HISTORY OF THE SAN FRANCISCO STOCK AND EXCHANGE BOARD HISTORY^* SAN FRANCISCO STOCKS EXCHANGE BOARD bythe CHAJRMW JOS.LKINO SAN FRANCISCO JOS.LKING 191O Copyrisht, IQIO, by JOSEPH L. KING Printed by Vfee fetanlr p.TEaplor Companp San Francisco 5131 55 DEDICATED TO THE FOUNDERS OF THE SAN FRANCISCO STOCK AND EXCHANGE BOARD FOREWORD History of the Sanfraneisco Stock and Exchange Bocwl FOREWORD My reason for appearing before the public as the author of the following pages is that all of the records of the San Francisco Stock and Exchange Board were destroyed in the great fire that visited San Francisco in April, 1906. Consequently the historical facts here recorded would possibly be lost to posterity, unless so preserved. The rich discoveries in the Comstock Lode and the consequent mining excitement that followed between the years 1870 and 1880 made San Francisco conspicuous among the principal cities of the United States. As the San Francisco Stock and Exchange Board was the medium through which all the im- mense transactions in mining shares occurred and where large fortunes were made and lost, the Board acquired a world-wide reputation. In the years mentioned the Board possessed a splendid membership. They were mostly of that notable generation of pioneers that made California great in the Union of States. As many of the members have passed away and evidences of their lives were destroyed Foreword in the great fire, one of the witnesses of these History of the Sanfrancisco Foreword events may be pardoned for reciting them in this manner and placing them before the public. The incidents here narrated are facts though mostly taken from memory. Thus the reader will understand that this is not a work of fiction. The original object was to re-compile a com- plete record of membership, which work I regret to say is so far a failure, much informa- tion still being required. A week was spent in the State Library at Sacramento, and many visits were made to the Bancroft Library at the University of California, and to the file of the Mining and Scientific Press at the Min- ing Bureau in Ferry Building. I am also in- debted to the files of the Alta California, Bulle- tin, Call, Chronicle, Stock Report and Post, daily newspapers established in San Francisco prior and immediately subsequent to the or- ganization of the Board. The dates of the important events here given were thus acquired. Copies of the San Francisco News Letter at the Bancroft Li- brary furnished much information as to the membership. Unfortunately I cannot find, on this Coast, a complete file of the News Letter from September, 1862, to September, 1864, which would give additional facts. From Mr. J. H. G. Wolf I secured figures [x] Stock andExchaweBoard of the ore yield by the different mines in the Comstock Lode, the same being taken from the excellent map issued by this gentleman in 1908. George I. Ives, Mark L. McDonald, M. Jas- per McDonald, A. H. Lissak, Walter Turn- bull, Robert F. Morrow, H. H. Noble, W. H. Wright, Sam Franks, E. J. White and others have contributed by personal recollections to many of the anecdotes. It is hoped that the book will prove accept- able to all Californians, old and young alike. It has been my effort to confine my state- ments to the Board and its members. In the few other matters mentioned, what I have known to be true is mentioned. Rumors and street stories, especially those relating to the suspension of the Bank of California, are pur- posely omitted. The illustrations are all of what is now termed old San Francisco, taken before the great earthquake and subsequent fire of April, 1906. JOSEPH L. KING. Foreword [xi] CONTENTS Chapter 10. Chapter n. Chapter 12. i. 2. 3- 4- History of the SanJrandsco Stock and 'Exchange Board CONTENTS Page Organization of the Board. . i Additional Early History. . . 19 Organization of Early Banks 31 Hale & Norcross Corner 37 Board Rules 43 Value of Seats 53 Ophir Contest 67 Great Business of 1874-1875 73 Company o f Associated Stock Brokers 87 Suspension of the Bank of California 101 The Greatest Market of the Board 117 Anecdotes 123 James R. Keene 123 Horace L. Hill 127 Col. E. E. Eyre 127 Hat Story Berry, Wilke and Mark L. McDonald 129 Jack McKenty 130 Budd's Shave 131 Louis Eppinger 133 Unknown Old Calif ornian 134 B. F. Sherwood 134 [xv] Chapter i. Chapter 2. Chapter 3- Chapter 4- Chapter 5. Chapter 6. Chapter 7- Chapter 8. Chapter 9- Contents History of the Sanfrancisco Contents Chapter 12 Continued ] 10. George Wright 11. $600 Loss 12. Rabbit Story 13. Thomas T. Atkinson 14. Holiday Prices 15. E. J. De Santa Marina 16. A. H. Lissak 17. M. D. Townsend 18. A Large Order , 19. Coll Deane ........ 20. Judge Thomas Sunderland 21. Jacob Greenebaum 22. Jeremiah Lynch 23. Robert F. Rogers 24. Richard C. Hooker 25. Virginia City Operators 26. 1000 Consolidated Virginia Sold at $800 27. W. C. Budd 28. W. C. Budd 29. James C. Flood and Robert Sherwood 30. Gen. Geo. S. Dodge 31. Archie Borland 32. George W. Smiley 33. John Perry, Jr.. 34. Glazier & Co., Louis Sloss, Lewis Gerstle 35. C. W. Bonynge. .,. [xvi] 153 153 154 155 156 156 157 158 158 1 60 Stock and Exchange Board Continued Page J. B. E. Cavallier 161 Henry Schmiedell 162 Stock Report and Stock Ex- change 163 S. J. Sparrow 163 Keene, Williams and Coleman 164 Cheeseman, Head & Thorn- burgh 164 James H. Latham, J. K. S. La- tham, Homer S. King. ..... 164 S. B. Boswell 166 H. H. Noble and Other Mem- bers 166 Change of Seats 167 Dr. C. W. Fox 168 Sierra Nevada and Union 169 Ophir and Mexican 169 Consolidated Virginia and Cali- fornia 172 Best & Belcher 175 Gould & Curry 175 Savage 176 Hale & Norcross 178 Chollar and Potosi 178 Bullion 181 Exchequer and Alpha 181 Imperial . 182 Challenge and Confidence 184 Kentuck ...... 184 [ xvii ] 39- 40. 41. 42. 43- 44. 45- 46. 47- 48. 49. 50. Si- 52. 53- 54- 55- 56. 57- 58. 59- Contents History of the SanFrancisco Contents (Chapter 12 Continued Page 60. Yellow Jacket 185 61. Crown Point and Belcher 185 62. Overman 187 63. Caledonia 188 64. American Flat 188 65. Alta 189 66. Eureka and Jackson 193 67. Mark L. McDonald 194 68. Charles N. Felton 195 69. Edward F. Hall 196 70. General U. S. Grant 196 71. Advantage of a Healthy Stock Market 197 72. High Price for Chollar 198 73. A. J. Pope 199 74. $500 Rise in Thirty Days 199 75. Prices August 26, 1875 200 76. Board Customs 203 77. Waterloo Story 205 78. J. R. Fitch 206 79. Col. P. C. Hyman 206 80. A. G. Kinsey 207 81. Franklin Lawton 207 82. J. W. Brown 207 83. Walter Turnbull 208 84. William Sharon 208 85. Robert F. Morrow 210 86. Bonanza Firm. Flood, Mackay, Fair, O'Brien 212 [ xviii ] Stock and Exchange Board Continued Page 87. O. V. Walker 215 88. George I. Ives 215 89. Billy Brown's Bet with Jack McKenty 215 90. Jackson McKenty 219 91. Gershom A. Coursen 221 92. How to Place a Stock on the Board 221 93. Pauper Alley 223 94. Excelsior Stock 225 95. George W. Cope 227 96. Consolidated Virginia Order. . 228 97. F. W. Hadley 229 98. McDonald and Whitney 230 99. Financial Help 232 100. H. H. Noble 232 101. H. H. Noble 233 102. George I. Ives 234 103. J. H. Mahoney, Jr 236 104. J. H. Mahoney, Jr 238 105. Joseph H. Jones 239 106. Over Drawn at Bank 241 107. Cipher Dispatches 243 1 08. Profits on 100 Consolidated Virginia 244 109. William Edwards 249 no. D. O. Mills 252 in. Otto Bach 252 112. Comstocks 254 [xix] Contents History of the Sanfrcmdsco z=*= Chapter 12 Continued Page 113. Old Street Operators 254 114. E. J. Baldwin 256 Chapter 13. Superstitions 263 Chapter 14. Native Sons 271 Chapter 15. Later History of the Board 275 Chapter 16. Resumption of Specie Pay- ments 283 Chapter 17. Great Decline in Business 293 Chapter 18. Revival of Business 299 Chapter 19. Depression and Revival... 307 Chapter 20. Board Membership 319 Contents [xx] ILLUSTRATIONS History of the Sanfhmcisco Stock and Exchange Board ILLUSTRATIONS Facsimile of Stock Certificate deposited in the box at the laying of the corner-stone of the Stock and Exchange Board Building, April 27, 1876 first page of cover. Joseph L. King Frontispiece Facing Page Old Metropolitan Theatre where the Board held its Sessions in 1865 4 Facsimile of page of Record of first five days' transactions of the Board 12 Officers of the Board in 1872 Henry Schmiedell, E. P. Peckham, B. Howard Coit, Geo. W. Smiley, Franklin Lawton 22 Old Merchants' Exchange where the Board met, 1867-1870 26 Northeast corner California and Mont- gomery Streets in 1865 68 South side California Street between Montgomery and Sansome Streets, 1870 76 Northwest corner California and Mont- gomery Streets, 1870.. 82 Southeast corner Pine and Montgomery Streets, 1880 94 Illustrations William C. Ralston 102 [ xxiii ] History of the Sanfraneisco Illustrations San Francisco Stock and Exchange Board Building, occupied October i, 1877 Old Bank of California James R. Keene Milton S. Latham, U. S. Senator Virginia City, Nevada, 1865 Isaac L. Requa John P. Jones, U. S. Senator Robert F. Morrow. At McDonald's Cottage, Saratoga, New York, 1875 M. L. McDonald, Joseph H. Jones, Dr. C. H. Bradford, J. H. Ma- honey, B. F. Sherwood Geo. Hearst William Sharon, U. S. Senator James C. Flood John W. Mackay Jas. G. Fair, U. S. Senator William S. O'Brien Mark L. McDonald Pauper Alley President U. S. Grant's visit to the Corn- stock, 1879 Type of cipher telegrams used in stock transactions E. J. White, an early member Board room on Pine Street, 1904 Members of the Board, 1907 A. B. Ruggles, President of the San Fran- cisco Stock and Exchange Board, 1910 [ xxiv ] 106 112 128 164 172 1 80 188 192 194 206 208 212 214 218 22O 230 234 244 252 2 7 6 284 310 ORGANIZATION OF THE BOARD History of the Sanfhmdsco Stock and Exchange Board CHAPTER I ORGANIZATION OF THE BOARD OW quickly events followed each other in the early days of California prior to the organization, on Septem- ber n, 1862, of the San Francisco Stock and Ex- change Board! Fremont's California Ex- pedition, 1845-1846. War with Mexico, May n, 1846. Discovery of gold in California, January 19, 1848. End of the Mexican War, February 2, 1848. California a United States Territory, 1848. May fire, 1850. California a State, September 9, 1850. May and June fires of 1851. Vigilance Committee of 1851. Failure of Adams & Co. and other large banks, February 22, 1855. Vigilance Committee, May 14, 1856. Discovery of the Comstock Lode in Utah Territory, 1859. Organization of the Board History of the Sanfrancisco Organization of the Board Nevada a Territory in 1860. Breaking out of the Civil War in 1861. California was settled principally by mining men. The discovery of gold induced a quarter of a million people to rush to the diggings. They came from every portion of the globe. During the first few years, search for gold was their occupation; agriculture was an after- thought. Of course, placer gold was first sought; then the gold quartz mine occupied attention, so that when the Comstock Lode was discovered in 1859 the improvement in mining was such that the old-fashioned arrastra had given place to mills that crushed the ore and concentrated the metal. In 1859, two men discovered on the east side of Mount Davidson the Comstock Lode the greatest yet discovered. Mining is of such a fascinating nature to some men, that, in the hope of discovering another Comstock lode, they will spend months, years, yes, a lifetime, in its pursuit. As experience brings wisdom to the prospector, he gradually corrects mistakes and overcomes failures. He is able to abandon what his judgment confirms as useless labor, and, in the end, when rewarded by a ledge of pay ore, he jumps in a day from an ordinary prospector to a possible millionaire. A large population rushed to the new [2] Stock and Exchange Board bonanza of the Comstock, then in the western portion of Utah, now the State of Nevada. Virginia City, Gold Hill, Silver City, and Day- ton were quickly settled. Prospectors, in hope of further discoveries, were soon searching for mines further east. Almost every one made money at first. Then the owners of mining locations incorporated them and issued certifi- cates of stock, and stock speculation com- menced. There were in San Francisco a num- ber of brokers buying and selling other than mining stocks, such as City Scrip, California Navigation Co., Insurance, Wharf, Gas, Rail- road, Steamboat, Telegraph, Water stocks, etc., etc. Among these the following will be found in the Directory for 1862 as "brokers and money brokers": Geo. C. Hickox, Z. Holt, A. J. King, H. C. Logan, E. P. Peckham, John Perry, Jr., L. Ritter, T. C. Sanborn, C. H. West, L. Sloss, C. Sutro, W. Sharon, F. Vassault, F. H. Woods. These brokers soon received orders to buy or sell shares or feet in the new mining locations. Their offices were located principally on Mont- gomery street, between California and Wash- ington, and in the cross streets adjacent to Montgomery. On receiving orders, they would leave their offices, hunt up the other brokers who might have received other orders, and effect purchases or sales. [3] Organisation of the Board History of the SanFrancisco Organization of the Board In this informal manner, prices were not at all regular nor uniform, changing almost at will, and in some cases giving dissatisfaction. Out of all this confusion came the idea of form- ing a mining stock board, or a place where, at a fixed time, brokers could meet, and sellers and buyers could gradually arrive at a fixed, posi- tive price for their stocks, which would be so satisfactory that other transactions could be made, based upon the Board sales. The inno- vation did not meet with immediate favor and success. In the first sessions of the Board, sales were few, and all, brokers and customers alike, cautious, apparently waiting to ascertain the efficacy of the enterprise. The San Francisco Stock and Exchange Board was organized on the date given with forty members. Officers: President, J. B. E. Cavallier; Vice- President, John Perry, Jr. ; Secretary, Franklin Lawton; Treasurer, H. Schmiedell. Another Board, the San Francisco Board of Brokers, was organized April 15, 1863; num- ber of members, eighty; rooms, 430 Mont- gomery street. Officers: President, Samuel Purdy; Vice- President, J. D. Stevenson; Secretary, M. G. Elmore; Treasurer, W. K. Gallagher. Still another Board, the Pacific Board of Brokers, was organized July, 1863, the number [4] I 1 3H3HW 3HTA3HT HATIJOqOSIT3M CLIO ^^81 MI 2HOI8333 8TI QJ3H OHAOH 3HT ases of all this confusion came th ing a mining stock board, or a place whei a fixed t ; . ,eller! dually arrh J. 1IC is of th< <; anri n . Board was organized on the da memb< OB esident, J. B. E. Cavallier; Vice- ; Secretary, Franklin President, J* D Elmore; Treasurer, > Still another Boarc M. G. toard oi OLD METROPOLITAN THEATRE WHERE THE BOARD HELD ITS SESSIONS IN 1865 Stock and Exchange Board of members being forty. This board had rooms at 606 Washington street. Officers: President, James Kitchens; Vice- President, W. P. Denckler; Secretary, James H. Gager; Treasurer, T. D. Mathewson. The cautious, staid, conservative business men of San Francisco were not at first in favor of the San Francisco Stock and Exchange Board, or its speculative stocks. In fact, if a down-town merchant was known to be buying or selling these new mining securities his com- mercial credit was instantly lowered; his bankers would probably refuse to loan him money, and the wholesale merchants decline to credit him. In October, 1862, the commercial columns of "The Bulletin," a San Francisco evening journal, contained a report of the failure of a liquor merchant, with the sarcastic comment "that it was reported he had been gambling in Washoe stocks," In fact, as there were just forty members of the San Francisco Stock and Exchange Board, the old story in the Arabian Nights of AH Baba and the Forty Thieves was revived, and, in polite society, when one of the members appeared he was alluded to as old Ali Baba himself. John C. Heenan would probably have resented so doubtful a compliment, but the originators of this new idea, of trading in [5] Organization of the Board Organisation of the Board History of the SanFraneisco stocks, were compelled to wait and bide their time. It is said the idea of forming the Board originated with Franklin Lawton and Elisha W. Teacle, who had acted as brokers on the New York Board. The original membership of the San Fran- cisco Stock and Exchange Board included the following : 20. Mayer, Simon 21. Perry, John, Jr. 22. Page, Robt. C. 23. Parker, W. C. 24. Pixley, Frank 1. Abbott, O. 2. Barclay, Geo. R. 3. Bruce, S. C. 4. Brewster, R. E. 5. Cavallier, J. B. E. 6. Critcher, Henry 7. Cornwall, P. B. 8. Chappelle, A. M. 9. Dupre, E. 10. Grant, Joseph 11. Garrison, W. K. 25. Sanborn, T. C. 26. Schmiedell, Henry 27. Shipley, A. 28. Sinton, R. H. 29. Smith, Chas. K. 30. Teacle, Elisha W. 12. Heydenfeldt, Solomon 31. Talbert, T. A. 13. Hyman, P. C. 14. Higgins, W. L. 15. Henriques, David 16. Logan, H. C. 17. Lawton, Franklin 32. Van Lokeran, A. 33. Wakelee, C. H. 34. Watson, N. A. 35. Williams, D. C. 36. Wakelee, H. P. 18. Lawton, Wm. Wilson 37. Wilson, J. D. 19. Marina, E. J. de Santa Three names are missing. (From "Mines, Men and Money.") The fol- lowing was signed by the members : San Francisco, Sept. i, 1862. For the purpose of facilitating the purchase or sale of stock, and mutual security, we, the [6] Stock and Exchange Board undersigned, propose to organize a San Fran- cisco Stock Exchange, on the plan of the New York Stock and Exchange Board, in furtherance of which object we do each agree to pay into the hands of the Treasurer, when chosen, the sum of $100. The meeting called for the purpose of organ- izing the Stock Board was held on the 8th of September, 1862, at the office of J. B. E. Caval- lier, R. C. Page, Joseph Grant and Samuel Bruce, who were then engaged in the real estate and general brokerage business at 428 Montgomery street. San Francisco, at the time, had a population of about 75,000. The Central Pacific Railroad Company had just begun to lay its rails. There was a railroad between Folsom and Sacra- mento; also one between San Francisco and San Jose. Telegraph wires extended from San Francisco to a few interior towns. The Tele- graph Company was about to build across the continent. Our news of the Civil War came by steamer from New York, via Panama, and also by over- land stage mail. Money was worth three per cent a month. Quick news from the East was brought by the Pony Express at $5 a letter, written on thin tissue paper. Neither the district telegraph nor the tele- phone had ever been dreamed of. California [7] Organization of the Board flistory of the SanFrancisco Organisation of the Board had adhered to the gold basis, while in the East, currency or greenbacks, as they were then called, was the basis of 1 exchange, and gold was at a high premium there. The dummy on Market street had about car- ried away all the sand hills above Kearny street, and street cars were running out to Hayes Park at Laguna and Hayes streets. The Omnibus railroad was running from North Beach to South Park, two horses drawing the cars, and where hills were to be climbed, extra horses were utilized. These events show that San Francisco was just beginning to assume a metropolitan growth, and a new enterprise like the Stock Board could not possibly meet with the success that it would today. (All of the records of the Board were de- stroyed in the great four days' fire succeeding the earthquake of April 18, 1906, and, while many of these events here described are from memory, still, some old books and papers, pre- served from the fire, at least fix dates of the events.) "Mines, Men and Money" is authority for the statement that Franklin Lawton, T. C. Sanborn, E. J. de Santa Marina, Henry Schmie- dell, John Perry, Jr., and E. W. Teacle aided Cavallier, Page, Grant and Bruce in organ- izing the Board. [8] Stock andExchangeBoard On September n, 1862, the members adopted a constitution and elected officers, and on Sep- tember 12 adopted by-laws. A daughter of Joseph Bates says that her father drew up the constitution that was adopted, and, as he was an Englishman, the articles were more in accordance with the Lon- don Stock Exchange than with those of the New York Stock Exchange, as is claimed by others. In any event, the Board, from its organization, has always held its proud posi- tion as the Board of the Pacific Coast and fore- most mining board of the world. The fee on joining was placed at $100, but the members only paid $50 each, making a fund of $2,000. They rented a room in the Montgomery Block and proceeded to business. On December 14, 1908, I received a letter from P. C. Hyman, the last survivor of the original forty charter members, in which he writes : "I am reminded of a few reminiscences when we first assembled for business. We met in a small room, third story of the Bank Exchange Building, with a long table in the center and seats on each side. Mr. Teacle and Franklin Lawton were the only two who had had experi- ence in the Stock Board, both being members of the New York Board. Mr. Teacle was made Chairman and Mr. Lawton Secretary. The [9] History of the Sanfrandsco Organization of the Board first two days we made no sales. The third day, Mr. P. B. Cornwall and I arranged to do some business. I bought from him two pur- chases, five shares each, Wide West, and one purchase, Real Del Monte, of five feet, being the first records made. From that time some- thing was done every day until business so increased that we secured a larger place, second story, Rios Building, corner Washington and Montgomery streets. It still increased, and we were compelled to arrange for a larger room, so we got the Metropolitan Theatre Company to build us a large room, second floor, on Mont- gomery street. "We each paid $100.00 cash for just forty seats, $250.00 for the next ten, $500.00 for the next ten, and $1000.00 for the next twenty seats. It was our intention to use the proceeds from the last twenty seats sold, for the pur- chase of a lot, and build a hall of our own. At that time the merchants were building on Cali- fornia street, and suggested that we take stock of $20,000 in their building. We had a great contest over it to build or take stock. I fought for buying a lot and erecting our own building. The merchants won ; they built us a large room on the third floor, which was not satisfactory, and we soon moved to Alsop's Building on California street." Col. P. C. Hyman arrived in San Francisco [10] Stock and Exchange Board in December, 1849, and soon became well known among mining men. On the organiza- tion of the Board he was one of its most en- thusiastic members, and has always retained a lively interest in its prosperity. His com- munication above is extremely valuable, de- scribing, as it does, the timidity and reluctance that characterized transactions among early members. Such an attitude disappeared as familiarity with Board transactions increased and business improved, so that, as full-fledged brokers with well filled order-books, the above traits gave place to emulation as to who should execute orders best. Too much praise cannot be given Mr. Hyman and his asso- ciates for the confidence they won as brokers. The customs and rules they so well established are followed and lived up to today by their successors. It is only right to add that, in his old age, Mr. Hyman has again become successful in developing a valuable mine near Elko, Nevada. A copy of the first five days' transactions was found in the copper box laid in the founda- tion stone of the San Francisco Stock and Board's Exchange building on Pine street. It was a photograph from the old Record Book, taken by Thomas M. Blair, the old Sergeant at Arms, and is reproduced in this volume as a full-page illustration. Here it is: Organization of the Board History of the Sanfrancisco M 10 i a ifi | M 8 &; a cd W I O Organisation of the Board PH [12] I T8HIH HO CIH0035I HO 3OAq HO 3JIMI8DAH QHAOS 3HT HO 2HOITDA3WAHT '8YAQ 3VIH .0 G o v u 'C M FACSIMILE OF PAGE OF RECORD OF FIRST FIVE DAYS' TRANSACTIONS OF THE BOARD Stock and Exchame Board O vo o o n * M M CO A '5 -3 | ^SQ-S, I o aisi i S d o l *^ tr\ *^\ * \ fe-s b >> a H d a j Organisation of the Board [13] History of the Sanfrancisco Organization of the Board Other lists published 30 years ago of our first five days' transactions differ from the above, but the list here published is authentic. The Mining and Scientific Press publishes this article, October 7, 1862, as an extract from the Call: "STOCK AND EXCHANGE BOARD. A regular Stock Brokers' Board, upon the same general plan as those of the older cities of the Eastern States, has been formed in this City. The necessity for such an organization in San Francisco at present does not seem to be very urgent, but the rapid increase of stock com- panies warrants the belief that the Stock Brokers may have enough to do hereafter. The officers of the Board are: President, J. B. E. Cavallier; Secretary, Franklin Lawton; Vice- Pres., E. W. Teacle; Treasurer, Henry Schmie- dell." On October 15, 1862, the Bulletin first pub- lished a report of the transactions in the Board. Before the close of the year 1862 all of the papers were publishing the lists of purchases and sales, and new mining companies were being incorporated so rapidly that long lists of these companies were also published. The excitement in stock speculation, subse- quent to the organization of the Board, was so great that other boards of brokers were or- ganized in this city and at other points on the Stock and Exchange Board coast, notable among them being the San Francisco Board of Brokers and the Pacific Board of Brokers. The reason for the organization of the other Boards in San Francisco, as given in the news- papers of that date, was because of the high prices of seats in the original Board, their entry price being $100, then $250, and on April 15, 1863, when the San Francisco Board of Brokers organized, $500. The San Francisco Stock and Exchange Board was known in street parlance as the first Board; the other two were known as the second and third Boards. An advertisement of Thomas Hill calls attention to his being a member of the first Board. H. S. Saunders & Co. advertised similarly. The papers an- nounced that on April 20, 1863, the second and third Boards effected a consolidation. Other Boards formed were : March 23, 1863, Stock Board in Sacramento. March 23, 1863, Stock Board in Virginia City. February 6, 1864, Stock Board in Gold Hill. May, 1864, Pioneer Stock Board at Reese River. On May 7, 1864, the Gold Hill Board quit, and on June 18, 1864, the Virginia Stock Mar- ket died. At this date the Washoe Stock Ex- change was the only Board left in Nevada Territory. [IS] Organisation of the Board History of the SanFrandsco All of these boards were great feeders for the San Francisco Stock and Exchange Board, sending it orders for thousands of shares. The increase of business soon warranted the big San Francisco Board in obtaining larger accommodations, and it moved to a room fitted up for it at the southwest corner of Mont- gomery and Washington streets. The year 1862 closed very favorably for the Board, and the members felt well satisfied with their ef- forts. Organization of the Board [16] ADDITIONAL EARLY HISTORY History of the Sanfraneisco Stock and Exchange Board CHAPTER II ADDITIONAL EARLY HISTORY ISTORY records the fact that from the earliest set- tlements of our ancestors on the Atlantic Coast to the present time, each gen- eration of men produces a number of adventurous spirits that long to change the hum-drum of ordinary life, in a civilized community, for the more ex- citing events to be encountered in the perils and adventures sure to follow a life in the farther West. It is to this feeling that our country owes the rapid emigration to, and settlement of, the western fields following the Revolutionary War and the War of 1812. When California was added to the Union the same spirit sent to us grand specimens of the generation of men born from 1820 to 1840. The early members of our Board were made men of character, quick in decision and self-reliant, Additional and all this earlier in life than their comrades Early History who remained at home. And, although un- History of the SanRrmcisco Additional Early History conscious of the fact, they were making history for San Francisco and the Coast. Their effort proving so successful, and there being a demand for seats in the Exchange, they concluded to increase the membership from 40 to 80 members, by selling 40 additional seats, the purchase price for the new seats to be placed in the Treasury of the Board. Referring to previous items it will be seen that the first 10 seats sold for $250.00 each, the next 10 for $500.00 each, and the next 20 for $1000.00 each. It is said by old members that the sales of the new seats did not interfere with the selling and transfer of seats from old to new members. The demand was so great that by October, 1863, the Board numbered 80 members. Money was not so plentiful 45 years ago as at present, and $500 to $1000 seemed to many a good profit on the original investment of $50, and many transfers of seats were recorded. At the organization in September, 1862, Mr. David Henriques was so enthusiastic as to the future of the Board, that he willingly loaned several members the $50 necessary for their entry to the Board. This fact was published April 24, 1874, in the Mining and Scientific Press, the price at the latter date being $10,000 to $12,000 for a seat. The incorporation of new mining companies, both in Nevada and California, kept pace with [20] Stock and Exchange Board the increased business, and the newspapers published increased lists of mining corpora- tions. Failures in the new enterprise were fre- quent, but the delinquent would find means in some way to settle with his creditors in the Board, and resume business. They tell the story of one broker with whom to fail was chronic. After each failure, he would make some sort of a settlement, his creditors trust- ing him to some extent, and each time he re- sumed it would be in a new and different of- fice from the last disastrous one. In fact, on one of these many failures he was making such satisfactory progress towards a settlement, that he commenced furnishing a new office, but, unfortunately, "busted" again before his desks and chairs could be placed in position. Real Del Monte stock caused many failures in 1864. A custom, which soon became a rule in the Board, was as follows: As soon as a member failed he placed his affairs in the hands of Franklin Lawton, Secretary, who would en- deavor to make a settlement with the creditors ; but, if unsuccessful, would finally sell the seat, and divide the proceeds among the creditors in the Board. This system became eventually Additional embodied in the Constitution and By-Laws. Early History On the breaking out of the Civil War the [21] History of the Sanlrancisco Government stopped specie payments and issued currency, which was a legal tender throughout the Union. California, and the other Pacific States, adhered to the gold basis, and continued to do so up to the resumption of specie payments by the Government on Janu- ary i, 1879, and notes and drafts were made payable in United States gold coin. United States currency sold as low as 35 cents in San Francisco in 1864, and in October, 1864, gold sold in New York at 222, and in December, 1864, at 231. At the banks money was worth lYz to 2 per cent a month. Among brokers 2 to 3 per cent was often paid. A copy of the prices of the various stocks listed on the Board for January 9, 1864, will be found on the following pages: Additional Early History [22] (J5IAWOH .3 MOTWAJ 3KT H . co M co o Q B TOTAL No SHARES co O O O CO O O O 00 *O CO CO 000 O VO O to to rH o vo 1-1 CO rH CO IO CM 1-H 1-4 111 *" oo" **" W S^S CMCMrH^CMCM^-Tj-CM^i-irHTfCM 5 O to H 1-4 co" ^ CM" CM" Additional Early History [23] History of the SanFrancisco CO VO O TH i-H CO to 00 to i-i o ri O I E | &S O a . 03 fe >> 0! 1 I* S3 i! O o to "43 >.ti c ^ S? 28 sill i. II 1^ s SO 33 Madison Hazel Gr S to to to o 8 C^THrHCOlOCOOO i-t^i-l Additional Early History O to rH CO T-I O 00 ^^ [24] Stock and Exchange Board ~2^^8| ' MU ^ IO CM VO CO ~ N w^^ss^ T-l T-4 TH CM 11 r? ^HwP^28 || > > > .VOOOOCOCO O5*-CM 3 CO * 10 a\ t^ T-I tl c 1 >. rt *> C3 nt ^ o g +t 3 g COMPANY ^ ^ rll miHrfM a lliliUlllili ppCpfi^w4sa* OOi|3S5jHC>USM 1,* II H > C5 C? C^ C5 C3 C^ CO CO ^5 CO CO CO oooooooooooo r-4 S CO rfS 8888888888888 00 ^ M 5^7 00 ^" to CM TH VO CM CO CM 00 to 00 vo CD Ot/i CM^CM^T-TcM*T-T^|- > CM^T-^cri-rT-rT-r i r ^t"" H -* ?i W 5 TM H T-< Tl- [25] History of the SanFrandsco a g d s 2 5, MH O c3 2 S s CM co TH CO CM TH t>. TH H S S COMPANY MERALDA to meralda j CO B -a 8 'S 1 c C/3 Cl 75- In succeeding years, as business be- came duller, the prices ranged between $2,500 and $1,500. The fact that we owned the build- ing on Pine street gave a value to the seats that the stagnant business did not warrant. The belief that we would eventually sell the building, and declare a dividend of at least $3,000 a seat, kept many from selling. In 1900 Joseph Nash bought of W. S. Wattles for $1,300. In 1901 a resolution was offered by William E. Hale that the proper officers be directed to sell the building and lot for $400,000. It cost $644,000. A few of us were opposed to the reso- lution, as it looked like the death knell to the Stock Board. It was also our opinion, in form- ing the company of Associated Stock Brokers, in 1875, that the lawyers had so perfected mat- ters that the building never could be sold, and would always remain in possession of the [61] Value of Seats History of the Sanfrancisco Value of Seats Board. The latter opinion was erroneous. The offer to sell was afterwards reduced to $300,000, and, in 1903, the sale was made at that amount. A dividend of $3,000 a seat was declared, and later on a second dividend of $400. The Board retained a considerable amount of the money obtained from the sale and with it offered to purchase seats of retiring members. They purchased altogether about 39 seats, mostly at $100 each, which, with eleven seats purchased in former years, made a total of 50 seats belonging to the Board. There were private purchases at the close of the year 1904 ranging from $200 to $500. In September, 1904, the Board sold nine seats to the Pacific Board Brokers at $200 each ; also five seats to other applicants at $200; and ten at $500 each. The Board bought the seat of Coll Deane (estate) in 1906 for $1,500 and sold a seat at $3,000 to H. H. Norwood. In 1905 the Tonopah and Goldfield Stocks, lately listed, gave the Board a new, large busi- ness and the price of seats advanced steadily to $5>75 Business became dull again, and at this writing, July, 1909, seats are probably worth about $2,500. The Board owns at this time, 1909, 14 seats, making the membership 86. During the first ten years of the Board's existence a member's seat was looked upon in the same light as a carpenter's tools, or work- [62] Stock and Exchange Board man's outfit, and was not attachable for debts outside the Board. As seats became more valu- able, about 1874, a long executive session was held over the question, whether it was honor- able for us, when a seat became worth $12,000 to $15,000, to permit a member to fail, or quit the Board, with this amount, without paying debts due to his clients ; and we then passed the law making members preferred creditors, and the balance to be divided between those outside creditors who filed claims against a delinquent member. Value of Seats OPHIR CONTEST History of the Sanfrancisco Stock and Exchange Board CHAPTER VII OPHIR CONTEST | HERE was a great contest for the control of Ophir stock, at the annual election in December, 1874. Mr. Baldwin was supposed to have the control. Mr. Sharon succeeded in buying Keene's interest, and then began a struggle for the control between Sharon and Baldwin. At first we could sell our Ophir at, say, $65 cash and re-purchase at 64 S-go. Gradually these figures widened, so that one could sell Ophir stock, regular way, as high as $70, $75, $80 and $90, and still buy it back at $65 to $70 S-go. Still higher prices for cash Ophir stock $100, $120, $150 and S-go stock could still be had at $75, $85, $go. The Sharon interest was the purchaser of the cash stock, and also the seller of the S-go stock, paying $40, $50, $75 a share difference. This purchase of the cash stock gave the Ophir Contest Sharon interest the control. Any broker who History of the Sanfrandsco his box of stocks could $20,000. Should a broker sell his customer's stock Ophir Contest at any time so impolitic as $150 a share, regular way, and buy it back at $75 S-go, and then should his client call for his stock, the broker would be compelled to buy it in and pay a higher price than that at which he sold. There was a number of small claims extend- ing from the Consolidated Virginia north to the Ophir line, among them being: Central No. i, Central No. 2, and California. A rich strike was made close to the Central No. 2. The Consolidated Virginia was controlled by the firm of Flood & O'Brien, and the con- trol of Central No. 2 would be of great ad- vantage to them. Marina, of the firm of Glazer & Co., had an order from Mr. Flood to buy sufficient to obtain control. I know of sales occurring at 35 on the call, and Marina carried it as high as 72 before obtaining the requisite quantity. One of the brokers commenced buy- ing for himself, and as Marina continued buy- ing, this broker bought 500 shares, probably as high as 50, and when the buying stopped at $72 he was more than $10,000 winner at the close of the call. He retained the stock, and, in the rise and subsequent dividends, he realized a large fortune, quitting in 1876 for New York, reputed to be worth at least $5,000,000. [68] dWA AIMHO^IJAD 5I3MHOD T2A3HT5IOM ed8I MI 313351X8 YH3MOOTWOM > oad 100 shar it at any time for $20,000. Should a broker be so impolitic as to sell his customer's sto $150 a share, regular way, and buy it back at $75 8-90, and then should his client call for his stock, the broker would be compelled to buy it in and pay a higher price than that at which he s ; ;en, and the con- *t Central No. 2 would be of great ad- vantage to them. Marina, of the firm of Glazer & Co., had an order from Mr. Flood to buy ent to obtain control. I know of sales call, and Marina carried i as 73 ' close of the c the rise and subse< '-,, and, in ids, he realized NORTHEAST CORNER CALIFORNIA MONTGOMERY STREETS IN 1865 AND Stock and Exchange Board These mines, from the north line of Consoli- dated Virginia to Ophir, were all absorbed by the Consolidated Virginia. Subsequently a new corporation was formed out of the 600 feet south of Ophir and was called the Cali- fornia. Each share in Consolidated Virginia receiving 7-12 of a share of the new corpora- tion, as a stock dividend. Later on the 108,000 shares in each of the mines were increased five times, making 540,000 shares in each. At this time Consolidated Virginia was sell- ing at $90 a share. The day we received our stock dividend of California stock, the price broke to about $65, California selling at about $40 to $45. In the course of time Consolidated Virginia rose in value and was again selling at $90, so that all who held the original stock were fortunate; they could still sell their Con- solidated Virginia at $90, and the stock divi- dend of California was a clear profit. Ophir Contest GREAT BUSINESS OF 1874-1875 History of the Sanfrandsco Stock and Exchange Board CHAPTER VIII GREAT BUSINESS OF 1874-1875 MOMENTOUS year 1875 the greatest, grandest, most profitable year in the history of the Board, was at hand. We could not fore- see the great events about to occur in which we were to be actors. Great profits, i but, at the same time, dis- astrous events were before us. The immense rise in Consolidated Virginia and California and the entire list was approaching. Listing of new stocks was raised to $2000 and the value of our seats raised to $43,000. Large fortunes were to accrue to many brokers and their clients, and several old associates were to lose all and leave us some penniless. Our caller was to leave for six months. Twenty new members were to be elected and the Board was to have a building of its own. The suspension of the Bank of California was to Great Business appal the street, as was the death of W. C. Ral- O f 1874-1875 ston. The Board was to be closed for six [73] History of the SanErandsca rreat Business of 1874-1875 weeks. Fire was to sweep Virginia City and cause a great break in prices. A rival the Pacific Stock Exchange was to organize, with many wealthy men as members. February 15, 1875, B. Howard Coit, Chair- man, obtained leave of absence for six months, in which he traveled around the world and returned August 18, 1875. His monthly salary of $1000 was continued during his absence. H. C. Logan was elected assistant chairman dur- ing Coit's absence at a salary of $500 a month, and he was also allowed an additional amount of $2000 when Coit resumed his duties. Consolidated Virginia rose in value to $760 cash and $800 6-30; California sold at $790 cash and $800 6-30. At $800 a share the 108,000 shares in the California mine sold for $86,400,000; 600 feet, value per foot, $144,000; per inch, $12,000. Ophir sold as high as $320.00 Mexican, a stock dividend of Ophir 75.00 Gould & Curry 60.00 Best & Belcher 72.00 Savage 190.00 Chollar 90.00 Exchequer 350.00 Hale & Norcross 69.00 California 790.00 Con. Virginia 700.00 Imperial 19.00 Kentuck 24.00 Jacket 150.00 [74] Stock and Exchange Board Crown Point 40.00 Belcher 57.00 Sierra Nevada 27.50 Overman 86.00 Caledonia 33.00 And the street business! The first session was at ii A. M. Before that hour we would congregate on the north side of California street, on the corner, and below Montgomery. And what sales we made ! As a broker's broker I have transacted there before the Board $100,000 worth of stocks for one firm, and that before the firm knew of the order. When I now reflect on the magnitude of that business, and the responsibility of the brokers, and the absolute honesty of all connected with the transactions, whether they were members of the Board or not, I look back to it with pride and with confidence in human nature. Many brokers on arriving at their offices, a little late perhaps, would ascertain that several of their clients, big traders, had already trans- acted on the street thousands of dollars in busi- ness. A non-member, in making a sale or a purchase on the street, would state the name of his broker in the Board. His word would be taken, and the transaction compared with the absent broker, and such was the honor and integrity of all concerned, that I cannot recol- Greai Business lect a single transaction that was afterwards of 1874-1875 repudiated, although wide differences would [75] History of the Santhmeisco occur in the prices of the stocks when the Board met. When we recollect that honor was the basis of all of our transactions, one can look back with satisfaction on those days when San Francisco could boast of as honest a set of men as ever lived anywhere in this world; where street transactions, amounting to hun- dreds of thousands of dollars, would be com- pared and reported before the Board met in morning session. The crowd became so large that, finally, a policeman was stationed every morning to make a passageway between us, so that citizens having business in that locality could get through. Finally, Mr. Harry Logan, at execu- tive session, complained of this, and objected to being hustled around on the street by police- men, and offered a resolution throwing the doors of the Board room open at 9:30 in the morning. This was done and was the be- ginning of those informal sessions, when that California street room, at this early hour, would be packed and jammed to its utmost capacity by a mob of excited stock dealers. Gradually one of the members would mount the rostrum at 9:30 and call the principal stocks, at which time all would be permitted to bid for or sell Ireat Business stoc ^ s - And tnev smoked cigars and pipes, and of 1874-1875 the more excited they became the larger would be the volume of smoke arising to the ceiling. [76] -aa ,T33$iT8 AIWJIOHIJAO aai8 HTUOS 3MO8HA8 QUA YH3MOOTMOM M33WT -aJIUfl 3HT 8XHAM 82OHD A .8T33HT8 -838 8TI QJ3H QHAOfl 3HT 3H3HW OMI MI 8MOI8 Francisco in the prices of the stocks when the I met. When we recollect that honor was the basis of all of our transactions, one can look back with satisfaction on those days when San Francisco could boast of as honest a set of men as ever lived anywhere in this world; whei hun- dreds of at execu- tive session, complained of this, and objected to being hustled around on the street by police- men, and offered a resolution throwing the door? Board room open at 9 :ao in the was the be- time all would b> stocks. And they smt. ipes, and SOUTH SIDE CALIFORNIA STREET, BE- TWEEN MONTGOMERY AND SANSOME STREETS. A CROSS MARKS THE BUILD- ING WHERE THE BOARD HELD ITS SES- SIONS IN 1870 Stock and Exchange Board Some of the largest transactions of the day would take place at the time. There was a long hall-way of probably 50 to 60 feet lead- ing from California street to the Board room. This would be packed with excited dealers also, and it was hard work for a broker to make his way from the street to the Board room. As I was entering one morning, a customer gave me a verbal order to buy 5000 California stock, it having fallen to $45 a share. Before I could get anywhere near the Board room proper, the stock had rallied to $55. Then it was necessary to tidy up at 10:30, and the janitor and messenger boys would clear the room for the regular n o'clock session. During Coit's absence, Harry Logan, assist- ant chairman, on July 30, 1875, called to the secretary, transactions that covered 27 pages in one hour and a quarter. We had two assist- ant secretaries, who entered the transactions in shorthand, and finally, Robb would call in the morning and Barton in the afternoon. Ben Hilliard was the roll keeper and kept record of the fines. For months the admission tickets of $5 monthly and the fines levied on members would nearly equal each other, ranging at $2000 or thereabouts. Just before n A. M. we would hurry to our offices, report our transactions, send out a [77] Great Business of 1874-1875 History of the Santraneisco Great Business of 1874-1875 clerk to compare them, and in the meantime a clerk would have entered in a book our orders for the morning call, and then we would hasten to the Board. To be late was a crime. And from whence came our orders? Im- primis from San Francisco, and, literally, from the kitchen to the pulpit; from every shade in life, and every nationality represented in San Francisco. Chinamen were large gam- blers in mining stocks. Sacramento, Virginia City and Carson City were large traders; Vir- ginia City in particular. Wherever the tele- graph wire extended, orders would roll in on us. The Eastern cities also, New York in par- ticular, were represented in every Board. The steady, continued orders from New York were a great help to us when a dull spell arrived. London, Paris, Berlin and Frankfort sent us orders. The ii o'clock Board was the great event of the day. As the transactions in the informal Board were not recorded by our secretary or printed in the official list, it soon became a custom with us to withhold all foreign orders until the regular call, so that if any question arose about the sale, a certified copy of that portion of the record could always be fur- nished. As to the opening prices on the call, one with large orders would be guided, to a great [78] Stock and Exchange Board extent, by the feeling on the street at the close, and to some extent it foretold a busy or a moderate Board. It was a fine sight, on a busy day, to watch the members enter the Board, all crowding in probably during the last five minutes before the gong sounded, the clerks all in their places at the rostrum, and Chairman Coit casting an eye at the clock as the minute hand approached the hour of u. If your book was loaded and full of orders, it was a crime to disclose it by action or word, or become annoyed when, all ready, to have the sergeant-at-arms bring you an envelope containing another large order on all the prin- cipal stocks. In the latter case we could al- ways whisper to a neighbor to help us by exe- cuting an order, until we could attend to it ourselves. Our desks, at that time, were ar- ranged like the floor of the United States Senate, with lids about 20 inches square, and a straight aisle extended from the door to the rostrum. At first we were fined for leaving our desks, the custom being to rise in executing an order ; but gradually one of the brokers, John G. Ayres, having a seat away off in the corner to the left of the caller, in the excitement of fill- Great Business ing an order, gradually worked his way around of 1874-1875 to the front of the rostrum and down the aisle, [79] History of the SanFrancisco Great Business of 1874-1875 others following, fine or no fine. And so the chairman recognized the situation, the fine for this offense would not be imposed, and finally all of us would leave our seats, on the call of the important stocks, and gather in front of the rostrum. Think of a two-hour session with those high- priced stocks selling from $50 to $100, $200, $500, $750 per share. A broker with large orders could not be timid or pause long in their execution. His orders would set the price and make the market which others would fol- low. And to such a broker, on such an occasion, there was nothing in his world, for the time being, but his orders and the excellence with which he could execute them. In looking over the list of members for April, 1875, it is evident from recollection that 75 out of the 80 members were active brokers, liable to execute large orders at any time. When the gong sounded all conversation ceased for a moment, until the first stock on the list, Ophir, was called, when the bids and offers were made. It became a custom for the seller to record his sales to the chairman, although the buyers were permitted also to call up the same transactions. As the business be- came greater, Mr. Coit urged us commission brokers to instantly record our transactions, a splendid rule, as we could then, while that [80] Stock and Exchange Board stock was still on the floor, enter our trans- actions in our books, and prepare for the next stock. Two hours was a long session. After the morning list was called, one of the clerks would read the transactions as recorded, the other secretary correcting him, should they differ in the transaction; the parties to the contract would then announce the correct price. Often the same transaction would be re- corded twice, and it would be entered as "one lot." It was possible for the clerks to be nearly an hour reading and correcting the record. After the call, the brokers would re- main, and further transactions would be made at about Board prices. Lunch anywhere before 2 P. M. At 2:30 another short informal, and at 3 P. M., the last session, with the afternoon list, headed by Meadow Valley and Raymond & Ely. Mines in other localities than the Comstock were called at this session. After adjournment we would trade in all listed stocks, and in the winter we have remained so long filling orders, that darkness would arrive, and the gas would be lit, and still we would continue. Until, finally, one by one we would drop out, go to our offices and report our transactions, which the clerks would compare, the bookkeepers would balance cash, and then good night. It [81] Great Business of 1874-1875 History (/the Sanfrancisco Great Business of 1874-1875 can be truthfully said that a broker, in active times, would rather buy and sell stocks than eat his dinner. My young broker friends, permit me to give you this experience: In 1873, through a cus- tomer, I lost everything, and for nearly two years was employed as a broker's broker, which gave me a great experience. An old Virginia City friend, a member, wished me to execute his orders. I agreed. Said he, "I gave this morning an order to a broker to sell a stock, and after the Board he said 'that stock was too low; it will be higher tomorrow, and so I did not sell it.' " "Now," said my friend, "I don't want your views as to whether the market will be better tomorrow or not ; when I give you an order to buy, buy it." There was only one member younger than I in the Board, and this advice to a young man endeavoring to perfect himself in executing orders on the floor was invaluable, and the advice was followed literally, and I soon found was giving great satisfaction. So much so that my friend's orders increased to an immense business. Other brokers became anxious for me to execute their orders also, when business would permit of it. Our book one morning was crammed with orders, intricate and plain. Stop orders, regular way, 6-30, S-go, discretionary. Along came a broker friend, my partner [82] QUA H3WHOD X83WHX5IOW 0\8I .8T335IT8 Y5I3MOOXWOM I rather buy and sell si My young broker friends, permit me to gn this experience: In 1873, through a cu tonier, I lost everything, and for nearly tv years was employed as a broker's bn "Now," said my friend, "I don't want your views as to whether the market will be better tomorrow or not ; when I give you an order to buy, bu: There was only one member younger than r.e Board, and this advice to a young man cnde. himself in exec orders o< ; i tne e was f c would peri 1 k one morning .rammed with orders, intricate and plair igular way, 6-30, 8-90. onary. Along came a broker friend, my parti NORTHWEST CORNER CALIFORNIA AND MONTGOMERY STREETS, 1870 Stock and Exchange Board afterwards, with an immense order. Just think of it! I at first refused, but finally agreed to take this order, in addition to the other busi- ness. But if you simply pay attention to your business orders, a way will be found out of all of them. Great Business of 1874-1875 [8 3 ] COMPANY OF ASSOCIATED STOCK BROKERS History of the Sanfrandsco Stock and Exchange Board CHAPTER IX COMPANY OF ASSOCIATED STOCK BROKERS S previously stated, we in- creased the membership 20 members, the sale of these seats amounting to $500,000, the money being applied towards buying a lot and erecting a build- ing. The Company of Asso- ciated Stock Brokers was formed, consisting of all of the members of the Board, to which was deeded all of our property, and the Con- stitution was so arranged that when one be- came no longer a member of the Board, he ceased also to continue a member of the Com- pany of Associated Stock Brokers. We held many long executive sessions, forming the Constitution and By-Laws of the new corpora- tion, which General W. H. L. Barnes, the eminent attorney, always attended ; each word, clause, sentence and article prepared by him was then adopted by vote. Company of Associated Stock Brokers History of the Sanfhmdsco Company of Associated Stock Brokers On June 24, 1875, the Constitution adopted. The following were the first officers elected, June 23, 1875: John W. Coleman, President; Edward E. Eyre, Vice-President ; Henry Schmeidell, Treasurer; Franklin Lawton, Secretary. Prior to this, James R. Keene had pur- chased a lot on the south side of Pine street, below Montgomery, and we had agreed to take it off his hands at the purchase price and cus- tomary interest. On Saturday, June 25, 1875, the following deeds were placed on record: "James C. Flood to the Company of Asso- ciated Stock Brokers, conveying the property on the south side of Pine street, 137^2 feet east of Montgomery, being 27^ feet by 137^2 feet; consideration $50,000 ;" and another deed from James R. Keene, deeding the adjoining piece of property, on the west, to the same com- pany, 50x1375^ feet; consideration $143,700. We continued in the building on California street awaiting the erection of our new build- ing a wait of two years. On April 27, 1876, in the afternoon, preceded by a brass band, we formed in line and marched around to lay the corner stone of the new building. Con. O'Con- nor was the superintendent and D. Farquehar- son, the architect. Ten months had elapsed [88] Stock and Exchange Board since the purchase of the lot. A copper box was prepared in which were placed coins, all the city newspapers of that day, Constitution and By-Laws, and many little nick-nacks ; also Keene left us for a few minutes, and returned with ten shares of Savage, worth about $19 a share at the time, to be placed in the box. A facsimile engraving of this Savage certificate appears on the cover of this book. We were all asked for 50 cent pieces, of a date from 1876 back as far as possible. All volunteered but one only of each year was wanted. Finally, when the box was placed in posi- tion and President Coleman had just with- drawn his head, down fell the stone, just escap- ing Coleman, and splashing us all with mortar. It was a solid, magnificent building, the Board room being furnished in splendid style. On Monday, October i, 1877, we held our first session in the new room, the galleries being crowded, several of the younger branches of the families of the members being admitted to the floor. The official list of the transactions of that day was printed in gold letters. We sold the building in 1903, but continued business in the Board room at a monthly rental. It was blown up and burned in the great fire of April, 1906, totally uninjured by the earth- quake of that date. While the Sierra Nevada and Union deal of [89] Company of Associated Stock Brokers History of the Sanfrancisco Company of Associated Stock Brokers 1878-1879 paid us large commissions, the old Board room on California street was the place where our greatest business occurred. On April 27, 1909, just 33 years afterwards to the day, Messrs. Maurice and Joseph Schmitt, representing the purchasers of the old building, presented us with that old copper box, with its contents, all well preserved, and constituting fine relics of the great earthquake of April 1 8, 1906, and the four subsequent days of fire. The crowds of people flocking to the Board room compelled us to charge a monthly ad- mission fee of $5, for which a ticket of admis- sion was given. A stupid, deplorable incident occurred. E. J. Baldwin, one of our largest operators, was hurriedly seeking admission, and for some reason did not have his ticket with him, and the doorkeeper, with less tact than sense, refused to admit him. He left in a rage and threatened to establish a new Board, which he did. Many sought admission to the new Board the Pacific Stock Exchange the seats readily selling at the initiation price, $5000. The Ex- change was organized about May 19, 1875, and opened June 7, 1875. On September 8, 1904, it was absorbed by the San Francisco Stock and Exchange Board. The following is a record of the stocks, and [90] Stock and Exchange Board the order in which they were called in the Board April 27, 1876: WASHOE Globe Baltimore Consolidated Silver Hill Challenge Consolidated Dayton Rock Island Pictou Dardanelles New York Occidental Senator Phil Sheridan American Flat Tyler Sutro South Overman Fairmount Alta Woodville Con. S. M. Co. Silver Cloud Insurance G. & S. M. Co. Segregated Caledonia Alamo Mint G. & S. M. Co. Franklin Nevada South Comstock Lady Washington Kossuth Green G. & S. M. Co. Original Gold Hill Ophir Mexican Gould & Curry Best & Belcher California Savage Consolidated Virginia Chollar-Potosi Hale & Norcross Crown Point Yellow Jacket Imperial Kentuck Alpha Belcher Confidence Sierra Nevada Utah Daney Bullion Exchequer Segregated Belcher Overman Justice Succor Union Consolidated Buckeye Lady Bryan Julia Caledonia Knickerbocker Crown Point Extension Columbia [91] Company of Associated Stock Broken Company of Associated took Brokers History of the Sanfrancisco^ Lower Comstock Segregated Rock Island Genesee Crown Point Ravine Jacob Little Cons. Leo Baltic Cons. Whitman Patten Andes Keystone Cons. Washoe Independent and Omega Crome South Star Morning Star Beach & Paxton Bonanza Amazon Cons. North Cons. Virginia Golden Fleece G. & S. Co. Prospect Pioneer Cons. South California Seg. Gold Hill Maryland Washoe M. Co. M Mides Dexter Florida Europa Hartford Pacific Granada North Utah American Flat South Central Comstock Silver Central Cons. Wells-Fargo North Carson Niagara Comstock Ward Scorpion Cosmopolitan Leviathan Georgia Original Flowery South Justice Glasgow Monumental West Belcher Chonta Santa Rosa Sullivan Trojan Rocky Bar Webber Silver City North Monumental Vivian Erie Cons. Cherokee Lee G. & S. M. Co. North Ophir Brooks Peytona Benton Boyle Santiago Rough & Ready [92] Stock and Exchange Board Meadow Valley Raymond & Ely Eureka Cons. Jackson Phoenix Pioche Washington & Creole Alps Page & Panaca American Flag Adams Hill Chapman Condor S. Peak Pioche W. Extension Belmont Spruce Mountain Tunnel Chief of the Hill Newark Louise Juanita Cons. Monitor Belmont Silver West Cons. Rye Patch Cons. Eldorado South K. K. Cons. Hayes G. & S. M. Co. RAILROAD Omnibus Central Watson Eldorado North Prussian Cherry Creek Webfoot M. Co. Leopard Jefferson Gila Cornucopia Constitution Panther Tiger Northern Belle Geneva Cons. Hussey Tybo Cons. Geddes & Bertd M. &. M. Co. Gen. Thomas M. & M. Co. Manhattan De Frees M. & M. Co. Metallic Indian Queen City Gaslight Co. Spring Valley Water Co. Legal Tender Notes COMPANIES N. Beach & Mission Front St. & O. R. R. CALIFORNIA COMPANIES Cons. Amador Independent G. M. Co. Eureka Cederberg St. Patrick Genesee Valley [93] Company of Associated Stock Brokers History of the Sanfrancisco Chariot M. & M. Co. Advance S. M. Co. Mansfield G. M. Co. Coso Cons. Western Almaden Quick-Defiance silver New Coso Modoc Cons. Garibaldi PANAMINT DISTRICT Wyoming Cons. Wonder Cons. Company of Associated Stock Brokers IDAHO Silver Cord Poorman Illinois Central Pauper South Mountain Cons. Golden Chariot Ida Ellmore South Chariot War Eagle Empire Red Jacket WHITE PINE DISTRICT Mammoth Silver Wave Or. Hidden Treasure UTAH Wellington OREGON Virtue From the list it will be seen that there were 135 Washoe stocks called; in other words, those mines located on the Comstock Lode and in its vicinity. The Comstock Lode itself extended about two miles. It commenced some distance north of Virginia City, and, passing south through Virginia City and Gold Hill, extended to Silver City. The principal mines were in Virginia City and Gold Hill. A large number of mines were located west of the lode, extending up Mount Davidson and [94] -TMOM QKA 5I3MHOO T3A3HTUO8 0881 ,8T335IT8 YH3MOO Western Almaden Quick-Defiance New Coso Modoc Cons* Garibaldi PANAMINT DISTRICT Wyoming Cons. Wellington OREGON were in Virginia A large number c e located west of the lode, extending up Mount Davidson and SOUTHEAST CORNER PINE AND MONT- GOMERY STREETS, 1880 Stock and Exchange Board adjacent hills, and a large number east on the down slope of the mountains. Speculation was more conspicuous in those companies whose claims were located on the main lode. The ledge dipped east, and an early decision in the courts confirmed the titles of the lode locators wherever they could trace their ledge. As they never drifted west through the hard west wall, little attention was paid to adverse western locations. In prospecting to the east, following the dip of the ledge, they opened the lower levels directly under the many adverse eastern locations. Many law- suits were instituted until the sweeping de- cision confirmed title to the lode locations. The following dialogue about expresses the situation : "What is the true location out here on the side of Mount Davidson?'* "Well, stranger, it is about this way. There h'aint but one lode along here. Them locations east and west of this great lode is only to sell to tenderfeet." "Well, if that is so, what are the boundaries of this great lode?" "Well, stranger, the boun- daries of this great lode is as follows: The foot-wall is the diorite of Mount Davidson, and the hanging wall is Salt Lake City. All quartz within them boundaries is the Comstock Lode." At the election, January, 1875, Mr. James R. [95] Company of Associated Stock Brokers History of the, Sanfraneisco Company of Associated Stock Brokers Keene was placed in nomination for the office of president by F. F. Strother. Keene was elected and served until Tuesday, August 3, 1875, when he resigned, and the vice-president, Mr. Coll Deane, was elected president. Charles W. Bonynge was elected vice-president. On August 25, 1875, General Phil Sheridan was a visitor at the Board. The firm of Flood & O'Brien had been very successful in mining transactions, James G. Fair and John Mackay being also connected with it. After the great discovery in Califor- nia and Consolidated Virginia, they were called the Bonanza firm. Heretofore those operators connected with the Bank of Cali- fornia had been dictators of the stock market, but now the Bonanza firm loomed up and were the dictators, as to their own stocks at least. Finally, when the Bank of California suspended, crippling those operators to some extent, Mr. James C. Flood, as the representa- tive of his firm, became the great leader in the stock board. The following was repeated generally in the Board : Mr. Ned Barren, at one time president of Consolidated Virginia and for years well connected with the Bonanza firm, in some way became persona non grata with the firm. He determined to sell his Consolidated Virginia; but how could he do so without the firm know- [96] Stock and Exchange Board ing it, with whom for years he had been on intimate terms. He was friendly with a broker and went to him and frankly confessed to him the whole situation. He asked him to take his stock in the Consolidated Virginia and Cali- fornia and sell it, and, in order to conceal the fact that he was selling from the Bonanza firm and others, he requested the broker, on the sale of the stock, to deliver other shares in his pos- session, and, when all sold, to have his stock transferred to the broker's clerks, and with it replace the certificates already delivered. In those days the legal decisions were such that any good certificate could be delivered on any sale. Mr. Barren was accommodated, his stock sold, and the money paid to him before the Bonanza firm or outsiders knew anything about it. Company of Associated Stock Brokers [97] SUSPENSION OF THE BANK OF CALIFORNIA History of the Sanfrandsco Stock and Exchange Board CHAPTER X SUSPENSION OF THE BANK OF CALIFORNIA HOULD any one have said to the average business man of San Francisco on Thursday, August 26, 1875, that the Bank of California would suspend that day; well, he would not have been believed. The bank was regarded in the same light as the United States Treasury. Should that average business man have visited the bank at 2 P. M. he would have seen a small crowd at the paying teller's counter, but that always occurs at all banks an hour before clos- ing. At a quarter past 2 he would have seen the crowd extending to the iron doors on California street. At half past 2 the crowd was out to the curb, and at 2 140 he would have observed Mr. Ralston, bareheaded, walk over to Nicolson, the paying teller, direct him to pay out no more money and order the porters to close the iron doors. [101] Suspension of the Bank of California History of the Santrancisco Suspension of the Bank of California A very few of us knew before the Board opened that the bank would close at 3 P. M. and not re-open the next day. The large firm of Edward F. Hall & Co. drew out early on one check $250,000. Jos. H. Jones had $75,000 to his credit, but would not believe anything derogatory to the bank and allowed his money to remain there. I. Glazier & Co. allowed $400,000 to stand to their credit. Maurice Schmitt presented $14,000 in checks to Nicolson, the paying teller, at the Bank of California, at n o'clock in the morning. Was eventually referred to Mr. Ralston, told to wait a short time and re-present them, and then told his own banker of the matter, who begged of him not to mention the incident, as the Bank of California was as solid as any bank in the city. He obtained the money a short time after- wards. Parker & Fry cashed all checks, received from sales of stocks, and when night came they had $150,000 in their safe. E. P. Peckham gave a number of checks to personal friends, asking them to call at the bank and cash them. E. J. Baldwin had a million dollars to his credit in the bank. On condition that a mem- ber of his family should be paid $250,000 of this sum, he agreed to allow the balance to remain in the bank until it was convenient to pay it. [ 102 ] KOT2JAH .0 MAIJJIW A e the ; opened that the bank w -e at 3 and not re-open the next day. The large firm of Edward F. Hall & Co. drew out early on one check $250,000. Jos. H. Jones had $75,000 his credit, but would not believe anything derogat ved his money to remain /ed .e matter, who begged of him not to mention the incident, as the Bank of California was as solid as any bank in the city. He obtained the money a short time after- ivea ber of his fa $250,000 of sum, he agreed to e balance to rei WILLIAM C. RALSTON Stock and Exchange Board The Board had quite a large amount to its credit which was allowed to remain on deposit for a long time. Careful brokers withdrew their deposits; they had to do it to protect their checks drawn on the bank. But the afternoon found many brokers so tied up they could not instantly meet their checks when refused at the closed doors of most of the banks. Only two or three banks opened the next morning, August 27, 1875. At the present writing, nearly 34 years sub- sequent to that event that panic, as it was termed it would be of service should every one living who passed through that trying time record his experience for the benefit of pos- terity. I will relate mine. On April i, 1875, I formed a co-partnership with B. F. Sherwood. My partner went East, and returned about the middle of August, 1875. On his first appearance at the office after his return, I called him into our private office, and told him there was something wrong at the Bank of California, and for him to ascertain what the trouble was. It was difficult for him at first to believe that anything could be wrong, and asked my reason. I told him the brokers were talking quietly, among themselves, about the large transfers of real estate by the officers of the bank, and as we had a large balance to [103] Suspension of the Bank of California History of the SanFrancisco Suspension of the Bank of California our credit it would be wise to protect our- selves. He promised to attend to it instantly. For several mornings he met Mr. Sharon at 10 A. M., but the subject had not yet been broached. Finally, early on Thursday, the 26th of August, he called me into the private office and closing the door, said: "You are right. The Bank of California will close this after- noon at 3 P. M. and not reopen tomorrow. Now, we have $116,000 to our credit what course do you propose? Should we draw it all out in one check, we would lose their business forever." My answer was: "I have been over the books just now; we have issued checks for $130,000 for purchases of yesterday, and it seems we are to receive $130,000, or there- abouts, for the sales of yesterday. I suggest that we hand out our checks as usual for the purchases, and, as to the checks that we re- ceive for our sales, I suggest that we cash them all, whether drawn on the Bank of Cali- fornia or any other bank, and retain the money in the office." By this action we would have money enough to meet any of our checks not cashed at the bank. Said Sherwood : "Well, if you agree to that, all right." So I. sent one clerk to the stationer for some 10 or 12 canvas money bags, and called the other clerks to the desk and gave Stock and Exchange Board them the order about cashing all checks that came in that day, to deliver everything in- stantly, and to have the money in the sacks when I returned from the n o'clock Board. The clerks knew nothing about the trouble in the bank. On entering we looked around in that n o'clock Board, to ascertain whether others knew of the great fact concerning the bank, for, in the way it came to us, it would have been dishonorable to have revealed the infor- mation, and it would have hastened the calam- ity, which might yet, possibly, be staved off. Each countenance had its usual expression; the members were laughing, jostling and set- tling into chairs. But there must have been some favored few who knew of the expected catastrophe and of the hard fight we were about to have on that floor. Flood & O'Brien had become the great lead- ers in the stock market, through their great success in Consolidated Virginia and Califor- nia, and at times the orders this firm sent into the Board were large. But any order sent into the Board, by them or any other operator; in fact, any order ever executed, in regular or informal session, was dwarfed by the great selling order sent by Sharon into the 1 1 o'clock session. The order was sent to Woods & Free- born, and executed by B. B. Rorke, their broker Suspension of the Bank of California History of the SanFrandsco Suspension of the Bank of California in the Board. Rorke, merely looking at his book as each stock was called, and closing it with a ringer at the proper page, sold as long as there was a bid on the floor, keeping as near as possible to the closing price of each stock at the preceding Board. After the first two or three stocks were called, the nature of Rorke's order was evident to a few of us. It had all the earmarks of an unlimited order, to sell on each stock as long as there was a bid to strive not to break the price too much, but to sell, sell. As the order developed itself, buyers became shy and wary. Selling thus became difficult, and only a part of the immense order could be executed on the call. Rorke did not record a single transaction, nor enter a sale in his book. The purchasers were expected to record their transactions, and, as to the extent of his sales, a clerk from Woods & Freeborn could take a copy of them from the record when written up. He could possibly have taken his record, as the secre- tary read it at the end of the session, to get an idea of about the amount sold, but a copy of the record would be exact. A clerk also was at the desk, who prepared for the members a quick abstract of the records at the close of the call, and compared as the Secretaries read the transactions. [106] t i QMA XDOTS ODSIOMASTPI: ,oniajiua GHAOS ager at the proper page, sold ere was a bid on the floor, keeping as nei as possible to the closing price of each stock the preceding Be call. Rorke did not record a single nor enter a sale in his book. The record their trans rds the clos ies read the transactions. SAN FRANCISCO STOCK AND EXCHANGE BOARD BUILDING, OCCUPIED OCTOBER 1. 1877 Stock and Exchange Board Prices on the three principal stocks as com- pared with the previous day were as follows: August 25, 1875 California 59^@ 56 Consolidated Virginia 290 @263 Ophir 54 August 26, 1875 California 56^ Consolidated Virginia 267^@250 Ophir 55 @ 43 After the Board, prices were still lower on this memorable day : California sold at 48 Consolidated Virginia sold at 240 Ophir sold at 36 Still, at the close of the call no one men- tioned the great, expected catastrophe. On entering my office after the call, one could see a number of money bags, containing $20,000 each, piled up in the center. Expressing annoy- ance at this exhibition, the bags were imme- diately hidden in the loop of the bookkeeper's desk and eventually placed in the office vault. We went through the routine of the office business until 2 o'clock, when the informal afternoon session began, and still the great news was not generally mentioned about the Board, although a few spoke of a run on the bank. Shortly after 2, I went over to our office, which was in the basement next to the bank, and reported to my partner. [107] Suspension of the Bank of California History of the SanFrandsco Over to the Board again, made a few trans- actions, back again at a quarter past 2, with the remark: "Sherwood, the crowd is out to the iron doors." His reply: "Yes, they will close at 3." Over to the Board again, more transactions (sales); back again at 2:30, and again: "Sherwood, the crowd is out to the street." The same answer: "Yes, they will close at 3." After reporting transactions on this occasion, I looked into the bank over the heads of the crowd, say about 2 :4O P. M., and Mr. Ralston was at the counter with Nicolson, the paying teller. Obviously, the order was given to pay out no more money. The porters closed the iron doors, and the great Bank of California had suspended. In place of the regular session at 3 P. M. we held a private executive session, at which George W. Smiley offered a resolution, the purport of which was that the Board should adjourn to the call of the president, and all mat- ters were to be referred to the executive com- mittee. Carried. We remained late that afternoon at our offices. We had $100,000 in our vaults, and blankets and mattresses were brought in, two [108] Stock and Exchange Board or three clerks sleeping there guarding our treasure. John W. Shaw came to the office and wanted the $100,000. He said it would save the National Gold Bank and Trust Co., of which Henry L. Davis was president. But we could not part with it; we had to take care of ourselves. We could not learn until the next day how we stood at the bank. Our books showed that we were $12,000 overdrawn; some checks came in, which were promptly cashed. August 2yth we were all at our offices en- deavoring to close up unsettled contracts. In the afternoon a meeting of the directors of the bank was held. It was stated that a direc- tor left the meeting, and approaching Mr. Ral- ston at his desk, informed him that he was no longer connected with the bank. Mr. Ralston made a short address to the clerks, and left by the Sansome street entrance. A few hours afterwards, while all were at work, came the astounding intelligence that Mr. Ralston was drowned ; that he had, as usual, gone to North Beach to take his daily salt water bath, and while out quite a distance had been overcome and drowned. This news practically stopped all business, and little gatherings could be seen everywhere on California street, discussing the matter, all of us hoping the rumor would be found to be [109] Suspension of the Bank of California History of the Sanfrandsco Suspension of the Bank of California false. We did not want to believe it. All doubt about the matter was soon settled. As I was standing on the sidewalk by my office, the glass door of the president's office opened and Col. Fry came out. He approached me, and, shaking hands with him, my question was, "Colonel, is it true?" "Yes," he answered, "the body is on a sofa in the parlor at the house now." On Monday, August 30, 1875, we assembled at the Board, and entering carriages, were driven to the Calvary Church, on the corner of Powell and Geary streets, where the St. Francis Hotel now stands, and attended the funeral services of Mr. Ralston, also following the body to Lone Mountain Cemetery. All of us living today who attended that funeral retain the kindest, warmest, most tender recollections of William C. Ralston. A singular incident in connection with the bank failure occurred with Woods & Freeborn * and ourselves. We gave them checks amount- ing to $25,000 for stock purchased, and they marked on their tags the word "office," repre- senting thus, that they had left the stock in the offices of the several mining companies to our credit, and we could call and get them, a cus- tom usual among brokers. The stocks were not left in the offices. On asking the following morning for an explanation, they claimed to have deposited our checks with the London [HO] Stock and Exchange Board and San Francisco Bank, and they had been returned to them as unpaid. They showed us the checks, calling them worthless paper, and demanded good checks or the money, when they would deliver the stocks. But the singular fact concerning those checks was this: They had taken them to the Bank of California, and instead of cashing, had them certified. This action, under commercial law, released us; they had accepted the bank. On representing it this way to them they still refused to deliver the stocks unless we paid the money. As one firm was not unduly forcing another this matter was left in abeyance. About two weeks after the suspension, Mr. Sharon came to our office with a proposition and, let me say right here, that no one worked harder than Mr. Sharon to rehabilitate the bank; he deserved great praise for his work. Mr. Sharon stated that a syndicate had been formed to rehabilitate the bank and he wanted us to subscribe $50,000. Mr. Sherwood took the whole amount himself. Again, Sharon had learned that we held $100,000 in coin in our vaults. He wanted some one to show confi- dence in the resumption of the bank and our firm could do it. Why not pay $25,000 to Woods & Freeborn in coin, receive our stocks, and deposit the checks to our credit in the bank, although it was closed. It would have a Suspension of the Bank of California History of the Sanfhmcisco Suspension of the Bank of California good effect on the street, and show that we, at least, felt confident the bank would reopen. I do not think that Mr. Sharon knew that our own books showed an overdraft of $12,000, but we carried out his idea, and on depositing the checks our books would then show we had $13,000 in the bank instead of being $12,000 overdrawn. While in Virginia City during this recess, Mr. Charles Tozer met me at the agency of the Bank of California, stating that his all was in that bank ; that he had been offered 60 cents on the dollar, and requesting my advice. I told him the facts as recorded before, advising him to hold his account until the bank opened, when he surely would receive dollar for dollar. He did so and was made happy. A committee was appointed in the Board to adjust the unsettled business of August 26th, and on September 27th Mr. A. H. Lissak, chair- man of the committee, reported that every con- tract had been settled. We were all doing some little business on the street, giving a cash price to stocks, thus enabling us to settle up the old business; but prices were lower all around. Flood & O'Brien were forming a new bank the Nevada Bank and it opened Monday, October 4, 1875. The Bank of California opened Tuesday, [112] 10 XHAfl QJO books showe c ou s < -,. he surelj did so a: nittee wi The OLD BANK OF CALIFORNIA Stock and Exchange Board October 5, 1875, and the Stock Board resumed business the same day. Other cities may boast of bank resuming business quickly, but, taking all things into consideration, to us, at the time, the resump- tion of business by the Bank of California, its prompt payment to every depositor, and the absolute confidence reposed in the reorganized bank were marvelous, and San Francisco is justly proud of the history of this great insti- tution. In the following year I was called to a bank in Washington City, D. C., and asked the name of a good, solvent bank in San Francisco, and gave that of the Bank of California. "Why," said the banker, "they only lately suspended." "Yes," was my answer, "but in six weeks they paid dollar for dollar, and your bank here of Jay Cook & Co. failed a long time ago, and so far has only paid ten cents on the dollar." No further rejoinder from the Washington banker. All brokers and operators were glad when business was resumed in the Board. Confi- dence was soon restored and business active again. In November we sold four more of the Board seats at $25,000 each, only one seat remaining. On October 28, 1875, a great fire occurred in Virginia City and the high priced stocks broke badly. Suspension of the Bank of California THE GREATEST MARKET OF THE BOARD History of the Sanfrancisco Stock and Exchange Board CHAPTER XI THE GREATEST MARKET OF THE BOARD ITH the listed stocks selling for $350,000,000, where did the money come from to support such a market? An effort is being made to be exact in every statement contained in this story, and the above question is difficult to answer. Upon asking that question in the great mar- ket of 1874-1875, the bookkeeper and office manager of a very prominent broker, doing an immense business, gave me this answer: "It would be impossible to transact this business without 'Shorts' in the office." Should a broker have a number of customers who would "short" the market to the extent in bulk of 2,000 Consolidated Virginia and California, each of them depositing a strong margin, this would give the broker from $1,000,000 to $1,500,000, quite a help to an office in 1875. A number of the members had become wealthy, and used their money on time trans- ["7] The Greatest Market of the Board History of the Sanlrancisco The Greatest Market of the Board actions, receiving the high rates of interest paid in those days. They also loaned money on proper securities to their brother brokers. Almost every one had a fair bank account, and still there were days when it was impossible to borrow at the banks or of others. At such times, one method of obtaining money would be to sell your own personal stocks for cash. The "buyer 30" business was large. California sold for $750 cash and $800 "buyer 90." Here is an example : The moneyed man would purchase 100 shares of California at $750 a share $75,000 The purchaser at $800 B-90 would deposit 16,000 Total money advanced $59,000 The interest, or profit, of $50 a share on 100 shares would be $5,000; this $5,000 for carry- ing $59,000 for 90 days and the stock in posses- sion of the money lender, or deposited on con- tract to his credit in his bank. On time trans- actions we figured on paying about 3 per cent a month. David Henriques had turned his attention entirely to these time transactions. He kept his bank account with Sather & Co. His contracts, with the stock attached, were deposited there. Boyd & Davis were also loaning brokers money on time transactions. They were not members [118] Stock andExchangeBoard of the Board, but when their contracts, with the stock attached, were deposited in the bank, and Boyd's contract placed in our hands, and the bank clerk certifying the number of the certificates of stock across the face of the con- tract, we felt perfectly safe ; and it pleased Mr. Boyd very much to receive our 3 per cent a month and more. Generally, the banks had plenty of money to loan, and our good, high-priced stocks were readily taken as security at 50 per cent of the market value. The brokers helped each other. A personal and intimate friend asked me, on one occasion, if I would step over to a certain bank and sign a note for $300,000. It was for himself, and he had already put up $700,000 security. The note was signed, and a week or so afterwards I was informed that an addi- tional $500,000 in securities had been furnished. In about sixty days, on entering his office, the note was handed to me with thanks for help- ing him out. The Greatest Market of the Board ANECDOTES History of the Sanfrandsco Stock and Exchange Board CHAPTER XII ANECDOTES | HE excitement engendered in a lively stock market is such that in dull times it finds vent in fun, jokes and foolery. Suppose we stop for a while and relate some Board anecdotes. Whenever stocks were bought or sold, on the street or in the Board, Keene would either be there or know what was going on. On a cer- tain occasion he stood in the crowd on the street, derby hat, dark suit of clothes, some writing paper in one hand and a pencil in the other, trying to sell 200 Ophir at $64. Finally he said: "I know this 200 Ophir is a buy. If any one will take it, I will carry it for him and guarantee him against loss. I can- not, honorably, take it myself. Must sell it." Among the spectators was Mr. Jake Levy, always well dressed tall silk hat, black suit Anecdotes of clothes, with low-cut vest, showing an [ 123] History of the Sanfraneisco Anecdotes I" elaborate white shirt with diamond studs. Jake's principal occupation was dealing in lot- tery tickets; he made a good income peddling them to his friends. And here was an oppor- tunity to purchase some valuable stock with- out any risk, so he came promptly forward and accepted the purchase under the liberal terms offered by Keene. He afterwards sold the stock at high figures, bought a lot just west of Van Ness avenue, somewhere about Mc- Allister or Fulton street, erected two houses, all out of the profits of the transaction, and enjoyed the rents like any other millionaire. In Keene's early days in the Board, before becoming very wealthy, being worth about $300,000, he could foresee a great market and high prices in the immediate future. He went to Ralston, president of the bank of Califor- nia, spoke enthusiastically about the market and its future, and asked for money. A stout man, high forehead, aquiline nose, and a pair of eyes that could read down into your inmost soul, Ralston was the picture, as he sat at his desk, of a successful and cautious, yet liberal banker. His long experience had made him an excellent judge of the mercantile community, and he could be quick about making a loan or refusing it. "How much do you want?" said Ralston. "Don't know," answered Keene, "can't tell [124] Stock and Exchange Board the exact amount, but would like to commence buying now." "Well," said Ralston, "you draw your checks and I will tell you when to stop." It is said Keene drew $1,300,000 before he was halted. Keene was not always a winner. While ill at home on one occasion the stock market had a severe relapse, stocks breaking badly. Keene rose from bed and hurried to the Board with his partner, John W. Coleman. The appearance of things was not of such a nature as to put health into a sick man, and they soon left the Board room. It is said his stocks had shrunk one million in value at the time. But that was incidental to the business; in a short time stocks recovered and all were happy again. Keene had very little money when he began business as a mining broker, but rapidly be- came very prominent. He was employed for a time as a street broker, receiving many orders from Burling & Co., then a great firm. In 1869 Charles N. Felton loaned him the seat to which he was elected, his partner being George I. Ives, a relative of Felton. In 1870 Keene bought a seat on which Ives was elected, thus settling the loan. Probably no active broker has ever shown so great a genius in speculation as Mr. Keene. In all the big deals Anecdotes he was quite prominent. Yellow Jacket, Cen- History of the Sanfrancisco Anecdotes tral No. 2, Consolidated Virginia, California and Ophir all helped to swell his bank account. He was a large holder in the new Bank of California stock. In addition to Coleman, he was at one time connected with Henry Wil- liams and afterwards with E. F. Hall. He left for New York in 1876 and for 30 years has been one of the prominent figures in the New York stock market. He was re- puted to be worth $5,000,000 when he left Cali- fornia. To show how quickly Keene could detect an order, let me relate an incident. Mr. Flood, at times, found it to his advantage to employ other than his regular well-known brokers. Mr. B. F. Sherwood was known to be Sharon's confidential broker. Mr. Flood met me on California street and asked me to tell Sher- wood to meet him at a designated place. In the Board that afternoon, Sherwood began executing an order on one of Flood's well- known stocks. Keene was on his feet instantly, buying the stock, when Sherwood stopped buy- ing and sat down. Keene commenced writing down his purchases with the remark: "Hello, what's up, a nigger in the fence?" After the Board Sherwood related the incident to me, speaking in high praise of the power of dis- cernment that Keene always displayed in times of emergency. [126] Stock and Exchange Board 2 Horace L. Hill joined the Board in 1867, purchasing the seat of Harry C. Logan, and was a member of the firm of Hill & Kilgour. By strict adherence to business the firm be- came quite wealthy, and dissolved in 1879. Mr. Hill was of a stout, round form, about five feet ten inches in height, full beard, a happy, jolly temperament, and quick in de- cision in transactions in the Board. He owned a dwelling house and lot on Bush street, up about Mason. Keene wanted to buy the prop- erty, and they were getting closer and closer to the price, when, one morning, suddenly, Keene wrote on the margin of a newspaper the price he would finally pay. Hill looked at it, said "sold," and the transaction was closed. 3 Col. E. E. Eyre and John W. Coleman were intimate companions. Eyre was a Southerner, and when called upon could show the proper kind of spirit a gentleman should always possess. He had lived in Sacramento in early years, and in 1864-1867 was a mining broker in Virginia City, Nevada, joining the San Francisco Stock and Exchange Board in the latter year, and residing in San Francisco. In the great Bonanza deal he was the broker- Anecdotes in-chief to the firm of Flood & O'Brien, History of the Sanfhmdsco Anecdotes handling their many transactions with fine business acumen. From the sum total of his operations he amassed a large fortune and re- tired about 1880. Coleman was a Kentuckian. He had a full beard extending down his ci:est, was of a genial disposition and backed by a host of friends. He had been connected with the Western Union Telegraph Company and served as president of the Board for two years, our fine Pine street building being erected during his administration. He had been a partner and joint operator with Keene, thus amassing a large fortune early. Eyre always drank whiskey, while Coleman's favorite was brandy. Nothing could induce either to change his beverage. One day, with several younger brokers, they went to the Pantheon. On the way Coleman and Eyre were discussing a matter upon which they dif- fered, and the discussion becoming heated, con- tinued even when their refreshments were fur- nished. Some of the wags, noticing the abstraction of the pair, deliberately changed their glasses and called to them to "take their medicine." They swallowed the contents of the glasses, continued the discussion up the street and never knew of the little joke. MORAL All alcohol has, more or less, the same taste. [128] awaax acur is he amassed a large fortune and re ut 1880. an was a Kentuckian. He 1 down - 1, was of friends. He \x/v s drank whisKey, wniic v/oic, ite was brandy. Nothing could indue either to change his beverage. One day, wit! younger brokers, they went to th On the way Coleman anc they dil and never knev e joke. MORAL All alcohol has, more or I JAMES R. KEENE Stock and Exchange Board 4 Every one on the Pacific Coast has heard of Fulton G. Berry, a man with so happy a dis- position that fun and frolic continually crop out in his company. At this time a six-footer, with yellowish hair and full beard, Berry could assume the gravest face in the midst of a side- breaking joke. Baron F. E. Wilke was not far behind Berry in a merry disposition. A German, with a round, laughing face, spectacles and an enor- mous mustache, he could give and take in jokes with any one. These gentlemen assisted in making life very agreeable in the Board during dull seasons. Mark L. McDonald was six feet four inches high, towering over all in the turmoil of the ring. A Kentuckian, with sandy hair and a full beard, with blue eyes, he was a handsome man and a power in the Board. Our seats in those days, 1876, had been changed to chairs, with a box under the seat for one's hat. Fult. Berry never used his hat box, so Mark L. McDonald would place his hat there for safe keeping. McDonald had been presented with a $16 silk hat by an enthusiastic client, and, unfortunately, brought it to the Board and placed it as usual in Fult. Berry's box for safe keeping, after the members had Anecdotes sufficiently admired it. Wilke and Berry joked [ 129] History of the, Sanfrancisco about it and arranged that an old silk hat should be placed on Berry's seat, that Berry should return, abstractedly sit down, crush it, and members should call McDonald's attention to it, intimating that it was the brand new $16 hat. Somehow or other, while Wilke and Berry were away, the hats were changed, the old one placed under the chair and the new $16 hat on the seat. In the midst of these arrangements, back came Berry, sat down, and on rising, lo and behold, there was McDonald's $16 hat crushed out of recognition. It looked like a scrap for a minute, but the apologies of Berry and Wilke were so sincere and genuine that McDonald could not but accept them, and, finally, himself sat down on Wilke's silk hat, and the incident closed. Anecdotes Jack McKenty could joke and laugh and have a good time, especially with such fun makers as Berry and Wilke. McKenty was small in stature, hair all over his face, thick in spots; loved a good dinner, with a bottle of wine, better than the rest of us, and was a constant frequenter of Martin's celebrated restaurant on Commercial street. He had a quick, short speech, clipping words in his haste to express himself. He would always make a bet or sell a privilege. While [130] Stock and Exchange Board in Virginia he was endeavoring to buy the dividends on a certain stock from the dignified agent of Wells, Fargo & Co., Mr. James H. Latham. The last named would not sell the dividends, nor buy a privilege, nor make any transaction that was not legitimate. After re- peatedly failing to get a trade from Latham, McKenty noticed three pigeons in a line on C street, in front of the bank, and offered to bet Latham that the nearest pigeon would fly first. "I never bet on pigeons," was the answer of the dignified manager. "Well, I will bet you the last one flies first." "I never bet on pigeons, Mr. McKenty." "I will bet you the middle one flies first." "I never bet on pigeons, Mr. McKenty." "Why, what is the matter with you, Latham," said McKenty, "you won't trade at all. I will bet you they don't fly at all." 6 Sam Franks tells this story: While stocks were quite low during a dull spell in 1873, a discovery of ore was made in Ophir, the stock advancing in price. It was the policy of those in control of a Comstock mine to keep secret any improvement until they could secure for themselves a good quantity of the stock. Budd heard of this Ophir discovery and Anecdotes bought some stock, and, as the price advanced History of the SanFranctsco Anecdotes more purchased in all 2500 shares. As the stock still advanced to higher figures he sold about 1500 shares, leaving him a balance of 1000 shares when the stock reached $82, which would have given him quite a large profit if all were sold at that fig- ure. During the recess that day he determined to sell the remainder, which would give him quite a profit. The afternoon session was devoted to the calling of outside stocks, occupying half an hour, after which the members could call up, through the chairman, any of the Comstock shares. Budd, thinking he had time sufficient, during that first half hour, to get shaved, sat down in a barber's chair, and, being quite flush, gave the barber $5, directing him to give him a good shave. It turned out to be too good a shave, as Budd went to sleep, and the bar- ber, being well paid, devoted quite a time in making his customer appear respectable. Budd woke up, looked at his watch and made a rush for the Board. He ascertained that Ophir had been called and had broken so badly that when his stock was sold he only obtained $40 a share for it. He always claimed that that shave cost him just $40,000. Stock and Exchange Board 7 Sometimes it pays to go to sleep. Louis Eppinger kept a bar on Halleck street, just below Leidesdorff. He was very popular, and a genial, jolly barkeeper, holding your at- tention while preparing a mixed drink. In his white coat, with his bullet-shaped head, with little hair on the top, and a black mustache, always laughing and telling a joke, he appeared to be just the man to succeed in keeping a bar. Unfortunately, he spent all of his profits gam- bling in stocks, generally on the wrong side. He gave an order to buy 1000 Ophir, the stock selling at about $54. The stock was bid up to $56, when W. H. Wright, one of the shrewdest of operators, sold 400 shares, and then imparted the intelligence to a young broker, who sold the other 600 shares. The next morning came the news of a big fire in Virginia City, all stocks breaking in price, Ophir among the rest. Wright is a safe opera- tor and bought back the 400 Ophir too quickly, as it kept on declining. The young broker had sold short the 600 shares mentioned, and had indulged in what is technically termed a bat, not arriving at the Board until about one o'clock in the afternoon, at which time Ophir was selling at $37. He purchased the 600 shares at the lowest price, realizing nearly Anecdotes $12,000 on the transaction. [133] History of the SanRvncisco Anecdotes 8 Will some old Californian kindly brush up his memory and inform us of the name of this person and of the name of the stock he pur- chased? It was well known among us, in the great market, that a San Franciscan bought some stock, locked it in his box, and said to a friend : "I leave for China on the steamer today. Should there be a profit in that stock I pur- chased, sell it for me." The gentleman left for China, and the stock advanced. In trying to sell the stock the friend ascertained that the traveler had the key to his box, so that the stock could not be obtained. Telegrams did not reach the traveler, who eventually returned and inquired about the sale, if any. He was told that his stock was still hidden away and selling at a higher price than ever. The sales were made, and the profits amounted up into the hundreds of thou- sands of dollars. 9 Mr. B. F. Sherwood had been connected with the house of Stout & Dickinson, bankers and brokers, in New York City before arriving in California. He was of a quiet disposition, affable and courteous in conversation, of medium stature, compact frame, iron gray hair and mustache. [134] Stock and Exchange Board He opened an office as a broker in Virginia City in 1867, remaining but a year, and returned to San Francisco, again entering the Board. As a broker he early obtained the friendship and confidence of a number of the large opera- tors, and in Virginia City and San Francisco had executed large orders for Mr. William Sharon. He was much interested in the Young Men's Christian Association, being at one time its treasurer, two or three of us becoming life members at his solicitation. Being known as Sharon's broker it was at times difficult for him to execute the large orders given by that gentleman, and for this reason he would employ his brother brokers. Whenever the market became dull, so that neither operators nor speculating brokers were active, Mr. Sharon would give Mr. Sherwood a large selling order that would be termed a "settler." Occasionally, such an order would be to sell 2000 shares of six or seven of the principal stocks, the result being to break the prices of everything on the list, and thus in- duce all speculators to buy at what would be deemed low prices. A break in prices from $3 to $10 a share in Ophir, Chollar, Belcher, Crown Point, Yellow Jacket, Savage or Over- man would turn the whole street into buyers, Anecdotes in which case prices would rise again, when [135] History of the SanFraneisco all the stock purchased could be sold at a profit. On one occasion, after I had joined Sher- wood as a partner in 1875, we received a large order to buy Yellow Jacket. The closing price at the previous session had been $112 a share. We felt quite sure that the stock would sell as high as $120 on the call, but how were we to fill our large buying order without advancing the price above that figure. Sherwood sug- gested that I should buy quickly all the stock obtainable up to $116, rush it to $120, and then subside into my seat. This was done, and more stock being offered at $120 with no buyers, the price rapidly declined to $117, when Sherwood, in his quiet way, bought all the stock offered and bid it back again to $120. After the call we congratulated each other on filling our large buying order with a rise in the price of only $8 a share. Anecdotes IO In the early days of San Francisco the ma- jority of its citizens were of a speculative dis- position. They would take any stocks then in existence, would purchase merchandise that sold at ruinous prices at public auction, or would buy 50 vara lots, and sell them at an advance. My friend George Wright was of this class, speculating in this manner to his Stock andExdtangeBoard advantage. He was associated with his father in a steamboat line between San Francisco and Portland. George generally had several hun- dred shares of the Comstock mines in his bank box. As we knew him later on in the Bohemian Club, he was of medium height, with grayish brown hair and mustache, high forehead, and a constant smoker. One morning, in the early fifties, on entering the business portion of the city, he met a friend, and together they entered an auctioneer's of- fice, where an extensive sale was taking place. While conversing with his friend, he caught the eye of the auctioneer, and bowing pleasantly to him, continued his conversation. The next day the collector of the establishment called and presented a bill for $2500. To his astonishment he ascertained that in bowing to the auctioneer the previous day, his greeting was taken as a bid for merchandise then being sold, and the goods knocked down to him. His bill showed that he had purchased a cargo of tacks at an exceedingly low price, something like a cent a paper. As every gen- tleman was expected to keep his word in those days, George made no fuss about the purchase, gave his check for the amount, and sat down to ponder over the purchase. He soon arrived at a decision and rented a Anecdotes small vacant house. It possessed one room, History of the Sanfrcrndsco Anecdotes with shelves around the walls, placed there for the disposition of goods to be sold. Draymen began delivering the tacks, and Wright's as- sistants commenced placing them in position on the shelves. Wanting more room, addi- tional rows of shelves were erected in the cen- ter of the establishment, which were soon filled, and when the final load of tacks arrived there was no place for them. Luckily, the help found a trap door, which, when opened, exposed a capacious cellar, where the last of the tacks were stored. Unfortunately for George he became ill at this juncture with the prevailing disease of fever and ague, a sickness which makes one regardless of whether school keeps or not. Wright was compelled to discharge his clerks, lock and bolt the doors and windows, and seek a healthy retreat in the mountains. Being young, vigorous and of a good constitution, by careful nursing, in a few weeks his health was so far restored that he ventured back to the city to see about those tacks. On arriving, he learned that a great fire had occurred, destroying a large portion of the city. The citizens were building frame houses, and in their haste were adorning their walls with cloth and paper instead of plaster, and the supply of tacks was exhausted. Fortunately, his store was one of the few Stock andExchangeBoard saved from the fire. His former clerks came to his assistance, the store was reopened, posters told the citizens where tacks could be found, and there was a consequent rush for George Wright's store. The high price de- manded for a paper of tacks was readily paid during the first few days, and, as the supply decreased, the price was advanced. In narrating this story in the old Bohemian Club rooms on Pine street, Col. John Cremony would state the price of tacks at $i, then $1.50, then $2 a paper, George standing by and nod- ding acquiescence ; but when the Colonel would get tacks up to $4 a paper, our friend George would walk into the other room and begin a conversation with old Parker, the steward. We could not ascertain whether this was a diplo- matic evasion or not, but we all enjoyed the story. I would like to narrate the other old Bohemian Club stories of the Reform Whiskey, Charley Scudder's Dinner, and the Great Wake, but must desist, as this is a chapter on stocks. Should you like to hear them, ask Nat Brittan. II A "Sending Blank" is the technical term used by the Western Union Telegraph Com- Anecdotes pany for those blanks upon which we write a [ 139 ] History of the Sanfrancisco Anecdotes I" telegram. A "Receiving Blank" is the term the same company uses for those blanks upon which they write the words of a telegram addressed to us from some distant point. All of us retain a number of the sending blanks in our office, ready for instant use. Certainly, the telegraph company should take especial care that those receiving blanks, with the envelope in which the telegram is enclosed, should never be in the possession of any one outside of their office. A week after the departure of my partner, Mr. Sherwood, for New York, in 1875, the junior partner, Mr. Wade, came to me with a troubled look. He had just read in the morning paper that Pete Hopkins of the Grand Hotel had been the victim of a confidence operator, and that, possibly, our firm had been victimized also. It happened that the previous morning those clerks arriving the earliest at the office had found a telegram pushed under our front door. This fact alone should have excited suspicion, but in the hurry of business was forgotten. The despatch purported to be from Mr. Sherwood, on his arrival in New York, stating that he had bought a piano of Matthias Gray for about $600, had forgotten to pay for it, and directing the office to attend to it. Wade said that a man, ostensibly a collector Stock and Exchange Board for Matthias Gray, on the day the telegram arrived, presented a bill for $580 for a piano, written on the regular bill head account paper of Matthias Gray, and that he had given him a check for the same, payable to Mr. Gray. He was now convinced that the whole thing was a swindle and that Sherwood never bought the piano. We sent one clerk to the bank for the check, and another to the police department, requesting Captain Lees to kindly call at the office on a matter of importance. When Captain Lees arrived and heard the story, his only observation was: "Go into the bank and tell Brown." When Mr. Thomas Brown, cashier of the bank, heard of our trou- ble, his remark was : "Go and see Sharon." While being hustled around in this manner, from one to another, our $580 looked farther off than ever. But I knew something definite would be learned from Senator Sharon. That gentleman listened patiently to the story with a smile around his lips, and when all was told remarked: "And so they got you, too, did they?" He showed me a telegram purporting to have been sent by Senator Jones, asking him to pay a bill at Colonel Andrews, the jeweler, for $600 for diamonds purchased. The senator also stated that Keene had been caught for $600, and he thought we were all in Anecdotes for it. [141] "L\ c History of the, Sanfrandsco How many more were caught I never heard, but I have always felt an interest in that $600 chap, who caught us all in this bold way, and got away with the goods. Years afterwards Captain Lees told me he knew the man was in Idaho and that he could lay his hands on him at any time, but that it would cost more than $600 to have him brought here, and so the matter was dropped. Should this ever meet the eye of that $600 man, I only hope he has turned over a new leaf in life and tried to become an honorable man, in which case he is welcome to my $600. Anecdotes 12 In an active market, when prices are soar- ing, orders continually coming in, and members are buying before the call of stocks, during the call, and for hours after the regular session is over, brokers are generally keyed up to a high, exciting pitch. When a dull spell arrives, ex- citement finds vent in all manner of fun. I had purchased a small farm in Sonoma Valley in 1877, and one day injudiciously re- marked that rabbits should be a profitable in- vestment on a farm. From this arose all man- ner of stories about the farm being stocked with rabbits, my brother brokers inventing many ingenious remarks concerning the rais- ing of rabbits, and even one of the newspapers, Stock and Exchange Board the Stock Exchange, published four columns about the enterprise, stating that Col. Mark L. McDonald was becoming interested and would stock his Santa Rosa farm with an improved breed. It is needless to mention that I never had a rabbit on my farm, but they fixed it up one day in the Board for my benefit, all right, all right. Our chairs contained a hat box below the seat, sufficiently large to hold a high silk hat. Arriving in the Board one morning, just before the call, I sat down and hastily pulled out the hat box in order to place my hat safely away, when out jumped the largest jack rabbit ever seen in the city. The few in the secret had been patiently waiting for the incident, and the minute that rabbit struck the floor, the shout that went up could have been heard a block off, and so scared that jack rabbit that he darted through an open space for the ros- trum, the entire crowd of brokers rushing after him. The fugitive ran this way and then that way, and then laying his long ears horizontally down his back, made several of those long 12- foot jumps that only a scared rabbit can make, finally landing under the chairs on the side of the room. The whole crowd ran pell-mell after him, losing their hats, pencils, order books, and Anecdotes one fine old gentleman lost his wig, but Mr. [143] History of the Sanfrcmclsco Anecdotes 'Bunny was off again, running through the crowd. They tripped and fell on the floor, up and off again, yelling like mad people, crying out: "Catch the rabbit." The lobby joined in the yelling, crowded around the rail and urged the brokers on. When the crowd in chase would arrive at one side of the room, two jumps would place bunny in safety on the other side. Sitting up and aggravatingly lifting his ears, turning his head just a trifle on one side, he was calmly indifferent to the approaching, rushing mob. With outstretched hands, brokers were sure now they had him, when one side jump would place jack again in safety. To witness the members of the great San Francisco Stock Exchange, at that time the wealthiest and most dignified body of men on the Pacific Coast, racing around a yo-foot room trying to catch a runaway jack rabbit well, had you been there, your sides would have ached with laughter. Poor bunny was finally hedged in a corner and caught. Brokers are humane beings after all, and when bunny finally gave up the ghost some time after, it was not at the hands of the brokers. 13 Among the active members in 1876 was a young Englishman, Thomas T. Atkinson, a [144] Stock and Exchange Board man of medium stature, with light hair and mustache, florid complexion and blue eyes, rather stout, and of a very pleasant disposi- tion. When Mr. Atkinson entered the Board room, fresh from the barber's chair, he became the center of attraction. On one occasion, after a recent visit to the barber's, he appeared among us handsomely decorated, with his fine mustache waxed at the ends and protruding some distance from either cheek. Mr. A. F. Coffin became quite jealous of the handsome broker, and borrowing a pair of scissors from Sammy Dixon, attempted to clip off one of the ends of Atkinson's mustache. Unfortunately, his victim advanced his head unknowingly towards the scissors, and the clip took off the entire end of the mustache, without the pos- sessor being aware of the loss. The smiles of his brother members caused him to feel, to see if everything was all right, and, on ascertaining his loss, the air became blue with exclamations of rage and otherwise. Our friend Atkinson again became a victim of the fun-loving brokers. A large $250 rug was purchased and placed on the floor, ostensi- bly to improve the acoustics of the room. Busi- ness was dull and the members stationed them- selves around the four sides of the rug with malicious intent. At this juncture Mr. Atkin- Anecdotes son appeared in the room, looking handsomer EMS] History of the Sanfrandsco than ever, and innocently approached the crowd to ascertain what was going on. In an instant he lost his hat which was shied to the middle of the rug. He jumped in to recover his hat, which action was all that was needed. The ready hands of his brother members lifted the rug from the floor; the victim lost his balance and fell at full length on the rug. He was tossed up and down, carried to the rostrum and around the room, vainly endeavoring to extri- cate himself, until finally he was carried to the middle of the room, the four sides and ends of the rug heaped upon him, and he was hidden from view. After the lapse of a few moments his frantic struggles released him, and on look- ing around to pounce upon some one culprit, he found all the brokers sitting in their chairs, each earnestly discussing some important mat- ter with his neighbor. Anecdotes 14 One holiday we gathered on California street in front of the Board and on the steps leading to the office of James H. Latham & Co. Early in the morning Consolidated Vir- ginia sold at $600 a share ; it became stronger, sold higher, $610, $620, $650, and as we left the street in the afternoon it was selling at $700 a share a rise of $100 a share made on the street without a Board to help us. Stock and Exchange Board One of our brokers, a winner in the deal, was seen escorting two ladies up Market street, but declined to notice a brother broker, who soon ascertained that the trio were about to visit a restaurant where the latter usually dined. He managed to be placed in the next box to them. The gallant broker lisped a trifle in con- versation, and, addressing his ladies, was heard to say: "Well, what will you take? I thall order a glath of pie and a pieth of milk." The suggested meal was too economical for his guests, who ordered oysters, etc. The story was all over the Board the next day. 15 E. J. de Santa Marina came from New Or- leans. His complexion was quite dark, and he had black curly hair. He was honest and straightforward in his business transactions. He entered the firm of Glazier & Co. on the departure of William Seligsberg. Marina ac- quired a fortune of about $750,000, it was thought, and retired in 1876. Marina could do the right thing when called upon. He was out of order one day and was fined $2.50. Resenting this action of Mr. Coit, the chairman, he continued to offend and was fined $10, $20, $50, when he stopped. As the Board closed he asked for the floor, and in a beautiful little speech, admirably worded, ex- [147] Anecdotes History of the Sanfraneisco Anecdotes pressed his regrets for his conduct, was ap- plauded by the Board, and the fines were re- mitted. 16 Mr. A. H. Lissak, a dignified member, a well-read man, an excellent reasoner, the ablest member of the Board, was standing talk- ing to other members during a call of stocks. Budd had obtained from the California Street Market the largest frog ever seen here a prize frog. The coat tails of Lissak's frock coat were gently raised, his handkerchief abstracted and the prize frog gently deposited in its place. One of the members asked Lissak for his hand- kerchief. Lissak put his hand in his pocket, felt the cold, clammy frog, quickly threw off his coat and sat down. Horrible, was it not? The frog was regained, the coat restored and peace came again. Mr. Lissak was an able reasoner, could al- ways express himself well when called upon, and was termed the "Father of the Constitu- tion." Many of the articles in the old Consti- tution and By-Laws were framed by Mr. Lissak, and he was always called upon to ex- plain a doubtful meaning in any clause. He was the president of the Ophir Mining Com- pany, when that stock soared to high figures in Bonanza times. Stock and Exchange Board 17 M. D. Townsend was not a member, but a large operator, at one time quite wealthy. He controlled a number of the listed mines. His six-foot figure could always be seen during street transactions, his long arms swinging in connection with each bid and offer. Mr. Townsend had 500 California and 500 Consolidated Virginia. He preferred to sell it on the street himself, a little each day. He took a week to sell it all, trying to obtain the highest price for a part of it. It all sold above $600. 18 A client called at the office one day, saying to me : "Let us go to the Pantheon for a glass of wine." On the way there an order was given, which I wrote on my left cuff. When executed the order amounted to over $200,000. 19 Coll Deane was an energetic, spirited broker, and a large operator in addition to his regular commission business. At times, when excited on the call of a stock, his transactions would make the market price for the day. A trifle above the average height, with large head, and hair well brushed back, he showed determination in eyes and mouth, while on the floor buying or selling a stock. While uncon- Anecdotes History of the SanErmctsco scious of the fact, he was certainly the feature of the Board for the time being. He was always regarded as one of the most honorable men connected with the business. When the American stock broke from $20 to fifty cents, he called to the office those friends and clients to whom he had recommended the purchase of the stock, and gave each of them a check, at the high price they had paid, and received their stock. St. Helena, and recommended the purchase of its shares to his friends. Unfortunately, it did not prove to be a success. Again, he called in all to whom he had recommended the stock, and paid them the high price it had cost them. 20 Judge Thomas Sunderland wanted $100 ; the banks were closed and the judge was about to draw a check, when John M. Burtsell gave him He placed on the Board a stock called the the $100 for the privilege of delivering to him 100 California at $600 in 30 days. The market broke badly ; Burtsell won, Sunderland lost. Anecdotes 21 Jacob Greenebaum was a brother-in-law to Louis Sloss and Lewis Gerstle. He had been engaged in mercantile business, but the excit- ing nature of the stock business was too attrac- [150] Stock and Exchange Board tive to one of his nature, and he became a mem- ber in March, 1875, buying the seat of Minor S. Martin for $30,000. In the rise in values in 1886, Greenebaum & Strauss suspended, their losses arising princi- pally from a Virginia City firm. Although the seat was worth but $5,000, the firm promptly and honorably met all obligations, amounting to $350,000 a splendid record for the firm and for the Board. 22 Calaghan & Lynch failed for $1,000,000 about 1877. Lynch continued in business. In 1878 the Sierra Nevada and Union deal occurred. Sierra Nevada rose from $5 to $280, and Union went as high as $200. Lynch had purchased some low priced Sierra Nevada, and as it jumped to $90, bought more. It broke in one day from $90 to $45, and again he had lost more than all. A member kindly carried his high-priced stock over for 24 hours. The stock rallied and still went higher. Our friend was saved, and eventually sold at such figures that he placed his profits in real estate, and traveled to Europe and Egypt, where he could purchase a "glath of pie and pieth of milk" cheaper than in San Francisco. He wrote a book on Egypt, which was very favorably received among emi- nent literary men, particularly so in England. Anecdotes History of the SanFrandsco Anecdotes 23 While the secretary was reading the record at a morning session, one of the pages brought in an immense bouquet and presented it to Robert F. Rogers, one of our handsomest mem- bers. He instantly arose amidst the plaudits of the Board and accepted the present, the members vociferating: "Who is she, who is she?" As the noise subsided, the secretary, in continuing, called out the name "Julia" (one of the stocks). It was so apropos that the shouts of hilarity were renewed. 24 Richard C. Hooker, a graduate at Annapolis, resigned the position of Lieutenant Com- mander in the Navy to enter the Board. He was one of the extra twenty members elected June, 1875, paying $25,000 for a seat. He was a splendidly educated man, and for years we held his opinion on many national matters in high esteem. Hooker failed in 1886. On approaching his office the next morning a dissatisfied client pre- sented a pistol at him, saying if he did not immediately pay him he would kill him. Hooker instantly opened his coat and vest, and baring his breast to the irate individual, said: "That's the best way out of it; kill me if you want to." Nothing done. [152] Stock and Exchange Board 25 In the early days in Virginia City, when operators sold their stock they invariably in- vested the proceeds in San Francisco real es- tate. Thus the Comstock Lode was the greatest factor in upbuilding San Francisco. It is needless to mention the many solid build- ings which adorned our city, all owned by wealthy mining operators. They were also large holders of bank stock, also of Spring Valley Water and San Francisco Gas. 26 It was reported that Coll Deane bought of James R. Keene 1000 Consolidated Virginia at $800, buyer ninety, and it was thought and be- lieved at the time that the stock would reach $3000 a share. Residents of Virginia City would visit the Board and give glowing de- scriptions of the development, but the great price expected never arrived. 27 Wayman C. Budd had lived in Sacramento and joined the Board in 1862-1863, probably one of the second forty members. He was about 5 feet 8 inches high, with a bullet shaped head on which it was difficult to find any hair except around his ears; jolly, and, when not Anecdotes busy, his face was continually illuminated by a History of the SanFhmdsca Anecdotes smile. Budd was always speculating, like many other members, sometimes with thousands on hand, at other times "grass very short." Budd rarely smoked. After a session he met Keene and myself on the street. He was smok- ing a cigar at least six inches long. Keene was a keen observer ; nothing escaped him. He said to Budd: "You made some money today; how much did you make?" Budd's answer was: "$8,ooo ; I had to make it; I owed it." "But how did you do it?" On the road to the Pantheon, and while a quart bottle was being opened, Budd explained the modus operandi, what he bought, how he raised the stock by orders to other brokers, and how he sold, and then looked at us with that satisfied air that beams from the eyes of every man who, being in debt, has by his own exertions raised the money to pay his obligation. 28 Budd's fines were severe at times, as were those of other members, and when we were making money were generally disregarded until the end of the month, when the bills came in. Budd approached Coit one day with his bill of fines for the previous month, which amounted to $1,200. He told the chairman he could not pay it. Coit reduced it to $50, and Budd behaved himself for a while. Stock and Exchange Board 29 In early days, in the 'yos, quite a number of operators would gather together in Cahill's office on Montgomery street, near California. Among them were Mr. James C. Flood and Mr. Robert Sherwood. Sherwood had 1000 Consolidated Virginia, the stock selling at about $100. One day Sherwood, on looking at the prices, remarked that he was getting tired of that Consolidated Virginia; it did not move much. Mr. Flood said : "What are you growl- ing about? If you are tired of that stock I will take it off your hands at $100." "Sold," said Sherwood, and the stock changed hands. In course of time the Nevada Bank building was erected on the corner of Pine and Mont- gomery streets. On meeting Sherwood one day, Mr. Flood remarked : "We built that Ne- vada Block on the profits of that 1000 shares of Consolidated Virginia you sold us." Subsequently, in the Sierra Nevada and Union deal, Mr. Flood approached Sherwood on the street and bought from him 5000 Union at $200 a share, the transaction footing up $1,000,000. Sherwood built the Union Block, on the gore corner of Pine, Davis and Market streets. Meeting Flood one day, he remarked, "I built that Union Block with the profits on that 5000 Anecdotes Union I sold you." [155] History of the Sanfrandsco 30 General George S. Dodge had served in the Civil War with distinction. Kind and affable to acquaintances, he rapidly formed friendships with the greatest operators. He was quite a trader, with large accounts at the brokers' offices. He met a friend on the street and said: "Alvinza Hayward is a fine man." "Why," he was asked. He said: "A draft was presented to me at the bank this morning and I was wondering where I would get the money to pay it. Meeting Hayward on the street just now, we chatted for a moment, shook hands and parted. Then he returned, saying: 'Oh, by the way, I heard at the bank this morning that you needed some money, and I have just left $10,000 to your credit.' Hand- somely done, was it not?" Anecdotes Archie Borland was a miner, a good expert, and having acquired quite a large fortune, was a large trader. Of average height, yellow hair, turning gray, rather stout and of an exceed- ingly pleasant temperament, he formed strong friendships among the members of the Board. He made this prophecy when the lower levels were allowed to fill with water : "It will take as many years to pump out the water as the number of years they allow it to fill up." [156] Stock andExdiangeBoard Pumping stopped in 1885. Pumping was re- sumed in 1898, after 13 years of inaction. In 1909, eleven years have gone since pumping was resumed. Will they pump all the water out in the next two years? 32 George W. Smiley hd been an auctioneer and joined the Board in 1866. Six feet high, with long black whiskers and mustache, chin always shaved; he was considered the hand- somest of all the members. He executed orders for Gen. R. F. Morrow before the last named joined the Board. Mr. Morrow was allowed to place a small stool at the side of Smiley's desk, giving orders on the spot. Mr. Smiley served as caller in 1867, when President Cavallier ceased calling the stocks. Smiley resigned his position in the fall of 1869, and resumed business as an active broker. From his long experienced as an auctioneer, Mr. Smiley's knowledge of the standing of business men in San Francisco was such that he was often consulted by Mr. Ralston, when applications for large sums of money were pre- sented at the bank. Smiley was seen figuring at his desk in the Board one day. Dropping his pencil and walk- ing over to the seat of a brother broker, he Anecdotes marked down the figures $470,000, saying: "If [157] History of the Sanfrancisca Anecdotes I sold today at these prices I would clean up that amount." 33 John Perry, Jr. Ever since I can remember anything in San Francisco, John Perry, Jr., was a broker. In 1855 he wore a silk hat, high, old- fashioned collar, well open in front, and the old-fashioned black stock around his neck and throat. All gentlemen dressed in like fashion in those days. In 1906, when our big earth- quake came, John Perry, Jr., wore the same style of silk hat, the same high-standing collar, open in front, and the same old black stock around the throat, and the fifty years did not seem to have made much difference in his ap- pearance. He looked almost the same, although at the latter date he was ninety years old. 34 Simon and Isaac Glazier, of the firm of Glazier & Co., were at one time the leading firm among the brokers. Simon Glazier was quite a slender man, but after leaving us and engaging in business in the New York Board, he grew quite stout. On meeting him in New York in 1899 he had changed so that it was difficult to recognize him. His brother, Isaac Glazier, joined the Board in 1874, taking the seat of his former [158] Stock and Exchange Board partner, William Seligsberg. He was of a kind, gentle disposition, and had the respect of all the members. Louis Sloss joined the Board in 1866, selling his seat in 1873 to J. William Brown. All early Californians recollect Mr. Sloss, a splendid type of the generous, liberal, openhanded, Cali- fornia Pioneer. Lewis Gerstle, a brother-in-law of Sloss, never joined the Board. He was known among business men as one who continually kept posted on local events and business matters, setting a fine example in these matters to his younger acquaintances, to whom he was always ready as an advisor and helper. Glazier & Co. had an immense business, with many of San Francisco's wealthiest men on their ledger. Sloss and Gerstle, in the Alaska trade, determined to stop speculating in mining stocks, and for many months paid no atten- tion to the Board, and attended exclusively to their business, becoming very wealthy. Glazier & Co. finally induced them to enter into the Sierra Nevada deal, and they bought at rather high figures, when it was thought Sierra Ne- vada would develop a great bonanza. The speculators, in this instance, were not required to advance any money, Glazier carrying their stock for them. Finally, the expected develop- Anecdotes ment did not materialize and the stock dropped. [159] History of the Santraneisco Anecdotes Instructions had been given to Glazier, by Sloss and Gerstle, to send no accounts or notices to their office, as the transaction was to be kept a secret. The stock did not advance again and they ordered it sold. Inquiring at the office for their bill, they found they were a loser over $100,000, which was promptly paid. They were so wealthy, however, that, in telling the story, they regarded it as a great joke. 35 We had a military man in the Board also, Mr. Charles W. Bonynge. As a speculator he was in the same class with Keene impulsive, daring, and best of all, successful. Bonynge was a born horseman and would spend days in a journey on horseback. He was of medium size, his once black hair and whiskers turning white. We have always understood that Bonynge was one of England's immortal six hundred which made the grand cavalry charge at the battle of Balaklava in the Crimean War. His- tory says there were 150 survivors of that slaughter. Bonynge, like a true military hero, would never more than mention the event. He was a great student of horticulture. He was a broker in Virginia City from 1864 to 1870, joining the Board in the latter year, buying the seat of Andrew Jackson Moulder. [160] Stock and Exchange Board He amassed a large fortune and is now living in London, with the highest of nobility and royalty itself as his guests on special oc- casions. 36 Mr. J. B. E. Cavallier was a charter mem- ber and first president, holding this office for the first ten years of the Board's existence. No man stood higher among the early mem- bers than Mr. Cavallier. Born in France, he found his way to California in the fifties. One of the duties devolving upon the presi- dent was to call the list of stocks at Board sessions, and the actions and decisions of Mr. Cavallier have been followed by all the suc- ceeding callers and chairmen. While Cavallier was in the chair one day he made a ruling in which Mr. Jackson Mc- Kenty did not thoroughly concur, whereupon Mr. McKenty tipped back his chair and drove out all the spare breath in his body in a pro- longed whistle. "Fine Mistaire McKenty fifty dollaire," said President Cavallier. This remark brought Mr. McKenty back into a respectful position. "What for?" he said. "Because you wheestle," said the president. "Why, no, I did not whistle," remarked McKenty. Leaning down Anecdotes over the rostrum, Cavallier remarked: "I bet [161] History of the, Sanfraneisco Anecdotes you fifty dollaire you wheestle." It was the only bet McKenty was ever known to refuse. 37 Henry Schmiedell, a charter member, was treasurer of the Board for twenty years. He was a great favorite, good-humoredly taking our jokes concerning his wig and approaching old age. He was a perfect gentleman, setting a fine example of deportment to the younger members. In our gardens and conservatories pinks are continually in bloom, and our friend, Mr. Schmiedell, always dressed in the height of fashion, and would invariably appear among us with a fine pink placed in the lapel of his coat. A tall, handsome man, with a florid com- plexion, he enjoyed so large a clientage that he was compelled to call upon other brokers to assist him in executing his orders. He re- tired early with a large fortune. The firm of Schmiedell, Hochstadter & Co. was known all over the Pacific Coast. The seat standing in the name of Henry Schmiedell is the one single seat that remained, without a change, from the organization of the Board until July, 1903, when the Board's Pine street building was sold and the proceeds divided among the members. This seat then returned to the Board. Stock and Exchange Board 5fe ^N ^ 38 In Bonanza days there were two newspapers specially devoted to stock transactions and news. Dick Wheeler was the original pro- prietor and editor of the "Stock Report." This paper was established about 1866, a sheet at first in fine type, thin paper, about a foot long. The rise in the prices of the stocks soon com- pelled Wheeler to enlarge his paper and con- duct it on modern journalistic principles. "The Stock Exchange," with D. M. Ver- denal as editor and proprietor, was established about 1872 and continued until the decline in the stock business caused its discontinuance. The "Stock Report" outlived its rival twenty years or more. 39 S. J. Sparrow, an Englishman, was a very early member. As yet we have the names of but 37 of the original forty members, and be- lieve that Mr. Sparrow's name should be placed among the missing three names. In the early days of the Board, the members were furnished at each session with a list of the stocks traded in, a column being placed for the prices and number of shares sold. This was prior to the issuance of a printed daily list. Mr. Sparrow had the credit of writing his Anecdotes list in the most comprehensive manner, in bet- History of the Sanfhmcisco members, and when inspection he took session of the Board was held April 7th, out of respect to his memory. 40 On July 22, 1873, James R. Keene, Henry Williams and John W. Coleman formed the co-partnership firm of Keene, Williams & Coleman. Each partner of this firm was worth more than $500,000. For some reason the firm soon dissolved. January 2, 1875, the firm of E. F. Hall & Co. was formed, consisting of E. F. Hall and James R. Keene. It was understood that Keene's capital in this firm was $300,000; that of Hall being $200,000. Another wealthy firm was that of Cheese- man, Head & Thornburgh, composed of Morton Cheeseman, A. E. Head and William Thornburgh, each rated at the time as worth more than half a million. 42 Anecdotes James H. Latham had a half million invested in his firm and enjoyed a very large business. [164] HOTAW38 .2 .U ,MAHTAJ .8 MOTJIM Sanfrandsco >-m thar i the members, and when 1 in his office for inspection he took great pride in its appearance. He died April 5, 1875, aged 50 years. No session of the Board was held April 7th, out of respect to his memory. January a, 1875, the firm of E. R Hall & Co. was formed, consisting of E. F. Hall and James R. Keene. It was understood that Keene's capital in this firm was $300,000 ; that of Hall being $200,000. . wealthy firm was that of Cheese- -- James H. Latham had a half million invested MILTON S. LATHAM, U. S. SENATOR Stock and Exchange Board James K. S. Latham and Homer S. King were connected with him. Mr. Latham had been the agent of Wells, Fargo & Co. in Virginia City, Nevada, in the palmy days of 1862-1872. He was a brother of Milton S. Latham, the latter having occupied the position of Governor of this State and afterwards United States Senator. Mr. James H. Latham had hosts of friends. He was of medium height, with thin, sandy hair and beard. His experience as a banker made him a good business man. He became quite wealthy in Virginia City, removing to San Francisco and opening an office as broker in 1873. His cousin, J. K. S. Latham, had been connected with the banking department of Wells, Fargo & Co. in San Francisco. Taller than his cousin, with black hair and beard, J. K. S. Latham was well known among our business men, and soon became connected with Mr. James H. Latham in his business as a broker. Homer S. King, another Wells, Fargo & Co. magnate, had occupied the position of cashier in the bank at Virginia City, and from the intimate relations always existing between them, was called by the Lathams into the firm to assist in their great and growing business. Homer S. King, on retiring from the Board, Anecdotes became president of the banking department [165] History of the Sanfhmcisco of Wells, Fargo & Co. in this city, and after- Wards became president of the Bank of Cali- fornia. He is of medium height, florid complexion, mustache now gray, and always commanded the attention of financiers on this Coast. 43 S. B. Boswell was another very wealthy broker, of magnificent physique, broad shoul- ders and large chest, with a voice that could be heard throughout the room. Anecdotes 44 H. H. Noble & Co., consisting of H. H. Noble and Henry Epstein, had a splendid business. One of their principal customers was E. J. Baldwin. Other prominent members of the Board in 1875 were: J. W. Brown Brooks & Lee William Burling W. C. Budd J. M. Burtsell E. E. Cahill Dr. C. W. Fox G. A. Coursen Child & Maguire Crocker & Gurnett Cope & Davis Williams, Deane & Co. Cantin & Everett Samuel Dixon Woods & Freeborn W. L. Duncan Greenebaum & Helbing Jos. Ford Welch & Herr J. R. Fitch Hale, Page & Wilson G. F. M. Glover [166] Stock and Exchange Board Cyrus Jones C. H. Hopkins J. H. Jones & Co. Hubbard & Johnson Kenney & Dyer Higgins & Conklin A. G. Kinsey Frank Hassey A. H. Lissak L. F. Loveland Harry Logan F. Lawton Callaghan & Lynch J. McKenty J. W. Mahoney, Jr. B. B. Rorke M. Jasper McDonald J. N. Vimont McDonald & Whitney H. Williams Parker & Fry Page & Eels J. C. Winans E. P. Peckham R. F. Rogers J. E. Shawhan J. M. Shotwell Geo. W. Smiley Traynor & Knox Chas. Stoutenborough Sig. Steinhart B. F. Sherwood & Co. Schmitt Bros. W. Turnbull F. E. Wilke L. A. Zinns J. D. Walker & Co. H. H. Scott L. T. Haggin H. Hart S. B. Wakefield Neal & Fry Geo. T. Marye, Jr. Marcus P. Hall Eugene E. Dewey Joseph L. King 45 Toward the close of 1875, as our business had increased to so great an extent, and as the narrow, straight aisle leading to the ros- trum could not hold all of us, while trading on an active stock, at an executive session, Mr. H. H. Noble suggested the idea that we re- move the cumbrous desks, and in their places put chairs, arranging them in an oval form, leaving a large space in the center where we Anecdotes History of the SanFhmdsca Anecdotes 'could congregate and be less crowded. In explaining the proposed change, Mr. Noble showed so much good sense that the Board made him a committee of one to perfect the improvement and gave him an unlimited order. The change was soon made and gave such great satisfaction that the Board has ever since retained this position for seats of its members, and we owe to Mr. Noble all our gratitude for the great convenience it has proven to be to the members. 46 Dr. C. W. Fox joined the Board about April, 1871, purchasing his seat from D. B. Rising. He had been connected with Edward Cahill for some time. About 1873 the firm was dis- solved and Dr. Fox opened an office for the transaction of business. He soon received heavy orders, not only in San Francisco, but from Virginia City, and his purchases and sales soon equaled those of any other broker. Always careful and attentive to business, he soon acquired a large fortune. After the 1885- 1886 deal he decided to discontinue active busi- ness, and though a member as late as 1904, and a regular attendant at the Board, he prob- ably attended from force of habit. At this date (Sept., 1909,) he is still in good health and living at San Jose. [168] Stock and Exchange Board 47 In stock deals the greatest speculation occurs in the mine where new developments are discovered, and also in adjoining proper- ties to which the development could extend. The uncertainty connected with ore develop- ment in adjoining mines is apt to make specu- lation more active in their shares. The development in Sierra Nevada in 1878 caused that stock and the stock of its neigh- bor, the Union, to advance. Sierra Nevada sold at $280 and Union at $200. Many members and many operators have at different times had control of these mines. Mark McDonald, John Skae, Flood & O'Brien, Robert F. Morrow, and others, have controlled Sierra Nevada. Patten controlled Union when the lower levels flooded and destroyed a $1,200,000 pump in the Union. The Sierra Nevada and Union deal is described elsewhere. Sierra Nevada's production is $1,035,000 Union's production is ........ 2,741,000 Ophir and Mexican generally advance to- gether. Mexican was once a portion of Ophir. It was a stock dividend declared by Ophir to its stockholders. The manipulators of Ophir have been numerous. In olden times an Ophir Anecdotes deal rejoiced the hearts of everybody. Any History of the Sanfrancisco Anecdotes person could make money in an Ophir deal, as the whole list sympathized with it. As it rose in value so did the entire list, and when it broke in price, down went everything with it. A. K. Lissak, Baldwin, Sharon, Flood and others have controlled Ophir. Flood and Sharon, at one time antagonistic, joined hands and bought together. Col. Eyre was Flood's broker, and I executed orders to some extent for Sharon. An order to buy was given to Col. Eyre, who, always courteous, always well bred, sent me the order to execute in the Board. The order was written on a small sheet: "Buy Ophir all day long at 45. Platt." Platt was clerk to Eyre. My clerks said the order was in the usual form sent out from Eyre's office and was correct. I went to the Board early, first ascertaining that the stock was selling at $39 in the Pacific Board. The stock came in readily before the Board and I purchased several thousand shares as high as $45 before the Board. All at once the idea struck me: "Is this order correct? You are making immense purchases on a clerk's order." I hesitated for a minute. Ehrlich was offering 400 shares at $45. I turned my back to look at the order again a little bit worried and met Col. Eyre's eye fastened on me. That was enough; I felt it was O. K. [170] Stock and Exchange Board Ehrlich had offered his 400 shares down to $43, and others were tumbling in trying to sell, as I had stopped buying. In a second I had bought Ehrlich's stock and several lots from others and had it back to $45 bid in a minute, clearing the floor of all $45 stock. In- stantly, several brokers were at my elbow congratulating me on what they considered an admirable method of executing the order, and giving me great credit. They did not know how scared I was for a minute, and were giving me credit for an action I did not deserve. But you can't explain your actions, nor speak at all about your orders. On the regular call I bought all stock offered at $45, and bought all day long. It was a pretty good order. I have narrated in another place the strug- gle between Sharon and Baldwin for the con- trol of Ophir, where Sharon paid as high as $150 for cash stock, and selling it "seller ninety" as low as $64 and as high as $90. In later days, Mr. J. C. Flood again bought con- trol, buying it at his office paying $20 a share a little higher than Board price. In the great Bonanza deal Ophir sold as high as $320, with 100,000 shares as its capital stock. Will they ever give us another Ophir deal? Anecdotes Ophir has produced $15,314,000. History of the Sanfrancisco 49 Consolidated Virginia at present adjoins Ophir to the south with 1310 feet. In 1875 it was divided into two mines, California with 600 feet, next to Ophir, then Consolidated Vir- ginia with 710 feet, further south. The great deal of these two stocks surpassed in magni- tude anything ever listed on the Board. They each sold as high as $750 cash and $800 on time sales. It is related previously in these pages where" Mr. Flood bought the control of Central No. 2, and eventually formed the two companies of 108,000 shares each. After selling away up in the hundreds of dollars, it was thought best, in order to allow all, rich and poor alike, to trade in these stocks, to still further increase the capital stock, and they were increased to 540,000 shares each, equal to 1,080,000 shares. The stories of speculations in these shares would fill pages. When they reached their highest, Dr. W. S. Bronson came down from Virginia City, enthusiastic about their future, prophesying they would sell at $3,000 each; that on the 1300 foot level going east, as fast as they could cut through the east clay walls, they encountered more ore; and it was told us that the pay ore on the 1300 foot level was Anecdotes looo feet wide. Many San Francisco and Vir- ginia City people had purchased at compara- [172] d8I ,AdAV3W ,YTID AIW1OHIV 49 iidated Virginia at present ad the south with 1310 feet. In 1875 it ided into two mines, California with next to Ophir, then Consolidated Vir- U. The great 2, and event of 108,00 in the hur vas thought best, in order to allow all, rich and poor alike, to trade in these stocks, to still further increase the capital stock, and they were increased to qua! to 1,080,000 shares. these shares - level was and Vir- VIRGINIA CITY, NEVADA, 1865 Stock and Exchange Board tively low prices, making large fortunes by their operations. They invested their profits in San Francisco real estate. One day California broke suddenly from $500 and sold as low as $300. It speedily ral- lied, and in five days was back to $500 again. We learned that they had struck a "horse" a body of barren white quartz in the middle of their rich ore. After drifting 40 feet through it the rich ore again came in. At the height of this deal trading continued practically all day long, and at night transactions were made in the corridors of the principal hotels. Every- body was getting rich, and, really, to us brokers, it looked as if there never would be an end to our great business. Money flowed in San Francisco freely; and we might, possibly, compare our existence as somewhat similar to that of King Solomon's time, when gold and silver, cedar and algum trees, were accounted as nothing. And though we did not have our Queen of Sheba, with her present of 120 talents of gold, we had at least our great Comstock Lode, with the millions already derived and with its expected future. In fact, at that time you could buy "A. O. T.," which means "any old thing," making money on the transaction. Many of us had a team of horses, and one or two buggies, kept at the Anecdotes club stable on Taylor street, near Post. [173] History of the Santrancisco Anecdotes All the brokers were familiar with the Park, then simply a figure 8, afterwards with a road cut through to the beach. We could tell all about the Cliff House and old Col. Foster. If any broker could get through the month with his personal expenses less than $1000 he was fortunate. It looked as if it would never stop. When we were kept at the office at night, writing up the business of the day, fifteen or twenty of us would meet at some favorite din- ing place. One would pay the dinner bill, another the wine bill. Hurry through it and back to the office again. Old Ned, who kept the Mercantile Lunch, would, at any time, send plates, dishes and food to the offices for em- ployers and clerks alike. When Edwin Booth played Richard III, Macbeth and Othello at the old California, we would take tickets for two weeks at a time, and attend every night, except Sunday. When told that the Bonanza firm con- trollers of Consolidated Virginia would pay each member $500,000 a month in dividends, it was accounted as nothing. With our seats worth $40,000, with a large commission account accumulated at the end of the month, with our offices crowded with customers from early morning until close of Board well, they were the best days we ever experienced in the Board. Stock and Exchange Board Will they ever give us another Consolidated Virginia deal? The production of Consolidated Virginia and California foots up $133,471,000. 50 Best & Belcher, adjoining Consolidated Virginia to the south, would always act in sympathy with the latter. It was the opinion of the street that a continuance of the ore body in Consolidated Virginia would some day be opened in Best & Belcher. Mr. Coll Deane hired Union Hall on Howard street, and, before a large audience, advanced this idea with other remarks on the future of the lode. It was always a favorite with operators at the north end of the Comstock, and was well spoken of by Mr. Fair to his friends. It was never thoroughly prospected, and for years we looked forward to a deal in this stock. My recollection is that it was held at about $90 for a long time. Gould & Curry was the first mine on the Comstock to uncover a large body of rich ore. In 1862, and immediately afterwards, it was producing largely, paid large dividends $250 a month and several early operators were Anecdotes made wealthy by the shares they had pur- History of the Sanlhmeisco Anecdotes chased. It sold as high as $6,500 a foot, and, as late as January, 1864, was still selling at $5,000, paying dividends. They built an im- mense mill at seven-mile canyon, about two miles east of the mine. Its rich ore was discovered nearer to the surface than elsewhere at the north end. Mr. Charles Strong was the superintendent during its palmy days. Charles Bonner, Louis Janin, I. L. Requa and others have since tried to develop another bonanza in this mine. Gould & Curry has produced $15,525,000. Andrew McCreary made a large fortune in Gould & Curry and other mines in 1862. 52 Savage and Hale & Norcross ran pretty well together. In locating mines the prospector erects four monuments at the four corners of the location. As the Comstock Lode runs north and south, two of these monuments would be placed on the croppings, the other two further east in a straight line. The extreme south- east monument of the Savage, by some mis- take, was placed a little north of its proper place, and thus, should the north and south lines be run out to the desert east of Virginia City, they ultimately would meet, thus giving all of the Savage mine to its southern neighbor, the Hale & Norcross. But after some discus- [176] Stock and Exchange Board sion on the subject this matter was settled, and Savage stockholders need no longer be worried about it. In 1870 Alvinza Hay ward, on meeting Ehrlich on the street, ordered him to buy some Savage stock for him. "Well, that is rather an ambiguous order, Mr. Hayward," said Ehrlich. "How much shall I buy?" "Well," said Mr. Hayward, "you cannot buy more than the whole mine." "Oh, that's it," said Ehrlich. Meeting his friend John Livingston, a large holder of Savage, Ehrlich asked him what he would take for his stock. Livingston stated a price, some $30 or $40 above the market price, not expecting it to be taken. To his surprise Ehrlich bought it. And then commenced the Savage deal. It rose to $700 a share. George F. Rogers owned 1000 shares, purchased at a low price, and could have sold all of it at $700 a share to Hayward, but held out for still higher prices. The stock had a big tumble one day, and never rallied. Gen. Robert F. Morrow was the first super- intendent of Savage. He arrived in Virginia City in ^859 to take charge of the mine. He conducted it safely through all of its troubles, litigation and early developments. He found its first body of good ore about the 200 or 300 foot level by drifting in through the Gould & Curry. [177] Anecdotes History of the SanFraneisco Anecdotes Can't tell whether Morrow ever shouldered a musket or had a sword buckled to his side. On a visit to Washington in the yo's, while Grant was President, he found many Senators, Congressmen and Washingtonians tipping their hats to him, greeting him as "General." He soon found there was a close resemblance between General Grant and himself, and those who saluted him thought they were addressing the hero of Appomatox. Savage has produced $20,552,000. 53 Hale & Norcross has a history of its own. Drury Malone was connected with its early history. Elsewhere the great contest for con- trol of Hale & Norcross and consequent corner of the stock in 1868 is described. Subsequent to that time Flood & O'Brien obtained control. It produced considerable bullion; was quite active in the Sierra Nevada and Union deal of 1878, and for some 15 or 20 years has been controlled by one set of officers. Hale & Norcross has produced $11,486,000. 54 Chollar-Potosi at one time separate great litigation about 1870 a consolidation after- wards a separation, with two corporations as at present. Stock and Exchange Board A. De Land was an early superintendent of Chollar, followed by Harvey Beckwith. I. L. Requa developed the body of ore found in the Blue Wing Potosi portion of the mine. After this discovery, during a dull spell in the Board, Chollar sold at $12 and stood at that price for a year, paying a $i dividend monthly for 12 months. As the ore body in- creased and receipts became larger, the com- pany paid a dividend of $5 monthly, and was compelled for many months to pay an extra dividend of $5, in order to disburse the money flowing into its treasury. The stock sold as high as $75 during this period. Most business men, on meeting others, with whom they are about to enter into financial transactions, will form an opinion instanter concerning them. One could not view Isaac Lawrence Requa other than favorably. He was 6 feet 2 inches in height, and at his prime weighed 240 pounds. When delivering his views on any subject, or asked an opinion, he would express himself or weigh his answers so carefully as to impress his hearers with the fact that they were conversing with a truthful man, and one above guile or deceit. Mr. Wil- liam Sharon and others in power on the Corn- stock had implicit confidence in any opinion given by Mr. Requa, and would guide them- Anecdotes selves accordingly. History of the Sanfrancisco Anecdotes Requa's success in discovering ore in the Chollar-Potosi was so great, that he was urged to retain the position of superintendent for many years. Under his administration the Combination Shaft, 3000 feet east of the crop- pings, was planned and finished. The Great Combination Pump, as it was called, received Mr. Requa's constant attention. Many of the improvements were inventions of his brain, and when the pump was finished it was con- sidered the most perfect of its class in the world, reaching a depth of 3300 feet in the lode. This great shaft has been filled with water below the 1750 foot level for 24 years. It is feared that a portion of the shaft has caved, and as efforts are now being made to exhaust the water on the lode, the Combination Shaft will, no doubt, receive early attention. While residing at Virginia City, Mr. Requa ascertained that his telegrams, even when sent in cipher, were being tampered with, and that his orders for stock transactions were known on the street before the Board opened. The president of the company, Mr. A. K. P. Har- mon, received a letter, stating that on such a date, Mr. Requa would telegraph him to buy all the stock of their company under $100, but that he should disregard the order entirely. The matter being thus well understood, the tele- [180] AUQ3H .J DAA8I fhmdseo ;ua' success in discovering ore in the ir-Potosi was so great, that he was urged to retain the position of superintendent for many years. Under his administration the Combination Shaft, 3000 feet east of the crop- p:ngs, was planned and finished. The Great nation Pump, as it was called, received attention. Ma This great shaft has been filled with water below the 1750 foot level for 24 years. It is feared that a portion of the shaft has caved, and as efforts are now being made to exhaust the water on the lode, the Combination Shaft will, no doubt, receive early attention. While resk! City, Mr. Requa date, Mr all the stock of their company under $100, but that he should disregard the order entirely. The ISAAC L. REQUA Stock and Exchange Board gram was sent. The stock on the previous evening was quoted at $58. To the great sur- prise of those connected with the matter, one of the most prominent speculators was out on the street early, persistently buying all the stock offered, until the price was raised to $75 before the Board. There were no orders at the Board to buy the stock, and it dropped again to $58 or thereabouts. Chollar-Potosi has produced $13,985,000. 55 Bullion located in the Divide, between Virginia City and Gold Hill has never opened up any large body of ore. J. D. Walker and John Mackay had charge of the mine about 1864 to 1868. 56 Exchequer and Alpha will sympathize with a development in either. When the banking house of John Sime & Co. suspended in 1871, those who owed them money had left many stocks as security, among them a large block of Exchequer, the bank itself an extensive stockholder. In the subse- quent rise of the whole list Exchequer ad- vanced to a good figure, and the sales of this stock for the account of the bank, with other shares which had also advanced, placed so [181] Anecdotes History of the Sanfrandsco Anecdotes large an amount of money to its credit that it was enabled to pay its depositors dollar for dollar. 57 The present Imperial Consolidated Company is a consolidation with the old Imperial and a number of Gold Hill claims lying between the Alpha and Challenge. Many of these com- panies had previously produced largely in bul- lion and paid good dividends. The Gold Hill mines, generally, at the surface, assayed higher in gold than the northern portion of the lode at Virginia City. John Sime, William Bourn and others were largely interested in Imperial before the con- solidation. John Sime was a native of New Brunswick, arriving in California in the early 50*8. He was a contractor in erecting buildings in early years. He was about 5 feet 10 inches tall, stout, and of a very powerful frame. It is stated that in early years he held a smaller man off the floor with one arm. In 1856 he formed the banking firm of John Sime & Co., consisting of John Sime, Benjamin Smith and Lamar Fisher. William Bourn was a capitalist, real estate holder, and 1868 found him possessed of a respectable fortune. He was largely interested [182] Stock andExdiangeBoard in Comstock mines, and aided in their develop- ment At a critical period of the Imperial mine, in 1868, Sime, Bourn, and other directors, visited the property. A drift was being run on the 900 foot level, if I remember correctly. When it struck the ledge, a heavy flow of water drove out the workmen. Mr. Sime was handed a piece of ore, all wet, picked up just as the work- men escaped. It was high grade ore and all felt jubilant. Mr. Sime, always careful, handed it to an expert, Mr. J. B. Low, asking his opinion. The Comstock experts in those days could tell you, in a minute, from what portion of the lode any piece of ore was extracted, with about the same proficiency that San Francisco merchants, in early days, could distinguish between Eastern and Chile flour. Mr. Low examined the specimen in my office in Virginia City, and said: "Mr. Sime, do they state that this ore came from the Im- perial drift?" "Yes," was Mr. Sime's answer. "Well," said Mr. Low, "I will stake my profes- sional existence on the fact that this piece of ore was lying on the Kentuck dump one hour ago." This information was of some importance to me, as Mr. Sime gave me a selling order on a number of stocks immediately. When the flow Anecdotes of water stopped and they resumed work in [183] History of the Sanfrandsco the drift the expected ore body did not materialize. The production of Imperial and its other claims foots up $28,039,000. 58 Challenge and Confidence always ran to- gether; a development in one would extend to the other. We all had faith that some day these two mines would uncover a respectable body of ore. All the Gold Hill mines had good gold ore near the surface. Gen. Robt. F. Morrow had charge of these two mines for 30 years. Several years ago an ore body was uncovered in Confi- dence, that stock selling as high as $65 ; Chal- lenge was marked up to $15. 59 Kentuck is a small mine, about 95 feet on the ledge. About 1868 the owners took out large quan- tities of ore, and the stock sold at $500 a share. William Sharon, Judge Thomas Sunder- land, and others, benefited largely by this dis- covery. A fire did great damage on the 6oo-foot level Anecdotes in 1869. Kentuck has produced $4,905,000. Stock and Exchange Board 60 Yellow Jacket has always been a popular stock. John B. Winters was superintendent for many years; also Captain Thomas Taylor. In April, 1869, a fire broke out in Yellow Jacket, Crown Point and Kentuck, doing much damage, and was still burning in the Kentuck as late as December of that year. Col. William Sharon, a nephew of the tor, was in charge for a quarter of a century. The production of this mine is $18,043,000. 61 Crown Point and Belcher a splendid deal. The ore bodies discovered in these two mines in 1870 were the greatest as yet uncovered, and the one big discovery since the Gould & Curry development of 1862. Crown Point was controlled by Alvinza Hayward and John P. Jones, the latter for many years United States Senator from Nevada. Alvinza Hayward was one of the most im- portant of Comstock promoters. He had made a large fortune in the Amador gold mine in California, and at the commencement of min- ing stock speculation was rated as one of our wealthiest capitalists. Anecdotes His six-foot figure could always be noticed [185] flistory of the Sanfrancisco Anecdotes on California street dressed in a black suit, Prince Albert coat, with tall silk hat, the popu- lar form of a gentleman's dress in those days. A stockholder, and closely connected with the Bank of California at its organization, he was intimately connected with all the great deals in early days. On the discovery of ore in Crown Point, his heavy purchases of this stock, with his relative John P. Jones, gave him the control, which he held all through the period of success of this great mine. Dif- ferences of opinion caused him to sever his relations with the bank, and he became Presi- dent of the Merchants' Exchange Bank, with which he was connected for many years. He outlived many of his old-time associates, pass- ing away within the last few years at his San Mateo home. Senator John P. Jones at this time was a stout, tall gentleman, with mustache and chin whiskers. As superintendent of the Crown Point mine, he discovered what developed into a great bonanza, extending into the Belcher mine, its southern neighbor. The Belcher was controlled by William Sharon and the Union Mill & Mining Com- pany, all connected with the Bank of Cali- fornia. It was after two years' work that the stocks in these mines reached their highest. Crown [186] Stock and Exchange Board Point sold at $1825. Belcher sold in the neigh- borhood of $1400. These stocks paid dividends for years and were actively traded in, giving brokers large commissions. Large orders to either buy or sell these two stocks were sent to the Board every day for months. Later, in the Bonanza deal, one broker was short 10,000 Belcher at $66 a share. The market was heavy, looked as if it would break at least $10 a share, when his profits would have been $100,000. Instead, the price was put up a few dollars. He could not deliver, and we, unfortunately, lost him as a member, much to our discomfiture. The production of Crown Point is $33,- 081,000. The production of Belcher is $34,415,000. 62 Overman and Caledonia always sympathize in prices ; a development in one mine, and con- sequent advance in price, will cause the other stock to advance. In 1867-1868, John Sime & Co. and their friends controlled Overman. Gen. Robert F. Morrow soon obtained con- trol and has held it for more than 30 years. It has been well handled, and, in compari- Anecdotes son with other mines, the directors of Over- History of the Sanfrandsco m man have called for a less amount of money in assessments levied. At one time it was thought that Overman would uncover a large body of ore and the stock advanced to $125. This was about 1877. Unfortunately, it was a disappointment and the stocks broke badly. 63 Caledonia was an active stock from early days, and has always sympathized with Overman. 64 As late as 1868 it was thought the southern end of the Comstock Lode terminated with Belcher. Those holding to the view that it still continued south made their locations ac- cordingly. Others were positive that the ledge split at the Belcher mine, and assumed a course southwest, and that locality was called Ameri- can Flat. The Overman Mining Company, which eventually absorbed the Uncle Sam mine, was located in this direction. Further on were the Baltimore, American Flat and many other mines, which at times gained celebrity and high prices, but no great amount of ore was ever found beyond the Overman. Anecdotes The latter mine was eventually swung around in its location to the south of Belcher. [188] HOTAM38 .8 .U ,83MOl . man have called for a less amount of money in assessments levied At one time it was thought that Overman .'! uncover a large body of ore and the advanced to $125. This was about 1877. lunately, it was a disappointment and . . As late a* 1868 it was thought the southern end of the Comstock Lode terminated with Belcher. Those holding to the view that it still continued south made their locations ac- cordingly. Others were positive that the ledge split at the H assumed a course and tr ^d Ameri- ity and higl >;reat amount e was ever fom Bank was opened, with Gov. Milton S. Latham as manager, on August i, 1865, McDonald obtained a credit at the bank, and, as he was energetic and active, attending closely to business, he was su ining. His firm soon eng te ov/\ -s in Ne- vada, and w^s ..-is being worth 00,000. On i, McDonald became AT MCDONALD'S COTTAGE, SARATOGA, NEW YORK, 1875. M. L. McDONALD, JOSEPH H. JONES, DR. C. H. BRADFORD, J. H. MA- HONEY, B. F. SHERWOOD _ 00 Z W > m r TI o x ll pi m n -< Stock and Exchange Board getting on the short side of the market. For years he was known as the Ursa Major of the Board, acting on the principle that "what goes up must come down." While others were losing money, things were running his way, until, in 1879, he retired with, as was thought, about $500,000. He was a candidate for United States Senator at one time. He has lived in Santa Rosa for the last thirty years. 68 Charles N. Felton joined the Board between August 6th and December sist, 1864. He had been active in business circles in San Fran- cisco. He was of small stature, never very , stout, active and extremely energetic. He filled with great credit the positions of Assistant United States Treasurer at San Fran- cisco, Congressman and United States Sena- tor from California. These positions prevented him from ever becoming a very active member. He has the credit of assisting James R. Keene on the road to fortune, as he loaned him the seat in the Board from which Keene derived so great a fortune. This occurred in 1869, and Senator Felton was out of the Board for a number of years. One of twenty, he again re- purchased in June, 1875, paying $25,000 for the seat, and finally left the Board in 1880 with Anecdotes a large fortune. [195] History of the SanRvneisco He was small in stature; liberal and generous. He was of a fine business character and had the confidence of a number of the largest capitalists in San Francisco. He formed a co-partnership with S. B. Bos- well at one time, and finally, in 1873, with James R. Keene. He called the attention of the president to the need of ice water on hot days. The presi- dent said: "Why don't you buy us a pitcher?" The next day a magnificent silver pitcher was placed on a stand near the rostrum, a present from Mr. Hall. Again he approached the presi- dent with: "Why don't you have a decent clock in the Board?" The rejoinder: "Why don't you buy us one?" In a few days a fine $200 clock, six feet high, adorned the wall back of the chairman. We understood it was a present from Mr. Hall. Anecdotes 70 Great interest was centered on General Grant when he visited the Board, August 28, 1879. He was the great General of the Civil War, had served two terms as President, left New York, visiting Europe and Asia, had been received and treated royally by all countries ' Stock andExchangeBoard and rulers, and now had returned to his coun- try. The booming of cannon announced his entry through the Golden Gate, and all San Francisco was delighted with his visit. There were about a half dozen in his party when he visited the Board, and the galleries were crowded with the wives, daughters and friends of the members. Our president, Mr. E. P. Peck- ham, did the honors, standing to the left of General Grant. Stopping about half way to the rostrum, he introduced the illustrious visitor. We saw before us a stout, broad-shouldered gentleman, who accepted our applause in a modest manner. He was taken to the right of the rostrum, where chairs had been placed for the visitors, and introduced to Chairman Coit, who descended from the rostrum to meet the General. The party was seated and we con- tinued our transactions. The visit lasted half an hour, all the members standing at their seats as the visitors retired. General Sheridan, Mr. and Mrs. Frank Les- lie, King Kalakaua and Emperor Don Pedro were also among our visitors. A healthy stock market, one founded upon a discovery of rich ore, has always proved of great advantage to San Francisco. With a Anecdotes rise in value, a small owner of stock purchased History of the, Sanfrandsco Anecdotes at low figures becomes comparatively wealthy. Experience shows that, as a rule, a man struggling with debt on his shoulders, should he be one of the fortunate owners of a mine, where rich ore has been found, will sell at about the time when his profits will pay all of his debts. And debts of, say $10,000, paid in this way, may pass through the hands of a hundred other people, each one paying some long neglected obligation. This, in a way, means prosperity to a community; money, placed in circulation in this manner by, say twenty previously insolvent men, always does an immense amount of good, taking the stag- nation out of a previously dull period. 72 Ehrlich, Mark Livingston and others, large holders of Chollar, determined one day to raise the stock from $95 to over $100. The order was given to Keene. Carefully buying everything at first "buyer five," and then regu- lar way, Keene bought all stock on the floor at $95, $96, $97, $98 and $99. There was quite a quantity offered at $100. He purchased care- fully, feeling his way, and when, finally pur- chasing all of the $100 stock, he bid regular way for 100, 200, 500 shares, and then bid $100 a share for any part of 1000 shares, the audi- ence rose, cheering lustily. Stock and Exchange Board 73 A. J. Pope had a wad of California, Consoli- dated Virginia and Ophir shares, held them for high prices, and finally sold them, making more than $1,000,000 profits. L. P. Drexler made a large fortune by sell- ing these stocks at high prices. C. W. Kellogg was a prominent figure for years in mining matters. He controlled the Julia Mining Company and other listed stocks, and amassed quite a fortune in Bonanza days. 74 In the great whirl of excitement in the Board at the close of the year 1874, both California and Consolidated Virginia made the remark- able advance in price of $500 each in less than thirty days. I had purchased some California stock at $240 a share, "buyer thirty," had signed the usual contract, paid the deposit required by the seller, and, as the stock had advanced, and there was no danger of a loss, I paid little at- tention to it. One day, needing more money than stood to my credit at the bank, on looking at the contract, ascertained that the stock, then selling at $750 a share, had advanced $500 in less than thirty days, and I sold the stock that day at the high price mentioned $750 a share. Anecdotes Following are the prices for a few weeks: .History of the Sanfrancisco California Con. Va. . 570 118 100 113 182 195 1875 Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. 7 14 21 28 4 11 18 25 790 590 ... 420 57 54 50 55 710 595 . 525 415 450 433 440 Ophir 315 183233 116 89 70 74 77 The capital stock of California, 108,000, was increased to 540,000 (5 for i) Feb 4, 1875. The capital stock of the Consolidated Vir- ginia of 108,000 shares was increased 5 for i, equalling 540,000 shares, on Friday, March 17, 1876, one year and a month after the increase in California, Fluctuations for a few months in this issue follow: Anecdotes California Con Va Mch. 4 ... 60 445 75 1875 Mch. Mch. Apr. May June 11 18 1 6 3 67 55 66 627/ 8 60 460 410 421 Ophir 83 116 93 103 84}^ 61 California Con. Va Jul. 1 .... 55 320 Aug. Aug. Aug. Oct. 5 25 26 6 76 60 to 56 56.5 60 360 290 to 263 250 to 267 305 Oohir , 45 76 54 43 and 55 65 [ 200 ] Stock and Exchange Board No session was held between Aug. 26 and Oct. 5, 1875, a six-weeks' recess, the longest in the history of the Board. Prices on Oct. 6 show a rise in values. The sales of record of Aug. 26, 1875, as taken from the Mining and Scientific Press, do not seem to be large. Business was continued after the Board with lower prices. Following are the sales for that date: 225 Alpha ........... 17 1850 Belcher ......... 18 20 2280 Best & Belcher.. 41^ 45 170 Bullion ......... 38^ 39 160 Buckeye ............. 75 cts. 220 Chollar ......... 69 72 3100 Crown Point ____ 22 23% 670 Confidence ...... 17 7325 California ....... 56^ . . 500 Con. Virginia ... 250 267^ 1315 Gould & Curry. . 17 18 340 Hale & Norcross. 35 40 1710 Imperial ........ S% 575 Justice .......... 20 24 75 Julia ............ 17 18 200 Kentuck ........ 13 800 Lady Bryan ..... 1% l*/ 8 2830 Mexican ........ 18 19 3870 Ophir .......... 43 55 1090 Overman ....... 40 45 375 Savage ......... 81 86 665 Sierra Nevada .. 14J4 15 275 Union .......... 7 75/ 8 Anecdotes 740 Yellow Jacket... 63 65 [201 ] History of the Sanfrandsco Prices after n o'clock session: Ophir 36 California 48 50 Con. Va 240 Chollar 60 Gould & Curry 17 Overman 40 Another comparison of prices is here given: 1875 Nov. Dec. Dec. 4 2 30 California 54 21 76% Con. Virginia 254 385 411 Ophir 39 58 50 1876 Jan. Feb. Mch. Mch. Dec. 29 24 16 23 28 California 87 90 89 88 45 Con. Virginia 448 440 430 86 38 Ophir 63 66 64 65 23 The Mining and Scientific Press also con- tained the following item on March 4, 1876, relating to a Government purchase of silver. "During the past week the Government bought 300,000 ounces of fine silver at $1.16 per ounce ,the seller paying the parting charge of 2^2 per cent, which makes the price of silver about $1.1333 P er ounce, the lowest price ever Anecdotes paid for fine silver (up to that date). "The standard value is $1.2929." [ 202 ] Stock and Exchange Board All sales of shares of stock between mem- bers are considered absolute contracts. From the earliest history of the Board every care has been taken to make transactions binding. An assistant secretary is placed at the rostrum, who records each contract, with the name of the seller and buyer, the number of shares and price, and time, if any. The names only of members present during the session are permitted to go on record. A sale may be "cash," deliverable that day; it may be "regular way," deliverable the next day. It may be "seller ninety," of such a nature that the seller has anywhere from two to ninety days in which to deliver; or it may be "buyer ninety," where the buyer may call for it any time up to ninety days from the time of pur- chase. When a broker, by his genius, his sagacity and his forethought has so well established himself in business as to receive orders to buy and sell shares in the same stock, at any one session, should he place a contract upon record, with another broker, consisting of an equal number of shares his buying and selling orders will permit, such a contract is termed an "ac- commodation" sale. In the hurry connected with the great business of 1875, when it was Anecdotes impossible to consult with clients to gain their [203] History of the Sanfhmcisco Anecdotes consent, such transactions were made absolute, the brokers exchanging checks and stocks. All members are placed upon their honor in answering questions propounded by the pre- siding officer. When asked if any contract on record is a "sale," it is understood their answer must be that they are either the party of the first part or the party of the second part; and in case they are interested both ways they must so state. An "accommodation" sale, as described above, can be removed from the record if objection is made by another member. The record must be absolutely lived up to by all members. In 1872 Mr. James H. Latham, doing a very large business, had not as yet become a mem- ber. His orders were executed by a member. Receiving some very large orders one session, this member made "accommodation" sales to quite an extent with other members, placing them all on record and reporting them at Latham's office. Unfortunately, the next day this member could not meet his engagements, failed and never re-entered the Board. So strictly were our contracts enforced that each party to these "accommodation" sales was forced to complete the contracts with Mr. Latham, and to look to the insolvent member for reimbursement. We understood that in the great New York [204] Stock andExchangeBoard Stock Exchange no "accommodation" sales are allowed. Each order to buy and sell must be executed with another broker in good faith. Fictitious sales are prohibited by the laws of the Board. In the first Constitution and By- Laws adopted in 1862 stringent rules were formed forbidding fictitious sales, and in sub- sequent years the Legislature of California passed laws forbidding the same. When a member makes the highest bid for a stock, he is entitled to all purchases at the quantity and price he has fixed, as long as he bids. In selling, when he offers the stock lower than others, he is entitled to the sales made in the quantity and at the price he has settled, as long as he offers the stock. 77 Don't know where this story originated, but it is applicable to our business more than to any other. A young operator, constantly plunging, was often a loser. He would apply to a rich uncle, with whom he was a favorite, to help him out at times. On one of many visits his uncle turned to him and said: "I suppose you think you are a Napoleon of finance." "Uncle Will," was the answer, "Napoleon wasn't in it with me. He only had one Waterloo, and I have Anecdotes one almost every day of my life." [205] History of the Sanfrandsco Anecdotes 78 J. R. Fitch was one of the best brokers in the Board. He was born in Canada, arriving in San Francisco early in his career, joining the Board in 1865. He was rather stout, with long, black, curly hair, modest, and of a retiring disposition, except when his orders on stock compelled him to make himself heard. While connected with the firm of Fitch & De Long, his principal customer was Erwin Davis, at that time a very prominent operator. When Thomas Fenn, doing business for James H. Latham, left the Board in 1872, Mr. Latham secured the services of Mr. Fitch, who continued for years as the broker for his firm, and its successors. His orders during the great market of 1875 were very large. It is stated that his commissions as broker's broker for one month, at an eighth of one per cent, amounted to $8,000. 79 Col. P. C. Hyman is the last survivor of the original 40 charter members. He is living at Elko, Nevada, having mining interests in that locality. He is a pioneer of California, arriv- ing here in December, 1849. He sold his seat in 1870 to E. J. de Santa Marina, the latter re-entering the Board. Mr. Hyman is a six-footer, with an iron constitu- [206] T2HA3H .O3O fc Fitch was one of the best brokers in the Board. He was born in Canada, arriving in San Francisco early in his career, joining the Board in 1865. He was rather stout, with long, years as the broker for his firm, and its successors. His orders during the great market of 1875 were very large. It is stated that his commissions as broker's broker for one month, at an eighth of one per cent, amounted ing here in I He sold his se j E. J. de Santa GEO. HEARST six-footer, with an iron constitu- [306] Stock and Exchame Board tion, and, at his present age, past 80, possesses a most remarkable memory as to early inci- dents in San Francisco. 80 A. G. Kinsey at one period amassed a large fortune in the Bonanza stocks. On retiring, in 1877, his seat was sold at the highest figure, $40,000. 81 Franklin Lawton, the first secretary, as he was always called, prided himself upon his per- sonal appearance, and was always tidy and well dressed. A cigar-holder, colored a jet black from years of constant use, was another par- ticular pride. 82 J. W. Brown, as a telegraph operator, was one of the earliest to understand a message by the ear. His stock operations quickly made him rich, and in 1873 he purchased the seat of Louis Sloss, and became a very active trader. Mr. Brown was intimate with the Bonanza firm, and his orders on the floor of the Board were at times quite large. As a companion he was very agreeable, genial and attractive, but showed best as a host at his dinner table with Anecdotes his family gathered around him. [207] History of the Sanftaneisco Anecdotes 83 Walter Turnbull was another broker with a good following. He was a Colonel in the Cali- fornia Militia and was promoted to Major General of the State Militia by Governor Stoneman. The office of assistant chairman was tem- porarily created October 2, 1878, and Colonel Turnbull was elected to fill this position at $500 a month. 84 William Sharon. Mr. Sharon's name will be found in the old directories as a broker before the organization of the Board. He became a member about October, 1863. He was further advanced in years than the majority of the members. A certain Dr. Osier has ventured the remark that Go-year-old men should be chloroformed, the inference being that at that age their usefulness has disap- peared. Had the celebrated doctor lived in San Francisco and witnessed the operations of Mr. Sharon and others who had passed this time mark, this sweeping observation would not have been made. Mr. Sharon's greatest suc- cesses came to him late in life. Small of stature, gray hair and gray mus- tache, and with coal black eyes, he was a well known figure in San Francisco. HOTAM38 .8 .U t WOHAH8 MAIJJIW anfhmcisco 83 Walter Turnbull was another broker with a good following. He was a Colonel in the Cali- fornia Militia and was promoted to Major General of the State Militia by Governor Stoneman. The of an was tem- poral found in the Broker before the organization of the Board. He became a member about October, 1863. He was further advanced in years than the majority of the members. A certain Dr. Osier has ventured the remark that 6o-year-old men ^ed, the inference being .totes mark, this swe have b< cesses came to in life. Small of stature, gray hair and gray mus- tache, and with coal black eyes, he was a well WILLIAM SHARON, U. S. SENATOR Stock and Exchange Board He early had the confidence of Mr. Ralston of the Bank of California. The banking house of Stateler & Arrington, located in Virginia City, Nevada, on C street, between Union and Sutton avenues, was the correspondent of the Bank of California. It suspended in 1864. In the fall of that year William Sharon went to Virginia City to establish the Agency of the Bank of California, with Mr. J. A. Ralston as cashier. They opened in the office formerly occupied by the banking house of Arnold & Blauvelt, corner of C and Taylor streets. The other banks there at that time were Wells, Fargo & Co., with James H. Latham as agent and Homer S. King as cashier; Paxton & Thornburgh; Ruhling & Co., and B. F. Hast- ings & Co., A. K. Grim being the resident part- ner. I was then a clerk with this latter banking house. We were all charging 3 per cent a month on over-drafts. The advent of Mr. Sharon, with the large capital of the Bank of California back of him, reduced the rate of interest to i% per cent. All the mill men owed the banks money, and they found it to their advantage to change their accounts from the different banks to the new agency, with the new low rate of interest. In course of time, a large number of the mills became the property of the agency, and this was the foundation of the Union Mill and Min- [209] Anecdotes History of the Sanfhmcisco Anecdotes ing Company. By getting control of the mines these mills were soon all crushing ore, and rapidly paid for themselves. Mr. Sharon's genius soon made him quite wealthy, and, finally quitting Virginia City and becoming associated with the parent bank in San Francisco, his wealth increased. The dis- covery of ore in Belcher, with its consequent dividends, added to his wealth. In connection with Mr. Ralston, they planned and built the Palace Hotel, which gained a world-wide repu- tation. Mr. Sharon again joined the Board on June 12, 1875, being one of the twenty new members, each paying $25,000 for his seat. Mr. Sharon was very prominent in rehabili- tating the Bank of California. About 1875 he was elected United States Senator from Ne- vada. He was for many years the leading manipulator in mining stocks listed on the Board. 85 Mr. Robert F. Morrow is one of the few sur- vivors of the early superintendents who de- veloped the Comstock Lode. Of medium stature, well-knit frame, strong constitution, he has been well known in min- ing circles in California and Nevada for fifty years. He arrived in Virginia City in 1859 to ta ^e charge of the Savage mine, then in litigation, [210] Stock and Exchange Board settling the matter satisfactorily, and develop- ing the first ore body in Savage, by drifting in from the Gould & Curry mine. He sent for William M. Stewart, a fellow townsman in California, giving that eminent lawyer his first legal business in Virginia City. Mr. Stewart attained an extensive legal practice in Virginia City, and was afterwards elected United States Senator, serving as such for over thirty years. After a few years Morrow returned to Cali- fornia, residing permanently in San Francisco, and has always been a prominent operator in the Board. For years he was permitted to sit on a small stool, placed in the aisle by the side of the desk of his broker, George W. Smiley. He showed no disposition to force himself upon the Board as a member, but when we needed money to erect that magnificent Board build- ing on Pine street in 1875, he was among the first to advance the purchase price of $25,000 placed on the seats, was elected June 12, 1875, with ten other applicants, and has ever since been a daily attendant. Mr. Morrow was closely connected with the Bank of California in 1875, and is one of the few survivors of what was known as the "bank crowd." Mr. William Sharon had absolute con- fidence in Mr. Morrow, and they were closely connected in business matters up to the time Anecdotes of the death of Mr. Sharon. [211] .History of the Sanfrancisco Anecdotes 86 1 Flood & O'Brien the wealthiest, the most successful, the firm longest in power of all the C operators and manipulators. < They had to commence at the bottom of the ladder, in a manner similar to that of other operators. They were successful from the be- ginning and were known in the Board from its organization. Mr. James C. Flood was the active business man of the firm, and the street soon recognized him as one of the most astute operators, of good judgment and discretion, and possessing one of the best business minds in San Francisco. He was stout of figure, of medium height, his sandy hair turning gray, pleasant and earnest in conversation. William S. O'Brien was not quite as tall as his partner; his black hair was turning gray; he was always pleasant and agreeable. James G. Fair, with full grayish beard, splen- did physique, thick chest, was the perfect pic- ture of a healthy man. He became a member of the firm about 1869. John W. Mackay was the tallest of the quar- tet, with such a pleasant disposition as to make him the most popular man connected with the mining interests of the Coast. The Hale & Norcross Company was soon in their control, and their prosperity advanced [212] dOOJ'S .0 33MAL nfrancisco 86 Flood & O'Brien the wealthiest, the most successful, the firm longest in power of all the operators and manipulators. They had to commence at the bottom of the ladder, in a manner similar to that of other opera* sful from the be- in San He was stout of figure, of medium height, his sandy hair turning gray, pleasant and earnest in conversation. William S. O'Brien was not quite as tall as his partner; his black hair was turning gray; he was always pleasant and agreeable. tur* of a man. He bet Anecdotes tet, v, ;3 to make him the most poputo . ,-cted with the mining interests of the The Hale & Norcross Company was soon in JAMES C. FLOOD Stock and Exchange Board with great strides. The control of Central No. 2, the formation of Consolidated Virginia and California companies, the one hundred odd millions produced from these mines, the fur- nishing of lumber, timber and wood to the mines, and the extraordinary high prices reached by these stocks, combined to make them, in 1875, among the wealthiest of Cali- fornians. After the entry of Mackay and Fair, they were known in the street as the Bonanza firm. With the rich mines under their control and with the bulk of the stock in their possession, this firm had great power in the Board in 1874 to 1877, when prices of all stocks soared to high figures, and all San Francisco traded in them. To have the confidence and friendship of a great manipulator in prosperous times, is a sure road to wealth. Among those who enjoyed the friendship of Mr. Flood were: George Wal- lace, Con. O'Connor, W. S. Lyle, George Cong- don, J. W. Brown and others, all becoming wealthy. On one occasion, in discussing the immediate future, Mr. Flood told Brown that Consolidated Virginia, then selling at $280, would break to about $210, as the development was not looking quite so well, but that the depression would only be temporary, and that Anecdotes Brown, being on the floor of the Board con- [213] History of the SanRrmcisco Anecdotes tinually, could take advantage of it, but that he, himself, had not the time and was too busy to attend to it. Brown could sell 5000 Consolidated Virginia at, say $270, and re-purchase at $2203 profit of $50 a share, realizing a total profit of $250,000. This was too small an amount in that big trading market for the prosperous Bonanza firm to trifle with. They did not have the time to attend to a little thing like that, but the tip was given to one of their friends, who was pleased to receive and act upon it. It was impossible for an outsider to receive so valuable a tip. He could only sell as he saw the market weakening, and re-purchase as it became stronger. They were the free lances, but would trade in thousands of shares. Mr. Fair took a hand in the market at one time. James C. Flood and W. S. O'Brien were elected members of the Board June 12, 1875, being included in the twenty new members, paying $25,000 each for a seat. When Mr. Flood died, his son, James L. Flood, managed the stock market for about ten years, but we have lost sight of him, and he rarely appears among us. They also deeded to us a portion of the lot upon which our magnificent Pine Street build- ing was afterwards erected. YAXDAM .W lly, could take advantage of it, \ himself, had not the time and was too 1. attend to it Brown could sell 5000 Consolidated Virginia at, say $270, and re-purchase at $220 a profit of $50 a share, realizing a total profit of $250,000. This wa amount in was imp^- valuable y sell as he saw the ii re-purchase as it became stronger. They were the free lances, but would trade in thousands of shares. Mr. Pair took a hand in the market * time. - rarely appea; They also deed ^ortion of the lot upon which our magnificent Pine Street build- JOHN W. MACKAY Stock and Exchange Board 87 O. V. Walker was elected chairman in 1883 upon the resignation of B. Howard Coit, who had held the position since December 2, 1869. Mr. Walker was peculiarly fitted for this posi- tion, on account of his stalwart frame and strong voice. Six feet tall, of heavy weight, his black mustache adding to make his appearance stately, he filled the position with credit to himself and the Board. He resigned May i, 1903, after twenty years of service. 88 Mr. George I. Ives had been active as a broker several years before joining the Board. His experience in the stock business had been such that he immediately became prominent after his election in January, 1870. He is small in stature, quick in thought and action, so much so, that in executing an order, to think was to act with him. 89 Billy Brown's bet with Jack McKenty. In those palmy days of 1874-1875, when money was so plentiful, should a broker advance the opinion that a stock would advance so rapidly as to sell at some marvelous figure, he would be bantered immediately to back up his opinion by making a bet. Billy Brown and Jack McKenty were the [215] Anecdotes [History of the Sanfraneisco Anecdotes best of friends, and each of such a jolly, generous disposition that they became great favorites among their brother members. Billy was above the average height, jolly and fat and nine out of ten fat men are always good-humored. A sandy mustache, a trifle bald on the forehead, splendid judgment in specula- tion and generally well posted, he rapidly ac- cumulated a large bank account. Of Jack's characteristics I have spoken heretofore. When Jack heard Billy advance the opinion that Consolidated Virginia would sell at $500 within thirty days, he edged his way up to him, through the crowd, offering to bet $5,000 that Brown was wrong. To the surprise of his friends Brown accepted the bet. McKenty again suggested that the loser should pay for a dinner for the crowd at Martin's restaurant. This, also, was accepted, and the bet further increased by fifty cases of champagne. Jack immediately hedged on the bet by buy- ing several hundred shares of Consolidated Virginia. Stocks jumped rapidly at the close of 1874. On December 10, 1874, Consolidated Virginia sold at $230, and on January 7, 1875, it sold at $710. The day it reached and passed $500 was a great day in the Board among those cognizant of the bet. McKenty sold his stock, and his profits were so large that the $5,000 lost on the bet was a mere trifle. Stock and Exchange Board When McKenty would win a bet he was too much of a gentleman to remind the other of the circumstance, but the quicker one due him was paid, the higher his adversary was ad- vanced in his opinion. Again, when McKenty lost a bet, his ideas of honesty and fair dealing in financial matters was such that he would pay it instanter haggling or disputing about a lost bet was not a feature in Jack's character. The stock had no sooner reached $500, than McKenty's check for $5,000 was in Brown's hands. McKenty had also lost the dinner and the fifty cases of cham- pagne, and his disposition was such, he wanted Brown to drag their dinner guests, then and there, out of the Board and sit down at Mar- tin's restaurant. But McKenty was restrained ; business had still to be attended to, but, finally, the dinner hour was fixed. The brokers sent home to their wives letters of the usual nature : "Beloved Wife: "Unforeseen circumstances, etc., etc." Well, we all know how it is in cases of this kind, the missives were sent and the guests assembled at Martin's restaurant. If there was a man in San Francisco who could furnish a dinner right up to the queen's taste, it was old man Martin, and if there was a man in the city who could make old man Anecdotes Martin exert himself, it was Jack McKenty. [217] [History of the SanFrancisco Anecdotes The dinner began with oysters and bouillon with white wine a la McKenty. Old man Martin had a limited quantity of white wine, the like of which had never been imported before, and, if you believed him, would never be seen here again. With full knowledge of this, Mr. McKenty, for weeks previous, at breakfast, lunch and dinner, had been a liberal imbiber. With the entrees appeared an $8 Lafitte, a rich wine much in vogue in those days. No dinner was considered perfect without it. The guests also had the privilege of tasting the popular Margoux wine. Fish, fowl and flesh, with a bottle of champagne in front of each guest! The music was furnished by a full string band not the usual harp, fiddle and flute so prevalent in French restaurants thirty-five years ago. At 2 o'clock in the morning the steadiest man at the table was appointed a committee of one to ascertain what had become of the musi- cians. On his return he announced that he had found the musicians seated at a table, each with his bottle of $8 Lafitte in front of him, doing his best to finish it. The climax came the next morning, after Brown had left his home to catch the 9:30 A. M. crowd on California and Montgomery [218] HOTAM33 .3 .U .O ,8At :>egan with* oysters anc "n white wine a la McKenty. Old Martin had a limited quantity of white the like of which had never been imported before, and, if you believed him, would never be seen here ag mowledge of this, npagne in front of each guest! The music was furnished by a full s band not the usual harp, fiddle and flute so prevalent in Ffench restaurants thirtv-five doing h The clima> after Brown had left his to catch the 9:30 JAS. G. FAIR, U. S. SENATOR Stock and Exchange Board streets. His front door bell rang, and the maid ran hastily through the hall announcing some important fact. The real authority in the house appeared at the front door and was confronted by two draymen, each pointing to a two-horse truck and their contents the fifty cases of champagne. They were greeted with such re- marks as: "Mr. Brown must be crazy. He never could have ordered so much wine. We can't receive it. You must take it back." The draymen simply said that they had been ordered to deliver it; that they could not take it back, and if it would not be received, they would pile it up in the front yard. And so when Brown arrived at home for his evening meal, he found the fifty cases of wine, neatly placed in the yard, close to the front door. 90 McKenty's profits in selling privileges on Consolidated Virginia at the close of 1877 were so great that he invested all of his wealth in interest bearing securities and departed for Paris. To any one who would pay him from $i to $5 a share, he would sell the privilege or option of calling on him for a specified number of shares of Consolidated Virginia at a price agreed upon, the privilege to expire in ninety days. [219] Anecdotes History of the Smfrondsco Anecdotes The capital stock of Consolidated Virginia had been increased to 540,000 shares, and the price was ranging between $65 and $75 a share. For instance, at $5 a share he would sell to the buyer, for the sum of $500, the privilege of calling on him for 100 shares of the stock, at say $85 a share, at any time up to ninety days from the date of the privilege. He was con- vinced that the stock had seen its highest prices, and was on the wane, and that the manipulators were selling as fast as the mar- ket would take it. The price fixed in his privi- leges was between $85 and $100. He pur- chased a considerable number of shares in order to protect himself, should there be a marked advance in the price of the shares. The stock did advance in price, but not sufficiently to cause all of the purchasers to demand their shares. Thus, the profits arising from the sales of stock he had purchased, and the money paid to him on the privileges, with the fortune he had previously acquired, was deemed sufficient to support him until the close of life. McKenty was elected in April, 1864, selling his seat shortly afterward. Was elected a second time in 1866 and sold his seat in 1873 to S. H. Brooks of the firm of Brooks & Lee. He was elected the last time December 9, 1874. On returning from Paris he sold his last seat on August 7, 1878, to Nat T. Messer. [ 220 ] .8 MAIJJIW f Consolidated Vir had been increased to 540,000 shares, an price was ranging between $65 and $75 a share. For instance, at $5 a share he would sell to the buyer, for the sum of $500, the privilege of calling on him for n of the stock, at say $85 a nety days from the da< .1 a considerable number o! shares in order to protect himself, should there be a marked advance in the price of the shares. The stock did advance in price, but not sufficiently to cause all of the purchasers to demand their ;. Thus, the profits arising from the sales ; and the money paid Kenty was secor S. H. Brook He was elected Deceml. On returning ; he sold his WILLIAM S. O'BRIEN o] Stock and Exchange Board 91 Gershom A. Coursen became a member in January, 1864, and sold his seat in May, 1907, thus serving as a member, daily on the floor, for a period of 43 years, the longest member- ship in the history of the Board. He had sandy chin whiskers and mustache. His head was large, with very little hair; his dress being the same for forty years, consist- ing of a black felt hat and black suit of clothes, all tending to make up a figure well known to the stock speculating community. His disposition was more to sell short on stocks subsequent to a good rise, rather than to buy them for a profit. A valuable 5o-vara lot and substantial dwelling house on Fulton street, above Steiner, acquired by Mr. Cour- sen many years ago, was the result of these transactions, a fact he reiterated in the Board on many occasions. 92 How to Place a Stock on the Board: In placing a mining company on the Board list, the officers of a new company are furnished with a blank, which they are requested to fill out, giving the location, capital stock, number of shares, title, work done and other general information. At the present time, November, Anecdotes 1909, the charge for listing a stock is $200. [221 ] History of the Sanfrandsco Anecdotes The Lady Bryan mine is located about three miles east of Virginia City, in seven-mile can- yon. The ore is rich in galena, with some silver showing in it. Some friends bought the Lady Bryan mine at sheriff's sale in 1878, brought it to our firm to be listed, placing the selling of the treasury stock in our hands, giv- ing us for the time being the entire control of the stock sales. As fast as we made sales the necessary amount of stock was to be furnished us, and no other stock was issued. We placed the stock on the Board at $2.50 a share, guaranteeing to all who purchased directly from our house that we would re- purchase his shares at any time in 60 days at the price paid. In pursuance of this guarantee, we bid $2.50 a share at every Board, for any part of the capital stock. We opened an account at the Bank of Cali- fornia, in our name as custodians, and no check was to be drawn against the account for 60 days, except for stock re-purchased. The guarantee given, and the bid made at each session was the cause of the success met with. We rapidly sold $75,000 worth of the stock, gradually advancing the price to $2.75 and still higher, until the owners of the property were so well pleased with our management that further sale of treasury stock was stopped, they purchasing the balance unsold. At the end [ 222 ] Stock and Exchanae Board of 60 days the stock had so well advanced that we were not called upon to redeem any of our sales, and we passed over the balance of un- sold shares and the bank account to the owners. 93 Pauper Alley: Prior to 1875, Leidersdorff street ended half way between California and Pine streets. When we purchased on Pine street, and before the building was completed, the street was cut through to Pine. In antici- pation of our removal many brokers located there in 1877. Subsequent to the Sierra Nevada deal, and the decline of the stock business, that portion of Leidesdorff street south of California was ap- propriately termed "Pauper Alley." It was a harbor for broken-down, imaginary capitalists. One could find many there with a plausible story, convincing you how great a fortune they could have possessed had they only sold at the proper time. At the conclusion of the story you would generally be minus ten cents, and you could buy there a whole lot for ten cents beer, with lunch three stogies boot-black each for five cents. In that block of the narrow street were five saloons, four cigar stands, two restaurants, two poolrooms, a candy stand, the side entrance to the Merchants' Exchange, the Hayward and the Benson buildings, the Pacific [223] Anecdotes History of the Sanfrandsco Anecdotes Stock Board, brokers' offices, and a bucket shop. Passing through the street were bankers, lawyers, brokers, insurance men, business men of every grade; during Lenten season, those attending services in the Chamber of Com- merce, and female stock operators who were inconsiderately termed "mud hens." The sidewalks were very narrow. Sidewalks and street were generally crowded from 9 in the morning until the Boards closed at three o'clock in the afternoon. The most sorrowful, pathetic sight was the real broken-down stock operator, once wealthy, now poor, in threadbare clothing, too proud to ask for assistance, but with an expression in the eye that told of want and of how grateful any slight assistance would be to furnish those at home with a little food. Chinatown has always been the great attrac- tion of tourists to our city, but "Pauper Alley" showed that sorrowful side of human nature always to be found in some retired nook in all great cities. The earthquake and four days of fire wiped out this once populous locality. Let us hope all of the frequenters of "Pauper Alley" re- ceived a portion of that wealth, so generally contributed by our country in our hour of need. [224] Stock and Exchange Board 94 The Excelsior stock was active in 1872. M. Jasper McDonald, General Colton and others were large stockholders, and a number of short sales having been made, with little actual stock appearing, the price of the stock rose quickly. There was an Excelsior Company in our office, the stock of which had no value what- ever. A broker came to the office, showed cer- tificates representing 5000 shares in this cor- poration, and asked if the stock was genuine. He was assured that the certificates he held had been regularly issued. That afternoon Mr. Sam Linkton came in and said that Stanford (a member of the Board) had sold Jasper Mc- Donald 2000 shares of Excelsior at $42, buyer 30, and offered him 2000 more, which Mc- Donald refused to purchase, the latter member leaving the Board room, pale and evidently very much disturbed. Upon relating to Linkton the fact of the broker calling at our office with the valueless Excelsior stock, Linkton con- cluded that an advantage was being taken against McDonald, and urged me to find him and explain all. It was late, and Jasper McDonald could not then be found, but I knew he would be at the Occidental Hotel that night, where operators gathered. Of course, it was thought on the street that the Excelsior corner was over when [225] Anecdotes History of the Sanfrancisco Anecdotes McDonald had refused to buy all offered for sale. I was at the Occidental after dinner, look- ing for my friend Jasper. At that time he was a handsome man, tall, with a fine black beard. He wore a silk hat and a light-colored over- coat. In a short time Jasper appeared, looking very much worried and bending over in his great anxiety. I prevailed upon him to stop and listen to my story, and, as the narration progressed, Jasper became more erect, and finally grasping the whole intent of the story, stood erect like a man who was confident he could succeed. He was sincere in his expres- sions of thankfulness; said the story cleaned up all doubts and he never would forget it. The next day the contract for $84,000 was presented, and a check for the 20 per cent deposited demanded, amounting to $16,800. Yes, Mr. McDonald's check was ready, but as it was a stock contract presented, and not a money contract, he desired to see the stock, which would be attached to the contract, before delivering his check. This was demurred to, but finally the stock was shown, and, lo and behold, it was the worthless Excelsior stock. The Board decided that Stanford should de- liver the Excelsior stock listed on the Board, and no other, which he was unable to do. The stock was bought in for his account, at a high figure. He could not pay the loss and [226] Stock and Exchange Board became a suspended member. For years, any one proposed on that seat was bound to be black-balled, as Stanford would importune the members to do so. The seat was finally sold for $30,000 in June, 1875. McDonald obtained a judgment in the courts for $300,000 against Stanford. 95 George W. Cope did not join the Board until December, 1874. As a young man his first experience in the stock business was as a clerk for Mark L. McDonald. He soon learned the ropes, and became so proficient that McDonald made him cashier and general office manager. They had purchased several hundred shares of a stock, buyer 90, from Boyd & Davis. The stock broke one day and Mr. Boyd went around for extra deposits, Cope giving him some cer- tificates of stock instead of money, the security being perfectly satisfactory to Mr. Boyd. Sub- sequently, the price of the purchased stock jumped on the street some $40 or $50 a share, and young Cope called on Mr. Boyd asking a return of the additional security. "What for?" said Mr. Boyd. "Why," said Cope, "the stock we bought has jumped $50 a share on the street." Raising his right arm, and shaking his index finger in Cope's face, Mr. Boyd re- [227] Anecdotes History of the SanFrandsco Anecdotes marked: "You can't play any street prices on me. At the next Board, if the price is as you say, we will return the security." Cope was compelled to accept Mr. Boyd's decision, re- turning to the office rather crest-fallen, but treasuring up the remark in his memory. The price of a stock does not remain sta- tionary, and one day the stock again broke badly on the street after the Board. Mr. Boyd went to the different brokers' offices, obtaining extra deposits, and entering McDonald's office, went to Cope demanding more "mud." "What for?" said Cope. "Why," said Boyd, "it has broken $50 in the street after the Board." Shaking his index finger at Mr. Boyd, Cope said : "You can't play any street prices on me. At the next Board, if the price is as you say, we will give you the extra deposit." 96 A client called at our office and said: "I would like to take a shy at that Consolidated Virginia. What is it selling for?" "405," was the answer. The order was then given in this manner : "Sell them some, but at not less than $400." We sold several hundred shares down to $400, and offered to sell 100 shares at $400, buyer 30, which offer put quite a damper on the stock. After the Board the price was $390, and rather weak at that figure. [228] Stock and Exchange Board On reporting the sale, the client said: "Pick it up again. I only wanted to take a little shy at it." "Pick it up" means to buy quietly, say, one hundred shares at a time, and not to rush in on the floor, bidding lustily for it. A brother broker, with an office adjoining ours, was sent into the Board and bought 100 shares for us. He reported that he could pur- chase another 100 shares and was told to take it quietly when offered. In about ten minutes he was given another order, and gradually the entire amount was re-purchased, when some one tumbled to the transaction, and the price rallied to its old figure. Those kind of orders swelled our commission accounts. 97 Mr. Fred W. Hadley joined the Board in December, 1879, buying his seat of United States Senator Charles N. Felton. He became quite popular early among the members. He was shortly afterwards elected secretary of the Board, and held the position for twenty con- secutive years, the arduous duties of the office being performed by assistant secretaries. After the birth of Hadley, Jr., the whole family attended a session of the Board, the members assisting in making it a lively session, on account of the joyful occasion. Mr. Doud, Anecdotes the partner of Mr. Hadley, brought the young [229] History of the Sanfraneisco Anecdotes hopeful on the floor of the Board, in order ths all of us could have an opportunity to view a possible future President of the United States, in his swaddling clothes. We all crowded around the baby, singing the following refrain: "There's old Fred Hadley, and young Fred Hadley, Who's old Fred Hadley's son, And young Fred Hadley will be old Fred Hadley, When old Fred Hadley is gone." 98 In the 70*8, the palmy days of the Board, when one of us failed ("busted" was the familiar term), if we showed any vim about us, with a determination to settle up and re- sume, how good and kind our brother brokers were ! In 1871 there was a thunderclap on the street. One of the largest firms in the Board suspended the firm of McDonald & Whitney. When Mark McDonald appeared on the floor in the afternoon Board he met with many kind words and actions. His creditors met him with favor- able propositions ; they would not force him to deliver stocks sold by him ; neither would they insist on his paying for stocks purchased. He asked all of them to close their accounts with [230] .J XHAM "ul on the floor of the Board, in all of us could have an opportunity possible future President of the United Stat in his swaddling clothes. We all crowded around the baby, singihg the following refrain: "There's old Fred ung Fred 98 In the yo's, the palmy days of the Board, when one of us failed ("busted" was the familiar term), if we showed any vim us, with a determination to settle up and re- sume, how good and kind our brother brokers :;rd suspended able proposit force him to deliver stocks sol ither would they insist on his paying for stocks purchased. He asked all of them to close their accounts with MARK L. MCDONALD Stock and Exchange Board him at the prices of that Board, promising in time to settle everything. When the contracts were all closed his debt to Board members amounted to something over $40,000. His firm was very prominent, and much to his astonishment he received word that Mr. Wil- liam Sharon would be pleased to see him. Should this prove to be an offer of assistance, it would be of too much importance to be neg- lected. At the interview an agreement was made to purchase Overman, then selling at about $30 or $40 and with an expected develop- ment to advance the price. In a few days McDonald resumed business, and was soon an active trader, buying Over- man in particular. As the stock advanced in price a number of short sellers appeared; the higher the price of the stock, the more the shorts. One prominent short soon became wor- ried. One day the stock reached $100, at which price the profits on McDonald's stock would more than pay his debts. How could he sell without breaking the stock. At this juncture in rushed the prominent short, now frightened to such a degree as to beg McDonald, as a very great favor, to sell him enough to cover his shorts. Just the man he was looking for, but he must not appear too willing ; would like very much to oblige a friend Anecdotes he esteemed so highly. The operator again [231] History of the SanFraneisco pleaded their long friendship, which he begged McDonald to remember. "Well, how much do you want ?" The amount was stated and finally sold. The poor short thanking his friend, gave him his check and left with grateful feelings. That afternoon the creditors of McDonald & Whitney were told to send in their accounts, which were all promptly settled. 99 In those days, when a broker was in finan- cial trouble, it became a custom for ten of us to each loan him $500, making a capital of $5,000 to enable him to resume. Anecdotes IOO H. H. Noble was broker-in-chief for E. J. Baldwin. Noble watched the Board in the interest of his client every minute of the day. At the heighth of the market, probably Jan. 7th, 1875, Keene bid $315 for 10,000 shares of Ophir. Baldwin was not in the Board, and Noble passed his book of orders to another broker, requesting him to execute the orders on the stocks yet to be called, and quickly hied himself to Baldwin's office. A broker must be quick about a business of this kind, and, on opening the door of Baldwin's office, he hurried up to his desk, saying: "Keene is bidding $315 for 10,000 shares of Ophir." Here was [232] $tock and Exchange Board the long waited for opportunity to get the best of a large trade. "Sell it," said Baldwin rising in his excite- ment. It was a $3,000,000 order and Noble naturally hesitated a moment. Baldwin saw the hesitation, and in his eager- ness to make the sale, and beat Keene if possi- ble, said to Jules Cavallier, his bookkeeper: "Give me that box of stocks." When handed the box Baldwin grasped a bunch of certifi- cates, rolled them up without looking at them, and handed them to his broker with the re- mark: "There is security enough. Hurry up!" When Noble arrived at the Board room Keene was still there, but Mr. James R. Keene was one of the brightest of brokers. He knew when to bid for $3,000,000 worth of Ophir, and he knew when to cease bidding. The bid was not repeated, and Mr. Noble lost the chance of making a commission of $15,000. The securities were returned to Baldwin and we learned afterwards that they contained $2,000,000 worth of stock. 101 There was antagonism between Keene and Baldwin. Keene was Sharon's representative in buying the cash stock, and selling the seller Anecdotes ninety stock. Baldwin's position in the lobby [233] History of the Sonfrandsca Anecdotes was just back of the seat of his principal broker, H. H. Noble. During an excited session, while bidding for cash Ophir stock, Keene, in order to depress the market, offered to sell 5,000 Ophir at $60, seller ninety, a figure much below the cash price. Baldwin's voice could be heard : "Take it," and, quick as a shot, came Noble's response: "Take it." It was a splendid pur- chase as subsequent events abundantly proved. The stock sold as high as $315 on Jan. 7, 1875. 102 George I. Ives, a relative of Senator Felton, has been connected with brokerage business since the organization of the San Francisco Stock and Exchange Board. If Johnnie Skae had been asked to announce this fact, he prob- ably would have said : "Ives was a broker when Mount Davidson was a hole in the ground." There are not many persons living today who were acting as brokers when Mr. Ives first engaged in the business. He was a broker in Virginia City in 1866, returned to San Fran- cisco and entered the Board in 1870. Keene and Ives were in business together in 1870-1871. Ives has dark hair and mustache, always well dressed, and so quick in action that the thought to sell a stock and the act of selling with him are instantaneous, thus forcing other brokers to be equally quick or to drop behind. [234] he seat of his principal b Noble. During an excited session, ig for cash Ophir stock, Keene, in order to depress the market, offered to sell 5,000 Ophir at $60, seller ninety, a figure much below the cash price. Baldwin's voice could be heard : "Tak ' has i nectcci >iness since the organization of the San Francisco Stock and Exchange Board. If Johnnie Skae had been asked to announce this fact, he prob- ably would have said : "Ives was a broker when Mount Davidson was a hole in the ground." ny persons living today who engaged in the b dressed, and * : thought to sell a stock and th selling with him are instantaneous, thus forcing other brokers to be equally quick or to drop behind. PAUPER ALLEY Stock and Exchange Board It will do no harm to state the following incident regarding Ives and Keene : In connection with his own business, Ives executed orders for the great firm of Burling Bros. In the heighth of the great excitement at the close of 1874, I ves received an order from Burling to buy all the Ophir offered at $299 and to sell what was wanted at $300. It was at the time when we had opened the Board rooms for those great informal sessions, held from 9:30 to 10:30 in the morning. As the brokers were serving alternately as caller, it was Ives' turn to call the principal stocks, and from the rostrum he had sold probably 200 Ophir at $300 when Keene was seen hurriedly edging his way through the crowd to the front. They were no longer partners, and here was a show for Ives to transact some business. "What's Ophir?" was Keene's first remark. "Well, you are the man I am looking for," said Ives, "I will give you $299 for 500 shares." "What will you sell 500 for?" asked Keene. "Three hundred dollars," was Ives' rejoinder. "Take 'em," said Keene. "Sell you 500 more," said Ives. "What will you give for 500?" Keene shouted. "Two hundred and ninety-nine," came from Ives. Anecdotes "Sold," said Keene. [235] History of the Sanfhmcisco Take 50 What will you sell 500 Three hundred dollars Anecdotes "Sell you 500 more ;" from Ives. Keene scratched his head a minute and said : "What will you give for 500?" "Two hundred and ninety-nine dollars," said Ives. "Sold;" again from Keene. "Have you been to your office this morn- ing?" queried Ives from the rostrum. "No," answered Keene. "Well, suppose you go there before transact- ing any more business." It was thought that Ives had a supporting order from the great Bank of California ring, and that Keene's order was from the same source. Ives' transaction amounted to almost $600,000, and Keene's purchases and sales were the same. Some one lost $1,000 on the above transac- tions, and also paid commissions on $1,200,000. 103 J. H. Mahoney, Jr., always known as Jack Mahoney, was another intimate friend of Ives. Mahoney was of a New York family, suffi- ciently wealthy to relieve Jack from seeking employment, but still he left home and family [236] Stock and Exchange Board to strike out and see if he could not make him- self independent by his own exertions. Jack was a handsome young fellow, with dark hair and mustache, above the average height, faultlessly dressed, and right in the swim with the big stock element. He was clerk for George Smiley for a short time, but joined the Board in 1873, paying $6,000 for the seat of J. L. Romer. He received an order one day to sell some Consolidated Virginia at $200 a share. Meet- ing Ives on the street he offered him 50 shares at $200. Ives knew it was extremely cheap and also a good purchase, but as his bank account was weak that day, he stated this fact and re- gretted he could not purchase it. Mahoney finally sold him the 50 shares, "buyer 10" at $200, Ives very generously stating that Jack should be joint purchaser with him, which was agreed upon. As Ives was entering the pur- chase Jack offered to sell 50 more, which so staggered Ives that he commenced to scold Jack in round terms for not letting him know he had more stock for sale. Keene came along and listened to the wrangling, agreeing also to go in on the pool, and so they purchased the 100 shares, "buyer 10," the contract being made with Keene. When this was all arranged, Jack offered to sell another 50 shares on the same Anecdotes terms, and again Ives broke out, upbraiding [237] History of the Sanfrandsco Jack, when Keene, a plunger from the word go, purchased the additional stock, stating that he would purchase all the stock Jack had for sale. But that last sale ended the wrangling. It was all Jack had. The next day the stock jumped to $230 a share, George and Jack selling at this price the 100 shares which was their portion, realizing $1,500 each. But Keene, the brightest of them all, held his 50 shares and sold it at high figures. Within a few weeks the stock was selling at $800 a share on time sales. Anecdotes 104 Mahoney kept his bank account with Dona- hoe, Kelly & Co. On one occasion he exe- cuted a selling order, either directly for Mr. Flood, or through one of Flood's brokers, and gave his check for the amount of the sales, which was over $900,000. A few days subsequent to this he called at the bank and told Mr. Howard Havens, the manager, that he wanted to draw a check for about $4,500, but that it would overdraw his account $500, and requested this overdraft. Mr. Havens stepped back and glanced at the balance sheet, looked at Jack, and again at the balance sheet, then, walking forward with rather a dazed expression, resting his elbow on the counter, and with his hand on his chin, re- marked : [238] Stock and Exchange Board Mahoney, you bank for $4,500? When Jack's bank book was made up a end of the month he ascertained that his checks for $900,000 had not been presented, and, there- fore, when he requested an overdraft of $500 he had nearly a million to his credit. 105 All this occurred some time before the open- ing of the Nevada Bank in October, 1875. The bank was organized with a large capital, and the Bonanza firm was selling large blocks of stock in order to raise the cash capital for the bank. Had the public known of these large sales the prices of stock would have broken badly, and, in order to conceal the matter from the public, Col. Eyre, the broker for the Bonanza firm, gave selling orders to different brokers, and, instead of giving his own checks to the firm for these sales, he delivered to them direct the checks he received from the brokers, which checks Mr. Flood retained in his office until enough stock had been sold, the entire amount of which furnished the capital for the new bank. I think the following story is correct in its essential details; at all events, it was so un- Anecdotes derstood among the brokers: [239] History of the SanFrandsco Anecdotes All old Californians will recollect Joseph H. Jones, a prominent and an old member of the Board. At one time he had been the secretary of the Crown Point Mining Company; he joined the Board in 1867. He was above the average height, rather stout, with black hair and the finest, fullest, long black beard known on the street ; always dressed in a black suit of clothes, genial and jolly. He had just returned from an Eastern trip. I think I am right in stating that he opened an account with the im- portant banking house of Belloc Freres; in addition he had an account with the Bank of California. He received large selling orders from Col. Eyre, delivering his checks each day, which identical checks Col. Eyre would turn over to Mr. Flood, and, unknown to Jones, the checks would be locked up in Mr. Flood's safe instead of being cashed. One day Jones received a note from his new bankers to call at their office immediately. Jones was not very wealthy at that time, and such a note from his new bankers was porten- tious, to say the least. Summoning up a stiff upper lip he proceeded to the bank and was ushered into the private office and seated at a desk with one of the firm. He expected dire- ful results. He was told the bank was pleased to have his account, would extend credit to him if needed, now that they were acquainted, [240] Stock and Exchange Board but that the bank must insist for the present that Mr. Jones should not pile up any more money with the firm; that he had so large an amount of money to his credit that the bank's vaults were full and that there was no more room to store any more gold; that he must not deposit any more money, as the bank posi- tively could not receive it, and that Mr. Jones would confer a very great favor on the bank if he would check out at least one-half of that which stood to his credit. Such talk was so unintelligible to Jones that he was dazed for a moment; if the conversa- tion had been held in Chinese he could have understood it as well.. Jones promised to do what he could to help the bank and returned to his office. Finally, grasping the situation that his checks had not been presented, he pro- ceeded to Col. Eyre, telling him the facts, stating he had kept many accounts, had often been told not to increase an overdraft, but never, never, never before had he heard of a depositor being ordered to stop piling up money in a bank. Of course, the distress of the bank was instantly relieved. 106 While writing about banks, bankers and overdrafts, it is well to state that business was conducted on a somewhat more liberal scale [241] Anecdotes History of the Sanfrandsco Anecdotes thirty years ago. When a broker was known to be all right, and his standing established at the bank, he did not bother himself about giv- ing notes when money was needed, but just kept on drawing checks and making deposits, sometimes with a large balance to his credit, but more often overdrawn. Our office was next door to the Bank of Cali- fornia. One day Mr. Brown, the cashier, entered our office with the remark: "What have you been doing?" "Why, what's the matter, Mr. Brown?" "Nicolson says he has cashed your checks for $130,000, at least, today; that you have made no deposits and that you were overdrawn last night." That was about the severest remark a banker could make, and it explained everything. I took Mr. Brown behind the counter and approached the junior partner, who was very busy; he held up his hand for us not to inter- rupt him. Mr. Brown looked over his shoulder, saw three of those long deposit tags, in use thirty years ago, all filled out, the last one being footed up, and a stack of checks six inches high, all of which indicated that we were about to make a deposit in the bank. Mr. Brown turned away and in leaving the office said: "Draw $130,000 more." Mr. Brown was certainly a popular cashier. [242] Stock and Exchange Board 107 At the heighth of the market of 1874-75-76, caused by the discovery of the great bonanza in California and Consolidated Virginia, many brokers and operators employed a personal representative at Virginia City to notify them as to new strikes and the condition of the mines generally. Each representative was fur- nished with a cipher book, so that his em- ployer could be informed secretly. The word "code" was not used at that time. It was rumored that a bright young man, conversant with telegraphic matters, had learned to read all of these private cipher despatches, and so it became necessary to change the old ciphers and invent new ones. All the residents of Virginia City that were prominent in stock circles, were compelled to adopt this course, and Mr. Sharon, in particu- lar, went to quite an expense to obtain a new and elaborate cipher. In the meantime efforts to discover the culprit were rewarded with success. A suspect in Virginia City was taken to the agency of the Bank of California and some pointed interrogatories were propounded to him. When he ascertained he was not to be jailed nor hanged, he made a complete con- fession. Several examples in the old ciphers were presented to him and he read them off Anecdotes like so much primer. Drawing a long breath [243] History of the Sanfrandsco Anecdotes and appearing very much relieved, Mr. Sharon remarked, now that the examination was all over, that he had become tired of his old cipher anyhow and was much pleased with his new one, which he was confident no one could read. Noticing a twinkle in the eye of the young man, Sharon asked him if it was possible for him to translate the new form. "You mean the one you have been using for the past four or five days?" "Yes," said Mr. Sharon. "Well, that is as plain as A, B, C," was the rejoinder. Doubting the truth of this remark, Mr. Sharon wrote a dispatch in the new form and handed it to the young man to test him. He read the first cipher word, turned the despatch upside down on the table, raised his eyes to the ceiling, and after a moment's thought gave the translation, and carried the same process through with the balance of the telegram. When he had finished, the translation was so perfect that Virginia City concluded that it could survive if this young man should emi- grate to some other State and he did. 108 The Consolidated Virginia Mining Company was formed by the consolidation of the Sides [244] SHT OT TI8IV 8'THAHO .8 .U TW3ai835iq GV8I ,2fOOT8MOO y (/the Sanfrandsco ppcaring very much relieved, Mr. Sharon remarked, now that the examination was all over, that he had become tired of his old cipher anyhow and was much pleased with his new one, which he was confident no one could read. Noticing a twinkle in the eye of the young man, Sharon a for him to trair . Doubting the truth of this remark, Mr. Sharon wrote a dispatch in the new fdrm and handed it to the young man to test him. He read the first cipher word, turned the despatch upside down on the table, raised his eyes to the ceiling, and after a moment's thought gave the translation, and carried the i the grate to some ct 1 08 The Consolidated Virginia Mining Company formed by the consolidation of t! PRESIDENT U. S. GRANT'S VISIT TO COMSTOCK, 1879 Stock and Exchange Board Mining Company, containing 500 feet, and the White & Murphy, containing 210 feet. There were 11,600 shares in the capital stock, and, in 1868 to 1871, Bolton & Bell were the prin- cipal stockholders. The control of the mine soon passed into the hands of Flood & O'Brien, the firm paying as high as $8 a share for the stock. Any stockholder in this mine in 1871, who bought 100 shares, and retained the same until January, 1875, realized a princely fortune. Mr. H. H. Noble states that he purchased for Mr. Con Sullivan 100 shares at that price $8 a share. Con. Sullivan was a thick-set, heavy gen- tleman with a florid complexion, black-grayish hair and heavy mustache, above the average heighth, well-known on California street and quite popular among the brokers. Mr. Sulli- van did not retain possession of that 100 shares until it reached its highest price, as such a course would be contrary to the custom of all speculators. It was also reported in the Board that, subsequently, Mr. Flood offered him a check for $680,000 for the shares he owned in Consolidated Virginia. Sullivan asked, and was given an hour, to consider the proposition. He returned in a short time, and, as it was a pretty large check, finally accepted it and Anecdotes turned over his stock. [245] History of the Sanfhmdsco Anecdotes To illustrate the manner in which large for- tunes were made between 1870 and 1875, let us follow out the possible profits that might have been acquired by purchasing 100 shares of this stock at $8 a share, at the time of Sul- livan's purchase, which amounted to $800. In May, 1872, the capital stock of Consoli- dated Virginia was increased from 11,600 shares to 23,600 shares, each stockholder re- ceiving two shares for each share owned by him. Thus, the holder of the 100 shares re- ferred to now received a new certificate, repre- senting 200 shares, in place of his former cer- tificate of 100 shares. On October 18, 1873, the capital stock was still further increased to 108,000 shares, "The Bulletin" of that date representing the previous capital stock as 21,600 shares, the increase thus being five shares for one. The holder of the 200 share certificate now received a new certificate, in this further increase, of 1000 shares in lieu of his 200 shares. During the next three months the directors of the Consolidated Virginia Mining Company gradually gained control of the Kinney, Cen- tral No. 2, California, and Central No. i Mining Companies, and in January, 1874, organized a new corporation out of this additional ground, and called it the California Mining Company, each stockholder in the Consolidated Virginia [246] Stock and Exchange Board Mining Company receiving a stock dividend in the California of 7-12 of a share for each share he owned in the parent corporation; thus, the stock dividend on the above mentioned 1000 shares would amount to: 1000 X 7-12 = 7000-12 = 583 shares, or, in round figures, let us call it 600 shares. The original 100 shares we have been illus- trating was now represented by 1000 shares of Consolidated Virginia and 600 shares of Cali- fornia. To Mr. James C. Flood must be accorded the credit, to a great extent, for this and subse- quent events, and to Mr. James G. Fair the credit of discovering ore. Mr. Flood's idea was, instead of sinking shafts other than the Consolidated Virginia, then down 1200 feet, to develop all this ground by running a drift from the 1165 foot level of the Gould & Curry, north through the property to the Ophir shaft. This was done under Mr. Fair's management. In one place $40 ore was discovered. The Consolidated Virginia shaft was then lowered to the 1500 foot level, a long drift was extended and three cross-cuts run at the same time, which, with additional hard work, soon developed the greatest bonanza of modern times. The legal firm of Williams & Bixler in Vir- Anecdotes ginia City, composed of General Thomas H. [247] History of the Sanlrancisco Anecdotes Williams and David Bixler, had performed some legal business for a client, who was un- able to pay them in coin, and the firm was compelled to accept a deed for 100 feet of ground in the Central No. 2. Upon the con- solidation mentioned above and the subsequent discoveries, the firm acquired a princely for- tune, the lowest estimate of each member being placed at $4,000,000. The 100 shares we have been following came in for its share also. It had now increased to 1000 shares of Consolidated Virginia and 600 California. In January, 1875, these two stocks sold as high as $800 a share on time sales. 1000 shares of Consolidated Virginia at $800 a shai would amount to 1000 X 800 $800,000 The 600 California at $800 a share would amount to 600 X 800 480,000 Total $1,280,000 And all on an original investment of $800, some assessments, however, having been paid by the holder. And when we get the water out of the Corn- stock Lode and sink to and develop the 3000 foot level, and below, should we discover ore, we are going to make those kinds of invest- ments all over again. [248] Stock and Exchange Board 109 The banks and bankers were very kind and considerate to the brokers in the great mar- ket occurring between 1873 to 1878. We could not have transacted business without the busi- ness application of banking methods to our needs. The prices of the stocks listed on the Board in January, 1875, footed up a grand total of nearly $350,000,000 in gold; and we were com- pelled to rely solely on the Pacific Coast for this amount, as gold did not become a circu- lating medium in New York until Jan. i, 1879, four years after our high market, the latter date being the time of the resumption of specie payments by the United States Govern- ment. The profits of bankers and brokers were very great during the time mentioned. A banker detailed to Col. Eyre one day the facts of the income accruing to his bank for that year, when the Colonel replied that his income, as a broker, greatly exceeded that of the bank mentioned; also stating that the capital invested in his business was not equal to one-tenth of the capital stock of the bank. The final payments on the large time trans- actions of that period, and the necessary cer- tifying of checks of large amounts by our bankers, was quite an event. [249] Anecdotes History of the SanFrancisco Anecdotes Mr. William Edwards was at the time cashier and paying teller of the Merchants' Exchange Bank. One day Broker J. W. Brown called and requested Edwards to certify a check for about $48,000, as he wished to take up stocks on a contract deposited with the Bank of Cali- fornia, stating that he had sold the stocks, would deliver them to the purchasers, and deposit the checks he received in a few minutes. The check was certified, and, after Brown's departure, Manager Sneath, who had watched the transaction, objected to the proceeding, claiming that such actions would break that or any other bank, especially as the depositor in question, at that time, had but a small amount to his credit, at the bank. Edwards explained that he had been pursuing that course for years, and, if discontinued, the bank would lose the accounts of the different brokers. While the matter was under discussion Mr. J. .W. Brown re-entered the bank, depositing checks for a much larger amount than he had drawn on the certified check. Still Mr. Sneath was not satisfied, and the matter was referred to President Alvinza Hayward, who patiently heard both sides of the argument; and then remarked to Mr. Sneath: "I think we had better leave all this matter to Edwards; he seems to know what he is about!" A prominent business man one day presented [250] Stock and Exchange Board a check for $1,000 to Cashier Edwards, and received the money. In an hour or so he re- turned to the bank asserting that he had been underpaid $20. After some discussion Edwards promised the gentleman to give him $20 in case the cash of the bank was over that amount when it balanced cash at the close of business that day. When the gentleman called the next day he was told the bank's cash was all right, and, therefore, he must have been paid the full amount of his check. In cases of this nature, each person, natur- ally, feels that his own story is correct, and dissatisfaction always arises. A few weeks afterwards the gentleman called at the bank, and, with a smile on his face, stated that he had been guilty of injustice towards Mr. Ed- wards; that he had called to express his re- grets, as he had found the $20. On being asked to relate the circumstances, he said: "It was raining on the day I cashed the $1,000 check, and I turned my breeches up at the bottom. At my office I must have dropped the money or a portion of it. I placed my trousers in my closet the next morning, and did not again look at them until this morning, when I again put them on, and, as they were still turned up at the bottom, the minute I turned Anecdotes them down out rolled a $20 piece." History of the SanBrmcisco no Mr. D. O. Mills was always a stalwart finan- cial figure in California. He was one of the principal stockholders in the Union Mill and Mining Company, in connection with Ralston and Sharon. He was president of the Bank of California at its organization in June, 1864. He retired from this position about 1873, but, when the bank was rehabilitated in October, 1875, he was re-elected president. He resided East since 1879, and died well advanced in years at his country residence of Millbrae, twenty miles south of San Francisco, January 3, 1910. Anecdotes ill Mr. Frank Pausson is the authority for the following : In a notion store, located on Sansome street, near Bush, in 1871, Otto Bach, a clerk, was employed. He opened an account with Edward Cahill, a broker of long standing, whose office was located on the west side of Montgomery street, near California. At that time Edward Cahill was about forty-five or fifty years of age, probably six feet two inches tall, his mustache and hair becoming gray, of florid complexion, and always seen wearing a pair of eye-glasses. He had been a broker in Virginia City, returning to San Francisco, and Joining [252] vfttnt*- WAMJ.J MI aaau 8MOITDA8MAHT XDOT3 ry (/the Smfhmclseo no Mr. D. O. Mills was always a stalwart i" 1 figure in California* He was one of the principal stockholders in the Union Mill and Mining Company, in connection with Ralston and Sharon. He was president of the Bar e. 1864. . .en the is was i in Mr. Frank Pausson is the authority ior tin following : In a notion store, located on Sansome street X 7i, Otto Bach, a clerk. -wai age, prcba: Mis mustache and ng gray, of florid complexion, and always seen wearing a par eye-glasses. He had been a broker in Virgin -.* J 4-n Qo T?T - ar i Je.-- wnrk in the Ward shaft. A. B. RUGGLES, PRESIDENT OF THE SAN FRANCISCO STOCK AND EXCHANGE BOARD, 1910 Stock and Exchange Board to the future of the Comstock Lode is the fact that Mr. E. B. Sturges, a wealthy Eastern gentleman, has lately interested himself in these mines, and at present controls many of them, investing largely in their shares. In- terested with Mr. Sturges are a number of influential men. In the opinion of the writer much time has been wasted in pumping out the water from the lower levels. We learn of difficulties of a similar nature in other parts of the world, where, by greater energy, these difficulties have been overcome. All efforts should be made to lower the water. Pump it all out, keep it out, and sink for the lower levels. Those in power up to 1886 drifted, tunneled and dia- mond-drilled the ledge, but did not find suffi- cient developments to warrant a continuance of the great pumping expense of $400,000 a year, and abandoned the workings, letting them fill up with water. Let us strive once more to resurrect the Comstock. Let us urge everyone connected with it to make more determined efforts to exhaust the water and obtain a look at the bot- tom again. Sink the shafts lower than ever and place all of our hopes in developments below the sooo-foot level. Depression and Revival [315] BOARD MEMBERSHIP History of the Sanfrancisco Stock and Exchange Board CHAPTER XX BOARD MEMBERSHIP N 1877, from information ob- tained from the minute book of the Board, we made out a complete list of the members of the Board. First The forty charter members ; Second The second for- ty members, chosen at the close of 1862 and beginning of 1863; Third The twenty members elected June 12, 1875, and afterwards paying $25,000 each to the Board for their seats. We carried out the names of all the success- ors of the above with the dates of their election, handed it over to the Clerk of the Board, whose duty it was to post the name of each newly elected member after the name of his predeces- sor. This list was continued down to April 1 8, 1906, when, with all other records of the Board, it was destroyed in the great fire. It would be a matter of great labor to re- [3*9] Board Membership History of the Sanfrandsco Board Membership construct this list, but we began the effort in 1908, and believe we have the name of each person ever a member. The great difficulty is to ascertain the predecessors of members. For instance, we have the list of October 17, 1863; the next list in our possession being that of April 24, 1864. There are eleven members who left the Board during that period and eleven newly elected members. We are en- deavoring to ascertain from which particular person each of the eleven newly elected pur- chased. A file of the San Francisco News Letter from September n, 1862, until August 6, 1864, would supply much needed information. It was a weekly paper, and published in each edition, for probably two years, the complete list of the members with their places of busi- ness. Unfortunately, no complete file of this paper has yet been discovered which escaped the fire. At the Bancroft Library, at the Uni- versity of California, can be seen a few copies, from which much of our information has been gathered. It would be of great benefit to us to be permitted to examine copies of the San Francisco News Letter from September, 1862, to August, 1864. Such a file may be in the possession of some person on this Coast. A copy of the Constitution and By-Laws of September n, 1862, gives us the names of only [320] Stock and Exchange Board 37 of the charter members. From the best information we can obtain it is thought the three missing names are S. J. Sparrow, Joseph Bates and L. B. Adsit. Again, the earliest list in our possession sub- sequent to that of the 37 charter members is taken from the News Letter of October 17, 1863, containing 80 names. This must include to a great extent the names of the second forty members, of which we are certain of but three, namely: J. Bryant Hill, L. F. Loveland and Frank Hassey. We are thus compelled to publish an alpha- betical list of past and present members, leav- ing a blank for information not yet obtained and much desired. Members, October 17, 1863, from the "News Letter" in possession of the Bancroft Library: Abbot, O. Adsit, L. B. Barclay, G. R. Boileau, F. Berry, R. N. Brown, L. A. Beard, J. R. Bradford, C. H. Bates, Joseph Bayly, L. Burling, W. Budd, W. C. Beeman, J. H. Bowman, E. P. Blake, G. M. Cavallier, J. B. E. Critcher, H. Cornwall, P. B. Charles, T. C. Chappelle, A. M. Gumming, J. Cobb, H. A. Camp, H. Darnell, H. Y. Davies, John S. DeWolf, S. [321 ] Board Membership History of the Santrancisco L !Rl >* Falkenau, J. Pixley, F. M. : - Grant, J. Parker, W. C. ^T Gildemeester, A. H. Pease, E. T. & Giffin, O. F. Peckham, E. P. S\ Garnett, L. A. Rising, D. B. Higgins, W. L. Roberts, D. Hyman, P. C. Rqbbins, J. J. Henriques, D. Reeve, G. B. Hassey, F. A. Sanborn, T. C. Hall, O. C. Schmiedell, H. Hill, J. B. Shipley, A. J. Heydenfeldt, S. Smiley, J. Holt, Z. Sparrow, S. J. Hedges, L. H. Teacle, E. W. Heath, R. W. Talbot, T. A. Ireland, L. F. Tabor, Isaac Lawton, F. Vogelsdorff, B. W. Lawton, W. W. Van Lokkeran, A. Loveland, L. F. Watson, N. A. Lubeck, S. Wilson, J. D. Logan, H. C. Williams, D. C. Marina, E. J. de St. Winans, J. C. Mayer, Simon Woods, F. H. Moulder, A. J. West, C. H. Newell, L. W. Wheeler, H. C. Perry, John, Jr. Wakelee, C. H. Page, R. C. Wakelee, H. P. Board Membership Members, December 31, 1864, from the "News Letter" in possession of the Bancroft Library : Abbot, O. Adsit, L. B. Boilleau, F. Brown, L. A. Bradford, C. H. Bates, Jos. [322] Stock ondExchangeBoard Burling, W. Budd, W. C. Bowman, E. P. Cavallier, J. B. E. Cobb, H. A. Critcher, H. Cornwall, P. B. Charles, T. C. Gumming, John Child, E. F. Constantine, J. Darnell, H. Y. DeWolfe, S. Duncan, W. L. Dewey, E. E. Dwyer, D. Freeborn, J. Fisher, L. W. Felton, C. N. Fry, J. D. Gildermeester, A. H. Garnett, L. A. Grimm, C. H. Higgins, W. L. Hyman, P. C. Henriques, D. Hassey, F. A. Hall, O. C. Hill, J. B. Holt, Z. Herman, S. Hill, Thomas Hagadorn, A. H. Hedges, L. H. Howard, J. L. Heath, R. W. Ireland, L. F. Lawton, F. Loveland, L. F. Lubeck, S. Logan, H. C. McDonald, M. L. Marina, E. J. de St. Mayer, Simon McKenty, J. Mizner, L. B. Mills, S. B. McElwain, J. McAneny, G. B. Mathews, E. J. Perry, John, Jr. Page, R. C. Pease, E. T. Peckham, E. P. Rising, D. B. Roberts, D. Robbins, J. J. Reeve, G. B. Sanborn, T. C. Schmiedell, H. Shipley, A. J. Smiley, James Sparrow, S. J. Sharon, W. Shockley, T. Schmidt, B. L. Teacle, E. W. Teller, J. D. P. Board Membership [323] History of the SanTrancisco 'ill *> \ HB \UjW tt n? fl Vogelsdorff, B. W. West, C. H. ^ %p? Watson, N. A. Winans, J. C. ^ Williams, D. C. Wakelee, H. P. fC* Woods, F. H. ^ Board Membership Members, June i, 1875. Final list of 80 members prior to the increase of membership to 100: Brooks, S. H. Bonynge, C. W. Boswell, S. B. Brown, J. W. Budd, W. C. Burling, W. Burtsell, J. M. Cahill, Edward Charles, H. A. Child, E. F. Coit, B. H. Coleman, J. W. Coursen, G. A. Crocker, J. H. Cope, Geo. W. Deane, Coll Dixon, Samuel Duncan, W. L. Everett, A. F. Eyre, E. E. Ford, Jos. Fitch, J. R. Foster, W. H. Freeborn, J. Fox, C. W. Glover, G. F. M. Glazier, I. Greenebaum, J. Hall, E. F. Hill, H. L. Herr, J. J. Hopkins, C. H. Hubbard, C. V. D. Higgins, W. L. Hassey, F. A. Hale, W. E. Ives, G. I. Jones, J. H. Keene, J. R. Kenney, C. A. King, Joseph L. Kilgour, L. Kinsey, A. G. Knox, G. T. Latham, J. H. Lissak, A. H. Logan, H. C. Loveland, L. F. Lawton, F. Lynch, J. Mahoney, J. H., Jr. Marina, E. J. de St. Stock and Exchange Board McDonald, M. J. McDonald, M. L. McKenty, J. Noble, H. H. Parker, W. C. Page, R. C. Peckham, E. P. Perry, John, Jr. Rogers, R. F. Rorke, B. B. Schmiedell, H. Shawhan, J. E. Shotwell, J. M. Smiley, G. W. Stanford, W. T. Stoutenborough, C. H. Steinhart, S. Sherwood, B. F. Schmitt, Maurice Thornburgh, W. Turnbull, W. Vimont, J. N. Williams, H. Whitney, A. W. Wilke, F. E. Woods, F. H. Winans, J. C. Zinns, L. A. List of 20 additional members, elected in Board seats at $25,000 each : 1. June 12, 1875 William Sharon 2. June 12, 1875 James C. Flood 3. June 12, 1875 Robert F. Morrow 4. June 12, 1875 James D. Fry 5. June 12, 1875 William S. O'Brien 6. June 12, 1875 Alexander Austin 7. June 12, 1875 George M. Pinney 8. June 12, 1875 Richard C. Hooker 9. June 12, 1875 Charles N. Felton 10. June 12, 1875 H. H. Scott 11. June 12, 1875 John P. Jones 12. June 21, 1875 L. T. Haggin 13. June 24, 1875 H. Hart 14. June 24, 1875 Samuel B. Wakefield 15. Aug. 16, 1875 Charles S. Neal Board 16. Nov. 22, 1875 George T. Marye, Jr. Membership 17. Nov. 29, 1875 Marcus P. Hall [325] History of the Scmfrandsco 18. Nov. 29, 1875 Eugene E. Dewey 19. Nov. 29, 1875 Joseph Quay 20. Sept. 27, 1877 Martin Herman Members, July, 1903, who received the divi- dend of $3,000 from the sale of the Pine street building : Board Membership Barrett, E. P. Brooks, S. H. Coleman, J. V. Coffin, A. F. Cope, Geo. W. Coursen, G. A. Edwards, Wm. Epstein, E. Fitch, J. R. Flood, J. L. Foster, A. W. Fox, C. W. Fox, H. L. Francis, H. Fry, R. D. Glazier, I. Greenebaum, J. Hawxhurst, R. Hadley, F. W. Heath, R. W. Herman, M. Hopkins, E. W. Ives, G. I. Jones, J. P. Kelley, G, W. King, J. L. King, H. S. Kuhl, H. G. Lynch, J. Laing, C. D. Mackenzie, John Marks, Joseph Marshall, L. Marye, G. T. McDonald, M. J. McDonnell, A. J. Messer, N. T. Miller, Geo. Morrow, R. F. Nash, Joseph Noble, H. H. Paxton, C. E. Phipps, A. B. Rogers, R. F. Ruggles, A. B. Smith, H. B., Jr. Schmitt, M. Scott, E. Shaw, B. F. Shinn, H. H. Stoutenborough, C. H. Steinhart, S. Stauf, W. Thurston, G. P. [326] Stock and Exchange Board Van Wyck, H. L. Wattles, J. B. Williams, H. A. White, W. F. Walker, O. V. Whitely, H. M. ESTATES W. Sharon W. S. O'Brien Coll Deane S. B. Wakefield W. E. Norwood Frank Swift H. L. Coleman James Freeborn H. Schmiedell G. W. Tindall J. W. Coleman Frank Hassey O. W. Marye J. M. Shotwell E. E. Eyre F. H. Woods J. M. Goewey W. E. Hale R. R. Grayson S. Dixon G. Frederich B. F. Sides A. G. Gurnett Geo. C. Hickox 5 Delinquents 11 Board Seats In 1903 the Board purchased many seats. The following were the active members re- maining : 1 Barrett, E. P. 2 Coffin, A. F. 3 Coursen, G. A. 4 Edwards, W. 5 Epstein, E. 6 Fitch, J. R. 7 Flood, J. L. 8 Foster, A. W. 9 Fox, C. W. 10 Fox, H. L. 11 Fry, R. D. 12 Greenebaum, J. 13 Hawxhurst, R. 14 Hadley, F. W. 15 Heath, R. W. 16 Kelley, G. W. 17 King, J. L. 18 Kuhl, H. G. 19 Laing, C. D. 20 Mackenzie, J. 21 Marks, Joseph 22 Marye, G. T. 23 McDonald, M. J. 24 McDonnell, A. J. [327] Board Membership History of the SanFrancisco I" IB Board Membership 25 Messer, N. T. 26 Miller, G. 27 Morrow, R. F. 28 Nash, Joseph 29 Paxton, C. E. 30 Phipps, A. B. 31 Ruggles, A. B. 32 Schmitt, M. 33 Scott, E. 34 Shaw, B. F. 35 Shinn, H. H. 36 Steinhart, S. 37 Stauf, W. 38 Thurston, G. P. 39 Van Wyck, H. L. 40 Wattles, J. B. 41 White, W. F. 42 Walker, O. V. ESTATES 43 S. B. Wakefield 44 J. W. Coleman. 45 E. E. Eyre. 46 J. M. Goewey 47 B. F. Sides 48 A. G. Gurnett 49 R. R. Grayson 50 G. W. Cope. 50 Board Seats Seats purchased by the Board : 1 Loveland, L. F. 2 Brown, J. W. 3 Lissak, A. H. 4 Child, E. F. 5 Scott, H. H. 6 Hall, M. P. 7 Mahoney, J. H. 8 Duncan, W. L. 9 Bernhard, J. H. 10 Patterson, Jas. 11 Jones, O. R. 12 Anderson, Chas. 13 Walls, Jno. A. 14 Harris, C. P. 15 Cahill, E. F. 16 Brooks, S. H. 17 Keene, Jas. R. 18 Sharon, Wm. 19 O'Brien, W. S. 20 Norwood, W. E. 21 Swift, Frank 22 Freeborn, Jas. 23 Schmiedell, Henry 24 Hassey, F. A. 25 Shotwell, J. M. 26 Woods, F. H. 27 Hale, W. E. 28 Dixon, S. 29 Frederich, G. E. 30 Hickox, Geo. C. 31 Coleman, H. L. 32 Tindal, Geo. W. 33 Marye, O. W. 34 Hopkins, E. W. 35 Ives, Geo. I. 36 Noble, H. H. [328] Stock and Exchange Board 37 Stoutenborough, C. H. 44 Whitely, H. M. 38 Francis, H. 39 Herman, M. 40 King, H. S. 41 Rogers, R. F. 42 Smith, H. B., Jr. 43 Williams, H. 45 Coleman, Jas. V. 46 Marshall, Louis 47 Jones, J. P. 48 Glazier, I. 49 Lynch, J. 50 Deane, Coll Membership, October 20, 1909, officers and members : A. B. RUGGLES President WM. EDWARDS Vice-president JOS. L. KING Chairman E. EPSTEIN Secretary CHAS. D. LAING Treasurer Arrowsmith, G. E 306 Bush Atherton, F. D 332 Bush Bannan, Wm 337 Bush Barrett, E. P 324 Bush Berghauser, J. H 375 Bush Bishop, F. W S. F. Stock Ex. Boas, Nat 448 Mont'y Bond, W. F S. F. Stock Ex. Bourne, J. B S. F. Stock Ex. Chamberlain, F. O S. F. Stock Ex. Clark, G S 339 Bush Coffin, A. F 339 Bush Curtis, Uri B S. F. Stock Ex. Degan, J. E 353 Bush Donnellan, K 353 Bush Doubleday, D. G S. F. Stock Ex. Douglas, W. G 335 Bush Dulfer, F. W 368 Bush Edwards, Wm 339 Bush [329] Board Membership History of the SmFranetsco Board Membership Epstein, E 309 Bush Flood, Jas. L Jas. Flood Bldg. Foster, A. W Jas. Flood Bldg. Frankenthal, A 412 Mont'y Fry, R. D S. F. Stock Ex. Godchaux, E 310 Mont'y Greenebaum, J 224 Calif. Hadley, F. W 339 Bush Hannon, W. H 339 Bush Hayes, W. J 339 Bush Herzberg, 1 339 Bush Hinkel, Wm 117 Russ Bldg. Hirshfield, Chas S. F. Stock Ex. Hopkins, J. P 332 Bush Houseworth, F. A 306 Bush Hudson, Chas. E 353 Bush King, Jos. L 339 Bush Krause, A 353 Bush Kullmann, J 353 Bush Laing, C. D 339 Bush Lewis, F. R 312 Bush Mackenzie, Jno 339 Bush Marks, Jos S. F. Stock Ex. Marye, Geo. T., Jr S. F. Stock Ex. McMullan, John 368 Bush Mikulich, Wm. C S. F. Stock Ex. Moise, W. H 339 Bush Montague, P. S 339 Bush Morrow, R. F 822 Kohl Bldg. Nash, Jos S. F. Stock Ex. Norwood, H. H 306 Bush Paxton, Chas. E 339 Bush Ralston, W. C 353 Bush Ramsey, H S. F. Stock Ex. [330] Stock andExdiangeBoard Reilly, B. J 322 Bush Robinson, Thos. S 368 Bush Ruggles, A. B 353 Bush Schnepfe, Chas. E 322 Bush Scott, E Jas. Flood Bldg. Shaw, B. F .335 Bush Shinn, H. H 339 Bush Stauf, Emil S. F. Stock Ex. Stauf, Werner 375 Bush Sternberg, Frank 353 Bush Toplitz, J. B 339 Bush Van Wyck, L. H 353 Bush Wattles, W. S 339 Bush Weston, J. H 370 Bush Wingfield, Geo Goldfield Wright, W. H 339 Bush Wolfe, F. L 714 Kohl Bldg. Wilson, Boyd L 353 Bush Walls, Jno. A 353 Bush Young, J. R S. F. Stock Ex. 73 Members 6 Delinquents 7 Estates 14 Board Seats 100 Board Membership History of the, Sanfrandsco I 1 rf-S, tiSJU W 3 M S q o a w w ^ w Board Membership M j a W fe 5 s d ^ W +T 5i^ s s I PQ 3 ri -tT S3 -S co *a co < << [332] W 2 O Arlingto Atkinson, Arrow G. E II i y t^ O O 2 O 2 O O III Board Membership n u S . sai ^s < ,2 w iT g 11 ."-I*. 1 1 w. r) J O PQ PQ PQ bJO d M O PQ [334] CO O PQ PQ Stock and Exchange Board s Is 8 8 8 ," g g PQ pq PQ H^ 2 2 OM Q p 15 3 O ^ JU - r H W I o u w o o **" . 3d g-igi^^ gOJrf 'O43 - ^ S 5 1 1 1 1 1 8 g g i PQPQ PQPQPQpQPQPQpQpQpqpQ [335] '11*1 Board Membership History of the Sanfhmdsco M 3 la S OK E B: H S i^ VO r oo t^ Board Membership " o o 'o 43 o rt O O O IH rH -M 00 4) .i OT CQ "O C) vo TH oo N 5 00 ^^ 00 ^" o TH TH H _ j w > n: ! & P^ rt* TH -3 i W H 9 s W . d PA 'o 1 W H 1 1 CO & b i 11 vT wT O O ri V *T f 4> | 1 uncan i 1 V c S Board Membership QO P P P P p P p p P [339 ] History of the SanFrandsco Is AS gg-s s M Slls GO 6 MO IS PffiQ 3 S P^ S I s Board Membership ggtc* U i M u a 3 P < < i J C 00 .2 > TJ t>. [340] g^2 00 00 ^ +j ^>i 4J S^ S2 a S >> 8 >* 13 fe _ *^ s * 4? S? tJ NAME MEMBEK Donnellan, Doubleday, o c 1 P fe 1 n Degan, J. Epstein, E Edwards, ' M W I Ehrlich, M. Ehrlich, M< Everett, A j s w C3 tJ as* s Stock and Exchange Board ^^ ~ *S *" K|| > -J .H" pa oo 04 ggf^S >^ *| Pk o . o o fe Q^ U W OT S ffi O i^ M I M Q r^ gs 3g w S K **3 oo *5 ^f- y TH y H 8 ja rf JJ So - W N W TH Sbi w S *O *C 3 TH g IN Q. oo ji ^^ 3 ^^ jr 1| | rf S [341] | i| Board Membership Histoiy of the Sanfhmcisco o o CO T-H 0-1 " lit 00 ^ if .52 S3 8 | 25 13 tt W S Q o a w w ^ w s^-o o D " gS PQ O R? O 2 -i > 5 1 fc 1 8 1 w " g " S S & etf S ^ ^ < g ^ w ^ g s 43 O C"* 00 I fi 00 g ^ Jii Board Membership fe S w Q a s to [342] cj CO > O ^ O" S S fe fe M Stock and Exchange Board * S Q O 3 a W "Tl |4 H-> ROM WH PURCHAS tard I a a H,E a u I m t> & ra o a PQ H^ H^ fd as sf S g. S 8 S S tf J3 & VH ^ ^ 03 3 I_ fe fe fe fe fc O O [343] 3 gs V Sd Board Membership History of the Sanfhmdsco 0,6 i ^ i_i oo cd *""* 5j ^^ H -1 i 61 2 rf * O M . W to Ari i > 8 I 1 2 cv So i s ! 7w 1 Ilill Membership 2 ^ 8 .5 O^OO ^S o o > S3 K M O b"E a fi r5 'C O O 344] I I J . 5 o (S o I 8 i II 35 SB M -a -8" S 1 "^ s w g -H C>^ S 10 00 ' S o rt W > T 1 ' J rt 10 W PQ PQ H M .. s o s WE WE Board Membership [345] History of the SanTrandsco .s rt 00 a o PQ m w .a * g E & o . * W E o E Q CO fa fe u 1'S W H (U H ^ 71 00 ^4 00 to ^f ^ s eg 2 s *r S o Board Membership Ba H H 8 43 S E o! PH d-I .sf *S re o nt ffiffiK ^>< H ffi ffi E [346] I II S ffitS Stock and Exchange Boar M SI " S o a s as 3 a s ffiWW s s s EKE I l S 2 S 3 2 S s 2 O 2 O 2 *** 1 to PQ 11 i W ffi PH [347] 5 i? +f to O Z C ^ *w i w M rt rt rt ffiffiffi a Board Membership History of the Sanfinneisco p 73 d -o *a . I* M h g u S 8 1 9 M o o o o PQ pq pq pq PQ i-^ Board Membership OF ER 47^ ^r s s W w ^ T-I o ^ w "^ ^ W *O 00 flj O C^^ Q O S O O d d g g < w fe" 01 g C &2 Blk 88 88 [348] -.j *. wi 00 VO i < fa 4J CO o o O co O W So S3 ^ *i 88 i* 3 .y Stock and Exchange Board sgggsg olsj CO W s s a o 2 O 2 (3 O > pc< S . .. rf M O PC, fe M HH ^ J , c * * w S ..E I ? " > 8 x * S M M M M !^ 9* > M l-|O lJ-1 HH I-L-I HH I I h-l I ( I t I i [349] Board Membership History of the Sanfrancisco o o o o 11 Cv Cu 10 &S | o .1 % S bb) Q r .S oo W " M *O SS * oo .Ji o> " to ^ rH X ^ .0 2 11 II W U PQ 1 6 o 1 W T3 ^4 i PQ co el 1 M *O t^ CO O* !>. VO 00 00 Board Membership [350] I! Stock and Exchange Board o w g h- 3 p ^5 0^ O \f) co o N s - Board Membership History of the Sanfhmdsco s a O fa Board . 00 I o S fa c 09 -2 I 5 I 3 5 00 00 - 6 II [352] w <5tocfc and Exchange Board O t>. *s 32 8 PQ .86 H " S o o g .S-o ft N * PQ PQ H) w E u : i ft PQ fe S5 o o . oo a g tH V o >; r i c i ^^. ffi a SQ ^ d II- 353] I*l! s g H . >> $3.^ 03 * oj .3 at S M ^ SS Board Membership flistory of the Sanfrandsco s fi d n) j s o o o o Tf 43 *C PH -^ o a 3 O C -C w ^ o ^ W 8 & H O O W PQ Membership H| VO C oj 00 3 fc=j sss ^^ .s P Q t o o rt Stock and Exchange Board s PQ 8 c H :=5 >J Is g o^ o o m >o CM* -i CM O . 8^ 1 if) tO wT vo CM CM CM ^ ^ g T C ^ nj o Si 2 s 1 I 1 sis" -3^1 PQ ^ Q CO . 00 bib 2 [Jo *"! t^ M oo H oo ^t- S ID rH i-H *> < . W {3 CO J^CM S w fc S< PQ 2 S 1 fe w * c o S> 5 J^ pj si |a H rj i cu o C G O o S5-S 00 2 W ^ *O cd CO "^ 00 t^ m co wi t^ 00 00 00 00 T I T I T I I I fe -V g w a t-} ^*^ G W g '? sT [355] 3*7 5ffi :-8 O & 8 3 Board Membership History of the SanRvncisco I " as U b 1 as *!!! E PQ PQ o W m 1 s nill . o o H PQ PQ Ru IJ PQ W Board Membership iii H U 00 s s *^ u O -S 2S tS o" ^ - oo J> 1 * ^ H u u QO J " ^S S OC2 Bg| tf s" - 1 s 8 -S 3 8 sssSs I g o P i [356] to . L_| n b B o o S2 rirf w& g a| "o o *S z z z .ft . JO TJ <$ . 4-* H * *H 0^^ pq a o m 2 s I SIS 'S'S'S g PQ PQ PQ 1 2 o> *" E G rf S 8" 5 W rH rH 00 O rH VO f^ o jfrf O -M --s s -. ^7* Jil-! *S ^ CI l>* f> ^. 32 .3 CO flJ r O Soc^C co l|a "** Cfl li 00 al ffi fS P o .S -s O O d [357] fc 6w* I-H bo (2 u Board Membership History of the Sanfrandsco IS- o ^ IS M O S t^ VO O O 2 2 Q O u -M O O 4> 00 NAME MEMB o I* tf** i 6 ^ ill . ^w fi [359] , ts PQ fe^ s^ b II w w PQ PQ O PQ 8 S Board Membership History of the. Sanfrancisco n o a Is O 00 o - 1 J- ggj 2 S w O O ^ Q, W - pq pq ca N . . Hi'** .** S ^pjd^ Miifj o o rt .S3 ft ft Pn P^ c C ^ O M *? Rob Ral w ^ I 1 [360] 1 e CO CO tStocfc and Exchange Board a H + 1 fji > J3 +^ fr"* O CO 5 J3 ^ iS w SS S o 2 Q 2 cfoo t) vo OA Sg w P. < M s. SH -S|? 5? II H. IjJ b2 CO J> fe 1 ^ O ^ bJD O ie 3 5 J3 - t/i co w w v a *3 ^ [361] O ii Board Membership History of % the Sanfrandsco &r o fc w 00 I u a g 0^ S o^ S co 09 t i BUYING PRICE a" If s CO CO CO l>i wt^ jg en 00 ^ M pH ^ cf ^ O H 3 w p 6 *S *" if S 3^ o 3^ co N o PQ Wi H^ 3 ^ *"C3 M^ rrt H Sd" W (-1 C^5 PQ d 1 PQ j S s 2 pq ia S3 w' to i-4 CJffi Membership W H ffi - 1 I! 88 i 00~ 9 8 S3 K> p O . co PQ d S | 1^ M *** w *** (J ^ ~< 7^.70:1" 111 d ll pq pq pq W co S o 88 Sa md 'S "2 'S ^ pq pq pq pq t^ 2* > 00 O oo oi gs ^- ^i r-n en o ^ -H 2 ~ vo" +T ^,00 O co Q Q II JC e* > > O c 5 jj i; a '53 'S o *s 4- C o !> *j CO CO CO CO CO [363] ^ M o\ BBS 8 S S S 8 UT" co" uf esT LTMI r /i j o^ gRi-i w | Tf 10 vo oo 00 00 rH i-t r- c-l3 a-i?- > > VO o o ^H 4-f O^ -y^ O% VO 'C -M >> fo O co O co O co O co 2 g ^ H i^ +J .j *-J ^4 ^H W A ^N a -a s -a s-a ^.srS^ o ^ M -s" C C 4J O [366] Stock and Exchange Board O o 00 t I oT o 5 * ro r-i ,_ G r>- N iiiiiM I^B^B*'* J b -M *; - b* 5J * ^)(OMtr r DcdC() osc&as^s < og K " H pq JjJ t IS if W fe [367] CO & PQ E" ms, H. Chas. ^ ^j ^S T c3 . Board +* -*^ 4^ 4-^ *H *i-4 4^ ^ cs S 'j3 3 3 <5 Membership & & & && >, i History of the Sanfrandsco Membership 368] Stock andExchangeBoard Presidents of the Board: J. B. E. Cavallier..Sept. 11, 1862, until Jan., E. P. Peckham Jan., 1872, " Jan., William Burling Jan., 1873, " Jan., James R. Keene Jan., 1875, " Aug. Coll Deane Aug. 3, 1875, " Jan., John W. Coleman Jan., 1876, " Jan., E. P. Peckham Jan., 1878, " Jan., George T. Marye, Jr... Jan., 1881, " Jan., S. B. Wakefield Jan., 1885, " Jan., E. P. Peckham Jan., 1886, " Jan., Jeremiah Lynch Jan., 1888, " Jan., W. E. Norwood Jan., 1890, " Oct., J. M. Shotwell Oct., 1890, " Jan., A. F. Coffin Jan., 1892, " Jan., Wm. Edwards Jan., 1894, " Jan., George I. Ives Jan., 1895, " Jan., A. G. Gurnett Jan., 1896, " Jan., Emmet P. Barrett Jan., 1899, " Jan., A. J. McDonnell Jan., 1901, " May, A. B. Ruggles .May, 1901. J. B. E. Cavallier, President for the first ten years, was highly respected by the members. His portrait remained in the Secretary's room for forty years. It was finally destroyed in the great fire. Benoni Irwin of this city was the artist. E. P. Peckham was elected on three different occasions as President. He was the orator of the Board, and, when necessity required, could always deliver a fine extempore speech. [369] Board Membership History of the Sanfhmdsco Board Membership William Burling had always been one of the most prominent among the members. He retained the business of the Bank of California for many years. He was quite a friend of Keene before the last named became pros- perous, employing him as a street broker before Keene joined the Board. Mr. Burling died in July, 1877. James R. Keene, the fourth President of the Board, was elected in January, 1875, but on account of ill health resigned August 3 of that year. He was active in the reorganization of the Bank of California, was a large subscriber to the new stock, and left for New York about July, 1876, where he now resides. Coll Deane succeeded Keene as President in August, 1875, and served until the following January. He was a very honorable man, proud of his name and honor; it was impossible for such a man to wrong a fellow mortal. John W. Coleman was the President during the construction of our Board building on Pine street, to which he devoted a great deal of time and attention. After the work was completed he retired. George T. Marye, Jr., was elected President in January, 1881, at a time when our great busi- ness had declined to a low ebb. In order to [370] Stock and Exchange Board assist the Board he inaugurated a Grain Board in May, 1882. Mr. Marye deserves great credit for this effort. The Grain Board lasted a year, and effectually proved that the heart, spirit, and ambition of our members could be attracted only by a deal in mining stocks. S. B. Wakefield succeeded Mr. Marye as President in 1885. Business was at a very low ebb at this period and the mines were filling up with water. A revival of business came with his successor, Mr. E. P. Peckham. Jeremiah Lynch became President in Janu- ary, 1888. He had been elected to the State Senate of California, and had visited Egypt, about which he published a well-written book, thus demonstrating to us he had literary ability among his other qualities. W. E. Norwood became President January, 1890, dying before his term of office closed. He had been connected with Joseph H. Jones and was recognized as a broker to the Bonanza firm. J. M. Shotwell succeeded to the chair in October, 1890, and served until January, 1892. A. F. Coffin's term of office was in 1892 and Board 1893. He had succeeded to the business of Membership W. C. Parker, a charter member. This was a [371] History of the Sanfrancisco critical period in the history of the Board. Many old members were leaving. The lower levels of the Comstock had been abandoned C and had filled with water. Business was very * dull. William Edwards served as President dur- ing the year 1894. The dull period continued with an occasional spurt in prices and business, throwing a little life at times into affairs on Pine street. Mr. Edwards was cashier and paying teller of the Merchants' Exchange Bank in the troublous times of 1875. George I. Ives was elected President in January, 1895. Mr. Ives became a broker in the early 6o's. At one time he was a partner of James R. Keene, joining the Board in Janu- ary, 1870. As a broker he was quick and active in executing an order, compelling the other brokers to adopt a similar method, especially on orders limited as to price. A. G. Gurnett succeeded Ives as President, serving four years, until January, 1899. He became quite popular by abolishing the monthly dues of $5, and by endeavoring to stimulate trading in local stocks. Board Emmet P. Barrett served as President from Membership January, 1899, until January, 1901. He suc- ceeded his father, John S. Barrett, as a member [372] Stock and Exchange Board of the Board upon the death of the last named, in January, 1890. The elder Barrett was a splendid specimen of the old school of edu- cated Irish gentlemen. Mr. Emmet P. Bar- rett was elected a school director and served for a time as Secretary of the Board of Edu- cation. A. J. McDonnell was elected President in January, 1901, and served until May, 1901. In the latter month he was elected Superintendent of the Union Consolidated Mine at Virginia City, and resigned the Presidency. A. B. Ruggles succeeded Mr. McDonnell in May, 1901, and has served as President con- tinuously from that date, a period of eight years. Great events to us have happened dur- ing his administration. We sold our Board building in 1903 and divided the proceeds among the members. The new mining dis- tricts in Southern Nevada are developing new bodies of ore, and their stocks called in the Board have increased our list to over 600. The earthquake and fire of 1906 destroyed our old Pine street building. A new one was erected at 339 Bush street under the direction of Presi- dent Ruggles. Immediately subsequent to the fire, business revived, almost equalling the Board palmy days of the Board, and Mr. Ruggles has Membership met the burden of his office with judgment. [373] THE UNIVERSITY LIBRARY UNIVERSITY OF CALIFORNIA, SANTA CRUZ This book is due on the last DATE stamped below. JW H JAN 3 1989 Kt'l 50m-6,'67(H2523s8)2373 HG5131.S5K6 3 2106 00099 0074