News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1889-03-07
A BONANZA KING.
THE VERY ROMANTIC CAREER
OF JAMES C. FLOOD.

THE VERY ROMANTIC CAREEf
OF JAMES C. FLOOD.
His Rapid Rise from Poor Work
lngman to the Attainment of I'm
mease Weath in California.
Tho late James Clair Flood was born
IN New York City on October 25, 1926
HIS parents were Irish of the poorer
class, the family depending for iveli-
hood upon the daily labor of the father
After receiving a common school educa-
ton young Flood learned the trade Of
carriage builder. In 1S49, attracted by
the glowing accounts of the California
gold mines, he left his home at Hamil-
ton, N. Y, and embarked on the ship
Elizabeth Ellen for trip around the
HON. On arriving in San Francisco
he obtained work as carpenter, for
which IN those flush times he was paid
S16 .3ay. After about one s-sssst.s of this
Kind or work he found that the cost of
living was so great in the city that he
had not been able to lay by much of
anything for a rainy Gay. So he pack
ed up his traps, went to the Yuba Dig
Soon he had 50, 600 to his credit in the
bank at Frisco, and, as he afterward
said, considered himself rich man.
With this sum he returned to New York
and took his father and mother to Hi
nois, where he bought farm and settled
down. His capital proved too small to
make farming a success, and he deter
mioed to return to California
WnaY1 ta arrived in Son E1.onaicao
for the second time, says the New York
Times, he opened a restaurant, but
failed'in business, owing his creditors
81, ZOO. Looking about for anothero open
ing he met W. S. O'Brien, ship
chandler, and like himself of Irish ex-
traction and a New Yorker by birth. In
1856 they formed a partnership and
opened saloon on Washington street,
near the market. They made friends
and soon established a lucrative bust
ness. O'Brien was the more dressy
member of the firm, Flood attending
very closely to the work behind the bar
He was known as the best cocktail mixer
on the coast. Their saloon became a
favorIte resort for miners, business men,
gamblers, and sports of all shades, and
while game of cards was going ON at
one table, important bargains were
being transacted at another Penniless
miners who had spent every cent that
they had IN prospecting and had finally
succeeded in striking vein of gold and
had brought specimens of ore with them,
found ready friends here. The two part
ners were always willing to help out
these miners, to advance them money,
buy OFF their claims, find them custom
ers, or enter into partnership with the
fortunate finders who were not willing
to part with their claims. The partners
began speculating in stocks, and being
moderately successful, they opened a
brokerage office on Montgomery street,
at the same time continuing their liquor
business. In 1862 they made large
profits from fortunate investments in
Kentuck, Crown Point, Belcher, and
other mines on the Comstock lode.
Just about this time, up at Virginia
City, James G.. Fair, a sturdy, hard 4
working Irish miner, who was Superin- (
tcndent of the Hale and NOrcross and I.
Ophir Mines, entered into partnership
with John W. Mackay, also a miner Of
Irish birth, for the purpose of manipu-
lating mining stocks. Seeing the need
of associates in San Francisco, they de-
cidel to pool their issues with those of
Flood & O'Bricn This was the begin
ming of the famous Bonanza firm, which
added millions to the worlds wealth.
ruined thousands of men and women,
and marked new era of life on the
Pacific slope. Out of their first deal,
which WAS In Hale and NOrcross, they
cleared not less than half million.
Then they determined to secure control
of the entire Comstoek lode, III whose
richness Fair and Mackay, from prac-
teal observation, had unbounded conf
dencc. They quietly bought NO miners
claims, many of which were popularity
supposed to have been exhausted, pay
ing for the whole lot not less than
$4,000. These claims covered the sec
tion of the great silver lode whcrc the
famous "big Bonanza" lay. The firm
combined all these small properties into
two--the Consolidated Virginia and Cal
ifornia-dividcd them into los. 900
shares each, and placed them ON the
market at about $50 each.
Then clmc the Uncovcring of the
marvellous treasure hitherto concealed in
the Comstock. The people Of Califor-
MA went crazy, as It were, and every
body, from mulionaires to servant girls,
entered rcczlessly into the excitement
DDlllEa
people unlOadcl their stocks at from
$500 to $500 share, and each member
of the firm is believed to have melted
$50, 900, 0GO Consolidated Virginia paid
$34. 900, GOO in dividends, and share
holders in California received $40, ,O00,-
600 in the same way, About S112, 900,
600 of silver was actually produced
from the mines.
Naturally crash followed The pro-
duction fell off; it became the general
belief that the lode was exhaus ted, and
the stocks fell, until now they can be
bought for sS share. The victims of
this gigantic deal cursed the men who
had managed 1T, but they wcrc undis-
turbed and secure in the possession of
fortunes SO vast that how to dispose of
their immense income became IL serious
problem. Actuated, 1t is understood /
by animosity to the Bank of California.
of which w. G.. Ralston was the master /
spirit, they opened the Nevada Bank /
with a capital of $4,000, 600, afterward .
increased to $4,000, 900, and on the .
death of w. S. O'Brien, in 1878, rcduc- /
ed to 50, 100000 The story of the fail i
ure of the Bank of California and the +
tragic death of Ralston need not be re
told. 1t may be mentioned, however,
that Flood was never able to carry out |
the boast he is said to have made to OK
Senator Sharon, when taunted ON his /
former occupation, that he would some 1
day sell whisky over the counter of the |
Bank of California.
Mr.. Flood was the first President of /
the Nevada Bank, and devoted most of |
his time for q number of years to its ac
tive management. The bank enjoyed
the almost unlimited confidence of the
business community until in September
and October, 1887, the relations of the
bank with the great syndicate then oper-
ating in the California wheat market
were such that it became involved to the
extent of over $50, 1000, 900 in the crash
which followed. Prior to this time Sen
ator James q. Fair had severed all his
connections with the bank and the bon
ANA firm, but when the bank was in
trouble he went to the rescue with his
millions of ready money, and became
the President of the bank, which posi-
tlon he has occupied since
The iron constitution of Mr. Flood
had begun to fail some months before
this narrow escape of the bank frnm dis
aster, and his friends assert that had he
not been compelled to intrust the active
management of the institution to the
Vice-PFesident, George l.. Brander. il
would never have become so deeply in
A 4 !