It was in the old days when Sugar was one of the most continuous purveyors of fireworks in the market. H. O. Havemeyer, president of the company, was in the heyday of his power. I gather from talks with the old-timers that H.O. and his following had all the resources of cash and cleverness necessary to put through successfully any deal in their own stock. They tell me that Havemeyer trimmed more small professional traders in that stock than any other insider in any other stock. As a rule, the floor traders are more likely to thwart the insiders’ game than help it.
One day a man who knew Deacon White rushed into the office all excited and said, “Deacon, you told me if I ever got any good information to come to you at once with it and if you used it you’d carry me for a few hundred shares.” He paused for breath and for confirmation.
The deacon looked at him in that meditative way he had and said, “I don’t know whether I ever told you exactly that or not, but I am willing to pay for information that I can use.”
“Well, I’ve got it for you.”
“Now, that’s nice,” said the deacon, so mildly that the man with the info swelled up and said, “Yes, sir, deacon.” Then he came closer so nobody else would hear and said, “H. O. Havemeyer is buying Sugar.”
“Is he?” asked the deacon quite calmly.
It peeved the informant, who said impressively: “Yes, sir. Buying all he can get, deacon.”
“My friend, are you sure?” asked old S.V.
“Deacon, I know it for a positive fact. The old inside gang are buying all they can lay their hands on. It’s got something to do with the tariff and there’s going to be a killing in the common. It will cross the preferred. And that means a sure thirty points for a starter.”
“D’you really think so?” And the old man looked at him over the top of the old-fashioned silver-rimmed spectacles that he had put on to look at the tape.