A B C D E F G H I J K L M N O P R S T U V W X Z

The Romance and Tragedy

W >> William Ingraham Russell >> The Romance and Tragedy




Information of this character must be of value to the London firm
and we knew it was not getting it.

That was my keynote.

I wrote the firm a newsy, chatty market letter, saying nothing of
doing business together. After that first letter I never let a mail
steamer leave New York that did not carry a letter to the firm from
our office.

While those letters gave enough information to show the recipient
our position in the trade, I wish to emphasize the fact that not
one word was written that in the remotest degree was a violation
of any confidence reposed in us by our New York friends.

The weeks went by and we received from the London firm--nothing.
Finally came a brief communication acknowledging with thanks our
various letters and requesting their continuance, ending with an
offer, if at any time they could be of service to us in the way of
giving information on their market, to reciprocate.

To this I replied with a request that the monthly European statistics,
which the firm published, should be cabled us at the end of each
month that we might publish them with ours.

This request was complied with, and thereafter we kept up our letters,
always endeavoring to make them more interesting and occasionally
receiving brief letters in acknowledgment.

This one-sided correspondence continued for several months, then I
wrote that we purposed forming a London connection and would much
prefer to do so with their firm if open for it. If not, we should
of course be compelled to cease our advices and make an arrangement
with some other firm.

As I had hoped, the taste of our quality had encouraged an appetite
for more, and after brief negotiations an arrangement was entered
into by which we controlled the firm's business in the American
markets.

It proved a very profitable arrangement for both firms.

With this London connection secured I had taken the last step
necessary for doing business on the broadest scale.

The wheel had been built starting from the hub, the tire was
elastic, and as the spokes lengthened the circumference became so
large that we were gathering force with each revolution and all
the business in sight was coming our way.

Up to this time I had done nothing in the way of seeking speculative
customers and I now began to think seriously of doing so.

The field was large, the only difficulty was to get people who had
been accustomed to speculate in grain, cotton, and petroleum to
try a new commodity. I knew the opportunities for money making,
but it was necessary to convince the speculator that the chances
of gain were better, the possibility of loss less than in the
well-known great speculative commodities of the age.

I commenced the preparation of educational literature with which
I meant to circularize the country. I did not want the small fry,
the little speculator with only a few hundreds or thousands of
dollars. What I was after was men of financial ability and the
nerve to go into large operations and see them through to a finish.

Before I made a move, our first speculative client put in an
appearance.

He was in the trade, senior partner of the largest firm in Baltimore,
and no argument from us was necessary. Calling at the office he
gave us an order for his individual account, the transaction to be
carried in our name.

It was not a large order, the margin he deposited with us being
but two thousand dollars.

When the transaction was closed and we returned him his margin,
we had the pleasure of including in our cheque thirty-nine hundred
dollars profit, after deducting our commissions, which amounted to
five hundred and seventy-five dollars.

This experience gave me a hint I was quick to take. If an individual
member of one firm in the trade would speculate, why not members
of other firms? The ethics of the case, the propriety of a partner
speculating on his own account in a commodity in which his firm
was dealing, did not concern me.

Here was a field I had not counted on and I determined to explore
it before going to the general public.

I had one hundred letters mailed in plain envelopes to individual
members of the larger firms which we were regularly selling. The
result astonished me. This was in December, 1881, and before the
following February sixty-seven of the men written to had accounts
on our books.

Some of the novel experiences in this branch of the business will
be related in a later chapter.

As I had anticipated, 1881 was a banner year. My profits were
nearly twenty-eight thousand dollars.




CHAPTER XVI

"REDSTONE"



"Sunnyside" had become too small for us.

Our life had been so happy there we could not bear to think
of leaving it. I had an architect look the house over and prepare
plans for an extensive addition.

This was done, though he strongly disadvised it. I could not but
admit the force of his argument that it was foolish, regarded from
an investment point of view, to expend on the place the amount
I contemplated. Far better to sell and build a new house was his
opinion.

Then we talked of moving the house to another plot and building on
the old site. To this there were two objections. The site was not
suitable for the style of house I wanted and there was too little
land, with no opportunity to add to it as the land on either side
was already occupied.

The matter was settled by the appearance of a buyer for "Sunnyside,"
at a price that paid me a fair profit, and I made the sale subject
to possession being given when the new house was completed.

[Illustration: "REDSTONE"]

Within a stone's throw of "Sunnyside" was a plot of land, a little
less than two acres in extent that we had always admired. I bought
the land for five thousand dollars and the architect commenced at
once on the plans.

We thought that the new house was to be our home for the rest of
our days and naturally the greatest interest was taken in every
detail. The first plans submitted were satisfactory, after a few
minor changes, and ground was broken on July 2d, 1881. How we
watched the progress.

From the time the first shovelful of earth was taken out for the
excavations until the last work was finished, not a day passed that
we did not go over it all.

"Redstone," taking its name from the red sandstone of which it was
built, was, and is to-day, a fine example of the architecture then
so much in vogue for country houses.

The Matthews House on Riverside Drive, New York City, so much
admired, was designed by the same architect and modelled after it.

Standing on a hill its three massive outside chimneys support a
roof of graceful outlines and generous proportions. From the three
second-story balconies one gets views near and distant of a beautiful
country. The fourteen-feet wide piazza on the first floor, extending
across the front and around the tower, with its stone porte cochere
and entrance arch is most inviting. With grounds tastefully laid
out, driveways with their white-stone paved gutters, cut-stone
steps to the terraces, great trees, and handsome shrubs the place
was a delight to the eye, and at the time, of which I write there
was nothing to compare with it in that section.

Through a massive doorway one enters a hall of baronial character,
thirty-three feet long, eighteen feet wide, and twenty-one feet
high, finished in oak with open beam ceiling and above the high
wainscot a rough wall in Pompeian red.

Two features of the hall are the great stone fireplace with its
old-fashioned crane and huge wrought iron andirons and the stained
glass window on the staircase, a life-sized figure of a "Knight of
Old."

This hall was illustrated in Appleton's work on "Artistic Interiors."

On the right is the spacious drawing-room in San Domingo mahogany
and rich decorations in old rose and gold, and back of it the
large library in black walnut with its beautifully carved mantel
and numerous low book-cases. Then came the dining-room in oak and
Japanese leather and a fountain in which the gold fish sported--but
enough of description. This was our home and when we had completed
the appointments they were tasteful and in keeping.

We moved in on April 28th, 1882. Here then we were settled for
life, so we said. If a new painting was hung or a piece of marble
set up we had the thought it was there to remain.

We loved the house and everything in it. We loved the friends we
had made. Our life was all that we would have it--peaceful, happy,
contented.

[Illustration: "REDSTONE"--LIBRARY]

My craving for books has always been a trait in my character and
with the commencement of my prosperity I began to form a library.
I had no taste for rare editions.

My model for a book is convenient size for reading, good type
and paper, fine binding, and illustrations, if any, the best. My
wife was in full accord with me in this as in everything. Wedding
anniversaries, birthdays, and Christmas always brought me from
her something choice in literature and I soon had hundreds of fine
volumes of standard works on my shelves.

They were not allowed to remain there untouched. We both read much
and aimed to cultivate the taste in our children.

For autographs, I cared not as a collector, but I love to read
a book that has, bound in, an autograph letter from the author or
from some character in the book. Many of my volumes were so honored.

Of course in the case of authors of a past generation, these letters
were purchased, but most living authors of my time were good enough
to respond to my requests with a personal note and with some of
them I enjoyed an acquaintance.




CHAPTER XVIII

OUR NEIGHBORS



When we moved to "Redstone" we had been residents of Knollwood
three years, long enough to become thoroughly acquainted with the
characteristics of each individual in our social circle.

While with all our relations were cordial, it is essential in this
narrative to refer only to the three families with which we formed
a close friendship. These were the Woods, Lawtons, and the new
owners of "Sunnyside," the Slaters.

Frank Slater was a partner of Mr. Wood. Without exception he was the
most attractive man I have ever met. Possessing in a high degree
every attribute of a true gentleman, he had withal a genial, winning
way that was peculiarly his own and made every one who knew him his
friend. We were drawn to each other at once and soon became most
intimate. His wife, a woman charming in every way, became my wife's
intimate friend.

Charlie Wood was rather a queer combination. That we were fond
of him and he of us there is no doubt, but he was a man of moods.
Intellectual, a good talker, and an unusually fine vocalist, his
society as a rule was very enjoyable, but there were times when in
a certain mood he was neither a pleasant nor cheerful companion.

Perhaps a remark which he made to me one day at "Sunnyside" will
show better than anything I can write the true inwardness of the
man.

We were discussing some business affair of his, over which he was
feeling blue. I was trying to cheer him up, when he said, "I tell
you, Walter, I could be perfectly contented and happy, no matter
how little money I had, if everybody around me had just a little
less."

George Lawton, a jolly, good-natured fellow, was liked by everybody,
and his wife, a pleasant, cheerful, good-hearted little woman, was
equally popular.

The Lawtons were the least prosperous of any of our little circle.
George was always just a little behind in his finances, but so
constituted that this did not worry him.

The time will come in this narrative when the author will be upon
the defensive and he deems it necessary that his readers should
fully understand certain relations existing within this circle
of friends, even though, that they shall do so, he is compelled
to violate the scriptural injunction, "Let not thy left hand know
what thy right hand doeth." [Footnote: Under ordinary conditions
the author would never think of advertising to the world the good
that he has done. Before the conclusion of this narrative there
will be much that is far removed from the ordinary. Errors to atone
for, misunderstandings to explain, false innuendos and charges to
indignantly deny and disprove. It is the narrative of a life and
the good in that life is certainly a part of it. In later chapters,
when certain matters are set forth, my readers will be good enough
to bear this in mind.]

The Woods and Lawtons came to Knollwood together. They were intimate
friends before that time. Not one detail of the affairs or life of
one but was known to the other. It was the same as one family only
under two roofs.

George Lawton was always in need of money. His expenditures
exceeded his earnings year after year and he borrowed to make up
the deficiency. Wood was as well able as I to loan him the money
and as a closer and an older friend should have been the one to do
it.

On the train one day, when sitting together he said to me, "Walter,
how much does George owe you"? To which I replied, "Oh, a small
matter." It was at that time nearly six hundred dollars. "Well,"
he said, "I am glad you can help him out, but he don't get into me
more than two hundred dollars; that's the limit, for I doubt if he
ever pays it back."

I went on with my loans just the same, and when, some years later,
the family left Knollwood he owed me more than two thousand dollars
that had been borrowed in small amounts.

At one time George was fortunate in getting an interest in a patent
motor for use on sewing machines. He told Wood all about it and
of one weak feature in connection with the battery, which, however,
he thought was about overcome.

Without telling George, Wood at a small expense employed a man who
succeeded in perfecting the battery, then going to George, said:
"You cannot use your motor without my battery. I will turn it over
to you for half your interest."

There was no escape, and though George made some thousands out of
his interest his profits were cut in half by the shrewdness of his
friend.

He never said much about it, but his mother, who resided with him,
was very outspoken on the subject.

In 1883, in connection with my business, I established a trade
journal. After running it a few years I could no longer spare the
time. It was then paying about eighteen hundred dollars a year
profit and was capable of doing better. I offered it to George
Lawton, telling him if he ever felt he could pay me a thousand
dollars for it, to do so.

The day I turned it over to him I gave him a few hundred dollars,
remittances for advertising received that morning. In a few years
he sold the paper, and in one way and another he secured twelve
thousand to fifteen thousand dollars out of it.

He never paid me one dollar for the property, nor did I demand it
of him.




CHAPTER XVIII

AN UNEVENTFUL YEAR



The year 1883 was uneventful.

At home, life moved on serenely in its accustomed channels. We were
very happy and did all we could to make others so.

For the summer months, thinking that a change might be good for the
children, we rented a cottage at Oyster Bay. This was a pleasant
experience, but we were glad to get home early in the fall. Our
elder son was now nearly ten years old, the school at Knollwood
was not satisfactory, and we entered him at the Academy at Media,
Pennsylvania. His mother and I went over with him, and though the
little fellow was brave enough to keep a stiff upper lip when we
said good-by, I knew he was homesick, and so were we. It was a very
hard strain to leave him behind us.

Business had fallen off a little during the first half of the year,
but this was made up later and I did about as well as in the year
previous, making a little over twenty-five thousand dollars.

I had taken no further steps toward seeking speculative clients,
as the trade speculators who had come in were sufficient in number
to absorb all that class of business I cared for in the market
conditions then existing.

Some of the incidents in that business are well worth relating.

We had one case where the president of one of the largest manufacturing
concerns in Connecticut was the client. His concern was a regular
customer of ours and we were carrying for him some speculative
contracts not yet matured. The market was against him a few thousand
dollars, and when he called one day I suggested his buying an
additional quantity at the lower price to average his holdings.
"Average nothing," said he, "if when that stuff comes in there is
any loss on it, I bought it for the company."

There was a loss and under his instructions we made delivery to the
company. This looked like a "heads I win, tails you lose" sort of
game for him, but as he owned most of the stock in the company it
was very like taking money out of one pocket and putting it in the
other.

Another episode, still more peculiar, was in the case of the firm
of A & B.

The firm had placed in our hands for discretionary sale a parcel
of fifty tons due to arrive in November.

Shortly after, A called at the office and gave us an order to sell
for his individual account fifty tons November delivery. He was a
bear and it was a short sale.

The same day and before the sale had been made B called and gave
us an order to buy him fifty tons November delivery. He was a bull.

Both requested that his partner should not be informed of the
transaction. We matched the orders, selling for A to B. A closed
his transaction first, and to cover his sale we sold him the lot
belonging to his own firm. This was to be delivered to B and we
then sold it for him.

Thus we had made commissions on sales of one hundred and fifty
tons where there was only fifty tons of actual stuff, the rest all
book-keeping.

In all the years in which we handled this business we had but one
unpleasant experience in connection with it.

The treasurer of a manufacturing concern had been dealing with us
on his own account for some months, always with profit to himself.
The day came when he was not so fortunate. The market was against
him and we called on him for additional margin. He asked for a few
days' time, and as we had every reason to suppose he was responsible
we granted it. Meantime, the market further declined, and when
he put in an appearance at our office his account was about three
thousand dollars short.

To our surprise he said he could not pay a dollar.

When asked where all the profits we had paid him had gone he replied:

"Wall Street."

The man died shortly after, and although he left an estate of
fifty thousand dollars, he also left a large family and we waived
our claim.




CHAPTER XIX

THE STREAM BROADENS



At the beginning of 1884 our business was increasing so rapidly
it became necessary to have a larger office force to handle it.
Orders poured in day after day and it was evident we were getting
the preference from all the large and most of the small buyers
throughout the country.

It had been our policy to give just as careful attention to the
small business as to that of more importance, but we now began to
consider the wisdom of letting the former go. In the aggregate it
was a handsome business of itself, but in detail it required so
much time and attention, it was a question in my mind whether it
paid us to longer cater to it.

That the future had a much larger business in store for us we felt
assured and we wanted to get ready for it in advance of its coming.
Gradually we commenced to weed out the little fellows.

Some of these small concerns had become so accustomed to sending
us their orders and were so well satisfied with the way we had
treated them that they objected strongly to being turned down.
Still, we were in the line of progress and had outgrown that class.

The argument we gave them was, that as we were selling the large
dealers so extensively, it was unfair for us to take this small
business, which ought to go to the dealers without the interposition
of a broker. Ultimately we succeeded in getting most of them off
our books without any hard feeling.

That we were wise in ridding ourselves of this small trade was
soon evident. It strengthened us greatly with the large dealers,
who now secured most of it direct, and that we could afford to part
with so many customers, small though they were, added much to our
prestige.

With more time now at my disposal I mapped out a campaign having
for its objective the gathering of a speculative clientele.

The first step was the sending of a carefully prepared letter to
a dozen or so of the wealthiest men in New York. No replies were
received. Probably their secretaries tossed them in the waste-basket
with many others. I know now better than I did then that the mail
of even moderately rich men is crowded with schemes.

A second lot of letters was mailed to men a grade lower in wealth.
Some of these brought replies but no business. We tried a third
lot, this time to men estimated at half million to a million; same
result.

That settled it as far as New York was concerned. Evidently the
rich men of New York did not want to speculate in our commodity.
Well, fortunately we could get on without them.

Now for the broader field. We had one thousand letters prepared
and mailed at one time. These were addressed to a list of alleged
wealthy out-of-town investors, which we had purchased from an
addressing agency. Not one single reply did we receive.

Then we took our "Bradstreet's" and at random selected the names
of five hundred firms, scattered over the United States, rating not
less than five hundred thousand dollars. The letters were addressed
to the senior partner of each firm. Before the end of the year
nearly two hundred of those men were on our books. Every one of
them made money.

This constituency was sufficient for the time being. I had in mind
something on a much larger scale, the forming of a syndicate; but
that is another story and belongs to a later period.

Toward the later part of the year there was a falling off in our
trade with the customers, owing to a period of dullness in the
manufacturing industries; but what we lost in this way was more
than offset by the gain accruing from the business with speculative
clients.

On December 3lst, I had the satisfaction of knowing that for the
first time my profits for a single year exceeded thirty thousand
dollars.

In my home life there had been nothing to mar in the slightest
degree its serenity and delight; indeed, our happiness had been
increased on the ninth of June by the arrival of our third daughter.




CHAPTER XX

RETROGRESSION



Although the conditions of general business were unsatisfactory at
the beginning of 1885 and I had much doubt of the year proving as
profitable as the one previous, I never dreamed of such a falling
off as actually occurred.

Our legitimate trade, that carried on with dealers and consumers,
we thought would be poor for some months, as it had been over-done,
and all our customers were well supplied with spot stock, as also
contracts for future delivery; but the speculative element we relied
on to compensate us for this.

Our clients had done well and we expected they would continue their
operations. We did not in our calculations make allowance for the
fact that these men were all in active business. As a rule, such
men do not go into outside matters when their own business is dull
or unprofitable. It is in good times, when they are making money,
that they enter the speculative field.

Before the winter was over our books were entirely cleared of
speculative contracts.

We thought of making efforts to secure new customers but decided
it would at that time be useless, for if men who knew the business
and had made money at it were unwilling to go on, it was hardly
possible to enlist the interest of people who knew nothing about
it.

Month after month I saw the business decrease, but took
it philosophically. I could afford to wait for better times and
meanwhile did not worry, knowing that we were getting more than
our share of what business there was.

These dull times were not without their compensation.

They brought me the opportunity to go off with my wife on little
trips of a few days' duration. What delightful trips those were!
Newport, Narragansett, Nantasket, Swampscott, Manchester-by-the-sea,
Newcastle, and all the pretty places accessible via Fall River
boats--these were the most attractive, for we enjoyed the sail
and disliked train travel in warm weather. Frequently some of our
friends accompanied us, but oftener we went alone.

What jolly times we had!

Then, too, in this dull year I made my business days shorter, a
late train in the morning and an early one home in the afternoon
giving me so much more time with my family.

Oh, it was a great year!

For better times I could wait with patience. I was not money-mad,
not eager for the accumulation of great wealth; my real fortune
I had already gained in the wealth of love bestowed upon me by
the woman I adored. I valued money for the good it would do, the
comfort and pleasure it would bring to those I loved; but for the
reputation of having it, not at all.

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