SELLING STOCK SHORT.
After a few days more Jack and Rose returned to England.
Soon after their return, one of the morning papers had an announcement
that the banking house of Campbell & Co. (Limited), No. ---- street, was
promoting the "Wedge of Gold," a mining property in Southern Africa, near
the border of the Transvaal, which was believed to be a most promising
property.
The same day Emanuel dropped into the house of Jenvie, Hamlin & Stetson.
He was seedy-looking, and seemed a good deal run down both in purse and
spirits.
"What do you think of the 'Wedge of Gold' announcement?" asked Jenvie.
"What is it?" asked Emanuel. He was shown the paper.
"What do I think?" he said. "I think may be the young man needs a little
money. The mails came in from Port Natal yesterday. Is there any news
from the mine?"
"None at all that we can find," said Jenvie.
"I have no idea," said the Portuguese, "but if it is more than three
shillings per share, it is one good chance for a bear to sell it short
and hug himself for his own act."
With this he went out. The three men were silent for a good five minutes.
Then Jenvie rang the bell, and when it was answered he said to the
messenger: "Go to Campbell & Co.'s; find out the price of 'Wedge of Gold'
stock, and ask what data the house has from the property."
The clerk returned in half an hour, and reported that it was held at £1,
and he produced a statement of the property.
This was eagerly run over by the three. "Why," said Jenvie, as he
completed reading it, "this is but a rehash of the statement of a year
ago; the same depth is given, all the details just as they were. Jack
must be making a desperate play for money."
"One pound per share!" said Hamlin. "Why, the man must be after some
other Nevada miner who has more money than judgment."
"The 'Wedge of Gold' was our good fortune," said Stetson. "Through it
we got a real start. We made a good bit out of it, which we have since
doubled. Let us try another venture in the stock."
"What! Buy it at £1 per share?" asked Hamlin.
"No, no," said Jenvie. "Let us sell 20,000 shares to be delivered in
three months at ten shillings. We can send Emanuel and get it at four or
five shillings."
After weighing the matter in every way they decided to increase the
amount and sell 30,000 shares.
The offer was taken, the money paid, and the contract to deliver the
30,000 shares in three months was signed by Jenvie, Hamlin & Co. Then
each, unknown to the other, sold 10,000 shares more short.
The fact was wired to Sedgwick at once. He showed Grace the dispatch and
said: "My enchantress, that will leave your mother's husband and Rose's
mother's husband bankrupt if we wish it; what shall we do?"
"How will it do so?" asked Grace.
"In three months that stock will be worth £5 per share," said Sedgwick.
"See what it will require to produce 60,000 shares to fulfill their
contract."
"What did they obtain from Jack?" asked Grace.
"Almost £90,000," said Sedgwick.
"Well," said Grace, "I know very little of business, but it seems to me
if they would make that good with the year's interest, it would be about
right, inasmuch as it is a family matter."
"You little bunch of wisdom and justice!" said Sedgwick. "To make them do
just that thing was what I started to Africa for."