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There is debate whether the meeting in fact occurred, but what is not in question is the actual rise and fall of the men featured in the story, who were nine of the richest men in the world at that time. Attending the meeting were the following nine financiers and power brokers:
(1) Charles M. Schwab, President of the world’s largest independent steel company.
(2) Samuel Insull, President of the world’s largest utility company.
(3) Howard Hopson, President of the largest gas firm.
(4) Arthur Cutten, the greatest wheat speculator.
(5) Richard Whitney, President of the New York Stock Exchange.
(6) Albert Fall, member of the President’s Cabinet.
(7) Leon Frazier, President of the Bank of International Settlements.
(8) Jessie Livermore, the greatest speculator in the Stock Market.
(9) Ivar Kreuger, head of the company with the most widely distributed securities in the world.
It was said to have been both a celebration of their success as well as an opportunity to plan their future exploits and dominance. These were the captains of their respective industries and some of the most successful businessmen of the era.
But how did things turn out for these distinguished gentlemen? Within 25 years, all of these great men had met a horrific end to their careers or their lives:
(1) Charles M. Schwab had died in bankruptcy, having lived on borrowed money for five years before his death.
(2) Samuel Insull had died virtually penniless after spending some time as a fugitive from justice.
(3) Howard Hopson became insane.
(4) Arthur Cutten died overseas, broke.
(5) Richard Whitney had spent time in a mental asylum.
(6) Albert Fall was released from prison so he could die at home.
(7) Leon Fraizer died by suicide.(8) Jessie Livermore died by suicide.
(9) Ivar Kreuger died by suicide.
Charles M. Schwab – the Steel Magnate - became very wealthy. He moved to New York City, the Upper West Side, where he built “Riverside”, the most ambitious private house ever built in New York. The $7 million 75-room house combined details from three French chateaux on a full city block.
Schwab became notorious for his “fast lane” lifestyle including opulent parties, high stakes gambling, and a string of extramarital affairs producing at least one child out of wedlock. The affairs and the out-of-wedlock child soured his relationship with his wife. He became an international celebrity when he “broke the bank” at Monte Carlo and traveled in a $100,000 private rail car named “Loretto”. Even before the Great Depression, he had already spent most of his fortune, estimated at between $25 million and $40 million. Adjusted for inflation, that equates to between $500 million and $800 million in the first decade of the 21st century.
The stock market crash of 1929 finished off what years of wanton spending had started. He spent his last years in a small apartment. He could no longer afford the taxes on “Riverside” and it was seized by creditors. He had offered to sell the mansion at a huge loss but there were no takers.
At his death ten years later, Schwab’s holdings in Bethlehem Steel were virtually worthless, and he was over $300,000 in debt. Had he lived a few more years, he would have seen his fortunes restored when Bethlehem Steel was flooded with orders for war material.
As for the Wall Street Bear, Jesse Lauriston Livermore, famous speculator in the stock and commodities markets, his end is perhaps the most tragic of all. A week after Thanksgiving in 1940, Jesse walked into the Sherry-Netherland Hotel in New York, had two drinks at the bar while scribbling something in his notebook, then proceeded to the cloak room where he sat on a stool and shot himself in the head. He was 62 and left behind $5 million, down from the $100 million fortune he had amassed just ten years earlier.
And the note he had scribbled?
“My dear Nina: Can’t help it. Things have been bad with me. I am tired of fighting. Can’t carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie”
From the article: The Nine Financiers, a Parable About Power, written by Joshua Brown, Contributor, Forbes.com
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