The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-10-11
UNLOADING BIG BONANZA.
NOW DIR. UNDERWAY HELPED ALON0 A
GIGANTIC jon IN STOCKS.

GIGANTIC jon IN STOCKS.
In,er.stins Facts Diseovered BY Giover's In.
v.stiastins Cemmittee - Bonarra shares
Owned by Linderman's win and Brother.
WASHINGTON, Oct. when Glover began
70 investigate the Treasury. he found he had
reused a wasps' nest That Department had
never been thoroughly Investigated. and under
cover OF a popular notion that it had boon
rightly managed. we're said to be hidden some
Of the worst Rings in the country which had
long been pundering the people unsuspccted.
Bo great was the mass OF information obtained.
and so astonishing was It's nature. that the
Committee felt obliged to proceed with the
strictest secrecy. and TO publish nothing but as
oertained facts. lest they should expose their
Investigations to espionage and defeat or DO
made the medium for spreading unfounded
stories. II will be remembered TINT every prac-
toable delay was manufactured and every
practicable resistance made to Glovef's efforts
TO get the powers nsedful to investigation. and
that more than half the session was thus wasted
before he could fairly begin. The secret OF this
desperate resistance may be found. In part. in
the facts now given.
In 1873 tho silver mining interest began TO
make It's influence felt at Washington; John p.
Jones. who had been superintendent. and by
questionable means had bscome main owner OF
the leading bonanza. being elected to the Sem
ate from Nevada. In place OF Jim Nye About
the same time a bill was struggled through
Congress creating a Mint bureau" In the
Treasury. and removing tho Office OF the Direc-
tor from Philadelphia 10 Washington. DR.. II.
H. Linderman was then made Director OF the
Mint In place Of Gov. Pollock aad established
his office in sumptuous suite OF rooms in the
Treasury building.
h., a..
Mine. known as the Biz bonanza was opened.
and yielded nearly 400 900. The next year 1t
yielded t5 200 900 % 900 900 Of which was silver
In this year the State Geologist OF Nevada II.
H. Whitehill. estimated the value OF the ore at
sl43. 100000. This was over estimate. as re-
suits show Other estimates OF a wild character
were published.
Flood. O'Brien. Maokey and Fair. the leading
owners OF the mine. now sought to realize on
the property the fictitious values which these
reports had given it In the stock market They
were however. very near . failure in this pro-
iect and would have failed but for the aid OF
Director Linderman. The effect OF tho over
ESTIMATES ties had passed ayaS by 2ctober 1878
Lpdermap's IrQther and wife became owners
Lnderman and Prol. K. Z. Rogers. a sSbordi.
pate OF his. visited the mine. In December
n
the mine. which he Officially endorsed. had
transmittod TO Congress and published. stating
$500. 100000. On the publication Of this officiai
bumped from $40 TO $500. and soon after to
3l,OOO. The effect was TO make a market for
Big Bonanza stocks at the East and IN Europe.
This report. confirming In an authoritative
that mad been published. bred frantic spccu-
tation In all the bonanza stocks. Even clerks.
girls, servant girls. and bootbiscEs. were drawn
into the whirlpool. and many OF them took from
tne savings bangs the small hoards OF years TO
invest them in Consolidated Virginia and other
mining stocks.
After keeping the price Of Consolidated vr-
gBrien, Mackey. and Fair began quietly to sell
Ihey obthin.i, a. nearly as has been ascer-
stock. The close Of their operations was a sud
den unloading that. us soon as II had taken
place. made Consolidated Virginia so plentiful
and inflicted heavy loss on thousands of people
This was followed by the failure OF the mine 10
yield over u third Of what Linderman prophe-
sled. which drove prices down further still. in
eomuch that the property was worth lately but
las msds %0p az & 1 tha me ssc.n, rise
70 the investors Of a round 500. 1000, 900, which
slm has been SG poeketed by Flood, Maekey.
Three hundred and twenty-four thousand
new shares Of stock had meantime. quietly been
Fair to retain control Of tho mine. despite their
large salsh IL 10 SAID by well-informed men
tndt tlley nave lopurcnaseu the stock at the
cent low figures. MS At these prices the stock
Will anord them agood dividend.
how deeply Linderman WIS Interested in the
mine is Indicated by the fact. discovered by
Glover, that he bought on one occasion for the
Goyernment. OF the Consolidated Virginia a
million and half OF silver. paying for il
$4,000 more than tho market rate. and sSS 900
more than lie acknowledged paying and made
the company an extra allowance OF So 600 be-
sides all this n violation Of law and OF mis- sworn
regulations. He showed great anxiety 10 con-
ccal the particulars OF THIS transaction. and
falsihed his annual report TO do so.
. Inc effect OF TINS vast speculation was to ruin
thousands OF families. to cause many crimes 10
Nansfer the hard earnings OF many thousands
OF persons to few Individuals, who locked
them up Ia various bonds and other outside in
vostment5, stripping California of much work
Eng capital. aud % spread depression OF indus
Try. lall OF commercial prices, and depreciation
OF real estate over the whole Pacific coast.
When It became known on that coast that
complaints were forwarded 70 his committee
against Lnderman. Glover proceeded to in
Qulre into the matter with the results above
given. The inquiry will be continued next SEES
sion. but these facts Indicate why 80 large and
nerce a lobby opposed Glovers doing any in
xestiRating, and why the proposition that the
Committee should continue its Investigations
during the recess OF Congress was defeated in
tha House
Lindermans report also caused panic in
the silver market. and produced the low prices
OF that metal which have bred 30 much trouble
put no evidence has yet appeared to show that
be designed this.