James Cair Flood
Encyclopedia
James Clair Flood was born on Staten Island
, N.Y. to Irish immigrant parents. Flood came to San Francisco a few years after the discovery of gold in California, and tried his luck in mining. In 1857 he opened a saloon with partner William S. O'Brien
. In 1858 they sold the saloon and went into business as stock brokers. The following year, Flood and O'Brien formed a partnership with fellow Irishmen James Graham Fair
and John William Mackay
. By 1878 the four partners had made more than $300,000,000: their firm was described as "the richest in America, and prospectively the richest in the world." The four-way partnership was commonly known as the Bonanza firm and together they also established the Bank of Nevada in San Francisco, California.
Flood piled up millions as one of the famed "Bonanza Kings
." His mining operations in the Comstock Lode
, in Nevada, are recounted to this day as the outstanding example of what may be done with a rich ore body and a genius for stock manipulation. He is considered to have been one of the 100 wealthiest Americans, having left an enormous fortune. Flood is famous for two mansions, the James C. Flood Mansion
at 1000 California St., San Francisco, and Linden Towers located in Menlo Park
, torn down in 1936.
, N.Y. to Irish immigrant parents. He had an eighth grade education, and was then apprenticed to a New York carriage maker. In 1849 he sailed for San Francisco and the Gold Rush
. After some success in the mines, he returned east to marry Mary Emma Leary of Wexford County, Ireland
. They were back in San Francisco by 1854. Flood had two children, Jennie who never married, and James L. born in 1857. James L. had a son, James Flood born in 1900, and a daughter, Mary Emma Flood (Mrs. Theodore) Stebbins born in 1908, by his second wife.
with partner William S. O'Brien on Washington street in San Francisco. In 1858 they sold the saloon and went into business as stock broker
s. After the discovery of silver
in Nevada in 1859, the partners began investing in mining stocks. The following year, Flood and O'Brien formed a partnership with fellow Irishmen James Graham Fair, a mine superintendent, and John William Mackay, a mining engineer. None of the four had impressed themselves on others than their immediate circle of friends and acquaintances until some time in the seventies they joined forces in operating the Consolidated Virginia and the California claims in the Comstock Lode.
Mackay and Fair had the mining knowledge and Flood and O'Brien raised the money. The purchase price of the claims, later to become fabulously a source of wealth, was about $100,000. The original stock issue was 10,700 shares, selling for between $4 and $5 a share.
in history was discovered in 1873. The ore body was more than 1,200 feet deep, which yielded in March of that year as much as $632 per ton. A little while after uncovering the "big bonanza" the price of the stock went skyward. Flood is accredited by tradition with having directed the subsequent proceedings so far as stock market operations were concerned.
San Francisco and the entire mining world were hurtled into a fever of excitement by proof of early reports of richness of the mining claims. The first stock issue was converted into two issues of 108,000 shares each, and by the middle of 1875 the speculative value of the two mines were close to $1,000,000,000. Shares went as high as $710.
It was said that in the first six months of 1875 the output of the mines averaged $1,500,000 monthly.
Seats on the San Francisco Stock and Exchange Board jumped to $25,000 each as a result of the excitement. Varied interests sought to obtain stock control of the rich properties and there came the inevitable crash in which many went to financial doom.
The "Bonanza Kings" profited, however, and late in 1875 Flood and O'Brien sought to become leaders in finance. After producing $133,471,000, the Consolidated Virginia and California mines could not be operated profitably, but in the language of the street, the owners had "caught them coming and going."
. As a result of a battle between the two groups, the Bank of California failed and Flood and O'Brien started the Bank of Nevada.
From that time on finance
more than mining engaged Flood's time, and much of his wealth went into real estate. Dissension and an ill-fated attempt to corner the world wheat market in 1887 cost the firm millions.
Staten Island
Staten Island is a borough of New York City, New York, United States, located in the southwest part of the city. Staten Island is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay...
, N.Y. to Irish immigrant parents. Flood came to San Francisco a few years after the discovery of gold in California, and tried his luck in mining. In 1857 he opened a saloon with partner William S. O'Brien
William S. O'Brien
William S. O'Brien was an American businessman who formed a business partnership with fellow Irishmen James Graham Fair, James C. Flood, and John William Mackay, the Consolidated Virginia Mining Company...
. In 1858 they sold the saloon and went into business as stock brokers. The following year, Flood and O'Brien formed a partnership with fellow Irishmen James Graham Fair
James Graham Fair
James Graham Fair was the overnight millionaire part-owner of the Comstock Lode, a United States Senator and a colorful real estate and railroad speculator.-Early life:...
and John William Mackay
John William Mackay
John William Mackay was an American capitalist, born in Dublin, Ireland.-Early years:His parents brought him in 1840 to New York City, where he worked in a shipyard.-Gold and silver mining:...
. By 1878 the four partners had made more than $300,000,000: their firm was described as "the richest in America, and prospectively the richest in the world." The four-way partnership was commonly known as the Bonanza firm and together they also established the Bank of Nevada in San Francisco, California.
Flood piled up millions as one of the famed "Bonanza Kings
Bonanza Kings
The Bonanza Kings, also called the Silver Kings, was a nickname given to the four men who started a stock brokerage called Flood and O'Brien, more commonly known as the Bonanza Firm...
." His mining operations in the Comstock Lode
Comstock Lode
The Comstock Lode was the first major U.S. discovery of silver ore, located under what is now Virginia City, Nevada, on the eastern slope of Mount Davidson, a peak in the Virginia Range. After the discovery was made public in 1859, prospectors rushed to the area and scrambled to stake their claims...
, in Nevada, are recounted to this day as the outstanding example of what may be done with a rich ore body and a genius for stock manipulation. He is considered to have been one of the 100 wealthiest Americans, having left an enormous fortune. Flood is famous for two mansions, the James C. Flood Mansion
James C. Flood Mansion
James C. Flood Mansion, also known as Pacific-Union Club, in San Francisco, California, USA, was a townhouse for James C. Flood, a 19th century silver-baron. It was the first brownstone building built west of the Mississippi River. With The Fairmont Hotel, the only buildings on Nob Hill to...
at 1000 California St., San Francisco, and Linden Towers located in Menlo Park
Menlo Park, California
Menlo Park, California is a city at the eastern edge of San Mateo County, in the San Francisco Bay Area of California, in the United States. It is bordered by San Francisco Bay on the north and east; East Palo Alto, Palo Alto, and Stanford to the south; Atherton, North Fair Oaks, and Redwood City...
, torn down in 1936.
Biography
James Clair Flood was born on Staten IslandStaten Island
Staten Island is a borough of New York City, New York, United States, located in the southwest part of the city. Staten Island is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay...
, N.Y. to Irish immigrant parents. He had an eighth grade education, and was then apprenticed to a New York carriage maker. In 1849 he sailed for San Francisco and the Gold Rush
The Gold Rush
The Gold Rush is a 1925 silent film comedy written, produced, directed by, and starring Charlie Chaplin in his Little Tramp role. The film also stars Georgia Hale, Mack Swain, Tom Murray, Henry Bergman, Malcolm Waite....
. After some success in the mines, he returned east to marry Mary Emma Leary of Wexford County, Ireland
County Wexford
County Wexford is a county in Ireland. It is part of the South-East Region and is also located in the province of Leinster. It is named after the town of Wexford. In pre-Norman times it was part of the Kingdom of Uí Cheinnselaig, whose capital was at Ferns. Wexford County Council is the local...
. They were back in San Francisco by 1854. Flood had two children, Jennie who never married, and James L. born in 1857. James L. had a son, James Flood born in 1900, and a daughter, Mary Emma Flood (Mrs. Theodore) Stebbins born in 1908, by his second wife.
Beginning of a fortune
In 1857 James Flood opened a saloonSaloon
Saloon may refer to:* Saloon , a style of car body.* Saloon , a musical group.* Western saloon, a historical style of American bar.* Bar , a venue for alcoholic beverage consumption....
with partner William S. O'Brien on Washington street in San Francisco. In 1858 they sold the saloon and went into business as stock broker
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
s. After the discovery of silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
in Nevada in 1859, the partners began investing in mining stocks. The following year, Flood and O'Brien formed a partnership with fellow Irishmen James Graham Fair, a mine superintendent, and John William Mackay, a mining engineer. None of the four had impressed themselves on others than their immediate circle of friends and acquaintances until some time in the seventies they joined forces in operating the Consolidated Virginia and the California claims in the Comstock Lode.
Mackay and Fair had the mining knowledge and Flood and O'Brien raised the money. The purchase price of the claims, later to become fabulously a source of wealth, was about $100,000. The original stock issue was 10,700 shares, selling for between $4 and $5 a share.
Stock gambling fever
The new firm gained control of the Consolidated Virginia Mining Company stock in 1873, and it was in this mine that the greatest silver bonanzaBonanza
Bonanza is an American western television series that both ran on and was a production of NBC from September 12, 1959 to January 16, 1973. Lasting 14 seasons and 430 episodes, it ranks as the second longest running western series and still continues to air in syndication. It centers on the...
in history was discovered in 1873. The ore body was more than 1,200 feet deep, which yielded in March of that year as much as $632 per ton. A little while after uncovering the "big bonanza" the price of the stock went skyward. Flood is accredited by tradition with having directed the subsequent proceedings so far as stock market operations were concerned.
San Francisco and the entire mining world were hurtled into a fever of excitement by proof of early reports of richness of the mining claims. The first stock issue was converted into two issues of 108,000 shares each, and by the middle of 1875 the speculative value of the two mines were close to $1,000,000,000. Shares went as high as $710.
It was said that in the first six months of 1875 the output of the mines averaged $1,500,000 monthly.
Seats on the San Francisco Stock and Exchange Board jumped to $25,000 each as a result of the excitement. Varied interests sought to obtain stock control of the rich properties and there came the inevitable crash in which many went to financial doom.
The "Bonanza Kings" profited, however, and late in 1875 Flood and O'Brien sought to become leaders in finance. After producing $133,471,000, the Consolidated Virginia and California mines could not be operated profitably, but in the language of the street, the owners had "caught them coming and going."
Bank of Nevada
The Bonanza firm was said to be held together by Flood, though he was the most unpopular of the partners with the public, and was regarded by some as a stock manipulator. The advent of Flood and O'Brien, operating independently of Fair and Mackay, into the financial field met fierce resistance from William Sharon and William C. Ralston of the Bank of CaliforniaBank of California
The Bank of California was opened in San Francisco, California, on July 4, 1864, by William Chapman Ralston. It was the first commercial bank in the Western United States, the second-richest bank in the nation, and considered instrumental in developing the American Old West.-History:The ancestor of...
. As a result of a battle between the two groups, the Bank of California failed and Flood and O'Brien started the Bank of Nevada.
From that time on finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
more than mining engaged Flood's time, and much of his wealth went into real estate. Dissension and an ill-fated attempt to corner the world wheat market in 1887 cost the firm millions.