I was busy in the Salt Lake _Herald_ office next day when affable
Peter Grant, a partner of Mr. Sullivan, with whom Mr. Sullivan had at
the outset divided his interest in the Sullivan Trust Company, walked
in. I asked Mr. Grant, who had remained at the helm with Mr. Sullivan
while I was away from Goldfield, about business. He assured me that the
loan from the State Bank & Trust Company would not only be forthcoming,
as needed, but that Cashier Lindsey had informed him that we could have
$500,000 instead of $300,000 additional, if we actually had to have it,
and that the bank would back us to the extent of a million in all, if
necessary.
On calling next morning at the office of James A. Pollock & Company,
our Salt Lake correspondents, I was astounded to learn that rumors had
been telegraphed to them from San Francisco that our paper was being
held up in Goldfield.
"That's nonsense!" said Mr. Grant. "Why, Lindsey has given me his word,
and there can't be a question about it."
"Maybe he has 'laid down' on us," I said, "and that would be ----!"
"Nonsense!" said Mr. Grant. "I'll telegraph him that in addition to
honoring our Goldfield paper with the money we have borrowed from him,
he must wire $150,000 to our credit in San Francisco, and you and I can
jump on the train to-day and go to San Francisco and support the market
right on the ground. If those rumors have spread around San Francisco a
lot of short-selling will take place and the market will need support."
I agreed.
So confident were Mr. Grant, James A. Pollock & Company, and I that
everything was right with us that we gave and they accepted a big
supporting order to be used on the San Francisco Stock Exchange during
the succeeding day while Mr. Grant and I should be on the train to the
Coast city.
We arrived in San Francisco late at night. A number of brokers met us
and conveyed the news that the State Bank & Trust Company had "laid
down" on us. In the meantime despatches to us from the cashier of the
Sullivan Trust Company had piled up at the hotel. He explained the
situation, which was this:
All the trains carrying drafts in the mail to Goldfield had been
stalled by snowstorms two days before New Year's. The next day was
Sunday. Monday was New Year's Day, a legal holiday. Thus five days'
mail had accumulated, and on Tuesday the delayed drafts were presented,
all in a bunch.
L. M. Sullivan, president of the trust company, who was supposed to be
on deck at Goldfield, was in Tonopah, where he was reported to be in
imminent danger of arrest on the charge that during a New Year's brawl
he had nearly brained a chauffeur with a butt-end of a revolver.
The bank people became alarmed.
Public-domain text, read in full here on John Shaqi.
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