The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1878-12-25
A Boston Combination Outwihed.
San Francisco Evening Post. I

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
In our market. This syndicate had it's
Headquarters with Stone g. Donner leading
bankers on State street in that city. and about
@3OOO, O0C was put up by the members for operat-
ing uses. The Boston syndicate was largely
on Geographic orders to this city, Sierra Nevada
Union, Mexican and Ophir. Their purchases
were not confined to these stocks alone oW-
ever, for they corralled quite quantity Of such
collaterals a. Gould Curry, Savage, Hale Il
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 Obtalnable by telegram from day to
day regarding the condition of the Sierr
Nevada, ETC., and the internal forces ct wor
in the market. Having purchased most of
the stocks before the initiation at it's
highest, and having made several successful
turns with their holdings, the syndicate could
have cleaned up and retired from the field,
before the final crash came, had they been
so disposed, with third as much of our
peoples money as they themselves had origin
ally invested, But like great many syndi-
Gates and combinations formed for the same
purpose on this coast, the Boston capitalists were
thoroughly enthused and carried awav by their
tlrst 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 bins-
ton struggling for power, but they placed very
little Importance upon the fact, feeling. like
thousands of Others. that of the heavy
holders of the favorite stock would ever dream
of selling ont at less than $500 per share and
that the Sierra Nevada mine was going to
realize all sanguIne 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 as a theft
| IN the night, and the enormous shrinkage in
| values happened suddenly that they were
| unable to dispose of scarcely any stock. Their
profits were destroyed. But deeming that the
! decline was merely stock Job, result of the
! supposed fight between Flood and Skae and
| that the showing of the mine was not re-
| sponslble, they did what 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 in the face of fearful shrinkage and
| constant call for money caused the Boston
| syndicate to weaken. They found themselves
| loaded to the gourds. 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 circumstances-they
| fell to anathemizing California. Nevada. the
mines and everything else connected with
them up hill and down dale. This morning
we-were sho.N through tf3courtesy of local
operator. letter which ne recently received
from of the members of the Boston
syndicate and were PERMITTED to make the
following extract:
| Boston, Nov. 20.-Your telegram of to-day
| is before me. This break in California stocks
Will tend to hurt business People here are
inclined to consider the principals great Williams
and Will not venture further. If the Sierra
| Nevada developments prove rich as we were
| led to expect, it will change the sentiment
somewhat Still the fearful decline will
shake confidence. and our citizens will not be
disposed to go in again. Your people are worse
than folks here. Ii Sierra Nevada does not
show a huge body of ore it will be looked upon
! as scandalous job and will give California
| very bad odor. l feel anxious to see the end of
this. am glad that am not more interested
| pecuniarily. However. you suggested. months
| ago, that such things might occur. bat we
| hardly believe it. : =
| Just what is to blame for the havoc caused
| among our Boston friends is difficult matter
| to state. A combination of things DIT 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 2lG0 or 1900
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 if the dissatisfaction
is great IN Boston IL Is sui greater mere. More
anathemss on the market will be heard on Pine
street in hour than the staid old Hub
in week. But we do believe the Sierra Nevada
! mine will yet come out all right, and that
Boston will chance to get even on its invest
| ments; but it must not be impatient or too
hasty. Our folks out here are not worse than
people there. the syndicate to the contrary
notwithstanding. If we possess any advantage
over the syndicate, it is that they did not clean
up and remove from this coast large profits
when they might easily have done so.