Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1907-10-26
EDITORIAL COMMENT
SNOW US. Mr.. SCHWAB.

OHOW 90 UuRs OHWAD
Charles NJ. schwab, muli-minionaire, steel king, shipbulding direc-
tor and mining man. has thrown down the gauntlet to Nevada, and Ne
vada is quick to pick it up. Mr.. schwab says that Eastern people have
lost money in Nevada and are sore on the country. He inumated that he
and his friends are among the losers, and then the following day, per-
haps in response 0 a query from the Bonanza, he is interviewed by the
Associated Press representative to the effect that his criticisms have
been misunderstood.
1t looks very much a if schwab we're trying to pack water IN both
shoulders. He filings a gratuitous insult to the people OF Nevada, and
then makes his apology worse than the insult Mr. schwab has inter
eas in this country; at least we suppose that he has, unless he has sold
his securities at high prices which he had an opportunity Of doing
schwab bought the Tonopah Extension at fifteen cents a share, How much
It cost his friends to get in W e do not know. But since he bought the
control Of m mine It Ia paid in dividends, $SoO0Oo, and TIT price OF
the stock went to fifteen dollars a share, John McKane took the popo-
sition to Schwab, and when the stock va smashed down fro mthe high
figures, and nobody could tell why at the time, schwab asserted that he
and McKane we're the best of friends Subsequently, it leaked out that
stood that some of the friends of Schwab. at least, had taken advantage
of this knowledge and let loose their holding on the market
Mr. schwab was at the head and front Of the Montgomery shoshone
deal when that mine wa bought from Bob Montgomery, and after being
consolidated with other properties a incorporated for Ave million
York do that, n did Mr. schwabg We baye no mean Of knowing what
the Montgomery shoshone mine is worth. but we have never heard but
good reports from it. The stock is not worth at this time $40 a share;
but that is up to Mr.. Schwab.
Mr.. schwab "a at the head oil the shipbundng trust which had
for its object the control of all the 4iipbundng in the country. Mr.
been very kind to his friends. In the shipbuiding trust. about the only
good plant that was gathered in was that of the Union Iron Works of
San Francisco, and the trust soon fell to pieces, and great was the scandal
thereof.
But the scandal could not be traced to the men who brought the
mines of Nevada to New York. 1t seems to us that aTable, smiling mil
lionaire schwab rather posed in the limeight all by himself on that deal
In Nevada, as far as " e can be shown, Mr.. schwab has had all the best
of it; we do not know what he has handed to his friends, but we cannot
stand for their losses through his advice, and he must not attempt to put
o n the people Oft this State the onus Of misrepresentation.
That Shoshone consolidation seems like a leaf out Of the book of
high finance, but Mr.. Schwab was behind the big capitalization, and that
seemed sufficient guarantee for it As a safe investment, and we are not
denying that it is a safe investment But Mr. schwab is honering about
something, and he will not let us. know what it is. Or, is it that Mr..
Schwabs friends have been demanding that they be shown" and that
n way he is showing them is by besmearing Nevada, and charging
the State with their woes.
1t will not do, Mr.. schwab. You are too good a business man to
play the baby act with regard to your corporations. You surely went
into every deal with your eyes open. and must have known what you
were doing. If your friends did not know what you we're doing, it was
because they had implicit confidence in your integrity, judgment and
good management, and gave the reins to You. And now, at this late dy
you come forward and lay all the losses of your friends upon the State
of Nevada, You cannot show us where you have sustained any losses
in the propositions in which you have engaged. We know that two and
two make four, and We can figure up Just a readily the difference be-
tween fifteen cents and fifteen dollars a share o Tonopah Extension
You are something of a hot air merchant Yourself Mr.. Schwab. 1t
was out of the East that the men can to Nevada who promoted the
wildcats. That ws nt a Western idea. The men of the west IRE miners;
they know when they see a good property, they know how to get the ore
out of the ground. But it takes the Eastern sharp to get the money
out of the people, when they have nothing in the ground. Mr.. Schwab
seem to be trying to hide his sins under the soil of Nevada. What he
promised to his friends in the East. who took his stocks, we cannot
presume to know. We have record only Of his unfulhned promises to us
He promised many things to Tonopah. and to other parts of the
spend lots of money here. We would like to know, honestly, how much
he made to the Mhpah club, when he donated $4,000 to the club, we can
some excuse to appease them. We know that the club has never re-
ceived the $4,000, and there are many of the friends of Schwab. no doubt.
who are in the same boat as is the Mizpah club.