Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-12-20
SUCKED IN.
The Fate ola Boston Cont6f nation frhicH
Iarested S5,O0O.O0O in Nerada StocIs-
Staia In Too Long.

lie rate oJd Boston 0mbfHntf0n phtch
Iarested S5,O0O.00O In Nerada Stock
Staid IN Too Long.
San Francisco Evening POST
When the recent excitement in Sierra Nevada
and other north end stocks got fairly under
way, a syndicate of prominent Boston
capitalists was formed for the
purpose of interesting themselves
in our market. This syndicate had its
headquarters with Stone & Bonner, leading
bankers on State stree. in that city, and about
So. GOO, 00C was put up by the members for operat
Ing uses. The Boston syndicate was largely
on telesraphic orders to this city. Sierra Nevada
Union, Mexican and Ophir. Their purchases
were not confn ed to these stocks alone, how
ever, Tor they corralled quite quantity of such
collaterals a. Gould & Curry, Savage, Halo l.
Norcross, Bullion, etc., with the view that the
developments in the Sierra Nevada must cause
vigorous appreciation all along the Comstock
line. The syndicate received the best inform
alton obtainable by telegram from day to
day regarding the condition of the Sierra
Nevada, ETC., and the internal forces ct work
IN the market. Having purchased most of
the stocks before the imitation was at It's
highest, and having made several successful
turns with their holdings, the syndicate could
have cleaned up and retired from the fed,
before the final crash came, had they been
SO disposed, with third much of our
peoples money as they themselves had origin
ally invested, But like great many syndi-
Gates and ordinations formed for the same
purpose this coast, the Boston capitalists were
thoroughly enthused and carried away by their
first success. They hadn't had such glorious
opportunity to make money since the good old
times during the war, and they were going
TO take advantage of the occasion. They were
advised that some kind of fight was going
on in the market between two rival com biua-
ton struggling for power but they placed very
little importance upon the fact, feeling, like
thousands of Others. that none of the heavy
holders OF the fayoclte stock would ever dream
of selling ont at less than $500 per share, and
that the Sierra Nevada mine was going to
realize all sangulne expectations of its friends.
immediately when cross-cutting commenced
on the twenty-five hundred foot level. The
great crash, therefore, took the Boston syndi-
cate unawares. 1t came stealthily Us a theft
Ill the night, and the enormous shrinkage in
values happened suddenly that they were
unable to dispose Of scarcely any stock. Their
profits We're destroyed. But deeming that the
decline was merely stock Job, result of the
supposed fight between Flood and Slkae, and
that the showing of the mine not
sponsible, they did what a great many other
people nearer at have doue-average the cost
OF their collaterals by purchasing more shares
on the decline. Two three days OF aver
aging i'll the face of a fearful shrinzage and u
constant call for money caused the Boston
y
loaded to the gourd~ They suspected that some
thing was wrong. Not knowing exactly what
the something Was, they did what has always
been deemed the proper thing by cas- ern
people, under similar clrcums tance5-they
fell to anathemizing California, Nevada, the
mines and everything else connected with
| them up hill and down dale This morning
weIwere shown, through the courtesy of a local
operator, letter which he recently received
from one of the members of the Boston
syndicate. and were PERMITTED to make the
following extract
BosroS, Nov 2G.--Yonr telegram of to-day
is before TINS break in California atocks
Will tend to hnrt business. People hero arc
inclined to consider the principals great Williams
and viii not venture further. II the Sierra
Nevada developments prove rich were
led to expect, it will change the sentiment
/ somewhat Still tho fearful decline will
shake confidence, and our citizens will not he
disposed to so in again. Your people
than folks here. IL Sierra Nevada does not
show huge body of ore it will be looked upon
as scandalous job, and will give California
very bad odor. feel anxious to see the end of
this. am glad that L am not more interested
pecunlarily. However, You suggested. months
| ago, that such things might occur. but
! hardly believeit. :
just what is to blame for the havoc cauaed
among our Boston friends is difficult matter
to state. a combination Of things are At the
bottom of the disaster, any one of which may
have been the cause. The mine did not show
as rich as was expected on the 9, 100 or zoe
! levels 1t is quite certain that the large blocks
! of inside stock were thrown upon the market.
| The bonanza fir. until recently made no effort
to check the decline. But il the dissatisfaction
is great in Boston it is still greater here. More
| anathemas on the market will be heard on Pine
! street IN one hour than the staid old Hub
in Il week. But we do believe the Sierra Nevada
mine will yet ont all right, and that
Boston will a chance to get even its invest
rnentss but it must not be impatient or too
| nasty. Our folks out here not worse than
people there, the syndicate man to the contrary
Notwithstanding. Ii we possess any advantage
over the syndicate, it is that they did not clean
mp and remove FROM this coast large profits
when they might easily have done so.