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In 1861, J.P. Morgan reportedly purchased 5,000 defective rifles from a government arsenal at $3.50 each, recognizing an opportunity in wartime supply chain inefficiencies. The weapons were considered unusable by many officials, yet they became the center of a controversial trade. He later resold the rifles to the Union Army at $22 each, creating a significant price spread that drew attention from both military officials and the public. The legality of the transaction remained intact, despite wi
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