Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-08-28
THE CALIFORNIA BREAKDOWN.
The Situation ian San Francisco Las,
NiSht.

SAN FRANCISCO, Friday, August n mid
hlSht'-It rs difncult at present 70 state the
erect of the RalstOn California Bank failure
upon the manufacturing enterprises in wbicl,
he was interested. 1t is feared that the Kim
ball Manufacturing company will hardly
survive the shock. The rolling mills are i'm
better condition. The Cornell watch fac
tory will probably be seriously crippled
The effect OF the failure on mining stocks
cannot be estimated at present, because
there is no market. All the business In that
line is suspended.
Among the many theories aIvancei as TO
the cause OF the failure, viz: The sending of
money out OF the city to buy wheat. the
locking up of coin by other parties, SpecuIa-
non III mining stocks, &C, a statement of
the causes by Mr.; Ralst1n himself will be of
interest. In all the public interviews yester-
day and today Mr.. Ealston stated explicitly
that the suspension was not owing to any
hostile act OF adverse parties, and that the
best OF feeling prevailed between himself
and The parties who have been credited with
the lookup OF the coin. At an interview on
1huIscay evening at Mr.. RalstOn's residence
ne repeated that assertion in the presence OF
other parties. As your reporter left the
and said:
The statements / have mate as 10 the
causes of the failure are my statements 10
The world. As matter Of personal and
private information, / tell you that this
failure is the result of a persistent EFFORT for
months 10 break this bank"
Under the present circumstances your
reporter believes 1t proper 10 make this
public.
The streets were full of people this evening,
bat the crowd was disposed TO be quiet and
orderly, though some feeling of uneasineSs
was evident Extra precautions were taken
by The police department 10 preserve order
and the evening passed OF undisturbed
The Situation To-day.
SAN FRANCISCO, August %, 10 a. n-NO
official statement has been made yet of the
the condition OF the Bank of California. The
directors applied TO Flood & O,Brien, owner
OF the great Bonanza" mines on the dav of
me failure, for relief, and offered to present
to that firm the entire paid-up capital stock
OF the bank, namely, - 900 600, also Al 800 900
coin in bank, and in addition Il 900 900 TO be
assessed on the stockholders, in all - 500 on
provided they Flood u O'Brien) would for
this consideration, assume the liabilities OF
the bank. The proposition being declined.
the bank had 10 suspend.
There is no doubt that the liabilities o: the
bank are Sl4,G0o0O, and the az" liable assets
not far from 81 900, 900, which will shrink
consideraS,y .H>cc:sJie they can ne realized. The
true condition Of the bank had been concealed
from the directors up TO Thursday.
y null meeting of the directors was held at
! o'clock ?. IN. yesterday. When Ralston
ente. ed the room Mr. Wells promptly asked
nm 10 resign as president OF the bank.
RalSt0n complied with the request at once
Mr.. Mills then asked him 10 leave the room,
and lie did so. The directors were still in
session when the news was brought that
RalstOU had drowned himself
The directors protested to be aStOniSbnl AT
the develOpments showing the true condition
of tie bank. The stockholders will lose their
stock, and 10 pay all liabilities will have TO
stand an assessment of probably 80 per cent
Some S3.O00,000 of the liabilities ire in the
form OF acceptances for advances made by
one Leading capitalist 10 strengthen the
bank. Ex-Gov. stanford, president OF the
central Pacific railroad, holds 100000 OF
these acccptanceS.
MI. Ralston's body was placed in 4 caSSet
and taken from his house 10 the residence OF
Col Fry, his father-in-law. The funeral VIII
take place on Sunday.
The coroner Will hold an inquest on the
body to-day.