Bonanza Kings
| Company type | Private |
|---|---|
| Industry | Stock brokerage, Mining |
| Founded | 1871 |
| Founder | John William Mackay, James Graham Fair, James Clair Flood, William S. O'Brien |
| Headquarters | Virginia City , United States |
| Products | Silver and gold mining, Stock brokerage |
The Bonanza Kings, also referred to as the Silver Kings, were a group of four entrepreneurs who established the stock brokerage firm Flood and O'Brien, widely known as the Bonanza Firm. The word bonanza translates from Spanish as "rich ore deposit." In 1873, after acquiring control over the Consolidated Virginia Mining Company, they uncovered a significant vertical ore vein extending more than 1,200 feet, which became famous as the "big bonanza."
Mining success
In 1871, Irish-American businessmen John William Mackay, James Graham Fair, James Clair Flood, and William S. O'Brien combined multiple claims on the Comstock Lode near Virginia City, Nevada into what became the Consolidated Virginia Silver Mine, subsequently incorporating the adjacent California mine. Mackay and Fair contributed their mining expertise, while Flood and O'Brien managed financial backing. The acquisition price for these claims was approximately $100,000. The initial issuance of stock consisted of 10,700 shares valued between $4 and $5 each.
The discovery of the "big bonanza" in 1873 sparked intense market interest. The original stock was divided into two separate issues containing 108,000 shares each, and by mid-1875, their combined speculative worth approached $1 billion. Share prices reached a peak of $710.
For three years following this discovery, monthly output from both mines averaged $3 million. In 1876, they produced $6 million worth of ore in a single month for display purposes. Although production decreased after 1879, over a span of 22 years the mines generated more than $150 million in silver and gold, paying out dividends totaling $78,148,800. This immense wealth positioned the four founders among the richest industrialists in America.