THE HISTORY OF THE MORRISON KENNEL—NICHOLAS THE 1ST—A STOCK SPECULATION, &C.

It is a pleasure which comes gratefully home to the heart, when contemplating the picture of human life, in whatever grade of society or condition we view it, amongst the multitude that flit by us, occasionally to see a being that stands out in bold and bright relief to its dark shades.

On the second day of my visit to Wall-street, while sitting with my venerable friend, the old gentleman, pointing to the street asked, “do you see that man.”—“Yes,” I answered, “and I know him; he is a man of honor, such as honor should be considered,—one of nature’s noblemen; his word is as good as his bond, and his friendship is better than either. He pays his debts because he promises, lends to oblige his neighbor, and gives to benefit the receiver—he tells the truth because it is right, and cheats nobody because it would be wrong. He has gradually risen in wealth and credit, has the confidence of every body, and amidst all the slime and filth that surround him, his character stands untouched and unsullied by its poison.”

He may be seen every day, at half past ten, going to the stock exchange, with a book under his arm; and may be known by the breadth of his foot, the swing of his legs, and the weight of his bottom. He will occasionally appear in the course of this history, under the name of Mr. Bottomly, and I hope his conduct will vindicate my description of his character.

The old gentleman heard my remarks with apparent consent and pleasure, which were indicated by a smile of satisfaction peculiar to himself; but my silence was immediately commanded by a significant nod, with a gesture of the hand, as much as to say “there are some things however in Wall-street, which I know better than you do,” and he then proceeded, agreeably to promise, to relate the history of the Morrison Kennel.

The garrulity peculiar to men of his age, must excuse the frequent introduction of remarks foreign to the narrative; and when I tell my readers, that my friend is a man of deep reflection and high toned moral sentiment, as well as acute observation, they will not be surprised at his occasional illustration of fact by reference to principle.

“The practice of the aborigines of this country,” said he, “of giving names to men and things, indicative of their qualities and exploits, is well considered savage. Since the day when the poet first propounded the question ‘what’s in a name?’ mere moralists have been at fault. But modern practical skill has discovered that there is much; and it was left for the originators of the Morrison Kennel, to find out the best use that could be made of it, viz: that it may be made to cover one purpose under color of another—may gain credit for what it is not, and shield from detection what it really is, or may gull a State with the promise of improvement, and cheat the people of their money for their credulity. In short, the advantages to a stock company of a judicious choice of a name, are incalculable; not the least of which arises from properly compounding it, so as to mean more things than one, as the Morrison Kennel and Banking Company. One peculiar advantage of this last is, that as the projectors are not always certain what they will do, but intend to be governed by their success, they are thereby enabled to shift their course to suit the breeze.”

“This company would probably never have attained the soubriquet of Kennel, a mere play upon the original sound, but for the remarkable financial talents of Nicholas the 1st, profanely called old Nick, in the first place, and its employment afterwards to help to hold up the sides of the great bull dog of Pennsylvania, ycleped the U. S. Bank, who had grown so weak from disease, that it was feared, without such aid, his attempt to bark, would prove a concussion of air from the wrong orifice. In other words it was feared, that without collateral support, the first resumption would not last as long as the second did.

“The circumstances which called into activity the financial talents of Nicholas, deserve a particular notice, as they have an important bearing on this history. And for that purpose, I must introduce to you a gentleman well known in Wall-street; of amiable disposition, gentlemanly deportment and honorable connections. His person may be known from his resemblance to king Saul, being taller, by the head, than any of his tribe of brokers, and, as he bears the appellative of an immortalized Friend, and the signification will be descriptive of his character, I will call him Mr. Friendly.”

“The only thing remarkable about this gentleman is, his extraordinary appetite; from which, taken with his slender proportions, it has been inferred by some, that, like the bird most avoided by sportsmen, his alimentary canal consists only of a straight passage; for he has been known to gorge and digest more stocks in one day, than the weight or bulk of his whole body in the certificates.”

“With this introduction of a part of the ‘dramatis personÆ,’—having already described, with some particularity, the motive for, and the manner of, getting up stock companies, with such parts of their general management as can be interesting to the public—I will commence with the Morrison Kennel, at that point when the causes for the activity before alluded to commenced, viz: precisely at that time, when the directors had expended the whole amount of capital subscribed, together with a loan of seven hundred thousand dollars obtained in Holland, in digging a ditch through the State of New Jersey, which served little other purpose than to drown the Jersey farmers’ pigs—without any one of the said directors having cleared more than fifty thousand dollars out of the company, by means of contracts or otherwise—when their credit was exhausted, the stock reduced in market to one fifth its original cost, and the directors ready, on the first symptom of alarm, to take to their heels for safety. Then, fortunately for them, Mr. Friendly, desirous of improving his fortune, which at this time he found to be in rather a waning condition, formed a scheme of speculation in the stock, commensurate with the vastness of his own desires; and, with this view, he began with the caution and finesse of one who has a game to play. He first ascertained that some of the directors were still in possession of a considerable amount of the stock; whom he could, very probably, draw to his own interest by endeavoring to aid them; and he then proceeded to the office of Mr. Bottomly.”

“Good morning, John,” said he, “how are you?”

“Pretty well Dan, how are you?”

“Hard up.”

“Hard up,” eh!—“No cornering, I hope”—“No,”—“dull times, no movements, things are paralysed, very much.”

Mr. Friendly wished, and was therefore pleased, to find his neighbor alone. So he sat down without ceremony. And after a variety of common place remarks, he at length arrived at the point where he should unburthen himself of his subject. His object was to enlist Mr. Bottomly in his proposed speculation, and thereby secure his means, his influence, and his interest in its favor.

“John,” said he, “the Morrison stock is very low, what do you think of it?”

“That it sells for more than it is worth.”

“That may be, but a thing is worth what it will bring.”

“The seller always thinks so, but the buyer sometimes finds that he has paid too dear for the whistle.”

“What would you think, John, to see the Morrison at 75.”

“I should think very strange.”

“Stranger things have happened though, John. I have a mind to move in the Morrison, what say you to join me?”

“What do you propose?”

“Why, you have the means,—the stock may be had at twenty, and a hundred thousand dollars would control the whole of it. It must be done quietly; and then by contracting on time we should have the power to deliver without loss when we sold; and by making three contracts to receive to one to deliver, we can make them pay whatever difference we choose.”

“That would be too much power to get in our hands, Dan, would it not?”

“True, it would not answer to trust every man with so much; but in your hands and mine, I think we would not abuse it.”

“What amount of exaction do you think would be an abuse of such power?”

“Why, it would be wrong to take more than two hundred per cent. profit, unless we got hold of some one who could well afford it.”

“But that would be using force to appropriate other people’s money to our own use. I think it would not be justifiable.”

Mr. Friendly, though not devoid of sound sense and a good judgment, usually suffered his eagerness for speculation to blind his mind to every probable result but the glitter of gain. He had never looked on the subject in this light before. He intended nothing but a “fair business transaction,” and was desirous that his friend Bottomly should share in its success. His mind revolted at doing a positive wrong; he therefore abandoned his plan, but adopted another on the instant, which though less culpable on his part, was in the end productive of an equal degree of evil. Always quick and decided in his actions, he said “well John, you are always right-minded, though you are sometimes wrong headed, we will say no more of this plan for the present; but I think well of a speculation, and therefore you shall buy me five hundred shares to day at ‘the board,’ I will send you in a check for ‘ten up,’ and the rest we will arrange to-morrow.”

Having decided upon his plan of action, Mr. Friendly then immediately, sought the directors who held stock. Fortunately he found them all in the bank parlour. They had just been talking over the affairs of the company, I will not say that they had been discussing its affairs, for their conversation was like any thing else but a discussion, and consisted of sundry expletives directed principally against their predecessors in office. And here let it be remembered, that those gentlemen, whose ambition had led them to desire such a post of honor, were but newly installed in their places. And, having purchased stock to procure their election, with knowing but very little about the real state of the company’s affairs, they were now unable to get rid of it, and were lamenting their folly and cursing the authors of it. For be it known, that their ambition and vanity had been stimulated by their predecessors before the election, to induce those gentlemen to seek a post which they wished to abandon themselves, knowing that sooner or later it would disgrace them.

Mr. Friendly disclosed his errand at once, and was well received.

He said he was apprised of a speculation going on in the stock of the Morrison; he intended to embark in it—wished them to hold back their stock, and aid his views in effecting a rise, and he would aid them in disposing of theirs at the right time. He did not tell them that he was the sole author of the speculation; he modestly forebore that, under the plea that he did not feel at liberty to tell all that he knew. But the directors were almost immediately confirmed in their good opinion of his knowledge and sagacity, as well as of his intention to do them a service, by hearing of the large purchases of Mr. Bottomly, at a considerable advance on the previous market value.

It is curious, as well as amusing, to see how many and how slight causes sometimes tend to aid or to frustrate a speculator in his designs.

There is a set of proscribed men in Wall-street, who were once brokers, professionally, and are now broken in reputation, credit and finances—having no means but what they have kept from their creditors, and—being expelled from the exchange board for defalcation or bad conduct—they still linger round their old haunts, and carry on a system of gambling in what are termed fancy stocks, through which they contrive occasionally to entrap and empty the purse of some newcomer, or filch each other of their ill retained means, until each in his turn gets placed on the “black list,” which is the final seal of reprobation, and in Wall-street signifies—“that whoever deals with that man, shall himself not be dealt with by any one.”

These gentry may be seen, daily, in squads of three, four, and five, standing on the side walks, or on the steps of the large offices, talking vociferously, and making such bids and offers in the funds, as that one not knowing better, would suppose that each held the finances of the country in his palm.

One of them, whom I will call Mr. Eavesdropper, had his ear timidly placed at the key hole of the Stock Exchange, and heard Mr. Bottomly’s bids for Morrison, which instantly infused such courage into his mind, and activity into his limbs, that he went out, and before the transactions of the board were publicly known, he had privately contracted for the delivery of a large number of shares; and then, to aid his purpose in effecting a further rise, gave out that he was in confidence with John Jacob Astor, or some one no less powerful, who had determined to buy up the whole company.

As soon as Mr. Friendly had returned to his office from the meeting of the Board of Brokers, on the day I am speaking of, and, as is common, had laid open on his outer desk, for public inspection, the record of the transactions which had there taken place—in which he had carefully noted all those in the stock of the Morrison—he walked out into the street, where he encountered Mr. Spriggins, who, contrary to his wont, for some cause, had not been present at the board that morning.

Mr. Spriggins is one of those gentlemen, whose conceit of himself supplies the place of education, manners, and intellect, and he accosted Mr. Friendly as follows:

“Dan, what does all this speculation in the Morrison mean?”

Mr. Friendly, whose polite manners encouraged the freedom of such men as his friend Bottomly, held in contempt the rudeness of impudence, and, instead of answering Spriggins, turned on his heel without noticing him.

Spriggins, who could never imagine the existence of such a feeling towards a gentleman like himself, attributed this treatment entirely to another motive; and knowing Mr. Friendly’s speculative character, he at once imagined that Friendly had a secret that he wished to keep, and improve for his own benefit, and he immediately resolved in his own mind to outwit him. Upon this impulse he hurried away to purchase all the Morrison stock he could get hold of—which he did at a large advance of price over the purchases of Mr. Bottomly; and when he had done so, exultingly told Mr. Friendly that he was “not to be come over.” “But never mind,” said he, “you can keep your secret now, Dan; but if you are so disposed, as you know what is going on, we will operate together.”

Mr. Friendly was not disposed to embrace this offer, liberal as it was, and maintained such a reserve as excited still further the cupidity of Spriggins. Meantime, having heard of the operations of Eavesdropper, Mr. Friendly perceived that he had fairly put the match to a train that, if properly fed, would lead to an explosion. But he resolved that before it should happen, he would take good care of himself.

There is another set of men in Wall-street, which demand my description. They have neither trade nor profession of any kind, and if they ever had any, they have abandoned it. Some of them are of that class called Gentlemen, who have married fortunes and squandered them—some are broken merchants—some disgraced politicians—defunct post masters, &c. &c.,—and all of them are Loafers. They have neither wit enough to contrive, nor credit enough to carry out, a speculation: but when one has begun, like that I am now describing, they may be seen flocking in and out of the brokers’ offices—examining the stock books—talking wisely of the nation’s affairs—each one pretending to know more of finance than even Mr. Woodbury himself; and their exuberance of knowledge is almost as luminously exhibited. Like flies round a honey pot, each one is anxious for a sip, and according to his slender means, pledges a hundred dollars, more or less, and orders his broker to buy as many shares as he will upon this security. They thus materially aid the great speculators; but the result to themselves generally is, that their families or friends suffer precisely the amount they have risked—and so it was in this instance.

Mr. Friendly continued to purchase largely of the Morrison stock, which increased the excitement, and continually advanced the price; and Mr. Spriggins, nettled by Friendly’s reserve towards him, continued to be a large purchaser also, and induced several of his friends to join him.

It ought to be observed here, that these purchases were generally made “on time:” that is, the stock was agreed to be delivered at a future day. And it so happened that when Spriggins was the buyer, Mr. Friendly was generally the seller, through some other persons, as his agents; and he had taken care so to provide himself with stock, that he could meet his contracts on time—not only without the danger of loss, but with a certain profit.

So long as the stock maintained the very high price to which it had now advanced, all was well; but the time must come, when it would not, and then, there was danger that Spriggins, and his compatriots in the speculation, would not be able to fulfill their engagements. Mr. Friendly, therefore, as a stimulant to the action of Spriggins, and to prepare for the denouement, hinted to him that, as the stock had now so much increased in value, probably Nicholas the 1st would loan money liberally upon it; and, as the stock must rise still more, such an accommodation would be very desirable, to enable one to hold it. He dropped this hint in such a way, as led Spriggins to believe that he intended to make the application for himself. He had really, however, no intention of asking such a favor, for such a purpose, but he knew well what the effect of such a suggestion would be with Spriggins, and—as he expected—the dapper gentleman immediately started, post haste, for Philadelphia, and succeeded in obtaining from Nicholas, the promise of a loan of one hundred and fifty thousand dollars, on stock of the Morrison, which, six weeks before, was not worth, in the market, one-fourth of that amount: that is, provided Mr. Spriggins would negotiate half a million of dollars of the bonds of the U. S. B., payable in twelve months from date; by which means, Nicholas cunningly foresaw, that, instead of lending Spriggins, he should himself be the borrower of no less a sum than three hundred and fifty thousand dollars. But those were palmy days of credit: the bonds were all negotiated with ease, and the Morrison stock transferred to Nicholas, as security for the loan, as fast as the greedy purchases of Mr. Spriggins could command the large amount necessary.

Mr. Friendly now saw all his hopes about to be realized. By obtaining the control of a very large amount of the stock at 20 to 25 per cent. on the par, and stimulating the cupidity and self conceit of Spriggins, he constantly went on buying ten shares at an increased price, and always selling, through some one else, twenty shares to every ten that he bought, until he succeeded in throwing the whole stock upon Spriggins, and his associates, who, as we have seen, were supported by Nicholas, in their mad speculation. And, in less than four months from his first purchase, Mr. Friendly retired, with a clear profit of one hundred thousand dollars, and the eternal gratitude of the directors of the Morrison, whom he had assisted and relieved.

The directors of the Morrison rubbed their hands with glee, and treated Mr. Friendly with the greatest respect, when they found that they had got rid of all their stock, not only without loss, but at an enormous profit. But then came the affairs of the company, which were not a whit better now, than when the stock was depressed. In fact, they were every day growing worse—for the interest on their enormous loans, was now becoming due, and they had nothing to pay it with.

At a meeting of the board of directors, about the time we are speaking of, for purposes of business, they all sat in silence, for some minutes, looking at each other—each one wishing that his neighbor might propose some remedy—and their hearts sank within them, as each one successively uttered a desponding sigh at the poverty of his invention, or—what was still worse to get over—the poverty of their finances. At length, Mr. Faintheart proposed that they should all resign, and let the affairs of the company take care of themselves. This course—although so successfully practised some time afterwards by their successors in office—did not suit the taste of Mr. Hold-on; who said that “the public mind was not now prepared for such a movement. A few years more, and the people will be more enlightened, and will not expect directors to retain their seats when they have nothing to gain by doing so. But, if we desert them now, the thing will be looked into; we shall be accused of all the roguery that others before us have done—we shall be hunted like rats. My motto, therefore, is, ‘don’t give up the ship;’ and, as none of you propose a remedy, I suggest that, as Nicholas now holds a large amount of the stock, perhaps he will loan us a couple of hundred thousands, especially, if he is made to believe that it is wanted to finish our works of improvement, and that when they are finished it will improve the value of his stock fifty per cent.”

The proposal was hailed with delight, and Mr. Hold-on was deputed to manage the negotiation, which he did with the same success, in the same manner, and on the same conditions, as did Mr. Spriggins.

This cunning device of Nicholas, always to be the borrower, when he appeared to lend, is altogether a modern invention, and was very successfully practised, a few years since, in an attempt to relieve the merchants of New-York, and which, some have wickedly said, was used to enable certain gentlemen to collect their private debts, and finally went to relieve Nicholas of his money, by throwing the same debts upon him. Be that as it may, it is universally admitted that Nicholas was the first inventor of a bank, whose business was to borrow, instead of lending, money.

By these master strokes of policy, Nicholas came into possession of a claim of two hundred thousand dollars against the Morrison, and held an equal amount of their stock, both which in six months afterwards he found to be not worth a farthing. To these circumstances it was owing, that, through his influence, the Morrison Kennel was afterwards revived with great splendor, and scenes were enacted, which, though they have caused many a tear of grief to flow, will, I hope, not fail to excite your laughter by their relation.

My venerable friend here excused himself on account of fatigue, but with the assurance that, at our next meeting, he would introduce me to some new and original characters, and also tell me about the negotiation of a great state loan—how the directors of the Morrison helped to nurse the great “bull dog” of Pennsylvania in his sickness, and how they all ran away, when they found he was likely to die, together with some account of his disease, and his last moments.

If any one is curious to know what became of Messrs. Friendly, Spriggins, and Eavesdropper, after their figure in the Speculation, I will take this opportunity to tell them, that what has here been said is but a small part of the fame to which they are entitled; but it is my business only to show the results of such things as I have related.

Mr. Friendly, as all good men do, spent his money liberally and charitably. To a large circle, his house was the centre of politeness, elegance, and hospitality; but his insatiable appetite for speculation ruined him at last, as it does all others; at least, he is so far ruined, that until another speculation shall turn out like the Morrison, he will be content to practice economy. Mr. Spriggins set up his carriage on his anticipated profits, and was let down from it before his coachman had fairly mounted his livery; and report says that he has since done the same thing three times over. Mr. Eavesdropper ran wild with his first success, and, in the end, only arrived one stride nearer the “black list.” And exactly one hundred and forty others were made poorer than they were before, by the whole amount which they put at risk.

If the mischiefs arising from this species of gambling were confined to those who set that kind of speculation on foot, or who make it the business of their lives, there would be nothing to lament. But such is not the fact. The whirlwind naturally sweeps everything within its influence, and over which it has power, to its centre. Hundreds, nay thousands, allured by the success of a few, are induced to embark in the rash adventure. They are unacquainted with the real character or causes of the fluctuations, and even if they are not ignorant, they are liable to be outwitted by some of the hundred minds that are continually plotting against them. Here is the fruitful source of all those defalcations of public officers—the purloining of money by officers, and clerks of institutions which have so much multiplied of late—inflicting misery on the families, and disgrace on the names of many a once honorable man.

The business is showy and fascinating, its temptations subtle and alluring. Young and enterprising merchants embark in it, and find that they have lost their money and their credit, when it is too late to repent. The hard working mechanic embarks a few hundred dollars, and when he finds himself in debt and no means of paying, sees that he has been outwitted, and that, if others have made money, he has lost it. In fact that it is he, and others like him, who have assisted the successful to pocket his profits. Women yield up the savings of years to be invested in something, they know not what, and wail over their folly and their credulity, when all their bright hopes have faded into a worthless certificate. In fact it is only the loss sustained by such as these that enables the operators, as they are termed, to accumulate, or even to live by their business; for they could do neither the one nor the other within themselves. And it will be found to be a necessary consequence, that in all such speculations as that of which I have endeavored to give but too faithful a picture, if one is made rich, a hundred are made poor. In no country in the world, is the hazard of stock gambling, so great as in this, where there is such a multitude of stocks, based upon the schemes of individuals, and affected by the ever changing prosperity of our growing, yet comparatively unsettled condition; and where the capitals are often so small, that it is in the power of two or three designing individuals to raise them above, or depress them below, their real value, as may best suit their plans or their convenience, thus often destroying the sole dependence of the needy and helpless.