The New York herald., 1878-11-19
REPORTS FROM THE MINES
Probability That Spectators Are Man
ipulating the Market.
CROSS CUTS AND NEW LEVELS.
Many Leading Operators Probably
Utterly Ruined.
[BY TELEGRAPH TO THE HERALD. ]

san Francisco, Nov. Is, 1873.
There was a panic to-day in the market for
Constock mining shares. On Friday. under favor
able reports from the mines the market quotations
for the stock Of the twenty-four principal
Comstock mines indicated total value of ss5 900.
Tonight the same mines selling ut tho rate OF
$50,ooo.ooo. showing . shrinkagc OF s3ocoo,ooo in
three days. The leaning mine, Sierra Nevada, was
quoted at 5000 per share fer 10000 shares On Friday
morning declined 10 STA per share III the evening
and on Saturday it again to $i90. closing tho
day al sl76. This morning the stock first quoted
at $50. but dropped within few nutcs
to $12o, and then rallied to $50, declining later
III the day to $lOl, rallying again to
sl23 and closing with street sales ut night ct $780,
The shrinkage in this mine alone since Friday
ing is equal to $lO,OO0Oc0 fully fifty per cent.
Severe this shrinkage is. it is not without
precedents. and it is the opinion Of of the
best judges, il not the general opinion, that the
worst is not yet over.
Cross CUTTING.
In October it became necessary to get some in
formation Of the width of the body in the Sierra
Nevada by cutting For this purpose the sink
ing Of the wing WAS stopped and preparations were
made for cutting at the 400 and o.2o0
foot levels. There has hccn good deal os stock sold
at the top prices Among others. Senator Jones is
said to have marketed 200 shsres ut profit Of
thing $lOoo,00O. Abou: the middle Of October
there panic by which the market lost s3o0o0oo0
Of its imitation Sierra Nevada declining to $l35 and
Union to $780,
WATERING THE STOCK.
There was q speedy recovery, however the latter
stock rising to $3.50 and the former to $500. Then
the large holders held meeting and resolved to
water the stock by increasing it from thou
saud to fifty thousand shares, SO that, as
little" Three weeks were consumed in prepara-
tons for cutting the market remaining rather
firm. On Monday. November II. the cross cuts we've
started and the market responded with sharp rise
at first. in anticipation Of good results.
nKporrs FROM THE phIrrs
On Friday it reported that the drift on the 100
foot level in rich ore, and yet there large
sales Of stock, causing decline, stated.
at the beginning. The delay in striking ore
on the lower lever was longer than expected,
and created distrust On Saturday morning it
was reported that the drift in the 1900 level was in
rich ore. This raised the market price of Sierra
Nevada to $780, but 1t fell again before nigh. to S17G
This morning the upper cross cut through the
ore body, showing total width Of seventeen
feet, instead of dfty feet. ~ was anticipated Its
grade averages $s2, by the assays indicating
milling ore of $50 per ton. The lower
cfOHS-cuu
ported on Saturday. but struck stringer.
afterward running into low grade quartz. Late
this evening the drift is reported to be partly in ORE
but not enough to indicate whether it is another
stringer or the real ore body.
AT THE STOCK EXCHANGES.
There was great excitement in and around the Stock
Exchange all day. Operators generally were sur
prised and sadly disappointed. Many of them will
be utterly wrecked and several brokers will also
be seriously hurt. Various theories are afoat
as to the of the panic. Some as
sert that the cross cuts have nothing to
do with it, tina. it deliberately planned by Flood
and Mackcy for the purpose of bearing skae and
obtaining control of Sierra Nevada In
answer to this. however, others point ont
the fact that the stocks controlled by Flood
have beon selling the rate Of from 500 100000 to
$50 900 OO0 while Skaes stocks have exceeded
one-third much. They reason that Flood
was as much interested in keeping up prices
as Skae. Another is that the reported strike
was thoroughly perfected with the diamond
dr before the first break, and found TO be Of little
value. when the inside manipuators began selling
fast as possible sand have since sold fast the
market woulo take their stock.
This evening. after the regular call, still further
break occurred Sierra Nevada closing ss 81; Union
81; Ophir, 42ii; Mexican. Al, &c.