Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-11-06
UNLOADING BIG BONANZA.


Dantic job Tn Stock-Interesting Facts
Discovered by Growers Investigating
COnen1ittee-Bona7az1 Shares O,c,eed by
Li7aderns0,a's Wife and Brother.
Washington Correspondence New York Sum-
When Grover began to investigate the
treasury. he found he had reused wasp's
nest. That department. had never been
thoroughly investigated, and under cover of
a popular notion that it had been rightly
managed were said to be hidden some of the
worst rings in the country, which had long
been plundering the people unsupported. So
great was the mass of information obtained,
and SO astonishing was its nature, that the
committee felt obliged to proceed with the
strictest secrecy, and to publish nothing but
ascertained facts, lest they should expose
or be made the medium for spreading un-
founded stories. Tt will be remembered that
every practicable delay was manufactured,
and every practicable resistance made to
Growers efforts to get the powers needful to
investigation, and that more than hals the
session was thus wasted before he could fair
ly begin. The secret of this desperate re-
sistance may be found, in part, in the facts
now given.
In 1873 the silver-mining interest began
to make its influence felt at Washington;
John p. Jones, who had been superinten
dent, and by questionable means had be-
come main owner of the leading bonanza,
being elected to the Senate from Nevada, in
place of Jim Nye. About the same time a
bill was struggled through Congress creating
"Milt Bureau" in the treasury, and re-
moving the Office of the director from Pblla-
delphia to Washington. DR.. H. r. Under
man was then made director Of the mint in
place of Gov. Pollock and established his
Office ina sumptuous suite of rooms in the
treasury building.
During the year the Consolidated Virginia
mine, known as the Big Bonanza, was open
ed and yielded nearly 100000. The next
year it yielded $5,O00.0O0, $3,O0O,0O0 OF
which was silver. In this year the State
Geologist of Nevada, II. r. WhitehiIl, esti-
mated the value of the ore at $143, 900.
This was over-estimated, as results show.
Other estimates of wild character were
published.
Flood, O'Brien, Mackey, and Fair, the
leading owners of the mine, now sought to
realize on the property the fictitious values
which these reports had given it i'll the stock
market. They were, however, very near
failure in this project, and would haze failed
but for the aid Of Director Linderman. The
effect of the over-estimates had passed away
by October, 1875, and the stock had fallen
from $500 share to $21O. But, about that
time, Linderman's brother and wife became
owners of Consolidated Virginia stock. In
November, Linderman and Prof. r. E. Rog-
ers, subordinate of his, visited the mine.
In December, Linderman caused Rogers to
make report on the mine, which he Off
cialiy endorsed, had transmitted to Congress
and published, stating that the ore in the
mine was worth at least $300,000,O0O. On
the publication of this official report the
price of Consolidated Virginia jumped from
$210 to $40O, and soon after to 81, 900. The
effect was to make a market for Big Bonanza
stocks at the East and in Europe. This re-
port, confirming in an authoritative manner
to large extent the wild estimates that had
been published, bred frantic speculation IN
all the bonanza stocks. Even clerks, and
others on small salaries, laborers, shop girls,
servant girls, and bootblacks, were drawn
into the whirlpool, and many of them took
from the savings banks the small boards of
years to invest them in Consolidated Virginia
and other mining stocks.
After keeping the price of Consolidated
Virginia at these inflated figures for some
time Flood, O'Brien, Mackey and Fair began
quietly to sell. They obtained, as nearly as
had been ascertained, $125,oO0 600 from the
public for their stock. The close of their
operations was sudden unloading that, as
soon as it had taken place, made Consoli-
dad Virginia so plentiful in San francisco
that the price suddenly fell, and inflicted
heavy loss on thousands of people. This
was followed by the failure of the mine to
yield over third of what Llnderman
phrophesied, which drove parties down
further still, insomuch that the property was
worth recently but about $15 100000. AL
lowing that the recent rise has made it worth
$25, 100000, this leaves a loss to the invest
ors of round $1O0,000,00O, which sum las
been pocketed by Flood, Mackey, O'Brien
and Fair, with the aid of Linderman.
Three hundred and twenty-four thousand
new shares of stock had meantime quietly
been issued, enabling Flood, O'Brien,
Mackey and Fair to retain control of the
mine, despite their large sales. It is said by
well-informed men that they have purchased
the stock at tho recent low figures, as at these
prices the stock will afford them good divi-
dend.
How deeply Linderman was interested in
the mine is indicated by the fact, discovered
by Glover, that he bought on one occasion
for the government, of the consolidated Vir-
ginia, million and half of silver, paving
for it $4,000 more than the market rate,
and $4,000 more than he acknowledged
paying, and made the company an extra al
lowance of 1900 besides. all this in viola
ton of law and his sworn regulations. He
showed great anxiety to conceal the particu-
lars OF this tranfaction, and falsiied his an
nual report to do so.
The effect of this vast speculation was to
ruin thousands of families, to cause MANY
crimes, to transfer the hard earnings of
many thousands of persons to a few indi-
vlduals, who locked them up IN various
bonds and other outside investments, strip
ping California of much working capital,
and to spread depression of industry, fall of
commercial prices, and depreciation of real
estate over the whole Pacific coast.
When it became known on the coast that
Glover would investigate the treasury, bitter
complaints we're forwarded to his commit
tee against Linderman. Glover proceeded
to inquire into the matter, with the result
above given. The inquiry will be continued
next session, but these facts indicate why so
large ana nerce LOBBY opposed Glover's
doing any investigating, and why the propo-
sition that the committee should continue it's
Investigations during the recess of Congress
was defeated in the House.
Linderlnan's report also caused panic in
the silver market, and produced the low
prices of that metal which have bred SO
much trouble, but no evidence has yet ap-
peared to show that he designed this.
Pistols and Coffee for Two.
SAN FRANCISCO, Nov. 4.-Friday night the
Irish citizens held a mass ,noat;nn M I1x:...