Nat. C. Goodwin & Company decided to "try it on" direct with
mining-stock speculators by appealing to them through the advertising
columns of the newspapers, asking them to purchase the stock on the New
York Curb through their own brokers. Also, Hayden, Stone & Company, the
Boston and New York banking firm, were induced to agree to raise
$1,000,000 for the company for railroad and mill purposes, if their
engineer would report favorably.
Provided with money with which to buy advertising space and furnished
with stock certificates to supply the market, Nat. C. Goodwin & Company
inaugurated an active campaign on the New York Curb.
What happened will be found instructive to the reader in several
particulars; among them these:
(1) The free-lance mining promoter does not always "get the money" when
he succeeds in creating a buoyant market for his stock.
(2) Some stock brokers of seemingly high standing would just as soon
"skin" a mining promoter of this order as they would an ordinary
speculator. They play no favorites.
(3) Be a mine promoter ever so honest, without New York Stock Exchange
affiliations his motives are bound to be misconstrued if he makes an
error. The "big" fellows will sick on to him the newspapers or
newspaper men whom they control or influence. Dust will be thrown into
the eyes of the public so they'll buy the big fellow's wares,
principally for sale on the New York Stock Exchange, and may forever be
prejudiced against the little fellow's.
The campaign in Rawhide Coalition made good progress. It was early in
November, 1908. For six weeks I had been supporting the market for the
stock on the New York Curb for Nat. C. Goodwin & Company of Reno. My
office was an apartment in a Fifth Avenue hotel; our brokers were
members of the New York Stock Exchange. For a month we had used, every
day, display advertisements in the financial columns of New York City
daily newspapers, signed by Nat. C. Goodwin, to boom the stock. About
600,000 shares of the stock were in the hands of the public. The
market, which was on the New York Curb, was "real." Speculative buying
had carried the price from 40 cents up to $1 a share. Mine reports were
rosy. Wide distribution of the stock was taking place.
The public evinced deep interest. The Nat. C. Goodwin advertisements
set forth that $2 ought to look reasonable for the stock by Christmas
day. There were reasons. Several very promising mines had been opened
up. An engineer of high rank was examining the property. If his report
should be favorable, a deal was practically assured that would involve
the expenditure of $1,000,000 for deep mine development, a railroad,
and adequate milling facilities. This, in turn, would mean early
dividends for stockholders. Experienced, conservative mining men had
expressed the opinion that the property bore the unmistakable earmarks
of a big producer.
Public-domain text, read in full here on John Shaqi.
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