CHAPTER XXXIV.
How the Chinook Came to Wall Street
The loss of much money is commonly a subject to be managed with brevity and aversion by one who sits down with the right reverence for sheets of clean paper. To bewail is painful. To affect lightness, on the other hand, would, in this age, savour of insincerity, if not of downright blasphemy. More than a bare recital of the wretched facts, therefore, is not seemly.
The Bines fortune disappeared much as a heavy fall of snow melts under the Chinook wind.
That phenomenon is not uninteresting. We may picture a far-reaching waste of snow, wind-furrowed until it resembles a billowy white sea frozen motionless. The wind blows half a gale and the air is full of fine ice-crystals that sting the face viciously. The sun, lying low on the southern horizon, seems a mere frozen globe, with lustrous pink crescents encircling it.
One day the wind backs and shifts. A change portends. Even the herds of half-frozen range cattle sense it by some subtle beast-knowledge. They are no longer afraid to lie down as they may have been for a week. The danger of freezing has passed. The temperature has been at fifty degrees below zero. Now, suddenly it begins to rise. The air is scarcely in motion, but occasionally it descends as out of a blast-furnace from overhead. To the southeast is a mass of dull black clouds. Their face is unbroken. But the upper edges are ragged, torn by a wind not yet felt below. Two hours later its warmth comes. In ten minutes the mercury goes up thirty-five degrees. The wind comes at a thirty-mile velocity. It increases in strength and warmth, blowing with a mighty roar.
Twelve hours afterward the snow, three feet deep on a level, has melted. There are bald, brown hills everywhere to the horizon, and the plains are flooded with water. The Chinook has come and gone. In this manner suddenly went the Bines fortune.
April 30th, Consolidated Copper closed at 91. Two days later, May 2d, the same ill-fated stock closed at 5l—a drop of forty points. Roughly the decline meant the loss of a hundred million dollars to the fifteen thousand share-holders. From every city of importance in the country came tales more or less tragic of holdings wiped out, of ruined families, of defalcations and suicides. The losses in New York City alone were said to be fifty millions. A few large holders, reputed to enjoy inside information, were said to have put their stock aside and "sold short" in the knowledge of what was coming. Such tales are always popular in the Street.
Others not less popular had to do with the reasons for the slump. Many were plausible. A deal with the Rothschilds for control of the Spanish mines had fallen through. Or, again, the slaughter was due to the Shepler group of Federal Oil operators, who were bent on forcing some one to unload a great quantity of the stock so that they might absorb it. The immediate causes were less recondite. The Consolidated Company, so far from controlling the output, was suddenly shown to control actually less than fifty per cent of it. Its efforts to amend or repeal the hardy old law of Supply and Demand had simply met with the indifferent success that has marked all such efforts since the first attempted corner in stone hatchets, or mastodon tusks, or whatever it may have been. In the language of one of its newspaper critics, the "Trust" had been "founded on misconception and prompted along lines of self-destruction. Its fundamental principles were the restriction of product, the increase of price, and the throttling of competition, a trinity that would wreck any combination, business, political, or social."
With this generalisation we have no concern. As to the copper situation, the comment was pat. It had been suddenly disclosed, not only that no combination could be made to include the European mines, but that the Consolidated Company had an unsold surplus of 150,000,000 pounds of copper; that it was producing 20,000,000 pounds a month more than could be sold, and that it had made large secret sales abroad at from two to three cents below the market price.