Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-07-21
ONCE A BONANZA KING.
JoaS sKAE DIES IN POVERTY,

six wears ago as the "father OF the
Sierra Nevada bonanza" aud who at
one period Of his checkered career could
sign his check for sl0, 000, 900, died here
yesterday In poverty. The history oil
Skae is one which sets out in broad re-
lief the vicissitudes Of mining speca-
lation, and one which could have been
prepsred nowhere else but on the Pa
cific coast, at tho time when speculation
ran riot here and involved in Its meshes
everybody who could command dou-
ble.escle TO deposit with the brokers as
q marcin. Skae was born in Canada,
Of Scotch and Irish parentage, and he
possessed the shrewdness Of the one
nation mingled with the reckless dash
Of the other. He came TO Cali
fornia when boy, and learned
the business Of telegraph-ope-
rator. lie was working for the
California Telegraph Company when the
four bonanza kings--flood, O'Brien,
Mackay, and Fsir-were developing the
resources of the Consolidated Virginia
and California mines on the COmstock.
Mckay and Fair, who superintended
the operations at Virginia City, were
in constant communication with Flood
and 0'Brien in this city by means OF
the telegraph, and as it was desirable
to keep from "outsiders" the real
condition Of affairs in the mines until
the proper time for booming them ar
rived, the managers used what they
considered q safe cipher in their dis
patches. This cipher Johnny Skae,
who was the receiver on the Virginia
CITY wire, succeeded in interpreting'
80 that he knew Of every movement IN
the mines, and was appriscd OF the
great bonanza in sight for several days
before the general public knew OF 1t.
Acting on his knowledge thus ac-
ouired. Johnny invested all the cash he
could raise in the stock Of the two
mines. and he found no difficulty in Sc
curing brokers TO advance him the
money 10 carry large blocks on margin
in exchange for the secret information
which he gave them. He bought thou
sands Of shares at from ego to $50,
and when the Pacific coast awOke to
the fact that the big bonanza had really
been unearthed Johnny Skae was one
of the "insiders " in the tremendous
deal which followed. He gave up
his desk in the telegraph-Oilice and
became central figure on California
street and at the Stock Exchange.
When the stock began TO climb the
scale Of prices he dashed recklesSly at
the market, ordering his brokers to
" double up" daily until the stock had
reached close TO 5 900 share. When
the deal ended and the tidal wave Of
excitement had receded, leaving the
market strewn with the wrecks, Johnny
Skae WAS 100000 ahead. lie now
went TO Virginia City and as
sumed control of the Virginia and
Gold-Hill Water-Works. While en-
gagged in this enterprise he spent his
wealth as recklessly a. did Coal-0il
Johnny, of whom he was the western
prototype. His trout breakfasts here
will long live in lie memory Of Vir-
ginia City gourmets. He had pond
stocked with trout, which were regu-
larly fed and carefully preserved.
There was no exclusiyeness about the
breakfasts. With Senators Sharon and
Jones Skae would invite half Of Gold
Hill and Virginia, and the trout fell
easy victims TO the Comstock anglers.
Wine of the most expensive brands
was as plenty as ice-g water at these
mammoth entertainments, and the
fame of Johnny Skae for months
transcribed that of any millionaire on
the Pacific coast.
During all this time Johnny con
tinued to speculate in the bonanzas,
and he had himself made president OF
the Sierra Nevada, in which Senator
John y. Jones was a heavy stock
holder. Sierra Nevada, however, was
away down in the market, and nothing
in sight warranted any very strong
belief in its future as productive
property. Skae had not the means of
knowing the inside workings of the
Consolidated and California mines that
he possessed when telegraph
operator, and, like hundreds of
others who made fortunes in the
big deal, he was not prudent
enough to unload in time. The re-
suit was that most Of his $1,000, 900
was steadily gatheted in by the bonanza
kings and found its way to the vaults
Of the Nevada Bank. Then same the
sudden depression all along the Com
stock lode which characterized the year
1873, and Johnny SSae, like many
other Disguised spectators, started for
New York to lind new fields for enter
prise. On his way he was intercepted
by dispatch telling him that there were
indications Of q bonanza in Sierra Ne
vada. He hurried back to Virginia il
special train, examined the nine, and
was convinced that a bonanza was
Just ahead Of the workmen. He haC
but 1900 shares Of Sierra Nevada anC
not much of his $4,000, 900 clean-aI
on Consolidated Virginia, but all tina
no had went to his brokers on mar
gins, and they were ordered, as Of old
TO double up" They doubled NJ
for the bold speculator, and he bough
!; on his brokers' money until the stock
which two months before had been sell
ing at so sents, had reached s27S
John p. Jones was then in Virgin
conducting his canvass for Unite
States senator. Shae took him int
the name, and the Senator invest
ed nearly all that L. could raise in tn
stock. When the s27S limit had bee
reached Skse was estimated 10 be wort
10000, 900, and he became the lion (
the hour. lie was hailed ss the " faith,
Of the new bonanza and his proSpe,
- tive millions were counted up by h
admirers until Vanderbilts fortuI
seemed mere pittsnce. Songs wei
made in his praise, and an allege
poet described his hasty retur
|. from the East in parody 0
Sheridan's Ride" which he entitle
johnny Skae's Ride" for which
was paid the munificent sum Of sl0
instead Of being hunted down with
shotgun. The report of this piece
extravaganza spread, and within wee
every Bohemian in San Francisco VIII