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.

Crime Time — Burglary, Reckless Riding, A Mysterious Call

Council Bluffs, Iowa, 1908

BURGLAR WAS A JACK-IN-BOX

Leaps Through Trap Door and Scares Servant Girl

Startled by seeing a man jump through the outside trap door of the furnace room a servant girl in the home of J. E. Wallace, 315 Oakland avenue, rushed up stairs Monday evening, and informed Mr. Wallace that there had been a burglar in the house.

Mr. Wallace reported the matter to the police, but the girl was able to give only a meager description of the man. She had gone down into the furnace room about 8:30 o'clock, and her sudden appearance startled the intruder, putting him to flight.

Harry Taylor and Renos Anderson, 19 and 16 years of age, were arraigned before Judge Snyder yesterday on the charge of fast and reckless riding. The case was continued until April 10 and the boys were released on good behavior, under orders from the court to appear on that date and give an account of themselves.

The boys were stopped by Deputy Marshal Crum in the midst of a race down Vine street, from First street to the police station, where they were taken in custody and later released on their own recognizance.

The hearing of the case of William Frisbie and George Drummond, charged by William Van Brunt with larceny, occupied considerable time before Judge Snyder, but the court held that while the evidence was strong, it was not sufficient to warrant their being bound over to the grand jury.

Frisbie refused to tell to whom he telephoned until pressed by the court, when he said he had called his home through a neighbor, not caring to call his own number for family reasons. He gave the number he had called to Deputy Marshal Crum, who inquired of the family whether Frisbie had called there, receiving a negative answer. Frisbie explained this by saying that he had not thought the people would care to answer for fear of being dragged into the family differences.

—The Daily Nonpareil, Council Bluffs, Iowa, March 11, 1908, p. 5.