The giving of the option had made it dangerous for anybody except Mr. Baruch to attempt to hold the stock above $7.75 per share after the option had been given, and the company in addition was now mulcted for the difference between the low price per share at which settlement was made with Mr. Baruch and the price at which the stock could have been sold had it been quietly disposed of on the market during the period of nine months which had preceded the date of cancellation. As a matter of fact, there was no necessity at all for settling the loan with stock, the company having in its treasury more than sufficient to repay the loan, and the money was not due. The real purpose, apparently, was to shroud in darkness the exact amount given to Mr. Baruch to release the company from the option and to keep Messrs. Nixon and Wingfield's Goldfield bank, which was the depositary of the mining company, in funds. Instead of quieting the stockholders the surrender of the option again thrust into the limelight the entire transaction and proved to be an exacerbation. The immediate effect was that Goldfield Consolidated began to slump again, and in a few days sold down to $6.50. From this point it kept on tobogganing during a period of weeks down to the $3.50 point--a depreciation in market price for the capitalization of the company, within a year of its promotion at $10 a share, of $23,400,000--before rallying once. ENTER, NAT. C. GOODWIN & CO. A mining partnership between Nat. C. Goodwin, the actor, and Dan Edwards had been formed at Reno a little before this time. Dan Edwards was a hustling young mining man who had engaged in the business of "turning" properties to promoters. In August, when Goldfield Consolidated was selling around $7.50, Mr. Edwards had asked me to give him a good market tip. I told him to sell Goldfield Consolidated short. When it hit $6.50 around October 1st he saluted me thus, "Got to hand it to you. I have been trying to make my new firm stick, but it don't seem to work. I guess I don't know how to handle the situation in times like this. How would you like to join us?" "How much capital have you got?" I asked. "Five thousand of Nat's money," he answered. "Get another man with $5,000," I said, "and I'll talk to you." A young Easterner engaged in mining, named Warren A. Miller, was stopping at the Riverside Hotel. Within an hour Mr. Edwards had him lined up. A week later Nat. C. Goodwin & Company was incorporated with Nat. C. Goodwin president, Mr. Miller vice-president and general manager, and Dan Edwards secretary. The new corporation engaged to give me a salary for showing it how and an interest for other substantial considerations.