Man Made $100,000 on 44-Cent Start

1920

Now Charged With Theft of $500

Arrest Reveals Career of Poor Texas Youth Who Made Fortune in New York

NEW YORK, N. Y., March 25. — Abraham White, known variously as the "Speculator King," the "Postage Stamp Bidder," the "Wireless Chief" and the "Texas Grocer," was held in $1,000 bail by Magistrate Charles N. Haris in the Yorkville court on a charge of grand larceny.

While acting as a plain "financier" at his offices, White is charged with accepting $500 from Julius Reibert, a builder, of Hartford, Conn., last Oct. 15, for investment in stock of the Freezproof Corporation.

Reibert, in his complaint against White, who fifteen years ago made a fortune on a "shoestring" in Wall street, says the stock was to have been delivered to him on Dec. 1. Neither was the stock delivered up to the time of White's arrest in the Hotel Pennsylvania, nor the $500 returned to Reibert, after repeated demands, it was stated.

Made $100,000 From 44 Cents

White started life in Corsicana, Texas, under the name of Abraham Schwartz, fifty-five years ago, the son of the owner of a chain of small grocery stores thruout the Lone Star State. In 1896 the future bond wizard went to St. Louis and changed his name to White.

Later in the year White came to New York and conceived the idea of making $100,000 by investing 44 cents in stamps, plus native shrewdness. At that time President Cleveland and Congress authorized a Government bond issue, and the Secretary of the Treasury forgot to ask for checks to cover the amounts of the bid. White saw his chance. He sent in bids aggregating $1,500,000, at a cost of 44 cents in stamps. He told the late Russell Sage what a smart thing he had pulled off, and the financier was so pleased that he advanced the large sum necessary to tide White over. The former Texas grocer cleaned up $100,000 and that started him on a meteoric career.

Formed Securities Company

While president of a wireless company, White formed the Greater New York Securities Company, a bank located in his office. In September, 1907, he outbid J. P. Morgan & Co. and a syndicate for $18,000,000 worth of city bonds and deposited with his bid a certified check for $800,000. Comptroller Metz tried to collect on the check, but as there were no funds, White's bid was thrown out.

Later, in the name of a Massachusetts corporation, White got $4,000,000 of another issue of city bonds and made $500,000 on the transaction.

While at the height of his career, White bought Shadow Lawn, the palatial residence of the late John A. McCall, at Long Branch, against the bidding of several millionaires. After occupying the house for the summer of 1906, and entertaining lavishly, White disappeared for a few months, leaving a trail of unpaid bills.

—The Saturday Blade, Chicago, March 27, 1950, p. 5.