The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1876-07-28
The San Francisco ssBulletfn"-"Alta'
Libel Suit.

|
SAN Francisco, July 27.-In the
BuIetin-Alta libel suit, further testi-
mony of Michael Reese and ID. o. Mills
was taken before the Third District Court
Commissioner yesterday. Reese testified
to the following in effect: The failure OF
the bank was caused by Rslston taking
money from it to experd on outside
affairs. Ralston was the architect Of the
Job to sell the Spring Valley Water
Works and Colorado Valley scheme TO
the city, at profit of about So, 100000 l
helped him furnish large amount TO
buy up stocks. l advanced between 3d.
100000 and $4,0O00OO, and he had the
management of it. He expected to make
enough out of the job TO save the bank
from failing. 1t was the last thing to do
10 save it. If the scheme had been car
ried out don't think it would have fail
ed. Ralston took the funds OF the bank
to carry on the water scheme, Palace
Hotel, Kimball mandatory, Mission
woolen mills and other outside enter
prises. No one thought he would take
the money, but the stockholders thought
It was his own fortune he was operating
with. l paid in 100000 exchange one
day and made good the account OF
Leland Stanford at the bank, at the lat
ter's request. After the failure OF the
bank, found the amount had not been
credited OF the books, but Ralston had
taken it and l got a guarantee from
Ralston that the amount should go to
| Stanfords credit, but received no certit.
cate OF deposit, but took as security,
bonds of the Southern Pacific Railroad,
which Stanford had deposited with the
bank as security for its over drafts.
D. o. Mills, referring to the charge in
the Alta OF September II, 1875, that the
proprletors of the Bulletin and Call
remitted money to Siminton. OF New
York, to speculate in stock that
they strove to make the panic
as disastrous as possible and were in the
conspiracy to break the bank, testified =
know OF no efforts of those parties to
affect the stocks values or to break the
bank, or to cause the public TO lose con-
fidence in it. The cause of the failure OF
the bank was that Mr.. Ralston used funds
for his own purposes, and did not replace
them. This he did surreptitiously and
irregularly, without the knowledge OF
the directors. The largest deficit was
found in the refinery account, amounting
to $2OOO,OOO. The refinery was
a separate corporation, but under the con-
troll of the bank. The book ofthe bank
contained deficit to the refinery account
Of upwards of s2OOO,OOO, which was
fictitious, and manufactured by Mr..
Ralston, who had evidently used
the money for his own purposes. we
also found instances in which certificates
of deposit had been issued, and which
money had never come into the bank.
One instance was that Of Carpenter
certificate for over ha.f million. Ral-
ston's total indebtedness was over 81 OOO,-
600. You may call it what you like, 1t
| was misappropristion as to an issue oil
stock. | made no examination oi that
until after the banks resumed. l am
creditably informed that there was an
over issue to large amount, but 1t had
been retired and the stock stood all
right when took the books in hand. Wit
ness evaded the question by whom such
stock was retired, and the point was not
pressed by the Judge. 1t was
retired in the interest of the Ralston
estate, before there was any suspension
of the bank. There were overtures made
by persons interested in the bank to 90
into some arrangement with Flood q
o. Brien, by which that firm were to take
the bank and carry it on, the parties
making the proposition offering TO be-
come responsible TO the amount OF one
million OF dollars, if the assets OF the
bank were not sufficient. | was party
to that. Do not know Of any false news
published by the Call and Bulletin at that
time. After the failure had an inter
view with the proprietors of thosepspers.
suggested that the newspaper contro-
versy then going on upon the subject was
detrimental to the prospects Of the bank
resuming. They said the controversy
had placed them in false light;they were
charged with doing things they were not
guilty OF, but on my informing them that
we were doing our best to resume, they,
10 forward that result, agreed ia effect to
drop the controversy, and stop defending
themselves. 1t was admitted on all hands
il would be for the interest Of the eom-
munity, and that they would do nothing
To impede us in the work OF resunIng.
think they afterwards did all that was
possible 10 assist US.