Listed Goldfield securities, nearly 200 in number, and valued in the
markets at above $150,000,000 during the boom, had within two months
shown a falling off of $60,000,000 in market value, but the list on the
average was still quoted higher than the promotion prices.
On January 18, 1907, fifteen days after the newspapers throughout the
land carried front-page stories of the failure of the Sullivan Trust
Company, the stocks promoted by the trust company were still in demand
in all mining-share markets of the country at an average price not
below that at which original subscriptions were accepted from the
public.
Jumping Jack, promoted at 25 cents, was quoted at 30 cents bid. Stray
Dog Manhattan, promoted at 45 cents, was in demand at 49 cents. Lou
Dillon, promoted at 25 cents, was still wanted at 26. Indian Camp, sold
originally to the public at 25, was quoted at 85 bid. Silver Pick
Extension, promoted at 25, was 21 bid, a loss of 4 cents from the
promotion price. Eagle's Nest Fairview was quoted at 25, off 10 cents
from the promotion figure. These prices represented terrific losses
from the "highs" that had been reached during the height of the
Goldfield boom, yet the average market price was still above the
subscription price of the shares at which the public was first allowed
to participate. A remarkable part of this demonstration was that for
twenty days no inside support had been lent to these stocks. The
Sullivan Trust Company being in trouble, the markets had been left to
the mercy of short-sellers and market sharp-shooters generally.
Having settled the trust company's liabilities of $1,200,000 by tying
up in trust all of its securities and the other assets, of which the
creditors agreed to accept in full quittance 80 per cent. of the
proceeds and to turn back to the trust company 20 per cent., I returned
to New York during the last week in January. I was again out of a
job--and broke.
I visited the officers of mining-stock brokers in Wall Street and Broad
Street. Wherever I went a hearty handclasp was extended. Not one of the
Eastern stock brokers was involved to the extent of a single dollar in
the Sullivan Trust Company failure.
The brokers were convinced that the embarrassment was honest. The trust
company's credit had always been good. Had the failure been meditated,
I could have involved Eastern brokers for at least $1,000,000. Because
I didn't, New York brokers were not slow to express their good feeling.
A number of them offered to extend a helping hand did I wish to embark
on a new enterprise.
Public-domain text, read in full here on John Shaqi.
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