The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-09-04
THE BONANZA KINGS.
THE PAST AND PRESENT MoSAncus OF BONANZA

THE PAST AND PRESENT MoNARcHs OF BONANZA
NrERv1EwED-F1ooD AND RALsroN SPEAK.
AMER the suspension OF tho Bank Of California
Chronicle reporter interviewed the leading member Of
I the firm Of Flood o'Bren, who were said TO have
been instrumental causing the financial disaster Tho
following is a report OF the convorsation:--
INTERVIEW Win JANIS O FLOOD
Last evening shortly amer eight o'clock, Chronicle
reporter interviewed James e. Flood the bonanza king,
in the sitting room OF his residence, Ellis street
There several anxious bankers closoted with the
supposed author or the late financial maelstron when
the reporter entered but they soon took their leave
and Mr. Flood, in the coolest manner imaginable an
nounced himself at the of the latest arrival
There no loss of time, beating about the bush in
introducing the subject Of the failure Of the Bank Of
California and the part the great bullion producer was
supposed TO have taken in the bringing on Of the ire
mendous crash Ho the steady stream Of questions
with ready answers and here is the snd substance
of what no said -
RRroRrER-Mr Flood, it Is generally reported that
you had previous knowledge OF the run on the Bank
Of California and refused TO grant any assistance when
applied TO?
having been informed Of tho embarrassments they
laboring under BY the officials some days ago.
RRroRrER-But did you decline TO let them have
money to help Thorn through the crisis
THE BANK FLOODS ASSISTANCE.
Mr. FLooD-Not exactly. Yesterday the bank on
cas came to mo and offered 10 give mo control OF the
bank provided would protect their depositors told
them that would protect them far their securities
justified me in doing They offered to give 81 900 900
probable loss OF sl3, O00, 0O0Y
RxroRrER-But you are credited with creating the
run on the bank.
Mr. FLoop-I have been so informed This community
is in fearful condition and will imagine anything
and believe everything If there is any way of alayng
the excitement it ought to DO done Let tell YOU
that 5000 600 of my money, besides $1,000 Of consoi
dat I'd Virginia funds there in the bank and am
in Ms bad a fix IA anybody.
REPoRTER-And about tho $500 900 check, for which
you refused to accept anything but COIN
THE THREE HUNDRED THOUSAND DOLLAR CHECK
Mr.. FLooD-The check certified check for
$500 0O0 given me BY Louis Garnett of the san Fran
cisco Assaying and Refining Company, some time last
April, Tor money advanced on bullion Last Wednes-
day sent the check to the bank for payment Mr.
Ralson to me and said, "Fiood you will have TO
lot up s." sand, whats the NATTER" He re-
Piled 'Wc have not enough coin to pay that check
then asked him, ''Whon can you pays'' He said 'In
three or days" Then said ''If put in three
checks to be drawn, Thursday Friday and the
last on Saturday will that be satisfactory Ho re-
piled that it would and the checks were so drawn.
The first was presented by Donohoe Kelly Co.
this morning where it was LETT for collection.
REPoRTRR-And 1t was paid
Mr.. FLooD-Yos; but shortly afterward Mr. Mills
and said, 'lf cannot get relief the bank
will have to go under"
REroRrER-what reply did yon makeY
Mr.. FLooD--I said did not see how could render
any assistance, and he then went of
CAPITAL
RRpoRrER-Mr. Flood, If 1t is fair question, how
much money have you withdrawn from circulation and
locked up for the purpose of starting your Nevada
bankY
Mr. Flood have not locked up any I have
about 600 900 outside of this with which TO open the
bank. thought that would be enough ready capital
to start with million dollars is considerable money,
you know Tho ~, 900 I did not intend to dis
turb, as would have to be loaned again If put into
bank.
REPoRrER-But the report on the street ia to the
effect that you have locked up all the money you could
get hold OF and drew pretty heavy on the savings
banks?
Mr. FLooD-The reports of my locking up money are
all wrong; and, furthermore | never got any money
from the savings banks nor have any Of my people.
have not borrowed n dollar nor do owe any one.
REpoRTER-1f the bank had received any assistance
could it have pulled through without being obliged to
announce a complete fallures
Mr. FLoOD-Yes if ii could have been assisted to the
of SO 600 900. By the way, there has feeling
existed regarding the ophir shaft, as has been nti
mated. The understanding that point perfect
Regarding the mills, it was purely matter of business
Judgment Sharon put price on his mills; we did not
consider them worth any such money and the trade
off The two mines never looked better than they
do to-day.
ErpEcTs OF THE FAILURE
REPoRrER-What will be the effect of this faure'
Mr. FLooD-That is very hard question to answer.
Can't really tell yet what the effect Will be-
REPoRTER-What do you think is the cause of tho
failure of the Bank of CALIFORNIA;
Mr. FLooD-Well, do not know with shrug of the
shouldcrs) combination of circumstances.
REPoRTER-Was II the result of stock speculations?
Mr. FLooD-No; don't think the depression in the
stock market affected them dollar Rson says he
had nothing to do with stocks. have expected the
failure for some time
REroRrrH--How will tho failure affect Sharon and
Mills?
Mt. FLOOD 40 not huOWs OHdiVu was az Que tlne
q heavy stakeholder.
REpoRTER-I believe at one time you negotat-
ing for the purchase of the majority Of the stock Of the
California Bank
WHY THE BANK OF NEVADA CONTEMPLATED.
Mr. FIooD-Yes [ was offered 25, 900 shares of the
stock at $40 which offer would have accepted pro-
vided they would agree TO guarantee such accounts
did not accept The capital stock Of the bank was
SIS 900 600 with surplus OF 81 $50 900 Ralston would
not guarantee the accounts. but offered to in tho
surplus against the probable losses. This would not
accept offered to take bond guaranteeing the losses
but such bond Sharon refused to sign. wanted tho
OF property. did not propose to pay forty per cent
premium for gold pieces, and to the conclusion
that the best way to start bank OF my own-one
that | knew would be clear from all en-
barrassments. This is tho and substance
Of my negotiations for the Bank of California,