, 1876-05-12
BANK OF CALIFORNIA,

The True Story About tho Suspension
Testimony Of Directors and Stockholders
--Ralstou's Actual Indebtedness Fully
Stated.
SAN FnASc1sco May o.-The ciyi1 suit in which
the proprietors Of the Bulletin newspaper sought
damages against the publisher Of the Alta Cali
Jornla for ihcl growing out OF publications in ref
ercnce to the failure Of the Bank Of California has
been commenced by the takins Of the dispositions
Of several witnesses.
D. o. Mills, long n Director and now President
OF the bank testified that its capital S. 900, 900
at the date OF the suspension, in August last and
Mas s. 6oo: 600 additional; BY the books 'asi thai
liabilities Of The baaE So st ts time Ct the sus
asscts, good, bad, and indifferent, were eome-
thing over $50, 0o0 ooO; the failure considered
to have been caused hy the management Of the
the Committee and Dourd OF Directors Mr.. Ralston
was Il 1arge debtor to the bank; the reports made
it not far from s. ooo, coo; the i.,aobtedncss ws
amounted to from s., 600. 900 to 81, 25O, 0O0 be-
inE oyerdrafts By MI Ralstons e, e. Mcnecks; this Dc.
against the refinery; the refinery was supposed to
owc that much money, and the Committee
reported That the money ys as not ewing By the r.
bank owned the most Of the refinery, and it
WIS considered to be. under Mr. Ralstons
control as President Of the bank; other detlclen-
e4AAoAoAt.
what were reported to be certificates Of deposit,
where the money had not been paid into the
bank; this amounted to $3.50. 600; It was reported
by the Committee that the moneys had been used
by Nlr. Ra1ston for his own private account; he
had signed the certificates, bnt they had not been
registered nor passed through the books; the bal
ance OF the Indebtedness was reported as having
been mainly carried in the bank on cash-tays Of
Mr.. Ralston and, before the suspension, accounted
for other bills discounted; bills unavailable and
indorscd by Mr.. Ralston were considered part Of
his indebtedness; the money was supposed to have
gone To 1r Ralston for his private purposes these
acts were concealed from, tho Directors und other
officials and they did not appear in the semi annual
examinations III june and July. Being asked If
money was not sent into the bank in advance OF
these for the purpose Of being counted
being on loan Mr. Mills, without denying the init
nation Of the question, replied: 81 cannot speak
from ny own knowledge. II reply to further ques.
S. 600, 0O0 capital and reserve fund from 81, ooo
600 to ST. 500 600 Of available assets; the capital
vas vas impaired to the amount OF at least 81 5oo,-
bunk sold to Dir. Sharon, the United Statcs Scna-
tor and since the suspension. upward of s., 600,
600 of Indebtedness for 81, 500, GOO in money and
dcbteduess (of Ralston) 1t something s. 000,
600. and, with the concurrence OF the Board, this
already indicated; the contingent $500, 600 is re-
Gardc1 by the bunk as only nominal asset; the in
dcbtcdness sold to Sharon was Ralston*s indebted
to the bank; dividends at the rnte Of percent
Ing the last three yearsout Of the general depos-
its. the witness presumed.
George II. Howard sworn: Was q Director Of
the Bank Of California in August last and is such
still; one cause Of the failurc OF the bank the
large amount OF money withdrawn by Mr. Ralston;
the Committee stated this amount to be somewhere
in the neiehborhood Of 81, 500, GOO; it was under
stood that he took this for his own private pur-
poses without the knowledge of tue Directors; wit
ness elected only the last meeting OF the Board
prior to the failure; he knew nothing OF the
issue OF stock the destruction OF etock for the
purpose OF making the stock which was not genuine
stock stand as good stock; Us other m1smanage
nent on the part OF AIr, Ralston accounting for the
failure he cited unsecured loans Of large
sums OF money to II. F. Williams aud the Hon.
". b. Stewart: there was also i
small loss to McCrclish, Of the Alta; these unsc-
cured loans he supposed were legitimate; they all
stood on the books of the bank. The witness con-
frMef Mr.. Mills statement that there were mon~
eys Withdrawn from the refinery by Mr. Ralston,
which the bank had to mako good.
Michael Reeves sworn: Had been stockholder
in the Bank OF California for two years past; hold
9, COO shares: held . 400 shares also as collateral
for loans Of 500 600 to Moses Ellis and Sl5o, 900
to Dnrling Bros: he supposed when he
made the loans that the stock belonged to the par
ties pedgiag It, but after the bank failed Butiing
said that what he pledged belonged to Mr.. Rails
ton; witness said he knew the cause OF the bank
failure; he had OCCASION to examine and found the
money all gone; he believed NJ. Ralston had used
it for his own uses.