During my earlier efforts at press-agenting Southern Nevada's mining camps I had to conjure in my mind's eye what the reality would be if half the hopes of camp enthusiasts were fulfilled. Here was apparently a fulfillment rather than a promise. At the threshold of the first stage of its development era Rawhide could boast of more actual producers and nearly as many operating properties as Goldfield could claim at the age of three years.
I recalled that Cripple Creek had been panic-born but had lived through the acute period of 1893-96 to take rank with the greatest gold camps of the world.
I was more than convinced. Effervescent enthusiasm succeeded my earlier skepticism. History is about to repeat the record of Cripple Creek, I concluded.
Grutt Hill, Hooligan Hill, a part of Balloon Hill, and the intervening ground, forming a compact group of eight claims, 160 acres, were owned by a partnership of eight prospectors. The area formed the heart and backbone of the whole mining district.
I soon "tied up" this property for Nat. C. Goodwin & Company of Reno, with whom I was identified. A company, with 3,000,000 shares of the par value of $1 a share, was incorporated to take title. It was styled the Rawhide Coalition Mines Company.
Of its entire capitalization, 750,000 shares were turned into the treasury of the Rawhide Coalition Mines Company. Nat C. Goodwin & Company became agents for the sale of treasury stock, and were given an option by the company on 250,000 shares, to net the treasury $57,500 for purposes of administration and mine development. The Goodwin company also purchased 1,850,000 shares of the 2,250,000 shares of ownership stock, amounting to $443,500 more, or at the rate of 23.3 cents per share plus a commission of $12,500 to be paid to a go-between.
The ownership stock that was retained by the original owners, and the residue of treasury stock, amounting in all to 900,000 shares, were placed in pool.
When I made this deal the cash in bank of Nat. C. Goodwin & Company amounted to about $15,000. It was up to me to finance the undertaking. I did.
The contract I made called for only $10,000 in cash and the balance on time payments. Nat C. Goodwin & Company didn't borrow money from any bank or individual, nor did anybody identified with the concern tax his personal resources to the extent of a single dollar to go through with the deal. The money was raised, first for the Coalition's treasury and later for the vendors, by appealing directly to the speculative instinct of the American investing public. The public, too, paid the expense that was incurred in reaching them. It did this by paying Nat C. Goodwin & Company an advance in price on Coalition stock purchases, over and above the cost price.