The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-05-27


had descended to the depths of an assess
ment claimer. AT this period also Flood
and O'Brien conducted a drinking saloon
that was largely patronlzed by miners and
mine operators, and by the sale of cheap
whisky at high prices and the application
of knowledge about mining strikes gained
through the convivahty of their bar, they
had become possessed of sufficient money
to warrant them Being looked upon as
capitalists
Now we have our chief characters upon
the stage ready for business.
In 1869 John w. Mackey Joined James G.
Fair in a contract to develop the unfortu-
nate Hale & Norcross mine, and in order
to manage the property, which subsequent
ly proved bonanza, these two men form
ed partnership with james c. Flood and
William S. o Brien. That was the begin
ming of the enormous fortunes which
these men subsequently amassed, but they
were only built up at the expense at va
rious times of the misfortunes of others,
and the bitter tears Of unsuccessful rivals.
Their history is the history of the Com
stock lode, and the story of that golden
streak of dirt is punctuated with romances
of ruin and chapters rich only in sorrow
and death. Early in the history of the
Comstock the Bank of California, under
the management of W. c. Ralston, sent
its confidential agent, william Sharon, 10
Nevada. The result of the policy pursued
was that mining was made possible that
otherwise would have been impossible.
Money was advanced and stock taken as
security. Before 1872 the Bank of Califor-
mia held shares enough to control most of
the prominent mines, and thus governed
the operations of the mills, even, it was
alleged loaning money to mill men and
afterwards refusing 10 give them the
working of the output of the mines until
they fell into bankruptcy for want of
employment. In 1875 Sharon was president
of the Union Mill and Mining Company,
which owned 16 quartz mills of value of
from SIS, 600 to $4,000 each, aggregating
81, zoe, 600. The water works at Virginia
City, valued at $7,00O,O00, and the Virginia
and Truckee Railroad were under the con-
troll of the president of bank, Ralston,
whose nominal capital was only $5,O00,000.
But he fell into the pit he himself had dug
for others. The property held as security
by the California bank amounted to $685.
100000. The milling business was almost
entirely in the hands of the Union Mil
and Mining Company; the railroad con-
trolled the timber and wood necessary for
the mines and mills, and there was little
connected with the Comstock, except the
Sutro tunnel. that was not owned by the
Institution presided over by Ralston, and
ne ptNhNtGi tilN SWIM hsAAiAo NAot
followed,
But the day of reckoning was at hand
for the Bank of California. In 1873, not
withstanding the tumble OF 1872, while
Crown Point and Belcher were paying
large dividends, the Virginia Consoiidat-
ed began dividing $4,000 monthly among
it's shareholders. In the following year
drift run FIRM the 1,200-foot level of the
Gould and Curry disclosed a large body
OF rich ore, which further exploration
showed TO be from 300 to 100 feet in width.
In December, 1874 a professional expert
and one well acquainted with the Com
stock said: II assert that there is already
shown in the two mines, California and
Consolidated Virginia, s1,500,000,0O0 of ore.
I make the assertion. and am willing 10
stand by it, / think il will be perfectly
safe to say that the ore will average 500
per ton; 1 have examined drifts $50 feet in
ore that averaged, ton per ton, as 1t was
taken out, $500. l should say the Consol-
ldated Virginia and California are worth
at least $500 per share; that is, / have
no doubt but that amount of money viii
be paid out In dividends. l have been
mining twenty-four years. or most of my
lifetime. l am very careful about my
statements" IL is probable that while
thus so vastly overestimating the extent
and richness Of the bonanza the expert
stated only what he believed to be the
truth. Superintendent Fair reported at
the close of 1874: THE quality of the ore
is of a very high grade and far exceeds
in value any ever removed from the Com
stock. The quantity now exposed TO
view is almost fabulous. The
quality and quantity of ore developed in
the mine the past year far exceeds in value
that Of any mine which has ever come un-
der my knowledge or observation"
Seeing endless dividends in prospect all