THE LAUNCHING OF THE KONAHASSETT
The hands of the big clock in the "customers' room" at Gordon and
Randall's pointed to five minutes of ten. Pervading the place was a
general air of extreme tension, somehow suggesting that all present
were about to start in a race of some kind, and were undergoing the
agonies of the last few nerve-racking moments before the start. And
this, indeed, in a sense was true. When the clock should strike ten,
and the opening bell of the Exchange should be heard, a race of a kind
began for all.
The two thin-faced, alert, nervous young men at the tickers, steadily
calling the quotations, must keep pace with the whirring tape; the two
boys standing in front of the big stock board, marking up the eighths
and quarters, or indeed, the whole points, as the favorites receded or
advanced, must make their nimble fingers fly; and the customers
themselves, according to their several temperaments sitting at ease in
the big arm-chairs or pacing nervously up and down the room, must keep
close watch of their holdings; make up their minds, if winning, when
to quit at the right time; if losing, whether to take their loss with
a philosophical shrug of the shoulders, or whether to dig deeper into
their pockets, make the depleted margin good, and desperately hold on
for better things.
The day and hour marked the third month of the great copper boom, an
"era of good-feeling" when bulls were rampant in every pasture, and
bears had retreated so far into the woods that their distant growlings
passed all unnoticed and unheard; when every little lamb had his
little day and on the strength of his paper profits bought an
automobile for himself and a set of furs for his wife; when brokers
were encouragingly urbane and polite and customers eager and
enthusiastic in their pleasant and successful chase after the jingling
dollars; that splendid time, in short, when anybody and everybody
could make money, when there were all winners and no losers, when
"getting rich quick" was so easy that one felt almost ashamed of his
winnings, and thought with good-humored self-contempt of what he had
been making in "straight" business, his year's earnings now in a week
or two doubled or even trebled, and all without effort, all with
scarcely the exertion even of lifting a finger. Prosperity, happiness,
glorious country, beautiful world!
Among the other customers was little Mott-Smith, as usual, anxious,
worried, hesitating between the conservative wish to make sure of what
he had gained by following Gordon's lead, and the maddening desire to
hold on and take his chances of seeing things mount higher and yet
higher still. A week ago, on Gordon's word of advice, let fall after a
game of bridge at the Federal, he had bought two hundred Arizona and
Eureka at forty-seven; two days later a drop to forty-five had cost
him a sleepless night and two restless, nervous days; then, in a
forenoon, it had jumped to forty-nine, and thence had risen steadily
on what was described in the learned language of the financial columns
as "accumulative buying of the very highest class, rumored to be that
of prominent insiders who are in receipt of most gratifying news
direct from the mine." In turn it had touched fifty, fifty-one,
fifty-two and one-half, and the night before had closed strong at
fifty-three bid, and no stock offered.
Thus Mott-Smith worried and planned and mentally bought and sold
stocks right and left twenty times in two minutes. On the one hand,
twelve hundred dollars in real money was for him a sum well worth
having, and yet, in spite of that, he could not forget the tone of
Gordon's voice as he had looked Mott-Smith squarely in the eye in
answer to the latter's timid question. "Arizona and Eureka," he had
said, "yes, indeed, it's a good mine; a very good mine," and then he
had glanced over his shoulder and distinctly dropped his voice a
trifle before he added: "and from what I hear, I should judge that
before many days it's going considerably higher, too."
It had been on the strength of this opinion that he had bought his two
hundred shares, for Gordon and Randall were already known as a house
remarkably well posted on coppers, and Gordon's weekly market letter,
well-written, entirely lacking in anything bordering on the tipster's
objectionable art, well poised, and steadily but conservatively
bullish, numbered among its readers thousands of Gordon's eager
followers. And in this special case, Gordon, as usual, had been right.
But "considerably higher"; just what that meant was the hard point to
determine. Was six points "considerably higher" or was it not?
While he stood pondering the problem, suddenly the bell struck.
Instantly the clerks at the tickers began to call, "Copper, one
hundred fourteen and a quarter; U. P., one hundred thirty-seven;
Reading, one hundred eight; Copper, one hundred fourteen and a half;
Copper, one hundred fifteen;" the race was on.
From long experience, Mott-Smith knew the exact spot on the local
board where he should look to find Arizona and Eureka. For some
moments, however, he purposely avoided looking in that direction.
Supposing there should be bad news from the mine; a cave-in, a
washout, a fire; supposing the whole market should suddenly break
sharply on foreign war news or something of the sort--momentarily he
felt a slight giddiness creep over him, and involuntarily he gave a
little gasp as he sought to pull his unruly nerves together. Then,
with lips tightly compressed, he glanced a third of the way down the
list of local stocks. Opposite Arizona and Eureka was already posted a
long row of figures, and even as he looked the boy was putting up
others. Heavens! Mott-Smith hardly dared trust his eyes. Fifty-six and
a half, seven, six and a half, seven, eight and a half, eight and a
quarter, three-quarters, nine and a half, sixty, sixty-one--
A sudden rush of gratitude and self-congratulation swept over him. Oh,
if he had sold, he could never have forgiven himself. Twenty-eight
hundred dollars--and he had thought twelve was good. Oh, what a
splendid thing was life, after all. Twenty-eight hundred dollars--what
a world of opportunity it was for men of foresight and ability and
sound judgment; for men, in short, like Arthur Fitzhenry Mott-Smith.
Twenty-eight hundred dollars--could the whole city produce a man
happier than he?
Meantime in their private consulting room Gordon and Randall sat
planning the various details of the day's campaign. Randall, pulling
out his watch, had just risen to take his departure for the customers'
room, when Gordon called him back.
"Oh, Bob," he cried genially, "just a minute, please. I forgot to say
that I think we're ready now for the preliminary work on the
Konahassett; getting the ground in shape, so to speak, for the
circulars and advertisements that will come a little later on. If you
can, I'd like you to start to get the tip in circulation to-day, and
it seems to me I'd do it something like this. During the forenoon pick
out six or eight men that you know trade with half-a-dozen different
houses, and in the course of casual conversation just give it to them
in the strictest confidence that I've got a mine about to be launched,
which you understand, on the very best authority, is going to be, in
the course of a year or two, one of the richest producers in the whole
world--a genuine bonanza. Tell them of course not to mention it to a
soul. Tell them that for a while yet there'll be nothing doing anyway;
but you want them to have it in mind in case you shouldn't get another
chance to speak to them about it before the stock is really listed.
Well, I needn't go into all the details with you, Bob. You know how to
do it better than I do, by a long shot. You catch my idea, anyway.
Mystery; immense size; inconceivable richness; chance to make a barrel
of money, either by out-and-out speculation or by buying the stock as
a genuine investment. Savvy?"
Randall nodded. "Sure," he answered briefly, "I'll get you in right;
you needn't worry a minute about that. Any men in particular you've
got in mind?"
Gordon thought an instant. "Harry Atkinson, for one," he answered,
"and Holliday, and Bancroft. Oh, and if Mott-Smith's around, be sure
and see him anyway. He's the greatest he-gossip of the lot. Tell him
to sell Arizona and Eureka, and then to wait for the word from me. And
tell him it's my personal tip to a few old friends, and that it's
given in absolute secrecy. Rub that in. If there were any doubt about
his not spreading it, that'll clench it. He'll tell, all right. He's
human. Absolute secrecy, remember. It's got to be kept quiet."
Randall, pausing on the threshold, smiled grimly. "Dick," he said,
"your ability is only equalled by your sincerity, and--you're a damned
good judge of human nature," and the door slammed to behind him before
Gordon could frame a reply.
Ensuing events certainly seemed fully to bear out Randall's estimate
of his partner's cleverness. Little Mott-Smith, indeed, after
Randall's guarded talk with him in a quiet corner of the customers'
room, fairly grudged the time necessary for closing out his Arizona
and Eureka, and bustled away from the office, almost bursting with the
magnitude of his secret. In five different offices, before the closing
bell rang, he spread the news of Gordon's glorious find, and left
behind him a trail of eager speculators, each striving to solve the
problem of how best to get in on the ground floor for the largest
possible amount within his means, and each wondering what special
strings might perchance be worked to get at Gordon himself, and thus
to have the wonderful news really verified at first hand.
To cap the climax, Mott-Smith, later in the day, chanced to dine at
the Travelers' with Holden, of the _Post_. Even with the oysters,
Mott-Smith could not refrain from dropping a mysterious hint or two;
with the arrival of the punch he was in full blast, and by the time
the demi-tasse was served Holden had at his command a very pretty
little two-column "scoop." It appeared duly in next morning's _Post_;
by afternoon all the other papers had copied it, and then the real
rush to get at Gordon, or some one near him, began.
Gordon, of course, was immensely annoyed. Reluctantly after a day or
two, he did in self-defense grant one interview, and that interview
served to whet the popular appetite almost beyond restraint It
appeared that everything which had been said of the mine was true,
only in reality far short of the whole truth. The samples Mr. Gordon
showed the reporter were alive with the very richest copper. The stock
would be listed in due time, probably, but for the present Mr. Gordon
did not intend doing this, lest the excitement caused by the
newspapers might change what was strictly an investment affair into a
mere speculative venture.
Human nature being always much the same, and the best and the worst of
us being alike ever tormented with the desire to attain that which we
can not attain, and possess that which we can never possess, the name
and fame of the Konahassett lost nothing in the few weeks' delay which
followed. From time to time new strikes, of still greater richness
than ever before, were duly made and recorded. And then, one fine
morning, appeared the first of Gordon's famous public advertisements,
modeled somewhat on the style of the pyrotechnic Lamson, with whom,
some years previous, the idea had originated. With this difference,
however, that the English of Gordon's advertisements was perfect, his
reasoning clear, his statements terse and directly to the point. In
one respect, on Doyle's advice, he did copy Lamson direct, and that
was in the matter of advising that no one should buy on margin. As
Doyle justly observed, not only was the moral effect of this advice
excellent, but there was practical advantage to be gained as well,
those who had intended buying on margin in the first place most
certainly not being deterred by the advertisement from doing so, while
on the other hand, many who had never dreamed of experimenting with
this risky form of gambling, being told not to do so, and finding in
addition that, if they did, they were bound to make four or five times
as much--when Konahassett went up--would yield to temptation, and thus
largely increase the amount of the stock subscribed.
For three days the advertisements were continued, and then at last the
stock was in reality listed. Even Gordon, knowing as he did that he
had picked the ideal moment for his venture, knowing as he did that
the country was in the midst of tremendous prosperity and fairly on
the upswing of a big bull market, knowing that money was still easy
and speculation rampant, even Gordon was absolutely amazed at the
public response. All day long the stock was bought in small lots, in
huge blocks, bought outright, bought on the flimsiest imaginable
margin, bought in every possible way that it could be bought,
legitimately or otherwise; and with the ringing of the closing bell
Konahassett preferred, with its par of twenty-five, closed at
thirty-three and one-half, while Konahassett common, with its
par at five, after the heaviest transactions ever recorded in any
copper stock in one day's trading, closed triumphantly at nine and
three-quarters. And Gordon and Doyle, dining together at the Federal,
looked upon their work and saw that it was good.