amalgamated Copper's) life, I deal with reality and not romance; but let my readers for a moment give their imaginations play and picture to themselves one scene in this stupendous drama. A great room in the greatest banking house in America, if not in the world—silent, solemn—an atmosphere of impregnable rectitude—the solid furniture, the heavy carpets, the chill high walls, the massive desks, the impressive chairs, the great majestic table portentously suggestive of power. Presto! the dim calm is broken; the air vibrates as when an ancient church is invaded by a swarm of vampire-bats. Into the great room enter a group of men and a flock of youths, who settle in the impressive chairs round the majestic table. You wonder what is the motive of the assemblage. These grave lawyers, whose names are weighty in the nation's councils, and these gray-haired, dignified financiers might well be gathered to arbitrate a dispute involving empires; but why these office-boys and clerks, with their restless, surprised eyes and uneasy gestures? The flourishing of papers, the murmuring of voices in a confusion of "seventy-five million," "we buy," "we sell," "we are," "we will"—words, nothing but words; then silence as one reads from a stiff parchment certain resolutions which the suave gentleman with incisive steel-clicking manners, at the head of the table, puts to a vote. Then these youths, whose souls are afire with the hope of a director's $5 gold fee, timidly sign the record, trembling the while lest a blot call down on them a scolding; a head clerk, whose fondest dream is a raise of salary as the result of coming under the Master's eye in a seventy-five-million-dollar deal, affixes a seal, and there is an exchanging of thin slips of paper—checks—dollars—magically "made dollars." Exit office-boys and lawyers.

The door closes—silence again. Then the air vibrates with the sound of a hearty hand-slap and the genial, whole-souled greeting of the "Master" to his partner. "William, I feel as though I had done an honest day's labor! Thirty-six million dollars 'made' and no hitch, no delay!" Then follows the partner's mild answer: "Yes, Harry, but don't forget James' and the others' shares will shrink it up quite a bit."

Thirty-six million dollars for one honest day's labor! Thirty-six million dollars—and Alaska cost us but seven millions and Spain relinquished to us her claims on the Philippines for only twenty millions. Thirty-six million dollars!—more than a hundred times as much as George Washington, Thomas Jefferson, and "Abe" Lincoln together secured for the patriotic labors of their lifetimes. And this vast sum was taken from the people to enrich men whose coffers were already, as the results of similar operations, so full of dollars that neither they nor their children, nor their children's children could count them—as the people count their savings, a dollar at a time—as thoughtlessly taken as are the apples that the school-boy steals after he has eaten so many that he can eat no more.

A thousand times have I tried to figure out in my mind what worlds of misery such a sum of millions might allay if issued by a government and intelligently distributed among a people—and do my readers know that never in the world's recorded history has any nation felt itself rich enough to devote thirty-six millions to the cause of charity—even in the midst of the most awful calamities of fire, flood, war, or pestilence? On the other hand, I have had to know about the horrors, the misfortunes, the earthly hell, which were the awful consequences of the appropriation of this vast amount. I have had to know about the convicts, the suicides, the broken hearts, the starvation and wretchedness, the ruined bodies and lost souls which strewed the fields of the "System's" harvest.

Pondering all these things, I have ceased to wonder at the deep murmurs of discontent that are rising, rising to my ears from all parts of the continent.

Can it be that a just God suffers the sons and daughters of some of us to eke out a bare existence as the best reward of earnest effort and sterling worth, and at the same time rewards these other men with $36,000,000 for one day's labor? Is this the freedom which our fathers and our sons died on many a bloody, hard-fought field to preserve? I am conscious of a haunting fear that these men and women may not always be patient, may not always be put off with skilled evasion or slippery subterfuge, and for one brief moment I see visions of a marching people, bearing aloft grisly heads on gory poles, and hear above the low, bestial murmur of the mob the cry for bread and for revenge.

And then I remember that this is America, not France; that our laws are strong—if but the people are aroused to see them obeyed; that our prisons are ample, even though they be for the present filled with petty rascals who can do but little harm though turned loose to make room for the real scoundrels who are undermining the foundations of our Republic.

FOOTNOTES:

[3] It must be remembered that the Amalgamated Company never owned all the capital stock of the Anaconda, but, on the contrary, only a few shares over 600,000, which represented the ownership of the Haggin-Tevis-Daly people, and which they had turned in for a lump sum before the market price had advanced. The control of the Parrott, owned by the Amalgamated Company, was purchased for a lump amount from Franklin Farrell and his associates for the sum of $4,000,000-odd, not $12,190,000. The Colorado Smelting and Mining Company was also purchased in a lumped batch of Senator Wolcott, not at $7,000,000, but for $2,000,000-odd, while the tremendous advance in the price of Anaconda in the market from 30 to 70 was due to the operations of Messrs. Rogers and Rockefeller for their private account, out of which they made a large additional profit.

There can be no possibility of mistake or successful misrepresentation of these figures: first, because the Anaconda figures are known not only to Mr. Rogers, William Rockefeller, and myself, but to J. B. Haggin, and to the estates of Tevis and Marcus Daly; the Colorado figures, to associates of Senator Wolcott and to his estate; and the Parrott figures, to Mr. Farrell who received the money, and to a large number of those to whom he had to account; and, further, these figures will all be demonstrated in open court in suits outside of any with which I have to do, which are now being brought or are pending.

[4] As a matter of fact, the people lost even more than thirty-six millions of dollars on this part of the Amalgamated transaction, because "Standard Oil" did not sell all the 750,000 shares at $100 per share ($75,000,000) at that time. They retained two-thirds of them, which at a later date they fed out to the public at $115 per share, and at a still later date they took them back at $33 per share.



CHAPTER VII

JUGGLING WITH MILLIONS OF THE PEOPLE'S MONEY

For the purposes of the transaction I have just described the machinery of a great bank or trust company was essential. The vast profit gained here was absolutely "made" through the instrumentality of the National City Bank of New York, but some other tractable institution would have been equally efficient. In order that my readers may focus such great financial concerns as this National City Bank, I give right here brief resumes of its career and resources and of those of two of its affiliated institutions:

NATIONAL CITY BANK New York City

JAMES STILLMAN, President.

The "City Bank" was chartered by the New York Legislature in 1812, and reorganized as a National Bank July 17, 1865. The capital paid in was $1,000,000. Moses Taylor held the office of president for thirty-four years, and died in 1892, when Percy R. Pyne, son-in-law of Moses Taylor, was elected president and held office until the election of James Stillman, of Woodward & Stillman, cotton merchants, when the capital stock of the bank was increased to $10,000,000, and again increased to $25,000,000. The sworn report of the officers and directors filed with the Controller of the Currency shows that the condition of the bank, January, 1904, was:

RESOURCES

Loans and discounts $114,507,919.20 Overdrafts secured and unsecured 162.90 United States bonds to secure circulation 3,220,000.00 United States bonds to secure United States deposits 12,937,000.00 United States bonds on hand 60,120.00 United States bond account 4,450,000.00 Premiums on United States bonds 1,354,013.00 Stocks, securities, etc. 16,709,241.62 Banking-house furniture and fixtures 200,000.00 Due from national banks (not reserve agents) 4,727,461.12 Due from State banks and bankers 644,288.80 Exchange for clearing-house 31,000,935.34 Checks and other cash items 798,843.22 Notes of other national banks 209,015.00 Fractional paper currency, nickels, and cents 684.63 Lawful money reserve in bank, viz.: Specie $36,928,350.00 Legal tender notes 7,100,000.00 44,028,350.00 Redemption fund with U. S. Treasurer (5% of circulation) 161,000.00 Due from U. S. Treasurer other than 5% redemption fund 204,105.95

Total $235,213,140.78

LIABILITIES

Capital stock paid in $25,000,000.00 Surplus fund 8,900,000.00 Undivided profits, less expenses and taxes paid 8,503,038.26 National bank notes outstanding 3,180,000.00 Due to other national banks $36,469,683.95 Due to State banks and bankers 5,903,473.87 Due to trust companies and savings-banks 29,210,461.00 Provident reserve fund 30,000.00 Dividends unpaid 519.00 Individual deposits subject to check 82,576,884.06 Demand certificates of deposit 43,790.00 Certified checks 10,752,671.01 Cashier's checks outstanding 7,631,619.78 United States deposits 12,937,000.00— 185,556,102.67 United States bonds 4,155,000.00

Total $235,213,140.78

THE NEW YORK LIFE INSURANCE COMPANY

The company was incorporated by special act of the New York Legislature in 1841. It is the third largest insurance company in the United States. The assets of the company January 1, 1892, were $125,947,290, and income $31,854,194. In 1904 the assets were $352,652,048; income, $88,269,531.

THE NATIONAL SHAWMUT BANK, OF BOSTON

This institution was incorporated in 1898 with a paid-in capital of $3,000,000. In 1904 its total resources, also liabilities, were $63,471,639, of the same general character as those of the National City Bank of New York.

A calm examination of these figures, illuminated by the explanation of the "System's" methods I have previously given, will awaken the American people to a comprehension of what use "high finance" makes of the savings of the public intrusted to it for legitimate investment.

Nor must it be supposed for one minute that the insurance company and the Boston bank which I have used for illustrations differ in any way from scores and scores of their kind which are as absolutely "steered" in their operations by the National City Bank of New York as the National City Bank of New York is absolutely "steered" by its president, James Stillman, or as James Stillman is absolutely "steered" by "Standard Oil," the Private Thing, or as "Standard Oil," the Private Thing, is absolutely "steered" by its supreme heads, Henry H. Rogers, William Rockefeller, and John D. Rockefeller. And if any doubt remains in the minds of my readers of the absolute power of "Standard Oil," the Private Thing, to "make" dollars at will, or of the dead-sure working of their "heads-I-win-and-tails-you-lose" gambling game, I ask them carefully to analyze the above statements in connection with the facts in the Amalgamated transaction which just precede them.

Fourteen years ago the National City Bank passed out of the legitimate management of old-fashioned business men of the Moses Taylor stamp and into the hands of the "System," the Private Thing. Then its capital was $1,000,000; it is to-day $25,000,000, and after having paid out millions in dividends and other profits it has, in addition, a surplus of $16,000,000, and it has the absolute power to juggle with a total of $235,000,000, $36,000,000 of which belong to other national banks, $6,000,000 to State banks and bankers, $29,000,000 to trust companies and savings-banks, $82,000,000 to individual depositors, $10,000,000 to the holders of certified checks, $7,000,000 to the holders of cashiers' checks, $13,000,000 to the Government directly, and $4,000,000 in Government bonds, to say nothing of scores of hundreds of millions more through its affiliated institutions. And all this juggling is done in such a fearless manner that we find it in the Amalgamated deal loaning in one transaction an amount so great that if it had been lost, the bank's entire capital would have been more than completely wiped out. That my readers may not base their conclusions upon this one transaction of this mighty engine of the "System," vicious as it shows on the surface and destructive as it really was to the thousands who were parties to it, I will later in this story show the National City Bank in another section of the Amalgamated deal, doing things which in intention and in result were so much bolder and grosser that this transaction will by comparison appear pure and legitimate.

During the past thirty years the American people have become so used to enormous figures in connection with corporations and trusts that they have not stopped to discriminate between different classes of fortunes nor to figure out that fortunes of certain kinds are absolute self-evidence that they were acquired by illegal methods, and that if allowed to multiply the people will surely be enslaved and the republic destroyed. For instance, there are in New York City alone dozens of national and savings-banks and insurance and trust companies which control money enough to make them practically omnipotent in whatever direction their controllers exert their power. I will name but seven, showing what enormous amounts their managers control; and let it be borne in mind that all such institutions are linked together by the "System" as firmly and surely as any human things can be linked. The Equitable, Mutual, and New York Life Insurance companies have a combined capital of $1,200,000,000 of assets, a yearly income of $230,000,000, and $4,500,000,000 of insurance in force; the National City Bank, United States Trust, Mercantile Trust, and Union Trust companies $30,000,000 capital, and $45,000,000 surplus, and they have the vast sum of $450,000,000 of the people's money to juggle with.



CHAPTER VIII

"STANDARD OIL" INVESTS "MADE DOLLARS" IN GAS

And now I shall have to go back a bit in my story. After "Standard Oil" had firmly established, through the agency of the curb,[5] the value of the 1,000,000 shares of Standard Oil, the corporation seller of oil, at between $600,000,000 and $800,000,000, and had used it as collateral in securing control of the four classes of money institutions I have named—the national and savings-banks and trust and insurance companies—it proceeded to use the funds thus controlled to manipulate the stocks of great public corporations for its own profit, forming them into trusts with capitals far beyond their values, represented by new stocks and bonds, which it sold to the public at prices aggregating a hundred to five hundred per cent. over the old capitalization. It then engaged in a wonderfully clever campaign to work off on the people—directly, the very rich people, but indirectly, the people as a whole—through institutions which exist because of the people's savings—the $600,000,000 to $800,000,000 of Standard Oil stock which had at this stage served the principal use for which it had been created. It must be borne in mind that while "Standard Oil" is grinding out "made dollars," its owners never for an instant lose sight of that dim, distant day of reckoning when the people will awaken to their losses. The "Rogerses" and the "Rockefellers" know well that the public cannot always be kept in ignorance of the methods of the "System" by which it has been plundered, and that once it is in possession of the secret of how the savings of the many have become the property of the few, there may be reprisals of such a nature as will compel the "System" to yield up its gains. They know that when that day comes it will not be best for them to have their enormous fortunes in such get-at-able property as real estate, in which so many of the legitimately acquired American fortunes are invested. In a quiet way, therefore, they have put the bulk of their "made dollars" into unrecorded forms, such as Government bonds; bonds and preferred stocks of what they consider non-duplicatable franchise corporations such as railroads, which require rights of way; into municipal public service enterprises, such as gas companies, the existence of which depends upon rights of way for pipes; and into the stocks of banks and trust and insurance companies, which they believe the people will never dare attack because their savings are largely deposited in them.

I would not have my readers think that the principal motive actuating "Standard Oil" in parting with its Standard Oil stock is doubt of its present intrinsic worth, for such is not the case. The masters of "Standard Oil" are very able, far-seeing men, and they know that so thoroughly have the American people been educated to the crimes which created Standard Oil, the crimes by which it has existed and does exist, that no passage of time or "pious-ing" of latter-day methods, will ever blind them to its iniquities, and that when reprisal day comes, as come it surely will, the first thing the people in their frenzy will look for will be Standard Oil. This is the reason which, more than any other, influences them in selling to others an enterprise which has up to the present time not only enjoyed tremendous prosperity, but which has as yet met with no obstacle or hindrance.

Of all forms of tangible investment "Standard Oil" has looked most favorably upon gas stocks, and its secret devices have been worked overtime in consolidating gas companies throughout the United States. In a general way, as manufacturers of illuminating oil, "Standard Oil" had early become familiar with the problems of supplying large communities—cities—with gas light; and with the advent of water-gas, as sellers of petroleum they controlled an important factor in the production of that volatile commodity. All the talent of the "System," trained in "handling" municipal authorities, came into play in this big new business of lighting cities—a business which perforce became a monopoly as soon as the powerful tentacles grasping it were recognized as "Standard Oil."

At the time my story opens (1894) "Standard Oil" had already captured the gas-lighting corporations of certain of the great cities of the United States, including the immensely rich ones of New York (directly), Philadelphia and Chicago (indirectly); and for two years previously had been besieging the several independent Brooklyn companies for the purpose of consolidating them into a single gigantic corporation. This project it has since accomplished. Its intention is to weld this corporation with the great one that already holds the monopoly of Manhattan.

The task of diagramming a territory for invasion is one after Henry H. Rogers' own heart. His campaigns are planned with Napoleonic power and foresight. When the capture of Brooklyn was decided on, the several corporations to be subdued were "sized up" as to their revenues and liabilities; the resources of their stockholders were studied out, and a plan of action organized to separate each one from his shares at "hard-pan" prices. In the "Standard Oil" armory there are many instruments of "persuasion," and he is indeed a hardy fellow who can resist the various "trying-out" processes to which mutineers are subjected. This obstinate capitalist will be summarily knocked on the head; that other inveigled into a dark corner by a strong-arm man; another group owe money to one of the "System's" banks and a brief spell on the financial rack will weaken their grip. Sooner or later all succumb. While such details as these were being attended to, lines were being strung here and there to bring about the passage by the city of Brooklyn and the Legislature of New York State of ordinances and laws which should allow this and compel that to be done, and so rivet the various links of the great venture.

While in the midst of this campaign, to which Henry H. Rogers' genius, matured in many a hard-fought business battle, foresaw an early and easy triumphal termination, there came athwart his victorious path a financial guerilla, "balloony," mysterious, yet as sticky as a jelly-fish, who was destined to exert a most maleficent influence on his after-life. Fate hangs no red lights at the cross-roads of a man's career. No "pricking of his thumbs," no strange portents warned the Master of "Standard Oil" that the impudent Philadelphia swashbuckler who dared interfere with the execution of his plan to fetter the "System's" yoke to the necks of the citizens of Brooklyn was the factor that destiny had chosen to shape the ends that he had rough-hewn.

The financial guerilla was J. Edward O'Sullivan Addicks, votary of rotten finance, perpetual candidate for the United States Senate, wholesale debaucher of American citizenship and all-round corrupter of men—J. Edward O'Sullivan Addicks, a corporation political trickster, who has done more to hold up American laws, American elective franchises, and American corporations to the scorn of the civilized world than any other man of this or any previous age.

FOOTNOTES:

[5] The New York "curb" is the latest invention in finance, coming closely upon the heels of the invention of trusts, and it holds the same relation to the New York Stock Exchange that Private Things hold to corporations. Before a stock can be bought and sold on the New York Stock Exchange, there must be submitted to the governors a description of what the stock is, which must be of such tangibility that any one who cares to investigate may find there every detail and particular of the property represented, set forth with the utmost exactitude. But on the "curb" stocks can be traded in without responsible sponsors or descriptions that mean anything. In other words, a stock may be bought and sold there, which is so vague and indefinite as to be little more than a name, and it is through the "curb" that the value of "Standard Oil" stock is established, for it is daily bought and sold there at the steadily held prices of 650 to 800, and the press of the world makes daily record of these prices.



CHAPTER IX

A VOTARY OF THE "SYSTEM"

The "System" has all sorts of votaries. About J. Edward O'Sullivan Addicks there is nothing that remotely suggests coworkers of the types of Mr. Rogers and William Rockefeller. A description that left him in any part a duplicate of either would do him and them a grievous wrong. Henry H. Rogers and William Rockefeller have two sides, their social side and their business side. Socially, they are good men; in business they work evil. J. Edward O'Sullivan Addicks is a bad man, socially, in business, in every way. The term "bad man" is used advisedly. My idea of a "bad man" is that like a bad dollar he is a counterfeit. A counterfeit has all the appearances of reality, and is yet devoid of its properties and virtues. So with Addicks. It is easy to find men who will declare by all that is sacred that Henry H. Rogers is one of the best fellows in the world, though as many more will as earnestly proclaim him the fiend incarnate. About Addicks, among those who know the man, there is but one opinion. I have yet to meet the man, woman, or child who would say aught of Addicks, after a month's acquaintance, other than, "Don't mention him! He is the limit." And it will be said with the calm of dispassionate conviction, as one might speak of a stuffed tiger in a dime-museum jungle.

Here we have a man without a heart, without a soul, and, I believe, absolutely without conscience—the type of man who even his associates feel is likely to bring in after their deaths queer bills against their estates as an offset for what he owes them; the type of man whose promise is just as good as his bond, and whose bond is so near his promise as to make it absolutely immaterial to him which you take.

Exhibited in the side show of one of the great circuses some years ago was a strange creature which, for lack of a better name, its owner and the public dubbed, "A What Is It?" This freak had the semblance of humanity, and yet was not human. All its functions and feelings reversed the normal. Tickle it and it would cry bitterly; pinch or torture it and it would grin rapturously; when starved it repelled food, and when overfed it was ravenous for more. It had heart-beats but no heart. The public gave it up. The public would long ago have given up J. Edward O'Sullivan Addicks if he would have let them.

Illustration is better than explanation, and perhaps I can more graphically set J. Edward O'Sullivan Addicks before my readers by a few incidents which show his contradictory characteristics in action than by verbal diagrams, however laborious.

Once upon a time Addicks, entering Delmonico's for dinner, stumbled on a couple of newsboys at the entrance. One, broken-hearted, was being consoled by the other. Addicks, observing the deep sobs, asked: "What's the matter with you, bub?" The consoler explained that his chum had lost $2, his day's earnings and capital, and "His mudder—his fadder's dead—an' de baby'll git trun outter de tenement." Addicks, without more ado, slipped the suffering young news-merchant a bill which his friends supposed was $2 to replace the lost funds. As they were taking off their coats in the hall, however, the little newsboy pushed his way in with: "Say, boss, did yer mean ter guv me de twenty?" Addicks nodded a good-natured assent, and his friends registered silently a white mark to his score, and felt that, after all, somewhere beneath the surface he was more of the right sort than they had given him credit for being. After dinner, as they left, the newsboy again approached. "'Scuse me, boss, but me chum 'd like ter t'ank yer too. I'm goin' ter give him a V outter it." Addicks looked at the boy in his mildly cold way and said: "Let me have that bill. I will change it for you." The boy gave it up, and Addicks, after methodically placing it in his purse, handed him back a $2 bill with: "That's what you lost, isn't it? And you" (to the second little fellow, who by this time had mapped out visions of new duds for the kids and a warm seat in the gallery of a Bowery theatre), "you didn't lose anything, did you? Well, both of you run along now!"

His friends looked at each other, and from their slates wiped away the white mark and replaced it with a deep, broad, black one. And yet Addicks had made good the loss—done a good deed, but in an—Addicks way. I should perhaps remark that J. Edward O'Sullivan Addicks has never smoked, nor used a swear-word, nor taken liquor in any form.

During the Addicks gas campaign in Boston one of his lieutenants demanded as his share of the deal a large amount of money, which he claimed Addicks was withholding from him. Addicks refused to pay. Friends and associates urged him to settle. While yet refusing, he agreed to meet this man at one of the leading hotels in the presence of counsel and lieutenants. The interview was a hot one. Addicks surprised all by his absolute fearlessness in the face of a savage attack, which culminated in the production of a document signed by certain Massachusetts legislators, wherein they receipted for the bribe money Addicks had paid for their votes. The man who claimed he was being cheated threatened this would be laid before the Grand Jury the following day. All the witnesses were dumfounded at the situation and in concert begged Addicks to hush the matter up by paying what was claimed. "Gentlemen," said this great financier, "my honor, my business and my personal honor, has been assailed, and rather than submit to this outrage I would die! I now ask you all to bear witness that under no circumstances will I pay to this man a single dollar!" And he indignantly left the meeting.

While his counsel and associates were appalled at what might be the outcome, they admired Addicks' manly pluck, and asked themselves if they had not, after all, been mistaken in their estimates of his courage and principle. In the middle of the same night, the man with the document was surprised by a telegram reading: "Meet me in Jersey City to-morrow sure with paper; keep absolutely secret." Next day in Jersey they met, and Addicks simply said: "There is the full amount. Give me the paper. You don't suppose I would compound a felony in the State in which it was committed, and before witnesses, do you?"

In the national election of 1896 J. Edward O'Sullivan Addicks was a candidate for the United States Senate in Delaware, and for a variety of reasons was anxious to secure a Republican victory. Within the State, however, the real contest was not over national issues, but to obtain control of the Legislature which in the following January had to elect a United States Senator. There were three factions, the Democrats and two wings of the Republicans, the Addicks and anti-Addicks parties, the latter calling themselves "regulars." On Election Day Addicks used an even $100,000 buying votes, and that evening Delaware was safe for McKinley—both the "regulars" and the men whom Addicks' money bought having voted for a Republican President. But it was early bruited around that if the vote of Sussex County (there are three counties in Delaware—Newcastle, Kent, and Sussex) were allowed to stand as received, all Addicks' efforts to control the Legislature would have been fruitless and his "made dollars" expended for nothing. The ex-flour dealer of Philadelphia was not satisfied to accept the people's sacred verdict. He quickly called his lieutenants together, mapped out a campaign of almost reckless audacity and daring, and assigned his best men to its execution.

The ballot-boxes with their contents were in the sheriff's charge and stored under lock and key in the court-house. The sheriff was an Addicks tool. At midnight he turned over his charge to one of the would-be statesman's trustiest lieutenants, who, with the aid of a lantern and a slip of paper containing the directions, sorted over the legal ballots, threw some out, and put in new ones. When another sun arose the dastardly outrage upon the American elective franchise had been completed, and Addicks was busily scheming to carry out the remainder of the plot. On the declaration which he or one of his associates would make, that there had been fraud in Sussex County, the Government at Washington must send on an investigating committee to whom it would be asserted that the voting lists had been doctored by the Democrats. To prove it the boxes would be opened, the ballots counted, and lo! the villany of the Democrats would be, beyond contradiction, demonstrated.

But the scheme was an Addicks scheme. Had it been the plot of any other man with the brains, the nerve, and the lack of principle to concoct it and set it in motion, inevitably it would have been carried through to the designed conclusion. As it was, this is what happened: The lieutenant who had charge of the actual commission of the crime thoughtlessly chuckled over the details of it with another, and this other "in the presence of witnesses" laughingly congratulated Addicks on his plan's success. What was the astonishment of the group to hear the candidate for the Senate say: "Gentlemen, I could not countenance such a transaction. This is the first I have heard of it, and it is so outrageously criminal that I refuse to allow it to proceed further. There will be no investigation, and if it is a fact that those ballots have been changed in the box, the ones who changed them shall receive no benefit from their nefarious work. I have spoken."

Mind you, every member of the group was a party to the scheme and had been carefully rehearsed in the part assigned him by Addicks himself, but alone, that is, without witnesses; nevertheless so earnest and apparently honest was the man in his protest that for an instant they doubted their senses—until they remembered it was Addicks.

The investigation was never held, and to this day Addicks' lieutenants, especially he who did the midnight work and who still lives in the peaceful State of Delaware, turn with disgust when Addicks' daring is mentioned.

It should be explained here that, whenever Addicks plans an illegal transaction—one for which he might be made civilly or criminally liable—he invariably coaches each of his accomplices alone, "without witnesses." And when it becomes necessary in developing the plot to have a confab, at which the several parties to the proceeding must meet, Addicks is most careful to preserve a legal semblance of ignorance of incriminating details. At intervals, when a danger-place in the discussion is approaching, he will get up from his seat and, moving to the door, will say: "Gentlemen, halt right there, until I step out of the room; tap at the door when you are over that bad spot, and I will return."

Addicks' "Wait until I step out of the room" is as familiar among his coworkers as the "I am going upstairs" is among the "Standard Oil" family.

Try to conjure before your mind's eye a picture of the anomalous character these instances suggest. I'll warrant your mental image as little resembles the original Addicks as Mr. Hyde did Dr. Jekyll in the story. He does not look the part assigned him here, nor any other part for that matter. I saw him coming toward me on State Street one summer day some years ago, a tall, wiry man, in a white-flannel suit, perfect in fit and spotless as snow, wearing a fine Panama hat. This was in the period before Panamas were commonly worn. He was to the life the elegant and luxurious Southern planter of ante-bellum days. Six months afterward in about the same place I saw approaching me a splendid person in rich sable outer garments who looked for all the world like an exiled Russian grand duke. It was Addicks in winter. You will not surprise his secret from that pleasant, rather ambiguous, but square-jawed face, nor from the mouth hidden under a long, drooping, gray, military mustache. His is a good-sized, well-shaped head, you might say, and the gray, shallow eyes that look out at you are almost merry in their glances. But they are inscrutable eyes which seem to have a challenge in their gaze, a sort of "look-me-over-as-long-as-you-like-and-you'll-never-guess-what's-under-the-surface" expression that is baffling and provocative. Yet this sybarite, this daring coward, this stingy prodigal, this sincere hypocrite, this extraordinary blending of contradictory qualities, is the man who from 1887 to 1892 made Boston look like the proverbial country gawk at circus-time.

Power the man certainly has, and of a distinct quality, yet his intimates cannot explain the reason of their obedience to him. After a brief acquaintance he is revealed as the very soul of insincerity—he "works" his friends, he pays toll to his enemies, he frankly shows himself without the sense of moral obligation. I believe his talent resides in his capacity to select the proper type of man to "make rich" in the illicit schemes his abnormal mind conceives. These coworkers of his are of different grades; some have a super-abundance of cash; others a desire to get it—in common are their lack of principle and dearth of brains. Addicks cannot do business long with men of real ability, nor does he understand them, whereas he can read the minds of his ordained victims as if they were an open book. The big men who have encountered or been associated with Addicks are prone to characterize him as a mountebank, a joker, or a chump.



CHAPTER X

ADDICKS COMES TO BOSTON

J. Edward O'Sullivan Addicks was born in Philadelphia in 1841, and was in the eighties plodding along the ordinary, uneventful path of a seller of flour to the people of that city which since the death of William Penn holds the record for the highest and densest percentage of sleep per capita of any English-speaking community.

In the eighties two things happened that changed the whole course of J. Edward O'Sullivan Addicks' life. Some one invented water-gas and "let in" Addicks on the invention; and the Philadelphia branch of the "Standard Oil," represented by Widener, Elkins, and Dolan, "trustified" the gas companies of the city of Chicago, which enabled Addicks to "hold up" the "trustification" until Dolan and Dolan's associates paid him the sum of $300,000 for the instrument with which he had done the holding up, $10,000 worth of the stock of one of the necessary Chicago companies.

The law of compensation, which gets in its deadly work on all the prettiest plans of man, but decreed that what goes up must come down when it ceases going up. It has a shrewd trick of grafting sorrows on our joys, and of handicapping success with discomfiting conditions. The favorite of fortune whose feet have fallen in pleasant places sooner or later stubs his toe.

Addicks' first "made dollars" certainly came easy—so easy, indeed, that those who watched his early career marvelled at his success; but nowhere on God's footstool is there to-day a more terrible illustration of the inevitable workings of the law of compensation than the present standing of J. Edward O'Sullivan Addicks affords.

The thief whose first excursion into a wayfarer's pocket is rewarded with the equivalent of days and nights of honest labor will surely be convinced thereafter of the superiority of theft over toil as a means of money-getting. Invariably the manufacturer of "made dollars," after his first coup, forsakes forever after the cold arithmetic of commerce for the rule of guess, dream, hope, and "I will," which constitutes the mathematics of high finance. Addicks' first "made dollars" came with such magical ease that there awoke in his slumbering substitute for a soul a disgust for those prosaic pursuits at which one could never, try how one might, make more than four by the addition of two and two. He probably argued to himself: "Why should I work in the flour business when I know a way of getting overnight more than I can make out of flour in a lifetime? If people are so simple in guarding their savings that I can by a trick take away from them enormous wealth without the slightest danger to my own safety or my profit, even if detected, why should I not devote my life to such healthful and profitable occupation?" The logic of the proposition was convincing. Accepting its conclusions, J. Edward O'Sullivan Addicks, of Philadelphia, embarked on his career. Soon afterward he discovered gas in Boston.

This was in 1887. Equipped with his "made dollars" for capital, his impressive name, sublime effrontery, and a pedigree free from anything suggestive of his new purpose in life, the ex-flour merchant "lit" into our everything-figured-out-ahead-and-every-promise-made-taken-at-par town of Boston. To appreciate the lights and shadows of this event, one should know Boston and, at the same time, Addicks. Every country boy will remember Tom Hood's poem beginning:

I remember, I remember the house where I was born, With the little lattice window where the sun came peeping in at morn,

and can recall milking-time in July or August when, sitting on the rail-fence surrounding the barn-yard, he watched the pigeons snipping up grain, the old hen scratching up worms for the chicks, the ducks and the drakes and the geese and the ganders proudly waddling back and forth, among and around the fluffy ducklings and goslings, and the bull-pup sound asleep by the side of the tortoise-shell cat. Probably he will think of some particular milking-time when the calm, contented serenity of the barn-yard was suddenly disturbed by the unexpected descent in its midst of a neighboring peacock, who, apparently unconscious of the consternation produced by his entry, proceeded proudly to spread his dazzling plumage to convince every one, from Uncle Cy, on the milking-stool, and mild-eyed Bess, down to the white fan-tailed dove, that he was—It.

Conjure up the picture—the peacock at milking-time in the farm-yard; thus Addicks came to Boston—though it is far from my intention to identify the bucolic background I have drawn with the Hub of the Universe.

Boston, up to this time, had been singularly free from the mushroom variety of millionaire which had sprung up overnight in such numbers in New York and Philadelphia. Proudly defiant of a product so alien to all her traditions, her citizens would have sworn that no votary of modern high finance could exist over one curfew-toll within her gates. For Boston had her own financial eminence, of a character in keeping with the chill conditions of conservatism and rectitude appropriate to the metropolis of the New England conscience. She had her Stock Exchange, her numerous great corporations, her scores of single and multimillionaires, and it was her boast that her capital had played the greatest legitimate part in the country's growth. She had furnished a large percentage of the money which had created our vast Western railway system; she had found and made the superb copper-mines of Michigan and Montana, and in all parts of the land branches of her sturdy institutions were vitally assisting the miracle of America's development. Notwithstanding what these wide-flung enterprises imply of commercial push and audacity, Boston, at the time Addicks discovered gas there, was one of the most trusting wealth-investing communities in the world. She had her simple rules of business conduct which years of usage had consecrated into all-powerful precedent, but her brokers and capitalists, however fearful of all things quick or tricky, had never previously figured as candidates for what in Western parlance are described as "come-ons."



CHAPTER XI

HOW ADDICKS CAPTURED BOSTON GAS

At the time Addicks "lit" in Boston that city numbered among her proudest possessions several extremely rich gas companies, and they were owned by her "best people." To do business with Boston's "best people" is no easy task, and up to the advent of Addicks, to do business with her "best people" without doing it through others of her "best people" who could absolutely vouch for you was an unheard-of thing. The manner in which the ex-flour merchant of Philadelphia managed to slip by the barriers and into the heart of our blue-blooded citadel affords the most unparalleled example of audacity of which I know.

In many ways Boston is unlike other great American cities. Some of her institutions through antiquity or association have acquired a positive sanctity. Pedigree is important. The average inhabitant spends much of his time watching the grandson of his neighbor's father, to see the old man's characteristics crop out in him. The boy's failures will be remembered against his own offspring fifty years hence. It is a city of long memories and of traditions. In 1887 Boston, as now, consisted largely of her traditions, her blue-glass window-panes and her Somerset Club.

Now the distinction, sanctity, and antiquity of the Somerset Club are quite beyond peradventure. Since Boston has been Boston she has had her Somerset Club, a club distinctively of grandfathers, fathers, and sons. The right to membership in the Somerset Club is as much the inheritance of a Somerset man's son as his name or as the proud title which always will be found affixed to his signature when he reaches man's estate, "of Boston." For a man to get into the Somerset without long years of waiting and intense scrutiny, not only of his own record but of his parents' before him, is a rare event. Yet the name of J. Edward O'Sullivan Addicks was up for full membership, with Boston's picked best for his sponsors, a few days after he "lit." How Addicks got upon the Somerset list Boston will never tell, and the mention of the fact nowadays within the club-house will empty its sideboard instanter.

The campaign of arrangement for the advent of Addicks in Boston was more elaborate, more astute and expensive than was ever organized for exploitation of prima donna or great pianist. For months an advance agent had been preparing the way for his chief's arrival in a blaze of glory. There was talk in the papers and among the financiers about the wonderful water-gas process which enormously enhanced the profits of gas-making, and such rumor was always linked with the name of the brilliant Philadelphia Gas King, for so the press had already dubbed him. A wonder and magic immensely provocative of curiosity were woven about the identity of this J. Edward O'Sullivan Addicks, who it was said might be persuaded to visit Boston to work marvels with the stocks that had been "in the family" long before the present generation could remember. When it was sure that the great man was really coming the agent sought the advice of Boston's best in selecting quarters for him. In the Tudor, a beautiful family hotel adjoining the Somerset Club on Beacon Hill, a magnificent suite of apartments was taken, and though the great man could remain in Boston but a brief space, the furniture, the hangings, and even the carpets were all changed for him.

Eminent financial tricksters have various ways of handling their victims. Some believe that the most skilful mode of attack is the slow, confident, dignified approach which allays the subject's fears by its solemn display of deliberation. Others (and Addicks is of this creed) are persuaded of the superior efficacy of the "rush-in-and-drag-out" method. The subject, they say, "gives up" more and quicker when the hurry call is sounded. It was a winter's day when Addicks "lit" in Boston, and circumstances had arisen, the suave advance agent told various Boston's best, with whom he was in consultation, that would make his chief's stay much briefer than either had anticipated. So when the great man arrived at the club just before dinner, quite an array of important people were congregated there.

Addicks ran the gantlet of the critical glances of as critical a group as you'll find on earth, and the word went round—no one could remember afterward who started it—"Typical Southern gentleman! Breeding sticking out everywhere!" So well had the astute advance agent done his work that a little dinner was arranged on the spot, and Addicks made such rapid progress with these reserved and conservative Bostonians that, by the time coffee was served, conversation had reached the stage where it was natural for him to send the waiter to the coat-room for his bunch of gas papers. The emissary returned bringing the fur overcoat with which Addicks always envelops himself in chilly weather. Addicks searched the pockets, and, apparently to his surprise, discovered that they did not contain the required documents, but where they should have been he found a small bale of 1,000-dollar government bonds, containing, one of the party said afterward, at least one hundred certificates. "How careless of my secretary!" said Addicks, nonchalantly replacing the packet in the pocket and motioning the waiter to take the overcoat away again.

It was, of course, due to the admirable work of his advance agent that these Monte Cristo effects impressed the cultured little set who would have laughed to scorn such a display on the part of one of their own kind. In Addicks it was the dazzling eccentricity of the wonder-worker, and so excusable; and the free, flash, careless exhibit of wealth made the man's conversation and subsequent demands seem natural. Next morning, in discussing the work of the previous evening with his lieutenant, Addicks delivered himself of the wise remark: "Finance, my boy, like theatricals, is dependent for success on the staging, more even than on the actor. My experience has shown me that men the world over are alike—if you properly surround them, they will hiss at hissing time and clap at applauding time; yes, upon the way you stage your finance plays depends their success." The fact is that by no other method could this scenic artist of finance have set his plans moving so rapidly. The man had calculated to a nicety on the romantic cupidity he aroused.

After dinner, Addicks at once "got down to business": "Gentlemen, my project is as simple as it is feasible and conservative, for I will touch nothing but conservative enterprises. Gentlemen, you have three great gas companies supplying this great city with light, the Boston, Roxbury, and South Boston. They are worth at the present time about five million dollars. I am going to buy them and spend three or four millions more on a new company; then I shall consolidate the four and turn them from coal into water-gas companies, which will sell gas to your people at less than they now pay, and at the same time make a lot of money for you and for myself. What do you say?"

This was certainly quick action. Boston's best was breathless for a minute. Then some one suggested that in so weighty a matter it would be necessary for solicitors to investigate, for the families owning the stock to be consulted and agree before a proper basis could be arrived at on which to dispose of their holdings.

Addicks' genius was equal to the occasion. "I regret, gentlemen, any seeming haste, but this is the situation: I am going to invest fifteen or twenty millions, or perhaps thirty or forty, in city gas properties, and as the project will require quite a bit of financiering, I have got to round it up at once, in time to slip over to London to lay it before my associates, ——, ——, and ——" (naming some of the great English lords of finance), "with whom you, gentlemen, are probably well acquainted. I think you will, after you have given the matter a little thought, agree with me that it would be a mistake to postpone the conversion of these magnificent Boston plants to the water-gas system until after other cities I have in mind are reconstructed. You see we can turn over but one city at a time, the system being new and competent engineers and builders few."

The painful thought took shape in the minds of the distinguished little gathering that if they were not careful, Monte Cristo might actually slip out of their town without working any of the promised golden marvels.

"Just what is your idea, Mr. Addicks, of how this gigantic piece of business could be done?" one asked.

"Simple, simple"—the great Colonel Sellers of eye-water fame never looked more cool and unconcerned when calling attention to the facts, "100,000,000 of people, two eyes each, a bottle of my patent eye-wash for each at a dollar a bottle, and eye-wash made at a net cost of a dime a barrel"—"simple, simple; you name your price, I pay it, and the thing is done."

Some one pointed out that the gas properties were valued very high. That in the Boston, for instance, the par value of each share was $500—and that it was improbable Mr. Addicks could buy it for less than—than eight hundred.

"Of course, of course; I am not buying gas companies that are not well thought of by their present owners," returned Addicks. "I think you underestimate the value of the Boston Company's stock when you say $800. Naturally, as a conservative business man I wish to buy as reasonably as possible, but as I know what the future of your company will be under the water-gas change, I consider $1,000 a share cheap; and if you say so, will take it now—majority, minority and all—at that price."

This was strong talk. In spite of their proverbial frigidness under all conditions, Boston's best began to get fidgety.

"Indeed," went on the Monte Cristo from Philadelphia, "I'll do better than that. On second thought I will give you $1,200 a share. Think it over and we'll have another sit-down to-morrow."

It took Addicks but a few days to trade, for at each sitting the staging was more enticing and the call from his associates in London more insistent. Minor difficulties were magnificently waved away. A number of scions of Boston's best families had good paying positions in the different companies; what would Mr. Addicks do with them?

"Simple, simple," he replied; "double the time of contract and the salary; no favor to them or you; good men are very hard to get, you know."

One episode that occurred about this time was allowed to get into print when the stocks and bonds were being floated, by way of showing what a tremendous fellow Addicks was. In a hired hack he had driven up to the club from State Street. A snow-storm was raging. After Addicks had been in the club a few moments word was brought in to him that the driver had found his sable overcoat inside the carriage. Addicks stepped into the vestibule to speak to the driver, and next day it was all over the club-house and through the "Street" that the prodigal Philadelphian, overcome at the thought of the unfortunate driver in his scanty clothing exposed to the cruel storm, had said: "My good man, take that coat as a present from me."

For the truth of the story I do not vouch, nor for that other which explains that the door-boy who spread this tale of generosity said afterward, when discharged, that Addicks himself had told him what he had done, and at the same time had given him a five-dollar bill. He would have sworn the moment before that he heard Addicks tell the driver to take the coat to his apartments.