The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-11-10
EXCITEMENT IN WALL STREET.

Collapse OF n Gold Mining Company
Heavy Losses of StOck-BrOkers-An
Alleged Swindle-ThC Managers Of the
Company Arrested and Committed to
Jail, Etc.
Wall street for the past two days has been in
tulter OF excitement over the tact OF the fail
ure OF prominent gold mining company,
coupled with an alleged case of swindlng by
the reputed President Of the company. The
iacts OF the affair, far as they have trans
pire6, are as Follows: The Downieville Gold
Mining Company, whose Office was located al
No. 20 Wall street, was formed upon a capital
s'ock-upon paper-ot $780, 900, in shares OF one
dollar each.
cents per share, and was looked upon SO favora-
bly, by the business community that il rapidly
rose until il ittouched, as its maximum, $3.50 per
share. 1t remained at high figure until last
Wednesday, at which tune it quoted at
$2'75, when circumstances occurred which
caused the bubble TO burst, and the stock
became drug at twenty-five cents per share.
AN ALLEGED swMpLB,
On Wednesday of the present week the we'll
known banking firm of Fisk d Balden, doing
business on Broad street, received a request
from MIR. Wheeler, who appears TO have been
connected with the above-named mining COM
pany, for a loan OF $1,000 for MIR. Riley, the
Teputed President of the Company, until the
next day, and Offering to leave stocks of the
DoWnieville Gold Mining Company as collateral
security, and also stating that Mr.. Riley had the
control of all the stock of the concern.
The loan was granted, but when the money
came due it was not paid, and then the Broad
street firm in attempting to realize from a sale
OF the stocks, discovered, to their infinite sur
prise, that the market was full of the same
paper, with sellers eager to part with their ele-
phant, The result has been stated. Before
night the stocks were worthless, and thousands
of dollars were lost in the twinklIug of an eye.
How much has been sunk cannot be told at pre-
sent, but il is known that one person held
200, while two others suffered to the extent
OF $I0,O and $4,000 respectively.
The victimiZed parties did not propose to
submit tamely to the loss of their property, and
a civil suit was Immediately instituted against
Mcssrs. Riley and Wheeler tor obtaining money
under false pretenses, and they we're arrested
by a deputy sheriff and lodged in the county
Jail in Ludlow stI eet. An arrangement was sub
sequently effected with the prosecutors by which
Riley and Wheeler were released from imprison-
ment: but they were rearrested Yesterday and
held in default of $l3, 600 bail each. Thus the
matter rests tor the present; but it il highly
probable that further Developments will be
made, showing the ease with which worthless
stocks can be foisted upon the business com
munity. 1t Is stated that the secretary of the
Mining Company, Mr.. j. G. HarIot, is not i'm
plicated in the transactions.
Another version OF the affair is that the
managers of the Downieville Mining Company
gave orders to ten or fifteen brokers TO buy up
large quantities of their stock, and then they
sold 70 the same brokers, through other men,
the identical stock-thus bulling their own
order-at S2'75. They also failed to pay for the
stock Doughty. Y Herald