With a whoop the association was organized, Judge Wallingford was made its president, and with great enthusiasm was authorized to go ahead and spend all of his own money that he cared to lay out for the benefit of the association. Only one trifling duty was laid upon the members. President Wallingford introduced an endless chain letter. It was brief. It was concise. It told in the fewest possible words just why the Farmers' Commercial Association had been formed and what it was expected to do, laying especial stress upon the fact that there were to be no initiation fees and no dues, no money to be paid for anything! All that the members were to do was to join, and when enough were in, to demand one dollar and a half for their wheat. It was a glittering proposition, for there was no trouble and no expense and no risk, with much to gain. Every one of the ninety-odd who gathered that night in Wallingford's barn was to write three or more of these letters to wheat-growing acquaintances, and each recipient of a letter was told that the only thing which need be done to enroll himself as a member of the order was to write three more such letters and send in his name to Horatio Raven, Secretary.
Horatio Raven himself was there. There was a barrel of good, hard cider on tap in the barn, and every few minutes Mr. Raven could be seen conducting one or two acquaintances quietly over to the cellar, where there were other things on tap. Cigars were passed around, and the good cheer which was provided became so inextricably mingled with the enthusiasm which had been aroused, that no farmer could tell which was which. It only sufficed that when they went away each one was profoundly convinced that J. Rufus Wallingford was the Moses who should lead the farmers of America out of their financial Wilderness.
During the next two or three days nearly three hundred letters left Truscot and Mapes counties, inviting nearly three hundred farmers in the great wheat belt, extending from the Rockies to the Appalachians, to take full sixty per cent. more for their produce than the average price they had always been receiving, to invite others to receive like benefits, and all to accept this boon without money and without price. It was personal solicitation from one man to another who knew him, and the first flood that went out reached every wheat-growing State in the Union. Within a week, names and requests for further information began pouring in upon Horatio Raven, Secretary, and the card index drawers in the filing cabinet, originally bought in jest, became of actual service. One, then two, then three girls were installed. A pamphlet was printed explaining the purpose of the Farmers' Commercial Association, and these were sent to all "members," J. Rufus Wallingford furnishing both the printing and the postage.
Through the long winter the president of that great association was constantly upon the road, always in his corduroy suit and his broad felt hat, with his trousers tucked neatly into his seal-leather boots. His range was from Pennsylvania to Nebraska and from Minnesota to Texas, and everywhere his destination was some branch nucleus of the Farmers' Commercial Association where meetings had been arranged for him. Each night he addressed some body of skeptical farmers who came wondering, who saw the impressive and instantly convincing "Judge" Wallingford; who, listening, caught a touch of that magnetic thrill with which he always imbued his auditors, and who went away enthusiastic to carry to still further reaches the great work that he had planned. By the holiday season he had visited a dozen States and had addressed nearly a hundred sub-organizations. In each of these he gave the chain letters a new start, and the December meeting of the central organization of the Farmers' Commercial Association was also a Christmas celebration in the barn of that progressive and self-sacrificing and noble farmer, J. Rufus Wallingford.
It was a huge "family affair," held two nights before Christmas so as not to interfere with the Baptist Church at Three Roads or the Presbyterian Church at Miller's Crossing, and the great barn was trimmed with wreaths and festoons of holly from floor to rafters. At one end was a gigantic Christmas tree, from the branches of which glowed a myriad of electric lights and sparkled innumerable baubles of vivid coloring and metallic luster. Handsome presents had been provided for every man, woman and child, and down the extent of the wide center had been spread two enormous, long tables upon which was placed food enough to feed a small army; huge turkeys and all that went with them. At the head of the ladies' table sat Mrs. Wallingford, glittering in her diamonds, the first time she had worn them since coming into this environment, and at the head of the men's table, resplendent in a dinner coat and with huge diamond studs flashing from his wide, white shirt bosom, sat the giver of all these bounties, Judge J. Rufus Wallingford, president of the vast Farmers' Commercial Association. He was flushed with triumph, and he told them so at the proper moment. Beyond his most sanguine hopes the Farmers' Commercial Association had spread and flourished in every State, nay, in every community where wheat was grown, and the time was rapidly approaching when the farmer, now turned business man, would be able to get the full value of his investment of money, time and toil. Moreover, they would destroy the birds of prey, feathers, bones and beaks, fledgelings, eggs and nests.
Around the table, at this point, Horatio Raven, Secretary, passed a sheaf of reports upon the various successful deals that Wallingford had made, each one showing a profit of five thousand dollars on a ten-thousand-dollar investment. The secret facts of the case were that fortune had favored Wallingford tremendously. By one of those strange runs of luck which sometimes break the monotony of persistent gambling disasters, he had won not less than five out of every six of the continuous deals intrusted to Fox & Fleecer. The failures he kept to himself, and Ham Tinkle added to the furore that the proofs of this success created by rising in his place and advising them how, upon Wallingford's certain and sure advance information of the market, he himself had been able to turn his modest little two hundred dollars into seven hundred during the past three months, with the profits still piling up.
But J. Rufus Wallingford, resuming, saw such profits vanishing in the future, for by the aid of the Farmers' Commercial Association he intended to wipe out the iniquitous grain and produce exchange, and, in fact, all gambling in food products throughout the United States. The scope of the Farmers' Commercial Association was much broader, much more far-reaching than even he had imagined when he at first conceived it. When they were ready they would not only establish a firm cash basis for wheat, but they would wipe this festering mass of corruption, called the Board of Trade, off the face of the earth by the simple process of taking all its money away from it. With their certain knowledge of what the price of wheat would be, when the time was ripe they would go into the market and, themselves, by their aggregate profits, would break every man who was in the business of manipulating prices on wheat, on oats and corn and live stock. Why, nearly one million names were now enrolled in the membership of the association, and to these million names circulars explaining in detail the plans of the organization had been mailed at a cost in postage alone of nearly ten thousand dollars. This expense he had cheerfully borne himself, in his devotion to the great work of reformation. Not one penny had been paid by any other member of the organization for the furtherance of this project. He had spent nearly twenty thousand dollars in travel and other expenses, but the market had paid for it, and he was not one penny loser by his endeavors. Even if he were, that would not stop him. He would sell every government bond and every share of industrial and railroad stock that he owned, he would even mortgage his farm, if necessary, to complete this organization and make it the powerful and impregnable factor in agricultural commerce that he had intended it to be. It was his dream, his ambition, nay, his determined purpose, to leave behind him this vast organization as an evidence that his life had not been spent in vain; and if he could only see the wheat gamblers put out of that nefarious business, and the farmers of the United States coming, after all these toiling generations, into their just and honest dues, he would die with peace in his heart and a smile upon his lips, even though he went to a pauper's grave!
There were actual tears in his eyes as he closed with these words, and his voice quivered. From the foot of the table Blackie Daw was watching with a curious smile that was almost a sardonic grin. From the head of the parallel table Mrs. Wallingford was watching him with a pallor that deepened as he went on, but no one noticed these significant indications, and as J. Rufus Wallingford sat down a mighty cheer went up that made every branch of the glittering Christmas tree dance and quiver.
He was a wonderful man, this Wallingford, a genius, a martyr, a being made in his entirety of the milk of human kindness and brotherly love; but this rapidly growing organization that he had formed was more wonderful still. They could see as plain as print what it would do for them; they could see even plainer than print how, with the certain knowledge of the price to which wheat would eventually rise, they could safely dabble in fictitious wheat themselves, and by their enormous aggregate winnings, obliterate all boards of trade. It was a conception Titanic in its immensity, perfect in its detail, amazing in its flawlessness, and not one among them who listened but went home that night – J. Rufus Wallingford's seal-leather pocketbook in his pocket, J. Rufus Wallingford's box of lace handkerchiefs on his wife's lap, J. Rufus Wallingford's daintily dressed French doll in his little girl's arm, J. Rufus Wallingford's toy engine in his little boy's hands – but foresaw, not as in a dream but as in a concrete reality that needed only to be clutched, the future golden success of the Farmers' Commercial Association; and on the forehead of that success was emblazoned in letters of gold:
"$1.50 WHEAT!"
CHAPTER XXIV
THE FARMERS' COMMERCIAL ASSOCIATION DOES TERRIFIC THINGS TO THE BOARD OF TRADE
The holidays barely over, Wallingford was upon the road again, and until the first of May he spent his time organizing new branches, keeping the endless chain letters booming and taking subscriptions for his new journal, the Commercial Farmer, a device by which he had solved the grave problem of postage. The Commercial Farmer was issued every two weeks. It was printed on four small pages of thin paper, and to make it second-class postal matter a real subscription price was charged – five cents a year! For this he paid postage of one cent a pound, and there were eighty copies to the pound. He could convey his semi-monthly message to a million people at a cost of one hundred and twenty-five dollars, as against the ten thousand dollars it would cost him to mail a million letters with a one-cent stamp upon them. And five cents a year was enough to pay expenses. On the first of May, the enterprising promoter, who seriously aspired now to become a financial star of the first magnitude, took a swift thousand-mile journey to the offices of Fox & Fleecer, where Mr. Fox, polishing, as always, at his glazed scalp, was still intent upon that bland but perplexing secret problem. Mr. Wallingford, as a preliminary to conversation, drew his chair up to the opposite side of the desk and laid upon it a check book and a package of documents with a rubber band around them. "Four hundred and twenty-five thousand dollars in cash and negotiable securities," he stated, "and all to buy September wheat."
Mr. Fox said nothing, but unconsciously his palm went to the top of his head.
"The September option is at this moment quoted at eighty-seven and one-eighth cents," went on Mr. Wallingford. "Could it possibly go lower than sixty-two?"
"It is the invariable rule of Fox & Fleecer," said Mr. Fox slowly, "never to give advice nor to predict any future performances of wheat. Wheat can go to any price, up or down. I may add, however, that it has been several years since the September option has touched the low level you name."
"Well, I'm going to bet this four hundred and twenty-five thousand dollars that it don't go as low as sixty-two," retorted Wallingford stiffening. "I want you to take this wad and invest it in September wheat right off the bat, at the market, on a twenty-five cent margin, which covers one million, seven hundred thousand bushels."
Mr. Fox, his eyes hypnotically glued upon the little stack of securities which represented four hundred and twenty-five thousand dollars, and a larger commission than his firm had ever in all its existence received in one deal, filled his lungs with a long, slow intake of air which he strove to make as noiseless as possible.
"You must understand, Mr. Wallingford," he finally observed, "that it will be impossible to buy an approximate two million bushels of the September option at this time without disturbing the market and running up the price on yourself, and it may take us a little time to get this trade launched. Probably five hundred thousand bushels can be placed at near the market, and then we will have to wait until a favorable moment to place another section. Our Mr. Fleecer, however, is very skillful in such matters and will no doubt get a good price for you."
"I understand about that," said Wallingford, "and I understand about the other end of it, too. I want to turn this four hundred and twenty-five thousand dollars into a clean million or I don't want a cent. September wheat will go to one dollar and a quarter."
Mr. Fox reserved his smile until Mr. Wallingford should be gone. At present he only polished his pate.
"That's when you would probably fall down," continued Wallingford; "when September wheat reaches a dollar and a quarter. If you try to throw this seventeen hundred thousand bushels on the market you will break the price, unless on the same day that you sell it you can buy the same amount for somebody else. Will that let you get the price without dropping it off ten or fifteen cents?"
"Fox & Fleecer never predict," said Mr. Fox slowly, "but in a general way I should say that if we were to buy in as much as we sold, the market would probably be strengthened rather than depressed."
"All right," said Wallingford. "Now I have another little matter to present to you." From his pocket he drew a copy of the Commercial Farmer, the pages scarcely larger than a sheet of business letter paper. "I want an advertisement from you for the back page of this. Just a mere card, with your name and address and the fact that you have been in business at the same location for thirty years; and at the bottom I want to put: 'We handle all the wheat transactions of J. Rufus Wallingford.'"
A Larger Commission than Fox and Fleecer Had Ever Received in One Deal
Of course in a matter so trifling Mr. Fox could not refuse so good a customer, and J. Rufus departed, well satisfied, to work and wait while Nature helped his plans.
Across a thousand miles of fertile land the spring rains fell and the life-giving sun shone down; from the warm earth sprang up green blades and tall shoots that through their hollow stems sucked the life of the soil, and by a transformation more wonderful than ever conceived by any magician, upon the stalks there swelled heads of grain that nodded and yellowed and ripened with the advancing summer. From the windows of Pullman cars, as he rode hither and yonder throughout this rich territory in the utmost luxury that travelers may have, J. Rufus Wallingford, the great liberator of farmers, watched all this magic of the Almighty with but the one thought of what it might mean to him. Back on the Wallingford farm, Blackie Daw and his staff of assistants, now half-a-dozen girls, kept up an ever-increasing correspondence. Ham Tinkle was jealous of the very night that hid his handiwork for a space out of each twenty-four hours, and begrudged the time that he spent in sleep. During every waking moment, almost, he was abroad in his fields, and led his neighbors, when he could, to see his triumph, for never had the old Spicer farm brought forth such a yield, and nowhere in Truscot County or in Mapes County could such fields be shown. Upon these broad acres the wheat was thicker and sturdier, the heads longer and larger and fuller of fine, fat grain than anywhere in all the region round.
The Farmers' Commercial Association, a "combination in restraint of trade" which was well protected by the fear-inspiring farmer vote, met monthly, and Wallingford ran in to the meetings as often as he could, though there was no need to sustain their enthusiasm; for not only was the plan one of such tremendous scope as to compel admiration, but Nature and circumstances both were kind. There came the usual early rumors of a drought in Kansas, of over-much rotting rain in the Dakotas, of the green bug in Oklahoma, of foreign wars and domestic disturbances, and these things were good for the price of wheat, as they were exaggerated upon the floors of the great boards of trade in Chicago and New York. Through these causes alone September wheat climbed from eighty-seven to ninety, to ninety-five, to a dollar, to a dollar-five; but in the latter part of July there came a new and an unexpected factor. Dollar-and-a-half wheat had been the continuous slogan of the Farmers' Commercial Association, and every issue of the Commercial Farmer had dwelt upon the glorious day when that should be made the standard price. Now, in the mid-July issue, the idea was driven home and the entire first page was given up to a great, flaming advertisement:
HOLD YOUR WHEAT!
SEPTEMBER WHEAT WILL GO TO
$1.50!
DON'T SELL A BUSHEL OF IT FOR LESS!
The result was widespread and instantaneous. In Oklahoma a small farmer drove up to the elevator and asked:
"What's wheat worth to-day?"
"A dollar, even," was the answer.
"This is all you get from me at that price," said the farmer, "and you wouldn't get this if I didn't need fifty dollars to-day. Take it in."
"Think wheat's going higher?" asked the buyer.
"Higher! It's going to a dollar and a half," boasted the farmer. "I got twelve hundred bushels at home, and nobody gets it for a cent less than eighteen hundred dollars."
"You'd better see a doctor before you drive back," advised the elevator man, laughing.
Over in Kansas at one of the big collecting centers the telephone bell rang.
"What's cash wheat worth to-day?"
"Dollar-one."
"A dollar-one! I'll hold mine a while."
"Better take this price while you can get it," advised the shipper. "Big crop this year."
"A dollar and a half's the price," responded the farmer on the other end of the wire.
"Who is this?" asked the shipper.
"J. W. Harkness."
The man rubbed his chin. Harkness owned five hundred acres of the best wheat land in Kansas.
In South Dakota, on the same day, two farmers who had brought in their wheat drove home with it, refusing the price offered with scorn. In Pennsylvania not one-tenth of the grain was delivered as on the same date a year before, and the crop was much larger. In Ohio, in Indiana, in Illinois, in Iowa, in Nebraska, all through the wheat belt began these significant incidents, and to brokers in Chicago and New York were wired startling reports from a hundred centers: farmers were delivering no wheat and were holding out for a dollar and a half!
"You can scare the entire Board of Trade black in the face with a Hallowe'en pumpkin," Wallingford had declared to Blackie Daw. "Say 'Boo!' and they drop dead. Step on a parlor match and every trader jumps straight up into the gallery. Four snowflakes make a blizzard, and a frost on State Street kills all the crops in Texas."
Results seemed to justify his summing up. On that day wheat jumped ten cents within the last hour before closing, and ten thousand small speculators who had been bearing the market, since they could see no good reason for the already high price, were wiped out before they had a chance to protect their margins. On the following day a special edition of the Commercial Farmer was issued. It exulted, it gloated, it fairly shrieked over the triumph that had already been accomplished by the Farmers' Commercial Association. The first minute that it had shown its teeth it had made for the farmers of the United States ten cents a bushel on four hundred million bushels of wheat! It had made for them in one hour forty million dollars net profit, and this was but the beginning. The farmers themselves, by standing together, had already raised the price of wheat to a dollar-fifteen, and dollar-and-a-half wheat was but a matter of a few days. On the boards of trade it would go even higher. There would be no stopping it. It would soar to a dollar and a half, to a dollar-seventy-five, to two dollars! Speculation was a thing ordinarily to be discouraged, yet under these circumstances the farmers themselves should reap the wealth that was now ripe. They should take out of "Wall Street" and La Salle Street their share of the money that these iniquitous centers of financial jugglery had taken from the agricultural interests of the country for these many years. They themselves knew now, by the events of one day, that the Farmers' Commercial Association was strong enough to accomplish what it had meant to accomplish, and now was the time to get into the market. It should be not only the pleasure and profit of every farmer, but the duty of every farmer, to hit the gamblers a fatal blow by investing every loose dollar, on safe and conservative margins, in this certain advance of wheat. On the last page of this issue of the Commercial Farmer appeared for the first time the advertisement of Fox & Fleecer, and copies went to a million wheat growers.
The response was many-phased. Farmers who were convinced of this logic, and those who were not, rushed their wheat to market at the then prevailing price, not waiting for the dollar and a half, but turning their produce into cash at once. To offset this sudden release of grain, buying orders poured into the markets, the same cash that had been received from the sale of actual wheat being put into margins upon fictitious wheat. Prices fluctuated in leaps of five and ten cents, and the pit went crazy. It was a seething, howling mob, tossing frenzied trades back and forth until faces were red and voices were hoarse; and the firm of Fox & Fleecer, long noted for its conservative dealing and almost passed by in the course of events, suddenly became the most important factor on the floor.
On the ticker that on the first of May he had installed in his now mortgaged house upon his mortgaged farm, Wallingford saw the price mount to a dollar and a quarter, drop to a dollar-eighteen, jump to a dollar-twenty-two, back to twenty, up to twenty-five, back to twenty-two, up to twenty-eight. This last quotation he came back into the room to see after he had on his hat and ulster, and while his automobile, carrying Blackie Daw and Mrs. Wallingford, was spluttering and quivering at the door. Then he started for Chicago, leaving his neighbors back home to keep his telephone in a continuous jingle.
Hiram Hines met Len Miller in the road, for example. Both were beaming.
"What's the latest about wheat?" asked Len.
"A dollar twenty-eight and seven-eighths," replied Hiram; "at least it was about an hour ago when I telephoned to Judge Wallingford's house. Suppose its climbing for a dollar-thirty by now. How much you got, Len?"
"Twenty thousand bushels," answered Len jubilantly. "Bought it at a dollar twenty-four on a five-cent margin, and got that much profits already, nearly. Raised a thousand dollars on my sixty acres and have made nearly a thousand on it in two weeks; with Judge Wallingford's own brokers, too."
"So's mine," exulted Hiram. "Paid a dollar-twenty-six, but I'm satisfied. When it reaches a dollar-forty I'll quit."
Ezekiel Tinkle walked six miles to see his son Ham at the Wallingford place.
"Jonas Whetmore's bragging about two thousand dollars he's made in a few days in this wheat business," he stated. "I don't rightly understand it, Hamlet. How about it? I don't believe in speculating, but Jonas says this ain't speculating, and if there's such a lot of money to be made I want some."
"We all do," laughed Ham Tinkle, who, since he had "made good" with his new-fangled farming, was accepted as an equal by his father. "I had two hundred when I started. It's a thousand now, and will be five thousand before I quit. Bring your money to me, father, and I'll show you how to get in on the profits. But hurry. How much can you spare?"
"Well," figured Ezekiel, "there's that fifteen hundred I've saved up for Bobbie's schooling; then when I sell my wheat – "
"Don't do that!" interposed his son quickly. "Wheat is going up so rapidly because the growers are holding it for a dollar and a half. Every man who sells his now, weakens the price that much."
"Is that the way of it!" exclaimed the old man, enlightened at last, and he kicked reflectively at a piece of turf. "To make money out of this all the farmers must hold their wheat for a dollar and a half! Say, Hamlet; Charlie Granice sold his wheat at a dollar-six to go into this thing. Adam Spooner and Burt Powers and Charlie Dorsett all sold theirs, and they're all members of this association. Ham, I'm going right home to sell my wheat."
"They are traitors!" charged Hamlet angrily. "I won't send that money away for you."
"Send it away!" retorted the old man. "Not by a danged sight you won't! I'll sell my wheat right now while it's high, and put my money in the bank along with the fifteen hundred I've got there; and you go ahead and be your own fool. I know advice from your old daddy won't stop you."
Not many, however, were like old man Tinkle, and J. Rufus Wallingford, as he sped toward Chicago, was more self-congratulatory than he had ever been in all his life. A million dollars! A real million! Why, dignity could now attach to the same sort of dealing that had made him forever avoid the cities where he had "done business." Heretofore his operations had been on such a small scale that they could be called "common grafting," but now, with a larger scope, they would be termed "shrewd financiering." It was entirely a matter of proportion. A million! Well, he deserved a million, and the other millions that would follow. Didn't he look the part? Didn't he act it? Didn't he live it?
"Me for the big game!" he exulted. "Watch me take my little old cast-iron dollars into Wall Street and keep six corporations rotating in the air at one and the same time. Who's the real Napoleon of Finance? Me; Judge Wallingford, Esquire!"
"Pull the safety-rope and let out a little gas, J. Rufus," advised Blackie Daw dryly. "Your balloon will rip a seam. The boys on Wall Street were born with their eye-teeth cut, and eat marks like you before breakfast for appetizers."
J. Rufus only laughed.
"They'd be going some," he declared. "Any wise Willie who can make a million farmers jump in to help him up into the class of purely legitimate theft, like railroad mergers and industrial holding companies, ought to be able to stay there. The manipulator that swallows me will have a horrible stomachache."
Mrs. Wallingford had listened with a puzzled expression.
"But I don't understand it, Jim," she said. "I can see why you got the farmers together to raise the price of wheat. It does them good as well as you. But why have you worked so hard to make them speculate?"
J. Rufus looked at her with an amused expression.
"My dear infant," he observed; "when Fox & Fleecer got ready to sell my near-two-million bushels of wheat this morning, somebody had to be ready to buy them. I provided the buyers. That's all."
"Oh!" exclaimed Mrs. Wallingford, and pondered the matter slowly. "I see. But, Jim! Mr. Hines, Mr. Evans, Mr. Whetmore, Mr. Granice, and the others – to whom do they sell after they have bought your wheat?"
"The sheriff," interposed Blackie with a grin.
"Not necessarily," Wallingford hastened to contradict him in answer to the troubled frown upon his wife's brow. "My deal don't disturb the market, and I expect wheat to go on up to at least a dollar and a half. If these farmers get out on the way up they make money. But the boobs who buy from them – "
"Ain't it funny?" inquired Blackie plaintively. "There's always a herd of 'em just crazy eager to grab the hot end."
A boy came on the train with evening papers containing the closing market quotations. Wheat had touched thirty-four, but a quick break had come at the close, back to twenty-six! Another column told why. Every cent of advance in the actual grain had brought out cash wheat in floods. Members of the great Farmers' Commercial Association had hurried their holdings to market, trusting to the great body of the loosely bound organizations to keep up the price – and the great body of the organization was doing precisely the same thing. At bottom they had, in fact, small faith in it, and the Board of Trade, sensitive as a barometer, was quick to feel this psychological change in the situation. Wallingford said nothing of this to his wife. He had begun to fear her. Always she had set herself against actual dishonesty, and more so than ever of late as he had begun to pride himself upon being a great financier. In the smoking compartment, however, he handed the paper to Blackie Daw, with his thumb upon the quotations.
"There's the answer," he said. "The Rubes have cut their own throats, as I figured they would, and you'll see wheat tumble to lower than it was when this raise began. Hines and Evans and Granice and the rest of them will hold the bag on this deal, and they needn't blame it to me. They can only blame it to the fact that farmers won't stick. I'm lucky that they hung together long enough to reach my price of a dollar and a quarter."