About the middle of November the market for Goldfield securities took a
turn for the bad. Prices gave indication of having reached a stopping
place. Goldfield promoters began to complain that they were compelled
to lend strong support to the market because of selling from many
quarters that could not be explained. There was much market pressure.
In a few days the market became unsteady, then soft, then wobbly again.
In camp Wingfield and Nixon were reported still bullish.
The securities of the Sullivan Trust Company were under attack in all
markets. Salt Lake and San Francisco were reported to be spilling
stock. Great blocks were being thrown over.
I gave support in a jiffy.
There was no surcease.
_Within ten days I was forced to throw all of a million dollars
behind the market to hold it._
This didn't faze me. I was getting stock certificates for the money,
and I believed they were worth the price.
But I was puzzled to determine what it was all about.
THE BEGINNING OF THE RAID
Soon it was reported to me that Senator Nixon was advising people at
all points who held Sullivan stocks, or knew of anybody who held them,
to unload. From San Francisco came word that a clique of brokers was
operating for the decline.
On the following Monday the market on the San Francisco Stock Exchange
opened strong and buoyant, and it looked for a moment as if the selling
movement had collapsed. I felt relieved.
My 'phone bell rang. A stock broker of Tonopah called me on the long
distance.
"Offer you 10,000 Lou Dillon at 48," he said. "Do you want them?"
Lou Dillon was a Sullivan stock that had been promoted at 25; 48 was
now a point under the market, however.
"We'll take 'em," I said. "What's the matter?"
"Rumored up here that your books are under inspection by the
Post-office Department. You have had five new men on your books for the
past few weeks, and some one has spread a story here that Nixon has
sicked the Government on to you."
I denied it, of course. The five men in question were the experts who
had been sent up from San Francisco by the firm of accountants
recommended to us by the American National Bank, and they were there at
our own behest. The story was a raw canard.
Throughout the day the Sullivan Trust Company was called upon to stand
behind the San Francisco market and take in nearly all of the big
blocks of Sullivan stocks owned in the camps of Tonopah and Manhattan.
Before our denials could reach the sellers the damage had been done.
And it took $250,000 a day for four days to hold the market against
this fresh onslaught.
Public-domain text, read in full here on John Shaqi.
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