Omaha daily bee., 1888-02-06
RALSTON, SHARON AND MILLS.
How General La Grange Prevented
q Panic In San Francisco.

man with history" pointing To large
and slow-moving man walking up Broad
way just in advance.
"Who Is he 7" was asked. ..t
"By the way, he knows good deal
about the Ralston matters in Frisco
that has never been told. l see the
Graphic has been talking about 'Bilp
Ralston's soma very clever, bright
fellow, by the way, whose untimely end
| regret greatly. Who Is the man in
advance ? Why, that is General La
Grange, who was superintendent Of the
mint in Frisco. He saved that city
from a terrific commercial panic at the
time OF Ralston's death. You'd hardly
think SO as he moves along in that
elephantine waw. but he was one OF the
most dashiug Of western cavalry officers
during the civil war, and Mt the head of
the First Wisconsin cavalry was with
Colonel Pritchard Of the Michigan regi-
ment, one Of the capturers of jefferson
Davis.
General Grant made him mint super
intendent in 1869. Before that he was
teaching school and practising law in
Almada county, just across the bay. He
won't talk nowadays. A bit cynical and
soured. you know, but fine fellow. for
all that. However, lots turn in here
and I'll tell you all about it. was in
iiiSNO SiOi ". ultcI LuNC bubNCu
with La Grange and others. It's Just as
well to understand just how much ID. o.
Mills did towards. saving the the Bank
of California" M
OF course Seneca's wishes were fol-
lowed and seated over n beaker Of Apol-
linaris, with "a stick in it," the Graphic
heard this interesting marathon:
Ralston g failure was not due to his
personal appropriation or misapplica-
tion of the finds Of the Bank of Califor-
MIA, as it was by his intense pride in the
state and its development. The bank
was so much the creation of men like
Mills. Ralston, sharon. & Co.. and the
states development was SO largely
the product of their energy, as
to direction at least, that it could
not be much wondered ut that
they should consider the bank, and pos
sibly the state, too. as their own prop
erty. Evidently Mr.. Ralston. did.
Everybody came who had a project or
enterprise on hand. Ralston loaned
and invested right and left. When the
crash came his own and the banks
funds were apparently incxtricably in
volved. 1t was Senator Sharon, who
looked like n tailor and acted, says SEN
eca, like II prince in the matter, to
whom credit is really due for saving the
bank and what was left of Ralston's
estate, not Mr.. ID. o. Mills, except as
later on his carefully conducted presi-
dency restored full confidence. There
was a great difference in the methods OF
Ralston and those of Flood and o 'Brien,
who with Fair and Mackay were in the
Bank of Nevada. They were ''On the
make" by loans and paying
and safe investments in the
usual way of bankers and
capitalists. They were something more,
for they practically ruled a principality
tho Comstock lode. RalstOn and the
Bank of California had been toppled
over. 1t is an old chestnut on the coast,
the row between these powers, but 1t
may not be known that it became so per-
sonally bitter, especially against that OF
Mr.. Flood, who had been twitted of hav-
| ing kept bar, declared that he would
turn the rival banks into one, for at
Least one day. He had the power for a
few hours, too, to carry out his threat.
nation of the old banks ruin by threat
| ening TO withdraw from the bonanza
firm.
General La Grange came in at the
| nick OF time. He had coin, and plenty
| OF it, in the mint. There was bullion
in the city and enough to meet all Obli-
cations. The trouble was coin. La
| Grange bought all the bullion brought
| to him. There was a decided kick from
| Washington, Mint Director Linderman
| growing alarmed at the risk he sup
| posed La Grange TO be running. The
latter rendered his resignation but went
on with his plan. Senator Sharon, who
had never seen La Grange. called on
him and offered to become his security
for millions if necessary. He also tele-
| graphed the president to the same
effect, asking him also to refuse the
proffered resignation. A panic was
saved, and when La Oranges accounts
were audited--which he demanded inn
mcdiately on the cessation of the
trouble-the books balanced to few
cents against him, which he paid at
once and renewed his resignation. 1t
was not considered.
''1f Sharon risked a cent at the time
he put at least $7,0OO,OOO in peril" re-
marked Seneca. "And that was not all
He took hold first of the bank and then
of RalstOn's affairs" No one will ever
know what occurred unless General La
Grange should tell, He was present, it
is understood, on invitation at the first
directors meeting after ItalstOn' g death.
Still. opinion is settled in Frisco into a
belief that Sharon bulldozed Mr.. Mills
and others into standing by the bank
| ana nuSnlnS up Jne NilSlOn eplSOue. IL
is said to have cost $lO,OOO,OO to have
done it. Then Mr.. Sharon took charge
of all Ralston's unfinished ventures. He
had undoubtedly to do that, and make
the bank safe. 1t was an herculean
task, but he carried it through. What
ever Mrs. Ralston and the family pos
sessed thereafter was due entirely to
Senator Sharon's fidelity and sagacity.
He actually made the great Palace hotel
meet its outlay, and it is now n paying
property. Mr.. Mills is not believed tC
have entered into any risks, but Of
course credit is due for making the
Bank of California safer institution
tn an ever befoye.
William M. Ralston was remarkable
character. He had certainly rude
but magnificent type of generosity and
and public spirit. 1t was material and
coarse clean through, but it was es
sentially Californian and therefore large
and SNOWY. His hospitality belonged
to that school, and his enterprise also
He helped everything. One Of the mer
who was disappointed greatly wher
Ralston walked into the bay was Oul
little, but noisy friend Henry George
| Georpe p Jones had loaned the Eve