Adventure, June 1911 — page 12: what you’re looking at

Machine-transcribed from the original scan — historical spelling and the odd misread are preserved.

198 be worth all .of.. that. ~ George Wingfield, - president of the: Goldfield Consolidated, who followed the Sullivan Trust Company into Fairview and bought the Fairview Eagle, which is sandwiched in between the Nevada Hills and the Eagle’s Nest, is now president of the Nevada Hills. Treasury stock of the Fairview Eagle was sold in Goldfield at 40 cents per share. Key “JACK” CAMPBELL reported nm a Vy) favorably on the Eagle’s Nest, and we decided to organize and promote a company to own and develop the property. The Sullivan Trust Company bought Mr. Taylor’s interest in the Eagle’s Nest for $8,000, Mr. Luce’s for $8,000 (he had been awarded a quarter interest for his work), and Mr. Peery’s for $30,000. It made the property the basis for the promo- tion of the Eagle’s Nest Fairview Mining Company, capitalized for 1,000,000 shares of the par value of $5 each. Governor John Sparks accepted our invitation to become president of the company. The entire capitalization was sold to the public through Eastern and Western stock brokers within thirty days at a subscription price of 35 cents per share. After paying for the property, our net profits were in the neighborhood of $150,000. The Eagle’s Nest deal enabled the trust company to repay most of the money it had borrowed after the San Francisco earth- quake,’ and this put the company on its feet again. THE FETCHING TALE OF BULLFROG RUSH FULLOWIN G the Eagle’s Nest promo- tion, the Sullivan Trust Company be- came sponsor for Bullfrog Rush. I had met Dr. J. Grant Lyman, owner of the property, on thelawn of one of the cottages of the United States Hotel in Saratoga a few years before, where he raced a string of horses and mixed with good people, and I was glad to renew his acquaintance on the desert. Dr. Lyman bought the Bullfrog Rush property for $150,000. I was present when he paid $z00,000 of this money in cash at John S. Cook & Company’s bank in Goldfield. The Bullfrog Rush property was of large acre- age, enjoyed splendid surface showings, and was situated contiguous to the Tramps Consolidated, which was then selling around $3 a share. It looked like a fine prospect. Adventure Dr. Lyman incorporated the. company for 1,000,000 shares of the par value of $1 each. The services of the Sullivan Trust Company were employed to finance-the enterprise for mine development. The Trust company obtained an option on the treasury stock-of the company at 35 cents per share, and proceeded to dispose of it through Eastern brokers and direct to the public by advertising, at 45 cents per share to brokers and 50 cents per share to in- vestors. We sold 200,006 shares, realizing $90,000 in less than thirty days, retained $20,000 for commission and expenses, and turned into the treasury of the Bullfrog Rush company $70,000, all of which was placed at the disposal of the company for mine development. Half a dozen tunnels were run and several shafts were sunk. Down to the 400-foot level the mine appeared to be of much promise. It was then learned that the shaft at the 400-foot point had encountered a bed of lime. It appeared that all the properties on Bonanza Mountain, where the ~ Bullfrog Rush was situated, including the Tramps Consolidated, which was then sell- ing in the market at a valuation of $3,000,- 000, were bound to turn out to be rank mining failures. The entire hill, according to our engineer, was a “‘slide,” and below the 400-foot point ore could not possibly exist: We thereupon notified Dr. Lyman that we would discontinue the sale of the stock until such time as the property gave better indications of making a mine. A few weeks later Dr. Lyman entered my private office unannounced. At this period Jumping Jack, Stray Dog, Indian Camp, and Eagle’s Nest were all selling on the San Francisco Stock Exchange at an average of 35 per cent. above promotion prices. The L. M. Sullivan Trust Company was ‘‘mak- ing good” to investors. Bullfrog Rush had not yet been listed, and we were afraid to give it a market quotation. - ‘“‘T have formed here in Goldfield the Union Securities Company,’ Dr. Lyman said, as he sat down close to my desk, “‘and I am going into the promotion business my- self. I don’t believe a word of the reports you have that the Bullfrog Rush is no good. I am going on with the promotion.” ~ “You won't!” I protested. ‘“‘We shall not permit it. Governor Sparks, who is the best friend the Sullivan Trust Company has, accepted* the presidency of the Bull- COnmiclbooks (©