A Dutch Boy Fifty Years After

by Edward William Bok

Construing the financier's silence to mean at least not a prohibition, Edward went to his Sunday-school teacher, who was a member of a Wall Street brokerage firm, laid the facts before him, and asked him if he would buy for him some Western Union stock. Edward explained, however, that somehow he did not like the gambling idea of buying "on margin," and preferred to purchase the stock outright. He was shown that this would mean smaller profits; but the boy had in mind the loss of his father's fortune, brought about largely by "stock margins," and he did not intend to follow that example. So, prudently, under the brokerage of his Sunday-school teacher, and guided by the tips of no less a man than the controlling factor of stock-market finance, Edward Bok took his first plunge in Wall Street!

Of course the boy's buying and selling tallied precisely with the rise and fall of Western Union stock. It could scarcely have been otherwise. Jay Gould had the cards all in his hands; and as he bought and sold, so Edward bought and sold. The trouble was, the combination did not end there, as Edward might have foreseen had he been older and thus wiser. For as Edward bought and sold, so did his Sunday-school teacher, and all his customers who had seen the wonderful acumen of their broker in choosing exactly the right time to buy and sell Western Union. But Edward did not know this.

One day a rumor became current on the Street that an agreement had been reached by the Western Union Company and its bitter rival, the American Union Telegraph Company, whereby the former was to absorb the latter. Naturally; the report affected Western Union stock. But Mr. Gould denied it in toto; said the report was not true, no such consolidation was in view or had even been considered. Down tumbled the stock, of course.

But it so happened that Edward knew the rumor was true, because Mr. Gould, some time before, had personally given him the contract of consolidation to copy. The next day a rumor to the effect that the American Union was to absorb the Western Union appeared on the first page of every New York newspaper. Edward knew exactly whence this rumor emanated. He had heard it talked over. Again, Western Union stock dropped several points. Then he noticed that Mr. Gould became a heavy buyer. So became Edward--as heavy as he could. Jay Gould pooh-poohed the latest rumor. The boy awaited developments.

On Sunday afternoon, Edward's Sunday-school teacher asked the boy to walk home with him, and on reaching the house took him into the study and asked him whether he felt justified in putting all his savings in Western Union just at that time when the price was tumbling so fast and the market was so unsteady. Edward assured his teacher that he was right, although he explained that he could not disclose the basis of his assurance.

Edward thought his teacher looked worried, and after a little there came the revelation that he, seeing that Edward was buying to his limit, had likewise done so. But the broker had bought on margin, and had his margin wiped out by the decline in the stock caused by the rumors. He explained to Edward that he could recoup his losses, heavy though they were--in fact, he explained that nearly everything he possessed was involved--if Edward's basis was sure and the stock would recover.

Edward keenly felt the responsibility placed upon him. He could never clearly diagnose his feelings when he saw his teacher in this new light. The broker's "customers" had been hinted at, and the boy of eighteen wondered how far his responsibility went, and how many persons were involved. But the deal came out all right, for when, three days afterward, the contract was made public, Western Union, of course, skyrocketed, Jay Gould sold out, Edward sold out, the teacher-broker sold out, and all the customers sold out!

How long a string it was Edward never discovered, but he determined there and then to end his Wall Street experience; his original amount had multiplied; he was content to let well enough alone, and from that day to this Edward Bok has kept out of Wall Street. He had seen enough of its manipulations; and, although on "the inside," he decided that the combination of his teacher and his customers was a responsibility too great for him to carry.

Furthermore, Edward decided to leave the Western Union. The longer he remained, the less he liked its atmosphere. And the closer his contact with Jay Gould the more doubtful he became of the wisdom of such an association and perhaps its unconscious influence upon his own life in its formative period.

In fact, it was an experience with Mr. Gould that definitely fixed Edward's determination. The financier decided one Saturday to leave on a railroad inspection tour on the following Monday. It was necessary that a special meeting of one of his railroad interests should be held before his departure, and he fixed the meeting for Sunday at eleven-thirty at his residence on Fifth Avenue. He asked Edward to be there to take the notes of the meeting.