New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-09-12
A Vehicle of Nli,represe utatiou,

The Bank of California closed it's doors at
half-past two o'clock in the afternoon of
Thursday, August "a, and the fact was at
once telegraphed all over. the country. Az,
however, the Associated Press is worked in
the interest of stock jObbers rather than
that of the general public, the event was
both magnified and misrepresented, with a
view of getting up panic in the Eastern
stock market; and the opportunity was
seized of placing both Mr.. Ralston and the
financial institution of which he was the
head in the worst possible light before the
public. In the very first dispatch tmorning
papers OF August 81 the following state
ment, utterly false in fact, was m ade:
I'm reply to question as to when they
expected to resume again he said not at all !,
and subsequently,, on q repetition of the
question, said, I'VE do not expect to re-
sume.'"
On the following day, August %, the con-
dition of the bank was again grossly mis-.
represented:
MANY rumors are current regarding the
condition of his Mr.. Ralston's) corporation.
One statement, apparently from good au.
thority, is that the bank will pay depositors
in full and stockholders fifty cents on the
dollar. On the other hand Q prominent
st0ckh0lder states that the most the bank
can do will be to satisfy the demands of
depositors, and it will scarcely be able TO do
that"
Having Sunday to refresh themselves and
exercise their wits in, the scriblers invented
for Monday morning, August 80, the follow
ing outrageous statements in regard to tho
financial condition Of the bank:
"AlthOugh no detailed statement of it's af-
fairs has yet been made, it is well settled
fact that the failure of the bank is total,
and that it will never attempt to resume
business. Its stuck is worse than worth
less. With liabilities ofmore than $l4, 900 900,
the highest estimate puts its assets at
$4,000, 900, but 1t Is doubtful if 81, 000, 900
can be realized. The directors such as
Mills, Tallant and other men of undoubted
integrity, were deceived until the last by
false statements regarding the banks re-
sources.
although the directors of the Bank of
California, as board, have persistently re-
fused to make public any of their proceed
ings to-day. some facts have this evening
been obtained from individual members
In view of the death of Ralston the board
have declined to make public any discovery
they may have made until after the funeral,
when startling disclosures are promised. It
was admitted by member that the board
would not have asked for, Mr.. Ralston's
resignation unless grave facts as regarded
the management had come to light. All
the board agreed that he must leave the
concern, and it was also practically admit
ted that the bank could not pay depositors
in full, but would perhaps pay about eighty
per cent. As regards what has been said
about the influence exerted by the Call and
Bulletin In their structures upon Rslston in
causing the crash, 1t was admitted that the
facts prove these structures to have been
well founded, and that they could have had
no bad effects ON the bank had it not been
intrinsically weak 49, ,-'.'''
And on Tuesday, August 81. the climax