My Adventures with Your Money

a Saturnalia

stockholder of the leading bank in Goldfield, was a gambler and Mr. Wingfield also owned extensive interests in the mines. His mines were ma

gambling. My new position demanded this. And I found it easy to obey the self-imposed inhibition. Soon the stock-market ope

mpany. I went about my business like a man who sees dazzling before him a golden scepter and who is imbued with the idea that if he exerts the power he can grasp the prize. It had b

s mining adviser and mine manager. We agreed to pay him a salary of $20,000 a year, with a bonus of stock i

h he was employed by John McKane, then associated with Charles M. Schwab. Later he was placed in charge of the Kernick and Fuller-McDonald leases on the Jumbo mine of Goldfield from which, during a year's time, $1,000,000 in gold was taken out. After that Mr. Campbell took hold of the Quartzite lease at Diamondfield, near Goldfield, and he produce

cisco Stock & Exchange Board, to 40 cents per share, up 15 points from the promotion price. The sharp rise wrought an undoubted sensation in stock-market circles. Brokers in the cities who had sold J

T ON THE

milyea, Edmonds & Stanley, the law firm of highest standing in Goldfield, could be acquired at 45 cents a share, and another interest, of 350,000 shares, owned by prospectors who had located the ground, could be had at 20 cents a share, all or none. The remainder of the stock was in the treasury of the company. The total demanded for 700,000 shares of ownership st

lowed to participate on the basis of a one-third interest for him, and a two-thirds interest for the trust company. Besides supplying his quota of the cash needed to swing the deal, Mr. Peery agreed to furnish a president for the company, who, he sai

ost to equal this. We figured that any promotion profits must come out of the Indian Camp. The Indian Camp was capitalized for 1,000,000 shares, 650,000 of which were paid over to the trust company and to Mr. Peery for the property. The remaining 350,000 shares were placed in the treasury of the company to be sold for purposes of mine development. T

ack and Indian Camp, swarmed with miners. The orders given to Engineer "Jack" Campbell were to put a man to work wherever he could employ one, and to be unsparing in expense so long as he could obtain results. Towering gallows-frames and 25-horse-power gasoline engines were installed and other necessary mining equipment ordered ship

cents per share. It was well known around the camp that we had paid 45 cents per share for one block of 350,000 shares, and mining-camp followers were among the

that of any other advertised promotion which had yet been made from either the Goldfield or Manhattan camps; and in the second place, the conduct of a mining-stock

ted mining-stock speculation as filling a long-felt want, namely, a channel for speculation in which they could indulge their gambling spirit with comparative

ING FOR

ncy for mine promoters, and learned the business with their money, I had passed through the experimental stage and now marsha

t was unconvincing to a thinker. If my argument convinces the man of a

xpressed, the

they may part with their money. Turn your batteries on the thi

plied to the argument

an entirely different principle, n

or "It was," "Thou shalt" or "Thou shalt not

headline lies in

that the argument which followed in small type be convincing to the thinker, was based on a recognition of the fact, that, wh

w York Curb, the Boston Stock Exchange, the Boston Curb, the Salt Lake Stock Exchange or the San Francisco Stock Exchange were taboo, on the theory that by this time trading in mining stocks had g

s, but this was due to circumstances which I explain further on. Later, when the Sullivan Trust Company grew and prospered, and afterward when I reached the East and learned more and more of the ins

e of things that fools should have much money, and thinkers, not fools, are the

has accumulated much money in his own pet business enterprise is a typical personage on w

hinker who really does know. He is compelled to appeal to both classes because the memb

which is thrown into the vortex of specula

sposed of when the Manhattan boom began to lose its intensity. Promotions had been made a little too rapidly for public digestion. There were more miners at work than ever in t

cted to the use of his name as president of the Stray Dog. At the very height of our advertising camp

INESS IS

ing the interior of a banking institution of a large city. The offices became

r. Weir's firm was one of our selling agents in New York. He was the dean of mining-stock brokers in New York City. In those early days the telephone service of Goldfield was not yet perfected, and it was only necessary for a perso

our messages every time you are called on the 'phone. He

do you want to

'phone you some red-hot news about mine developments on Stray Dog, and I'll see to it that Weir is in his office at the time

were to expire on the 15th o

in my room. Mr. Weir was at the desk in

said, "wh

Manhattan," wa

news, Jack

ever saw a mine as big as this one in my life! Don't sell

ell your mother, and don't let any more miners go down the shaft. Clos

r. Sullivan and I met M

ce has ordered only 85,000 shares of the 100,000 that were allotted to you. We have decided to cl

old our entire allotment! If the office has not notified you of this, i

have them

and years!" put

him have the entire block of stock. Finally, it was agreed between Mr. Weir and Mr. Sullivan that Mr. Sullivan would give him the additional stock w

, for right on the heels of the New York broker's Stray Dog purchase came a calamity which almost obliterated the market values of Nevada mining stocks and particularly those of the shares of Manhattan mining

property and money loss was so appalling that no more money was forthcoming from that direction for mining enterprises. Every bank in Nevada closed down, just as every California bank did, the Governors of both States de

ompany had only $8,000 in gold in its vaults on the day of the 'quake. Moneys deposited in bank were not available. Of the $8,000 in gold coin, $6,500 was paid two days after the earthquake to the Wells-Fargo Express Company for an automobile which was in transit at the time, and fo

attan securities at reduced prices to the Eastern brokers. This purchasing power came largely from brokers who were "short" o

than it became possible for the Sullivan Trust Company to borrow some much needed cash on Manhattan securities, of which it had a plethora. Through members of the San Francisco

THAT WE

ed to be. Hayes and Monnette, who owned a lease on a small section of the property, had struck high-grade ore and were

ed-almost frightened-at their success. Yielding for the moment to the warning of friends, who urged upon them the possibility of the ore soon pinching out, Hayes and Monnette called at the office

take it,

check certified for the $200,000. I was about to close

n days to examine the m

hance to take," de

t down the property for that period and would result in a positive loss to them because of the limited period o

nanimously in favor of the proposition, Hayes and Monnette flatly refused to sell. Within half a year that lease on the Mohawk produced in the nei

, like Mr. Peery, hailed from Salt Lake. Mr. Clark had successfully promoted the Bullfrog G

on a townsite deal in a couple of weeks that will make you

," sa

last night by a couple of prospectors, and if they turn out to be what the prospecto

Next morning Mr. Peery informed me that he had remained all night with Mr. Clark to learn where the ore came from. Mr. P

to trek it across the desert by mule team with a camp ou

eck for $500, forming a pool of $1,500 to send a man to Fairview to buy properties there. Mr. Peery wired the Bank of the Rep

urned to camp and said he had purchased from a group of itinerant prospectors the Neva

outsiders there?"

buy the property before I got there, but he had no money, and they would not take his che

ward, Mr. Luce c

ed to be paid down, and there is ore in it and it looks good to me. I had no money with me when I arrived in Fairv

s closed. In order to catch the first train he was compelled to leave the money behind. He arrived in Fairview

a Hills for 1,000,000 shares of the par value of

any sold recently on the New York Curb and San Francisco Stock Exchange at a valuation for the mine of $3,000,000, and it is believed by well-posted mining men to be worth that figure. George Wingfield, president of the Goldfield Consolidated who followed the Sullivan Trust Company into Fair

le's Nest, and we decided to organize and pro

for the promotion of the Eagle's Nest Fairview Mining Company, capitalized for 1,000,000 shares of the par value of $5 each. Governor John Sparks accepted our invitation to become president of the company. The entire capita

y most of the money it had borrowed after the San Franc

OF BULL

, where he raced a string of horses and mixed with good people, and I knew of nothing that was to his discredit. Dr. Lyman bought the Bullfrog Rush property for $150,000. I was present when he paid $100,000 of this money in cash at John S. Cook

easury stock of the company at 35 cents per share, and proceeded to dispose of it through Eastern brokers and direct to the public by advertising, at 45 cents per share to brokers and 50 cents per share to investors. We sold 200,000 sha

ountered a bed of lime. It appeared that all the properties on Bonanza Mountain, where the Bullfrog Rush was situated, including the Tramps Consolidated, which was then selling in the market a

ntinue the sale of the stock until such time as the

Nest were all selling on the San Francisco Stock Exchange at an average of 35 per cent. above promotion prices. The L. M. Sullivan T

close to my desk, "and I am going into the promotion business myself. I don't believe a word

n our assurance that the property was a good one. John S. Cook, the leading banker of this town, accepted the treasurership on the same representations. Mr. Sullivan,

he office withou

any had appeared in the Nevada State Journal at Reno, offering Bullfrog Rush stock for subscription. The Governor protested

l advertisement was about to be reproduced in all the newspapers of big circulation throughout the East, and that the orders for the adverti

Lyman tak

f down before me, "I'll expose every act of yours since you

cur to me. The sense of injustice made me forget everything except Dr. Lyman's blackmailing threat. I jumped to my feet. Dr. Lyman backed up to the glass door. I aimed a blow at him. He backed away to dodge it. In a second he had collided with the big plate-glass pane, which fell with a crash. In another instan

e such a look in a man's eyes again.

nd, although I was very angry. Consc

decide upon a c

If we allowed Dr. Lyman to go ahead with his promotion of Bullfrog Rush, we should, unless we abandoned our rule to protect our stocks in the market, be

he money paid in by stockholders of Bullfrog Rus

tificates. We also wired to Governor Sparks and asked his permission to insert an advertisement in the newspapers over his signature, announcing that the property had proved to be a m

id for Bullfrog Rush shares, were telegraphed to all the leading newspapers of the East. Next day both of these announcements appeared side by side with the half-page and full-page adv

't buy any more

d for advertising our denouncement of the enterprise. Dr. Lyman was stripped of his entire investment in the property. The newspapers lost many thousands of dolla

pat and argued that he ought to be proud to share with us the glory of "making good" in such an unusual way to stockholders. It was the first time in the history of Western mining promotions that a thing like this had ever been done, and we pointed out to Mr. Weir that it would gain reputation both for himself and the trust company. For a period Mr. Weir carried on an epistolary

. Weir's firm, and, in fact, had never been disposed of by the trust company to anybody. A hurried examination of the stock-certificate books of the Bullfrog Rush Company, which were in the hands of th

him or any one else to dispose of any Bullfrog Rush stock under any circumstances, was clandestinely getting rid of these shares. Mr. Weir, it appeared, had neglected to segregate Dr. Lyman's certificates from those shipped him

imself to wire his sentiments to Weir Brothers & Company, as follows: "You are so crooked that if you swallowed a t

efore had prompted a camp wit to comment on the birth of my news bureau to the effect that "the high elevation was ideal for the concoction of the visionary stuff that dreams are made of," appeared unp

sco Stock Exchange, the Goldfield Stock Exchange and the New York Curb. Other Goldfields had advanced in proportion. Combination Fraction was up from 25 cents to $1.15. Silver Pick, which was promoted at 15 cents a share, was selling at 50 cents. Jumbo Extension a

ck Exchange and New York Curb at 45 cents, Stray Dog at 70 cents, Indian Camp at 80 cents, and Eagl

e noted fiction writer and magazinist, ably assisted by Harry Hedrick and other competent mining reporters, was "on the job"

ade from the Mohawk and the terrific market advances being chronicled by mining stocks representing all sorts and descriptions of Goldfield properties. Whenever Hayes and

ning to exceed in its intensity the exciting play at the gaming tables.

ed with men and women over whose faces all lights and shades of expression flitted. The bidding for mining issues was frantic. Profits mounted high. Everybody seem

and bounds. The camp was rapidly becomi

This enabled the Sullivan Trust Company to dispose of nearly all of its Manhattan securities whic

a valuation of $3,000,000 for the mine. Only a few months before it had fallen into Goldfield and Salt Lake hands for $5,000. Fairview Eagle's Nest, for

pany, at 25 cents. The stock was purchased by us at 8 cents. We sold out in a week. San Francisco and Salt Lake were the principal buyers, and

S AND MININ

papers throughout the land to keep the Goldfield news pot boiling. The Sullivan Trust Company had guaranteed the promoters of the fight against loss to the extent of $10,000, and other camp interests put up $50,000 more. Gans, the fighter,

oldfield; they'll think you laid down. I and my friends

ed he would

o 8 and 10 to 7 on Gans, we taking the long end. A sign was hung in the window reading: "A large sum of money has been placed with us to wager on Gans. Nelson money prompt

the selection. Mr. Sullivan openly objected. He thought it good strategy. He sent for the newspaper men and gave out an interview in which h

s broke and I'll make him eat out of my hand before I'll agree to let him referee the fight. They've already invited Siler to come here, and I won't be able to get anothe

ullivan in one of the back rooms of the trust company offic

livan. I want to referee this fight, and

which I can't tell you anything about that y

n the expectation of refereeing it. I couldn't give Gans the worst of

er, but Nelson isn't; he uses dirty

uling in this fight I'll mak

e have I got that you won't

e you that I'll be this fair. If Nelson uses foul tactics, or if he don't, I'll show my

keep your word you'll have just as much chance of getting out of

iler.

st accounts and found that it had wagered $45,000 on Gans a

e ringside. Though not of aristocratic mien, "Larry" was of fine physique, with a bold, bluff coun

mped into the arena. Standing above the mass of moving head

tness a square fight. This fight is held under the aus

tempest of derision. I was informed by friends who were close to the ringside that he went on in the same rambling way for a few minute

Mr. Sullivan had a commissioner at the ringside, who, up to this time, had been betting anybody an

e cinch for Gans you said

l go to Gans' corner as soon as this round

over to Gans' co

good ring-general and he'll pull us out. Don't bet any more

Nelson was inclined to use dirty fighting tactics, and soon Nelson was being hooted for foul fighting. Gans, on the other hand,

hen Mr. Sullivan again repaired to Gans' corner and h

, holding his hand under his belt, let out a yell of anguish that ind

ience was on its feet. Pushing his fist into the referee's face, Mr. Sullivan cried: "N

flash. Mr. Siler, pale as a ghos

e assemblage and raising bo

ree declares Gans th

re did not appear to be a man in the crowd who doubted a foul ha

d broken his wrist and knew he could not win the fight by a knockout. He also

he fortieth round that if he lost he would be laying down on his friends, that he had

ut up to the last round were gentlemanly and those of Nelson unfair. Even the partisans of Nelson who had wagered on him agreed a

ot disabled by a foul blow in the forty-second round and that he took advantage of the sentiment in his

ecision was so well received, but he assured me that if he was invite

n created by Announcer Sullivan's attempt to reach lofty flights of eloquence in his speech to the fight-audience was bad for the trust company, and it requ

R OF BI

a prodigious strike of high-grade ore had been made at depth. Combination Fraction had closed that afternoon on the San Francisco Stock Exchange with sales at $1.15. I went out on the street and proceeded to buy all the Combination Fraction in sight. In half an hour I had corralled about 60,000 shares at an average of $1.30. An hour later the owners of the lease obtained the information

0 per cent. Goldfield Red Top was selling at $2, Jumbo at $2, and Mohawk at $5, showing profits of from 2,000 to 5,000 per cent. Others had gained proportionately. In

ws-frames resembled a great producing oil field. There were signs of mining activity everywhere. For four miles east of the Combination mine and si

and it was plain that the trust company was riding on a tidal wave of success. O

ollars' profit on these two transactions. Options to purchase the Lou Dillon and Silver Pick Extension, which were situated within 500 feet of the Combination mine, had been in possession of the Sullivan Trust Company for months, and had increased in value to such an extent that on the d

me necessary to telegraph all newspapers east of Chicago not to publish the advertisement because of oversubscription before the copy reached them, and in the case of Silver Pick Extension the orders to publish the advertisements were canceled by telegraph before the mail carrying the copy reached Kansas City. San Francisco, Los Ang

promoted by the Sullivan Trust Company totaled in excess of $50,000

nd never a cloud in the sky. I was at my desk eighteen h

trust company because he had been allowing the use of his name as president of all the mining companies promoted by it. Nevertheles

stand for re

elected, and you will be renomina

ou guarantee my elect

ed: "We g

cans placed in nomination J. F. Mitchell, a mining enginee

omiciled in Goldfield. The Weste

e Democratic ticket because Mitchell has been put forward by the mine

xecutive committee to-morrow. I'm going to be around when they me

the next day that he had

told me that a contribution to the Miner's Hospital would be gratefully accept

greeting them. Reno appeared to be a Republican stronghold, and Mr. Sullivan, by baiting the Catholics against the Protestants, succeeded in holding down the Republican majority to an extent that was wofully insufficient to

F GOLDFIELD

s were the gold discoveries in camp, they did not justify the terrific advances being chronicled in the sto

The names of the properties were not given, nor the figures. It occurred to me that in any merger that was made the Jumbo and Red Top, because of their central location, must be included. I sought out Charles D. Taylor, who with his brother, H. L. Taylor, and Capt. J. B. Menardi, owned the control of these properties. He asked $2.50 per share for his st

perties from Taylor and be

is hands 20,000 shares of Jumbo, selling at $

"I have an oral option on the property good for three days at $2.50, but

ut his poker-playing ability, Mr. Wingfield had come to terms with Mr. Taylor and had bought the control of Jumbo and Red Top at an average price of $2.10 per share. That explained Mr. Sullivan's lapse.

paid over. Mr. Wingfield paid a small sum down, and Mr. Taylor placed the stock of both of the

g of a stock-market campaign for higher prices that stands unprecedented for audacity and intensity in the

$2 to $5 per share, Laguna from 40 cents to $2, Goldfield Mining from 50 cents to $2, and Mohawk from $5 to $20. Within three weeks the

Mohawk, $5 for Red Top, $5 for Jumbo, $2 for Goldfield Mining, and $2 for Laguna. It was also given out that the promoters, Wingfield and Nixon, had allotted themselves $2,500,000 in stock of the merged companies as a promoters' fee. Right on top of

,000, at a valuation of $33,000,000, and in addition the promoters received a $2,500,000 bonus. Had the properties been merged on the basis of their selling prices three weeks prior,

these were the condition

sers. The leasers had "high-graded" the property to a fare-you-well, and less than $1,000,000 worth of high-grade remained in sight, although it was conceded on every side that the leasers had not attempted, nor were they

stock, did not have a pound of ore in sight, and

on during the early days of the camp, appraised a

ittle or no ore, most of the time being exhausted by the managemen

00, had in excess of $2,000,000 wor

begin to show such startling market advances than the ballooning tendency manifested itself in Wingfield and Nixon's miscellaneous list, and all of them showed phenomenal gains. Soon the entire list of Goldfield, Tonopah, Manhattan, Bul

ere moved up beyond their intrinsic worth, as a result of th

old at an average of 75 cents during the boom; they are now selling at an average of less than 5 cents. A hundred other Goldfield securities, which were in eager demand at the zenith of the spectacular movement at

IGHT OF T

r 15, 1906, and that of to-day is in excess of $200,000,000. A fair estima

om the cities got into harness, and within three months in the neighborhood of 2,000 companies, owning in most instances properties si

cents to $2; that Jumbo and Red Top, selling at $5, could have been purchased a year or two before at around 10 cents; that Goldfield Mining, which had in the early days been peddled around the camp at 15 cents, had moved up to $

about as much money was lost in the listed stock

rs gone by to successful mining endeavor, was probably hit as hard as any other city in the Union. San Francisco thought it knew the game, and it confined its operations to th

the height of the boom, which they engineered to swing the merger, they disposed of millions of shares of an indiscriminate lot of companies, and used the many millions of proceeds to take over Jumbo, Red Top and their outstanding contracts in Mohawk and other integrals of the m

ers before some of the very large payments became due. This being accomplished, and the payments having been made, the promoters sought to establish a market for merger shares at or around par. In order to accomplish thi

r this, and the camp

argin-traders and borrowers who had put up the stock as collateral to purchase more were butchere

$7,000,000 worth of ore had been developed as a reserve at the time $35,000,000 worth of stock in the merger was issued and a market manufactured to dispose of the stock at this fictitious price-level. It is not of particular interest that Goldfield Consolidated, by reason of sensa

s had just two chances. They could break even or lose-break even on their investment if the mine made good

oth of these positions at the time the merger was made, and it was largely because of Mr. Nixon's political and financial posi

tion 28,000, an interview appeared with United Sta

e jot or tittle, it is printed just as it came from his hands. Even now the Senator holds a car

rview, as it appeared in that i

mate earnings of Goldfield Con

han it will be one year from now," Senator Nixon replied, "and I believe I am conserv

ment, the stock is

of its future value, I sho

hat int

ce for the shares. They touched $10 only once since then, or one-half of his estimate. Shortly af

y earn at the rate of $1,000,000 a month. This s

this interview for public consumption he, according to his own later admissions, disposed

cient to furnish an example of the effect of Get-Rich-Quick influences that radiate from high

k dope for years. It is being gulled into losing millions through its fetish worship of pro

hs that marked the zenith of the Goldfield boom, is another case in point where a con