The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-11-10
DIAMOND CUT DIAMOND.
SOMETHING THAT hSTONTSHED THE
STOCk SH1RPS or FRISCO.
Wall street Graduates Teaching CaItfo,nin
street ~ Lesson that Cost ~ &tOO.OOO-A
Profitable Deal In Exchcgucr-very Sad.


SAN FRANCISCO, Nov. AT this writing
there IL waiting and lamcntntion and bitter
anger and grief. mingled with chagrin. on the
sun Francisco Stock Exchange. The stock
spectators Of this very sharp town have been
taken in and done for by a party OF cntcrprising
New Workers.. who came here soon after the
panic in May. TO look around and invest n few
thousand dollars in mining stocks. Such WISH
tors are always welcome on California street
and the welcome lasts M long IA their funds
hold out n period which seldom extends be-
yond few weeks. when tho too conilling
stranger finds himself shorn OF his cash. which
has found it's way into the golfers OF his Jolly
friends of the Stock Exchange But in the caso
which IL now the talk OF the town. il is the shcp-
herds that are shorn TO the chagrin and dismay
of the street. and to the delight OF the numerous
sheep vino have been shorn and stripped by
those same honest shepherds
In the panic Of last May the firm Of Shutz 4
Van Bergen. who held controlling interest in
the Justice. Exchcquer. and Bullion Mines on
the lower end Of the Comstock lode were forced
to suspend. They retired from the market in a
very had temper. and ripe for mischief. Friends
and hackers on whom they relied had gone
hnck on them. and they thirstcd for revenge.
BY arrangement with thciv creditors they were
allowed to retain the control Of their stocks. and
work them OF for the benefit Of the estate. OF
ENrhepucr they had 5000 shares out Of 100 600
EXchcduer was and is u non-dividcnd paving
speculative stock. ranging from $40 TO GIG per
share in 1876 and down TO the collapse in May,
ISL Wien 4 iel 70 90 Per sharc, and was dull
After viewing the situation and the market
the cntcfprising New Workers decided that Ex-
.hcqu r was the best stock for their projected
.,drnl. They acford,nGl entered into neeo;
tigtions with sorc-headcd Mr. Shultz. and closed
contract for $4,000 shares at 81 per share the
l n raj n
stalmrnt Of stock, paid for 1t. and began their
manipnati9ns at the stock Boards.
Going TO the leading brokers they gave orders
| from time e. time To purchase outside lines VI
Excheqner forthe alleged purpose Of concen-
| tiating the balance OF the shares. II was soon
| ltn' ists werc greedy for Eychcquer and wore
buying all thcv, could get: The stock, went up
to 81. then to s.. then 10 $40. and finally TO sl2
and 81 a share. To one set of brokers tho
New Workers gave orders, TO sell. To another
! stock for forty per cent margin.
| The sales averaged $40 share. and the bulk Of
| IN" shares were Of course bought in for account
| their $40 purchase they paid their brokers a
margin 81 81. receiving from, their selling
prof., 81 - pr share.
by this simple and easy method the New
'rk r. transferred about 40 OO0 shares Of their
! purchase Of 80 600 To- the possession of friendly
hrpk, r. and put the balance upon the specu la
| tTr public. They then turned round aud sold
short. and the stock started on the downward
! turn from sli The brokers called for more
/ margin. wh rh was not forthcoming. II soon be-
came a case II devil take the hindmo-t. and EX-
/ cheGucr tumhlod 10 S. The New Workers
/ raked IN their winnings on their shorts. and
now stand some fiOOOOO ahead. and ready to
compromise with the crcst-fallcn brokers who
/ were 80 eager for their business three weeks
ago, and who haNyr since found. TO their
| their own game. met two of the victlnizcd
brokers to-day. and | think their chagrin at
! having been done" affected them quite rs
| severely a. the los, II their money.
The transaction has made quite IA stir ON Cali
iornln street. and heard th,s evening that
! wrts are out for the arrest Of two members Of
| the invading party.
THE VICTIMS sQurALfSo.
Eoo ~, Nm F,rs-i-p t,c,ing Bsg~ia. No.
This afternoon John Leighton. c. T.. Brooks,
l. j. Potter. and q. Ii. Barnard were arrested
IN charge of conspiracy on the complaint of
II. :. Tibbey. notary public.
| Accord ing the complaint. Leighton told Tih-
| hey that he representcdn syndicate in New York
city. having capital Of IS 900 900 and that this
| money was in his hands and under his control
| that TINS money WIS t. b. used in the purchase
| chased. and the mine conducted by them.
| Leighton said that he had procured and locked
| NJ in til" SAFE Deposit vaults ~ 900 shares of
| this stock. and said that this stock would not lee
| thrown upon the market Tor sale until the price
| of shares had reached at least S25 He also
stated that drills had been run into the rock II
! great distance. and that good ore had been
| found. lie said that the mine WIS vastly ri IA.
! and that the stock would be- worth millions. The
! conspirators made these representations IN or
! der Ia provide "a market for their stock. They
! then called upon Tihbey TO buy all Of the stock
| that hc could get. giving him verbal and written
! 9rdrr. lie. believing in the representations Of
! stock 40 a cost Of $4,000. lie subsequently,
| found that this stock WIS the identical shares
! h"ld by the members oi the Ring, and charges
that ~" whole husinn - was "a cons piracy To- de-
/ fraud him cat Of lis money and property Tib-
/ boy claims 10 have lost $4,000 by the transac-
| ton.