ARTHUR.T Stories ----A Study in Finance ----VI---Page 30

He had worked faithfully, had given great satisfaction to his employers, and presently had a clerical position in a prominent trust company
offered to him. It seemed an advance. The salary was larger, even if absurdly small, and he gladly accepted the place.

Shortly after this he had his first experience in real finance. The

president of the company sent for him--the reader will remember that this is a true story--and the boy entered his private office and came into the august presence of the magnate. This man is to-day what is commonly known as a "power" in Wall Street.

"My boy," said the president, "you have been doing very well. I have noticed the excellence of your work. I want to commend you."

"Thank you, sir," said John modestly, expecting to hear that his salary was to be raised.

"Yes," continued the great man. "And I want you to have an interest in the business."

The blood rushed to John's head and face. "Thank you very much," he gasped.

"I have allotted you five shares in the trust company," said the

president. "If you take them up and carry them you will feel that you have a real connection with the house and it will net you a handsome return. Have you any money?"

It so happened that at this time John's savings were invested in a few bonds of an old and conservatively managed railroad. His heart fell. He didn't want to buy any bank stock.

"No," he answered. "My salary is small enough and I need it all. I don't save any money."

"Oh, well," said the magnate, "I will try and fix it up for you. I will

arrange for a loan with the ---- Bank on the stock. Remember, I'm doing this to help you. That is all. You may go back to your books."

Next day John was informed that he had bought five shares of ---- Trust

Company stock in the neighborhood of three hundred, and he signed a note
for one thousand four hundred and twenty-five dollars, and indorsed the
stock over to the bank from which the money had been borrowed for him.
The stock almost immediately dropped over fifty points. John paid the
interest on the note out of his salary, and the dividends, as fast as
they were declared, went to extinguish the body of the loan. Some time

afterward he learned that he had bought the stock from the magnate
himself. He never received any benefit from it, for the stock was sold
to cover the note, and John was obliged to make up the difference. He
also discovered that ten or fifteen other employees had been given a
similar opportunity by their generous employer at about the same time.
John, in prison, says it was a scheme to keep fifty or a hundred shares
where it could easily be controlled by the president, without risk to

himself, in case of need. Of course, he may be wrong. At any rate, he
feels bitterly now toward the big men who are at large while he is in
jail.

John continued to keep up with the acquaintances formed during his years in the broker's office, many of whom had started little businesses of
their own and had done well. Part of their stock-in-trade was to appear
prosperous and they took John out to lunch, and told him what a fine
fellow he was, and gave him sure tips. But John had grown "wise." He had had all the chances of that sort he wanted, and from a bigger man than any of them. He ate their lunches and invited them in return. Then he
economized for a day or two to even up. He was not prosperous himself, but he did not accept favors without repaying them.

One thing he observed and noted carefully--every man he knew who had

begun a brokerage business and kept sober, who attended to business and
did not speculate, made money and plenty of it. He knew one young firm
which cleared up fifteen thousand in commissions at the end of the
second year. That looked good to him, and he knew, besides, that _he_
was sober and attended to business. He made inquiries and learned that
one could start in, if one were modest in one's pretensions, for two
thousand five hundred dollars. That would pay office rent and keep
things going until the commissions began to come in. He started to look
around for some other young man who could put up the money in
consideration of John's contributing the experience. But all the men he
knew had experience without money.

Then by chance he met a young fellow of bright and agreeable personality
whom we shall call Prescott. The latter was five or six years older than
John, had had a large experience in brokerage houses in another city,
and had come to New York to promote the interests of a certain copper
company. John had progressed and was now assistant loan clerk of one of
the biggest trust companies in the city, which also happened to be
transfer agent for the copper company. Thus John had constantly to
handle its certificates. Prescott said it was a wonderful thing--that
some of the keenest men in the Street were in it, and, although it was a
curb stock, strongly advised his new friend to buy all he could of it.
He assured John that, although he was admittedly interested in booming
the stock, he was confident that before long it would sell at four times
its present quotation.