The Secrets of the Great City Part 10

1. Steal largely or not all; for is it not preached in Gotham that he who steals largely and gives donations to the Church shall enter the kingdom of heaven, while to him who confines his stealings to modest peculations shall be opened the doors of Sing Sing?

2. Steal largely! for in proportion to the magnitude of thy stealings shalt thou prosper and wax respectable throughout Gotham.

3. Steal largely! for as ye steal so shall ye show your fitness for the high places in the land; so shall ye be invited to exercise your talents in the numerous positions of trust and profit thereby; so shall ye add honor and glory to the government of your fathers, and your days shall be long in the land.

4. Steal largely! for by thy stealings shalt thou create a new morality; and so shalt thou build up a great people who shall prosper beyond all other nations.

This is the new code we offer--a code taught to us by the times and by the facts that a.s.sail us. When we see an 'honest' Judge 'Iago' rise from his bed at midnight to pander to the contemptible rascality of stock thieves we have but little hope for even what we dignify by the name of law. When we see our churches allowing a host of gamblers to gather for false worship at their shrines and pander to them, that they may share their plunder for the 'benefit of the Lord,' we have still less hope in our future. When we see great criminals respected and lesser criminals imprisoned we believe that the American mind is sadly out of a proper moral pathway.

"The operations now carried on in Wall street, be they of any stock, or of gold, call for the interference of some power sufficient to crush them. If the City or the State is powerless, let the general government take the matter in hand for the general good. Take gold, for example.

There are not over two millions of the solid coin used as a basis for the operations which in a single month represent a sum twice the amount of our national debt. The harpies who gather around the Gold Rooms in their mad shoutings are at the same time shouting 'Death to the republic!' They unsettle all values, and are, as a ma.s.s, a public calamity, and should be dealt with as such. As with gold, so with stocks, and no nation can long afford to let its future hang upon the will of a ma.s.s of unprincipled men who daily bleed its prosperity beyond all calculation."

These things are well known in New York, but no one heeds them. Each one thinks he is shrewd enough to avoid the dangers which have ruined others, and only discovers his mistake when it is too late to repair it. Men of all cla.s.ses, even ministers of the Gospel, and frequently women, rush into Wall street in pursuit of sudden wealth, where, to use an old adage, "if they are not gored to death by the Bulls, they are sure to be devoured by the Bears."

Persons who wish to succeed in New York, or elsewhere, should shun speculation. Legitimate business offers brilliant rewards here, but speculation means ruin. If you wish this a.s.sertion enforced, go into Stewart's or Claflin's stores, and see how many salesmen on small salaries you will find there who were once wealthy merchants doing business on their own account. They succeeded in their legitimate pursuits, but were not satisfied with their success. They wanted more, commenced speculating, and lost every thing. Men to succeed here must be energetic, cautious, enterprising, and economical.

BOGUS STOCK COMPANIES.

On fine afternoons visitors to the Park do not fail to notice a handsome equipage driven by a stylish young man, with rosy cheeks and light curly hair. His face is the perfect picture of happy innocence.

He is very wealthy, and owns a great deal of real estate in the city.

The manner in which he made his money will show how other persons enrich themselves.

A few years ago he, in company with several others, organized a scheme for working certain gold mines said to be located in a distant territory. A company was made up, the country was flooded with flaming descriptions of the valuable mine, and stock was issued which sold readily. The bonds were soon taken up, and in a month or two the so- called company commenced paying handsome dividends. A number of gold bars, bearing the stamp of the mint, were on exhibition in the company's office, and were triumphantly exhibited as amongst the first yields of the valuable mine. For several months the dividends were paid regularly, and the company's stock rose to a splendid premium. It could hardly be bought at any price. No one doubted for an instant the genuineness of the affair, and the lucky company was the envy of all Wall street.

In a few months, all the stock being disposed of, the company ceased paying dividends. This excited the suspicion of some of the shrewdest holders of the stock, and the affair was investigated. It was found that the wonderful mine had no real existence. The gold bars were simply gold coins melted into that form at the Mint, and stamped by the Government as so much bullion. The dividends had been paid out of money advanced by the company, who were simply half a dozen unprincipled sharpers. The stockholders were ruined, but the company made a profit of a clear half million of dollars out of the infamous transaction.

Legal proceedings are expensive and tedious when inst.i.tuted against such parties, and the stockholders, rather than increase their losses by the outlay necessary for a lawsuit, suffered the swindlers to go unmolested.

A certain stockbroker, anxious to increase his wealth, purchased twenty acres of land a few years ago in one of the Western States, and commenced boring for oil. After a few weeks spent in this work, he discovered to his dismay that there was not the slightest trace of oil on his land. He kept his own counsel, however, and paid the workmen to hold their tongues. About the same time it became rumored throughout New York that he had struck oil. He at once organized a company, and had a committee appointed to go West and examine the well. In a few weeks the committee returned in high glee, and reported that the well contained oil of the very best quality, and only needed capital and improved machinery to develop its capacity. In support of this a.s.sertion they brought home numerous bottles containing specimens of the oil. This report settled the matter in Wall street, and the stock issued by the company was all sold at a handsome premium. When the sales ceased, it was rumored that the well had ceased flowing. This was true. There was no oil anywhere on the land. That in the well had been bought in Pennsylvania and poured into the well by the agents of the owner, and the examining committee had been paid large sums for their favorable report. The owner of the well was enriched, as were his confederates of the bogus company, and the holders of the stock were swindled, many of them being ruined.

A PETROLEUM PRINCE.

We take the following from a work recently published in Paris. It contains the observations of an intelligent French gentleman during a residence in New York:

An Irishman, thirty years ago, arrived in Philadelphia. He was a mason by trade, industrious and sober, which is not often the case with natives of the Emerald Isle. He managed to save a few hundred dollars, and then married.

He had enjoyed the blessings of matrimony over ten years, when, on going to his work, early one morning, he found, a short distance from his house, a basket covered with a linen cloth. He carried it home, opened it, and a handsome baby appeared before his view. To the child's clothes was pinned a paper bearing a few lines, asking, in the name of the Almighty, the person into whose hands the basket might fall, to take charge of the new-born infant, for the sake of a poor fellow- creature. The Irishman and his wife, not having any children, at once adopted the little one, regarding it as a gift sent by Providence. A few years later, the Irishman, who had by his savings ama.s.sed quite a handsome sum of money, purchased a small farm in a thinly settled county of Pennsylvania, and there lived quietly and contentedly, until, one day, in cutting down a tree, it fell upon him, and he was crushed to death beneath its weight. After this sad occurrence, his widow, with the help of the adopted child, carried on the business of the farm, often regretting she could not give the boy an education; but they were so far from any school, she could not think of sending her son such a distance from home.

One day a rumor circulated throughout Pennsylvania that, by boring into the earth to a moderate depth, in some parts of the State, oil was found to spring forth. Startling as this rumor was, many persons were forced to believe it, when they saw, with their own eyes, a black liquid, giving a bright light, issuing from certain holes bored for experiment. After this, all persons began experimenting on their own property. The Irish widow imitated her neighbors, and with the help of her adopted son, bored a hole in her garden. After a few day's work, they struck oil--a flowing well rewarded their enterprise!

Meanwhile speculators, wild with the excitement of this discovery, besieged Pennsylvania, and that State soon swarmed with them. The desire to possess a portion of those marvellous lands took possession of every mind. Throughout the States every one was affected with the new disease, denominated 'oil on the brain;' and soon the value of the oleaginous districts went up to wonderful figures. In many instances, as much as fifty thousand dollars were paid for an acre of land. And, availing herself of the general infatuation, the Irish widow sold her farm, for two millions of dollars, to a Boston company, which thought it was very cheap to give not quite seven thousand dollars per acre for petroleum land. The three hundred acres of the widow's farm had cost three hundred dollars a few years before, that is to say, one dollar an acre! Besides the two millions of dollars, the Irish widow had stipulated that one half of the flowing well in her garden should belong to her. That well yielded from five to six hundred barrels of oil per day. You may be sure the old lady doted on it. She visited it a hundred times a day, always surveying it with amazement, and ascertaining whether it was as productive as ever. Even at night she left her bed to go and view the marvellous spring. During one of these nocturnal excursions, she imprudently drew too near the well with a light--the spring fired up with lightning-like rapidity, and the poor woman, becoming wrapped in the flames, was burned to death. The coroner was summoned to hold an inquest. When it was over, the widow's neighbors, desiring to ascertain whether she had sold her farm for as large an amount as was rumored, prevailed upon the coroner to open her safe. It contained two hundred thousand dollars in gold, which, no doubt, represented the widow's profits for her reserved rights in the well; and also bonds of the United States to the amount of two millions of dollars, the said bonds registered in the name of Peter Crazy, the widow's adopted son, and only heir and legatee, according to her will, that was also found in the strong-box.

Now, the young man, whose large stakes a few minutes ago caused such a sensation, is the same Peter Crazy, the widow's adopted son; and he came here to-night to complete his ruin. But I must now relate what became of him after becoming possessed of a princely fortune.

At the time he came into possession of this fortune, Crazy did not know the difference between one thousand and one hundred thousand dollars.

He could hardly write his name; and, unfortunately, he had n.o.body to warn him against the dangers that beset the youth of this world, and to make of him, instead of a spendthrift, a man useful to society.

Suppose a philanthropist, a good-hearted, high-minded man, should suddenly come into possession of two millions of dollars, what a benefactor he might prove to his fellow-creatures! What useful and benevolent inst.i.tutions he might found! What improvement might every branch of human labor receive if he chose to apply to it a portion of his wealth.

As soon as it became known that Crazy had inherited a large fortune, many adventurers, with whom the new Eldorado swarmed, pounced upon him like birds of prey upon a carca.s.s; and then commenced for Crazy a life of prodigality and vice, the end of which is near at hand.

In Philadelphia, he stopped with his cronies at one of the most elegant and s.p.a.cious hotels of the city, stipulating for the exclusive use of it during their stay. He bought fine horses, carriages of the most approved pattern, and furnished a _maison de joie_, where he reveled every night. Many Philadelphians will long remember his daily freaks of extravagance. I will relate one as a sample of the others. One day, as a regiment stopped in the city on its way to the West, he presented it with one thousand baskets of champagne--one basket to each man--a piece of liberality that cost him twenty-five thousand dollars. After spending half a million dollars in the Quaker City, he came to New York in search of new excitements.

Here he met with persons who aroused a new feeling in his mind--that of pride. Those capitalists and speculators who drive their fancy teams in Central Park, who keep racehorses, who do their best to resuscitate the fine old times of France under the Regency, were not, he was told, as wealthy as himself. He was bound to live in style, lest he should be taken for a shoddy contractor, who does not know how to spend his money. Crazy, therefore, imitated the leaders of fashion--but in the same way European wood-cutters are imitated by Australasian savages, who, when they cut down a tree, wait for its fall until they are crushed by its weight. He kept as many as forty horses; bet heavily at the races, and lost every time; and hired a theatrical troupe, whom he provided with costly costumes, and who played only for himself and a few friends. One night he was so delighted with the saltatory skill and _pirouettes_ of the dancing-girls of his troupe, that he presented each of them, with a gracefulness of manner that Buckingham himself would have envied, pearls and diamonds worth over one hundred thousand dollars. In short, for a year, he indulged in all conceivable dissipations. But Providence has in store for him one of those visitations that, from time to time, startle and instruct the world.

"Crazy believes his main income can never be impaired. Besides the one hundred thousand dollars he has in his pocket--the last of the money found in the Irish widow's strong-box--he fancies he possesses inexhaustible means in the oil well. On returning, he will learn that that source of wealth is dried up, and his only fortune consists of the fifty-two coats he has purchased inside of the past month."

CHAPTER XII.

BUSINESS IN NEW YORK.

The legitimate business of New York is greater than that of any other place in America. The city being the chief centre of our commerce, offers the greatest advantages of any in the land to persons engaged in trade. Merchants at a distance buy whatever they can here, because they like to visit the place, and can thus unite business with pleasure. Two or three millions of strangers annually visit New York, and while here expend large amounts in purchases. People in other parts of the country attach an additional value to an article because it was purchased in the great city. Besides this, one is apt to find the best article in the market here, as it is but natural that the chief centre of wealth should draw to it the best talent in the arts and trades.

Merchants from the provinces like the liberal and enterprising spirit which characterizes the dealings of New York merchants. They can buy here on better terms than elsewhere, and their relations with the merchants of this city are generally satisfactory and pleasant.

Every thing in New York gives way to business. Private neighborhoods disappear every year, and long lines of magnificent warehouses take the places of the comfortable old mansions of other days. There is now scarcely a respectable neighborhood for residences below Fourth street.

The business of the community is steadily advancing up the island. The lower part of the city is being taken up with wholesale and commission houses and manufacturers. The retail men are constantly going up higher. Broadway now has scarcely a residence along its entire length; Washington Square, Waverley and Clinton Places, and even Fifth Avenue below Twenty-third street, are being rapidly invaded by business houses.

Enterprise, energy, and talent, distinguish the business of this city.

A man capable of acquiring a fortune can acquire it here more readily than elsewhere, but he must have patience. The world was not made in a day, and fortune comes slowly, but it comes surely to the man who will work faithfully and patiently for it.

EXAMPLES.

The Harpers and Appletons, who stand at the head of the book trade in New York, began as poor boys, and worked their way up to fortune slowly and patiently. Cornelius Vanderbilt was a poor boatman. Daniel Drew was a drover. A. T. Stewart an humble, struggling shop-keeper. One of the most noted bank presidents of the city began by blacking a pair of boots. He did his work well. These are noted instances, but there are thousands of merchants in the city doing comfortable businesses, some of whom will be millionaires, who began poor and friendless. They have worked faithfully and patiently, and their lives are examples to all beginners.

REAL ESTATE OPERATIONS.

Many capitalists have made their fortunes by successful operations in real estate. This must not be cla.s.sed with speculations in bonds or stocks. Of course, one may be cheated in buying real estate, as well as in any other purchase; but as a general rule, he who invests his money in houses or lands, gets the full value of it. The rapid growth of the city has increased the value of property in the upper sections at an amazing rate, and has made the fortune of every one who held land in those sections. The Astors, A. T. Stewart, Claflin, Vanderbilt, Drew, and hundreds of others who were wise enough to foresee and believe in the future of New York, have made handsome fortunes on the investments made by them a few years ago.

In 1860 a gentleman purchased a handsome house in a fashionable neighborhood. It was a corner house, and fronted on Fifth Avenue. He paid fifty thousand dollars for it. He spent twenty-five thousand more in furnishing and fitting up. His friends shook their heads at his extravagance. Since then he has resided in the house, and each year his property has increased in value. A few months ago he was offered nearly three hundred thousand dollars for the house and furniture, and refused it, declaring his belief, that in ten years more the property will be worth over half a million.

A farm near the Central Park that could not find a purchaser seven years ago at a few thousands, sold six months since, in building lots, for as many millions.

We might multiply these instances, but the above are sufficient to ill.u.s.trate this branch of our subject.

Rented property pays handsomely. As much as twenty per cent. on the value, is often received as the rent of a dwelling, and some of the best Broadway stores bring their owners one or two hundred thousand dollars annually. As all rents are paid in advance, and security required for the larger ones, the owner is comparatively safe in his investment.

CHAPTER XIII.