Before I detail the steps I took to spring its own trap on the "System," I should explain that this market was purely an artificial one. The immense advance of prices was not brought about by any honest methods or legitimate causes. The "System's" votaries had enormous quantities of stocks—millions upon millions of shares, bought when the people during the past two years were compelled to throw them overboard at slaughter prices. By employing one of the oldest swindling devices known to finance,[21] they could bid prices to any figure they desired. Honest financial writers called attention each week to the tactics of the manipulators and declared the high quotations unjustifiable and unreasonable.
At the stage of the game that I felt sure immediately preceded the unloading signal, I determined to test whether the people had really digested as well as absorbed the cold facts I had been ladling out to them in my story of "Frenzied Finance"—whether they had grown wise enough to heed a warning. So on Monday, December 5th, I carefully prepared the following advertisement, which was published Tuesday morning in the great papers of the great cities of this country and later in Europe.
AMALGAMATED STOCKHOLDERS—WARNING
From the creation of Amalgamated I have continuously believed in its worth and constantly advocated the purchase of its stock.
Henry H. Rogers personally negotiated with Marcus Daly for the properties which went to make up the Amalgamated Company.
Henry H. Rogers alone knew absolutely their values.
Henry H. Rogers's associates took his word for them.
While they cost Messrs. Rogers, Rockefeller, and associates only $39,000,000, we all believed they were worth more than the $75,000,000 at which they were sold to the public.
Shortly after the public flotation at $100 per share, the stock dropped to 75. I did all in my power to prevent the decline, losing millions in the effort, but I retained my faith in the real worth of the property.
Some of the insiders made millions; the public was fleeced of millions.