Adventure, June 1911 — page 10: what you’re looking at

Machine-transcribed from the original scan — historical spelling and the odd misread are preserved.

£196 2, . ** Sony at vt 5. cents, a share. without my knowledge and. against my ‘wishes. Next day the Sullivan Trust: Company __ shipped to Mr. Weir’s firm in New York 25,000 shares of Stray Dog attached to The draft. was Weir must have bumed his Jinigers by "tha operation. A ‘FEW weeks after this, and at a period when Manhattan’s initial boom was easing: off, San Francisco .. was destroyed. by earthquake and fire. ‘Not less than half of the capital invested in Manhattan stocks had come out of the city of San Francisco, where Manhattan was in much higher favor even than -in the East. The earthquake was fatal to Manhattan. The San Francisco Stock Exchange, which was the principal market for Manhattan mining shares, was compelled: to discontinue business for over two months. Brokers and transfer companies lost their records, and the public’s property and money loss was so appalling that no more money was forth- coming from the Coast for-mining enter- prises. Every bank in Nevada closed down, just as every California bank did, the Gov- ernors of both States declaring a series of legal holidays to enable the financial insti- tutions to gain time. Nevada banks, as a rule, had cleared through San Francisco banks, and there was much money tied up by the catastrophe. | The Sullivan Trust Company faced a crisis. I had decided it was good business to lend support to Jumping Jack in the stock mar- ket when the Manhattan boom began to relax from its first tension, and had accu- mulated several hundred thousand shares at an average of 35 cents. The Trust com- pany 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 for which Wells- Fargo demanded the coin. It was impossi- ble to hypothecate securities of any descrip- tion in Nevada or San Francisco. With the Sullivan Trust Company’s funds tied up in closed-up banks, and with an un- salable line of securites in its vaults, it was “up against it.” For a period it looked as if we must go to the wall. For two months we eked out a bare subsistence by the direct ms Adventure | sale of Manhattan securities at reduced prices to the Eastern brokers. This pur- chasing power came largely from brokers who were “short” of stocks to the public on commitments:made at a much higher range of prices and needed the actual certificates for deliveries.” It took the Nevada banks and the San Francisco Stock Exchange more than sixty days to rehabilitate themselves. No sooner did the San Francisco Stock Exchange open for business 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 mem- bers of the San Francisco Stock Exchange, it obtained in this way in the neighborhood of $100,000. Goldfield banks supplied an- other $100,000 a little later by the same process, FORTUNES THAT WERE MISSED BOUT this time the Mohawk of Gold- - field began to give indications of being the wonderful treasure-house it, has since proved to be. Hayes and Monnette, who owned a lease on a small section of the prop-’ erty, had struck high-grade ore and were producing at the rate of $3,000 per day. A few weeks later it was reported that the output had increased to $5,000 a day. The Mohawk being situated only-a stone’s throw from the Combination mine, the idea that the Mohawk might turn out ‘to be an- other Combination was common in Gold- field. Hayes and Monnette were startled— almost frightened—at their success. Yield- ing 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 offices of the Trust Company and offered to sell their lease, which had six months to run, for $200,000 eash and $400,- . ooo to be taken. out of the [net proceeds of the ore. “T will take it,” I said. I sent over to the State Bank & Trust Company, and had a check certified for the $200,eco. I was about to close the deal, when Mr. Sullivan and “Jack” Campbell protested. “T ought to have fifteen days to examine | the mine,” urged Mr. Campbell. “Tt is too big a chance to take,’’ declared Mr. Sullivan. When ‘appealed to, Hayes and Monnette Go DOOKS ANUC (©