Chapter IV

It is said, and doubtless truly, that there is not a port in the known world where the American flag has not floated over some American vessel. These vessels and those connected with them are mostly from the New England States. The Eastern built vessels go to every part of the globe. Nearly all of the established American commercial houses in foreign parts, were founded by the supercargoes of American vessels. At first they visited these ports, sold their cargoes, and bought return cargoes. After a while it was found necessary to remain constantly at the foreign ports. For instance, in Canton, China, when it was the only port open to foreign trade, the first supercargoes became in after years the principal merchants. The great Canton house of Russell & Co., was founded by Mr. Russell, originally a supercargo for Mr. Gray of Boston. Goodhue & Co. became the agents of Russell & Co., in New York, except for a period when the brother of Mr. Russell was a partner of George Douglass, who did business thirty years ago at No. 22 Broad street.

Russell was a poor Connecticut boy at the start. He has since erected a palace in his native village, at a cost of a quarter of a million.

The firm of Talbott, Olyphant & Co., in South street, had a house in Canton—Olyphant & Co. The original supercargo who founded that house in Canton was D. W. C. Olyphant. All connected with this house were pious people. Gutzlaff, who thirty years ago, dressed as a Chinese, and penetrated into the interior of China, always stopped at Olyphant's in the American Hong. Olyphant, the original supercargo, was a Quaker. They had a famed ship named the "Roman."

Another celebrated East India firm was that of Hoyt & Tom. Hoyt died only a few days ago. One of his sons married a daughter of General Scott. Their ship was the famous "Sabina." Goold Hoyt himself was in early years a supercargo for Le Roy, Bayard & Co., the greatest commercial house in the city sixty years ago.

N. L. & G. Griswold was another China house. Their regular ship was the "Panama."

The house that I have alluded to did very little other business except in Canton goods, teas, &c. It was a great business. A house that could raise money enough thirty years ago, to send $260,000 in specie, could soon have an uncommon capital, and this was the working of the old system. The Griswolds owned the ship "Panama." They started her from here in the month of May, with a cargo of perhaps $30,000 worth of ginseng, spelter, lead, iron, &c, and $170,000 in Spanish dollars. The ship goes on the voyage, reaches Whanipoa in safety, (a few miles below Canton.) Her supercargo in the 3 months has her loaded with tea, some china ware, a great deal of cassia or false cinnamon, and a few other articles. Suppose the cargo, mainly tea, costing about 37 cents (at that time) per pound on the average.

The duty was enormous in those days. It was twice the cost of the tea, at least: so that a tea cargo of $200,000, when it had paid duty of 75 cents per lb. (which would be $400,000,) amounted to 1600,000. The profit was at least 50 per cent, on the original cost, or $100,000, and would make the cargo worth $700,000.

The cargo of teas would be sold almost on arrival (say eleven or twelve months after the ship left New York in May), to wholesale grocers, for their notes at 4 and 6 months—say for $700,000. In those years there was credit given by the United States of 9, 12, and 18 months! So that the East India or Canton merchant, after his ship had made one voyage, had the use of Government capital to the extent of $400,000, on the ordinary cargo of a China ship as stated above.

No sooner had the ship "Panama" arrived, (or any of the regular East Indiamen), than her cargo would be exchanged for grocers' notes for $700,000. These notes could be turned into specie very easily, and the owner had only to pay his bonds for $400,000 duty, at 9, 12 and 18 months, giving him time actually to send two more ships with $200,000 each to Canton, and have them back again in New York before the bonds on the first cargo were due.

John Jacob Astor at one period of his life had several vessels operating in this way. They would go to the Pacific (Oregon) and carry from thence furs to Canton. These would be sold at large profits. Then the cargoes of tea to New York would pay enormous duties, which Astor did not have to pay to the United States for a year and a half. His tea cargoes would be sold for good four and six months paper, or perhaps cash; so that for eighteen or twenty years John Jacob Astor had what was actually a free of interest loan from governmant of over five millions of dollars. Astor was prudent and lucky in his operations, and such an enormous government loan did not ruin him as it did many others. One house was Thomas H. Smith & Sons. This firm also went enormously into the Canton trade, and although possessing originally but a few thousand dollars, Smith, imported teas to such an extent that when he failed he owed the United States three millions, and not a cent has ever been paid.

Thomas H. Smith built an enormous tea store in South street, up by Dover. It extended through to Water, and was a hundred feet wide. It was the wonder of the city when it was built. The docks near it were named India wharf. Smith also built famous stores at Perth Amboy, and had his tea ships land tea cargoes there. The travelers to Philadelphia by the old route must often have wondered what those immense brick stores were doing in such an insignificant place as Perth Amboy. Thomas H. Smith, besides being the greatest tea merchant of his day, was also the greatest Spreeile of his day. He was the President of a Club called "The Fire Club." It held its meetings in Franklin square on the corner of Dover street. Boys have a mode of amusement called "Follow your leader." This was adopted by the Club of which Smith was President. Many men who are now aged and respected men, or dead, belonged to the "Fire Club." Joseph Foulke, a trader at Curacoa, a Dutch Island in the West Indies, and the Staggs. There was old Peter Stagg, cashier of the City Bank, and John and Benjamin Stagg. There was old Matthias Bruen, and many more whose names were on the Club list. They gave grand suppers, and their entertainments were very expensive. They would invite a guest to these suppers, explain the rules, and if he refused to join, or could not carry out the idea, the fine was one dozen of champagne. These fines were occasioned by a refusal to follow the leader. On one occasion a great cotton merchant from New Orleans was a guest. He agreed to all the conditions. It was late in the evening, in the dead of winter. The ice in the East river was floating up and down with every flood or ebb of the tide. "Follow leader," shouted Smith, and out of the warm, luxurious club-rooms poured the members of the Club. Out of the Square, around the corner into Dover street. "Follow leader," and on rushed Smith, the President of the Club, with thirty men behind him, down Dover, past Water, past Front, into South, and thence on to the pier. One of Smith's own ships lay at the dock. A lighter lay inside of the main wharf. The ice was loose and dashed up around the vessels. "Follow leader," exclaimed Smith, as he plunged from the dock into water. Some drew back, but others followed the leader, who succeeded in getting out of the ice water on to the lighter, and from thence to the dock: and shouting "Follow leader," he led off with frozen clothes, up Dover and into the room of the Club. Plunge, plunge, plunge, one after another, and so on until all had successfully accomplished the terrible and dangerous feat. The Southern cotton merchant was last. Some of the regular club members remained until they saw him reach the dock again safely, and there they left him shivering. He did not remain long. As he walked up from the dock, he noticed a large store open in South street. He entered. It was a wholesale and retail ship stores. "I have met with an accident—give me a 'glass of cognac, hot, with sugar and water." It was done, and he drank it. "Do you keep gunpowder?" he asked. Receiving an affirmative reply, lie bought and paid for half a keg, and then took his way to the club room. At the door were standing Mr. Lowe and Mr. Town, two members of the Club. The latter exclaimed, "Brave Southern stranger—you have passed the ordeal safely. You are now leader, and we are deputed to place the Club under your command, if you choose to exert your sacred privilege."

"Thanks, my friends, I shall do so, but I will not ask you to go out of the room this cold night. Let us drink!" and as he entered the room, he sought a side closet where hung his cloak. There he placed the keg, and then returned and took a seat at the long solid mahogany table. President Smith called the Club to order. The stewards for the night opened a dozen of champagne amid shouts, calls, and songs of the most stirring character. "Order, come to order!" exclaimed President Smith. When order was partially restored, he said; " members of the club, our guest has passed the icy ordeal. He has now the right of becoming leader for the balance of the night, or until a failure in our sacred rites. What says he?"

The cotton merchant took from his bosom a bundle of tow, and laid it on the table. All eyes were fixed upon him. "I accept the command. I will lead now. Wait until I give the word and then do as you see me do." By this time, he had spun the tow into a string, that would reach from the table to the grate. He placed a tumbler on one end of the tow, to hold it on the table, and then passed the other to the pan under the grate, and made that fast with a piece of coal from the coal scuttle. Not a word was spoke. All felt that something unusual was to occur. Cotton merchant now deliberately went to the closet and returning with the keg took his seat. Then he went to work and removed the hoops, until he could take out the head of the little keg. Not a soul moved. Then he took a very little of what appeared to be black sand in his hand, walked to the fire, and flung it in. The considerable explosion that followed started all. "Powder, by Jupiter," ex claimed Smith. Cotton merchant took the end of the tow line from the glass, and pushed it down deep into the powder in the keg, and there reseated himself. "Now, Mr. President and members of the club, I wish you to hear what I have to say."

"You have tried my pluck, I come from a hot climate, and you have made me go through an icy ordeal. It is my time now, but I will not be so cruel. I will give you a fiery ordeal to go through. If you stand it, you will never need more wine; and if you do not, the fines will amount to a small fortune, and you will have wine enough to last your club a year. Look at me. He walked to the fire, kicked off the coal lump, and placed the other end of the tow-line in the red hot coals. Then he walked back, and as he brought his fist down upon the table said in tones of thunder as he sat clown, "Keep your seats, and thus follow your leader." The fire curled up in fitful spouts from the burning tar—it burnt over the grate pan, and began to crawl along the carpet. It had eighteen feet to go. Sixty and odd single eyes, watched the burning train. One rose from his seat, then another, finally one exclaimed, "we shall all be blown to old Nick," and made for the door. The panic increased. Down stairs the club members plunged like a flock of sheep. Even old Smith the President, was among the first to bolt from the room. Before the tow-line had burned as far as the table all were gone but the cotton merchant. As soon as he saw that he was alone, he placed his foot upon the burning tow, and extinguished it. Then he opened the window and emptied the keg into the snow, and again resumed his seat. He waited long for the return of the club members: one by one they did come back. There Cotton sat, until Smith took his seat as President." Now call for the fines," he said, and a severe lecture he gave them for their follies and real cowardice. The club died long ago.

Thomas H. Smith & Son, when they failed owed the Government over three millions. Their book-keeper was old Matthew Bruen. His son, George W. Bruen, married old Thomas Smith's daughter. Matthew Bruen was assignee of old Tom, and must have put away some millions. Thomas Smith left a son—young Tom Smith, as he used to be called—who is now a farmer somewhere on Long Island. Old Smith had another daughter, who married Frank Waddell, recently deceased. Of course, the gift and assignment of property by old Tom Smith to Matt Bruen was absolute and unqualified, or the United States would have seized it. The result was that the only way young Tom and Frank Waddell could make old Matthew Bruen disgorge was by scaring him. This was done so effectually that it is supposed by Doctor John Carnochan, Minthorne Tompkins, John Coster and others, who are posted, that Frank Waddell in twenty-five years made them shell out over four hundred thousand dollars at different periods. Frank ran away with Miss Smith. He was an awfully fast man—not a bad man, but heartless as a shark. He was at one time a great crony of Henry W. Herbert and William McLeod.