The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1908-02-17
How the Suckers Were Baited

In this instance, so the legend runs, members we're gwen SO
many shares of a certain stock instead of cash in hand for their
votas and influence. and informed on the quiet that the said stock
would go soaring in less than 30 days The result was, after the
distribution of this particular stock had been made among the Leg
isatve members, for the next two weeks they were tumbIng over
each other to buy additional shares of the same stock.
In the meantime, boosters, who were hired for the occasion,
went among the statesmen and advised them to hold on to their
shares until the Senator had been elected and in a short time after
they would be nearly in the millionaire class.
The thing appeared to be such a dead cnch that these solons
simply could not resist the temptation oil letting a lew
friends into the secret
Well, to make a long story short, there was such a demand for
the stock that in a short time it trebled in value Many of the leg
isators hypothecated the gift shares they had received and bought
more on margin.
After the Bubble Burst
Finally, the election for Senator came on, the candidate desired
was chosen, and in a day or two after the sure-thing stock dropped
nearly out of sight in value in the market Those who were COM
petent to pass Judgment in the matter at the time said it would
probably go down in the annals of the State as the cheapest bought
United States Senatorship ever purchased in Nevada.
1t was further stated that a majority of the members of the
Legislature who took the easy-moneystock bait at that time were SO
completely stranded financially that they had to send home for
money to return on.
But what the SENTINEL started out to call its readers attention
to is another story along similar lines to the one recounted above
The details as to how the scheme was framed up are published in
the San Francisco Call and are as follows:
Easy Marks Drop $4,000
Nevada politicians, some Of them members of the Legislature,
together with others equally as prominent IN State affairs, are said
to have lost in the neighborhood of $4,000 in an attempt to profit
by manipulating Goldfeld Consolidated during the first week in
February. Acting upon the advance advice, it is claimed, that the
Legislature would pass the police measure, they pooled their saw
ings, amounting to nearly $4,000 and, through Harry Epstne of
Goldfeld and other brokers, placed their money to buy Consolidated
on a margin.
The "inside crowd took on a block of 1900 shares on a mar
gin when it was selling at So. They were called upon for a fresh
margin Saturday, February 8, when the stock dropped to $3.50, and
not being able to come through the broker sold them out, the stock
declining to So 20.
"He Blow That Killed Father"
The following Tuesday Broker Young, who it is said was act
inc for Webb Parkinson, a Goldfeld broker, who in turn was be-
lieyed to be acting for a Goldfeld bank, threw another block of 12,-
600 shares On the market. This forced the price down to S515
A few days later the stock sold down to S., at which price Barrett,
believed to be representing Barney Baruch and the Eastern syndi-
that is now in control of Goldfeld Consolidated, bid for the
stock in 5000 share lots. It closed firm around $512 IL
The names of several State politicians, some Of them very close
to Governor Sparks, are connected with the talk that is now in gem
eral circulation. Sparks is i'll at his home and could not be seen,
the other State officers could not be found to discuss the matter.
One of them, it is said, has lost practically all of a lifetime's savings