The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-09-06
CALIFORNIA.
RALsToNs DEFALCATIoN FROM THREETo
FOUR MILLloNs-TnE OVER ISSUE OF

RALsToNs DEFALCATIoN FROM THREETo
FOUR MILLloNs-TnE OVER ISSUE OF
STOCK.
SAN FRANcIsco, September Alt las
been reported that the Bank OF California
was largely indebted to the United States
Mint here. The bank has been refining
for the mint, and 1t Is supposed iS In.
debtedness has increased through that
channel, The Superintendent Of the mint
states to-day that on the contrary, The
mint owes the bank $l25,00O, payable on
demand.
D. o. Mills authorizes the statement
that the defalcation Of the late President
Of the Bank Of California will amount to
between $3,0O0,0O0 and $4,0O0,0OO, aud
that over issue OF stock has been disCOy.
cred. Particulars later. 1t Is not sup.
posed that this will In any way prejudice
The arrangements now being made.
The Bulletin published an editorial ibis
evening, In which, after referring to the
course Of the paper In regard to The
Bank OF California and Ralston II says
"When the bank suspended last week,
we thought tour duty to protect "a lar IA
possible depoSitOrs and other creditors OF
that institution. We published juSt as
many facts as we believed would beat
serve the purpose, and no more. We
then said that the failure was owing to
the mismanagement Of the late President,
and that this mismanagemen was with.
out the knowledge Of the Directors. For
these statements we were soundly abused.
A vicious press undertook to marshal all
the corrupt elements against uS. We
were In possession Of facts which we could
not state, because we were most anxious
that the Directors should, II possible,
contrivc some way OF extficating The
bank. We preferred TO suffer the assaults
Of our enemies rather than TO give facts at
the time when they might furnish q COM
plete vindication OF our attitude toward
The bank, but might at the same time bin.
der, and possibly defeat, plans which the
Directors were devising for the pfotec.
ton Of the creditors Of that institution.
The Directors, some Of whom have always
been staunCh friends OF the Bulletin, and
are 40 now, have perfected their plans,
and have settled on basis Of action,
whereby every creditor Of the bank will
be fully paid. We have full confidence
both In the ability and In the good faith
Of these men. They will redeem their
pledge, and may ultimately make The bank
stronger even than the one which sus.
pended.
at was time that the Bulletin should
be relieved from the secrets which II has
been abused for keeping. We therefore
proposed 10 ask the consent Of the Board
Of Directors to relieve US from any fur.
ther obligations to keep secret some iactS
within our knowledge. Having done our
best to protect others, II is a part Of our
duty to protect ourselves. We are now
authorized by D. o. Mills 10 say that The
late President did, without the knowl.
edge ofthe Directors, use privately from
S3,OOO,OOO to 100000 Of the banks re.
sources, which amount remains unpaid.
This was the cause Of the recent failure.
Probably elsewhere this would have been
set down as a defalcation. We are al'o
authorized by the same authority 10 say
that there was an over issue Of stock,
which over issue has now been provided
for. The particular use which was made
Uithis large sum Of money II is not our
duty to mention. When these discover.
lea we're made, the connection Of The late
President with the institution was at
once severed. BetweenS3,0OO,0O 900 and A.
100000 oi money has gone out ofthe bank
without the knowledge OF single Dltec-
tns