The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-09-02
The California Bank Defalcation.


furnished it soon became apparent that it was
a sturendous failure, with no hope of resump-
ton of operations. 1t is now ascertained that
the liabilities of the Bank W II reach at least
fourteen million dollars, and that the assets
will fall under seven millions. The causes for
this collapse are variously given, but it is gen.
orally conceded that reckless speculation in
wheat, mining stocks, and political complica-
lions, were at the bottom Of it. NJ. Ralston,
OH entering the room of the Board of Direc-
ors, the day after suspension, was asked by one
of the Directors very promptly to resign his
position as president. This he did, with great
reluctance, the Directory unanimously making
the demand. and he asking time to arrange
the matters of the institution. The next day
ter swimming out some two hundred yards
from shore, sank. He was speedily rescued,
but too late to save his life. He died, it is be-
lieved from congestion, although it isstatcd, lie
had drank the contents of a vial bcfoye going
into the water, and it is surmised from this
that he poisoned himself.
Mr. Ralston was shoemaker by trade, ma
tive Of Pennsylvania and aged about 45 years.
He went to California number Of years ago,
and thence to Panama, where he engaged in
banking. In 1852 he returned to San Francis
co, and from one step in banking to another
finally become President of the Bank OF
California, at a salary of $4,000 per annum.-
He was regarded as the boldest and most sue
cessful SPECTATOR in the Pacific States. and had
accumulated, it is stated. about 100000:
Mr.. Ralston was the most popular man in
California. His munificence had won him
friends everywhere. His career is full of in
stances where he has kept from failure men
who were OH the verge of financial ruin. His
mode of life was on plan commensurate with
the extent of wealth at his. command At
Belmont Valley he built for himself house.
costing, it is estimated. $l.000,0 00 and supper
ted it with an annual outlay of s350.000. His
house would accommodate one hundred and
| fifty guests, and occasions were frequent when
that number accepted his hospitality. Ills sta
bles were built on a magnificent and extensive
plan. Some years agohe had some difficulty
with the Railroad which leads to Belmont
| Valey-a distance of thirty miles-and then
provided himself with a light buggy. and hay
| ing relays for horses stationed along the road,
drove every day to San Francisco in less time
| than the train could make. He was the last
man at his office at night and the first one in
| morning. He was known as a good liver and
won many friends by his generosity and hos
pitalty. Mr.. Ralston in 1858 married bril-
| liant and accomplished niece of J. ID. Fry of
| San Francisco, by whom he had several chill
| dren.
| An interesting letter in the New York Tri-
| bune of Friday, dated at Virginia city July
3l,(and written of course, without reference to
the bank failure,) gives an account Of the big
| Bonanza mine, or the Consolidated Virginia
mine, which is owned by Mackay, O'Brien,
Flood and FAN, who are said to have made the
combination against the bank of California
and caused its downfall. The Stock of the
! Consolidated Virginia consists of 10S,0 900
shares, par value 500 each. 1t sells for $40
to $500 share, and pays more divdepds each
year than the original par value of the shares.
| OF these los, 900 shares, Mackay, Flood Fair
and O'Brien own $4,000. The California mine
has $40, 900 shares at 500 par value, now sell
| ing at from $50 to $40. The firm owns 295 900
! of these shares. The Best & Belcher mine has
| los, 900 shares, the Gould 6 Curry, the same
number; the Savage has 10000, the Hale &
Norcross 16, 600, the Utah 10000, and the Oc-
| cidental 40, 600. AS before stated, the gentle
men named own the majority of stock of all
| these mines. In addition they have nine mills
which must be worth several millions of dol
| lars; they own one half Of the Virginia and
| Gold Hill Water Works, capital $5,000,000,
| besides fumes, factories, stocks, real estates
| &c.
| The marvellous richness of the Consolidated
Virginia mine can scarcely be realized. We
! are so accustomed in public affairs to speak of
Millions of dollars with little understanding OF
how much money it is that it has become the
custom to speak thus with as little hesitation
as we speak OF hundreds. A million of dollars is
more money than can be counted, dollar by
dollar, in a week by single individual, and it
is, therefore, imperative in dealing with the
| figures that a due sense of their meaning and
Importance should be considered, for in that
| is there only interest.
There were shipped from the Consolidated
| Virginia mines about two thousand bars of
gold and 81 liver unseparated, or about $1,000,
| 900, previous to the beginning of the present
calender year. The following, which I copied
| from the books of the company, and verified
| by bills, receipts, &C., shows the amount of
| business since that time. During the month
of January 1875, there was shipped 81, 100, 697;
in February, $1,000, 743; in March, $l,707, 57l;
| in June. 81 ,503,Sl6. From $lS,00O.000 to $40,
100000 year, to be taken out of a single
mine, is something worthy of remark.
Mr.. Louis McLane, formerly of Baltimore,
at one time president of the Pacific Mail
| Steamship Company, who is to manage the
Bank of Nevada, arrived in San Francisco a.
bout ten Gays since. The New York Sun says;
NdA SIIcGt iilCA VIII hil0W IAls MCLduO
| give him credit for being the engineer Of the
| corner that is said to have ruined the bank OF
California 1t is said that before the suspen-
sion the McLane-O Brien party entered into
negotiations with the opposition for the pur-
| chase of the Bank of California. Failing to
come to terms they organized the bank Of Ne
| vada, engineered the corner, and thus brought
their rival down. They intended to open their
bank on Sept. IT,
| On the contrary, communication from the
office of the associated Press in San Francisco
says:
sit is an error to say that the Bank of Neva-
da caused the failure of the Bank of Calfor-
mia by locking up gold &c :, as said Bank of
Nevada is not yet in eperation. Its manager,
MIR. Louis McLane, arrived at San Francisco
from Baltimore, with his family, only week
before the failure, and could scarcely have be-
gun to put matters in shape for opening bust
ness on or before September l. So far from
there being feeling of intense Malignant hos
tility beteween the Flood and O'Brien and
McLane party. on one hand and D. O. Mills
and the other managers of the Bank of Cali
fornia, the former. in May, entertained nego-
tiatlons for the purchase Of the bank, which
negotiation only failed because the directors
set higher value upon their assets than the
proposed purchasers considered safe.''
OF course Mr.. McLane had nothing to do
with the matter personally, but Flood and
O'Brien probably had much to do with it.
STUDENTS APPOINTED.-Mr. George lay
1ou ,EC w.