The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1888-04-28
A LAuonAsLE RusE.
How the Bonanza Kines Made Over Fiv
Million vD01tars.

How the Bonanza Kines Made Over Five
Million Dollars.
'One Of the shrewdest tricks ever
played upon investors in mining se-
curities," said Alfred B. Sawyer. OF
Sacramento, CAL, twas that engineered
BY the owners Of the Consolidated vir-
ginia in 1873. There had been great
deal Of speculation in Comstock stocks,
but the bottom had rather fallen out Of
tho market and prices were low. De-
string to turn an honest penny. Flood,
OBrien and Mackay determined to
make an effort to boom the stock. Ac-
cordingly Mackay one day left for vir-
ginia City, and on arriving at that
place ordered that the shafts Of the
Consolidated Virginia bes strictly
guarded. and neither ingress or egress
permitted. More than five hundred
workmcn were employed in the different
drifts. not one of whom was allowed to
ascend to the surface, while no out
slider was allowed to go anywhere near
the shafts. The news was of course at
once telegraphed all over the country
and caused tremendous excitement. It
was at once assumed that great strike
had been made which the principal
stockholders desired to conceal from
the public, and the stock accordingly
began to mount skyward. Flood and
O'Brien both stated in the most
positive terms that no strike had
been made, and advised every one
not to invest, saying that the price
OF the stock was far above its
value. and declaring that If it continued
to rise they would dispose of their hold
ings. This only added fuel to the
flames, and the stock rose from $35 to
$500. Flood, Mackay and O'Brien un-
loaded all they had, and when this was
accomplished withdrew the guards
from the shafts and allowed the miners
to ascend. Of course each one of them
was eagerly questioned as to the cause
of his long detention underground, and
asked to give description of the ore
body recently discovered, which was
assumed to be the cause of this unusual
proceeding. One and all answered
that there had been no strike, and that
they could see no reason for their de-
tention. They had been paid triple
wages for the time they had been kept
from going to the top of the shaft, but
could assign no reason for this course
OF action. The spectators saw at once
that they had been victimized, and the
stock dropped in day below twenty.
The bonanza kings advised their friends
not to sell, saying that the stock was
worth more than the price asked, but
this was regarded as an effort to bolster
it up, and caused it to sink even lower.
The bonanza insiders bought it up, and
IN less than three months from the time
when the shafts were closed held more
stock than ever before. and had clear
profit Of more than $4,000 in their
pockets, gained without once telling a
lie, and, in fact, by means Of speaking
the truth in an unusually open and un-
reserved manner. Their previous rep
utation had been such that the truth
( from them was the only thing that
\ would have surprised those who had
formerly dealt with them, and they
traded on their bad name with immense
advantage to themselves, victimizing
the entire population of the Pacific
coast, as they had so often done. both
before and since "-St. Louis Post. Dis.