Wichita eagle., 1889-10-11
FAIRS RESIGNATION.
Last Chapter in the Great Wheat Deal Of
1897

San FRANCISCO, Cal, Oct. 10.-James G.
Fair resigned from the presidency and di-
rectors of the Nevada bank today. bring
ing TO an end the last chapter in the wheat
deal of 1887. which cost the Banana crowd
several millions dollars. When the retire
ment of Mr. Fair became known to the
street speculations as to the
reason for change soon ran rampant.
Several theories were advanced but
without any satisfaction to those vino held
them. The statement which found most
general acceptance was that a settlement
had been effected by MeSsrs. Mackey and
the Floods and that the partnership which
was again entered into at the time of the
collapse of the wheat deal, when Mr.. Fair
came to the assistance of his old-time min
ing partner. was at an end. This theory
found ready believers. especially when it
was known that Mr.. Fair had retired from
the board of directors as well as the preSi-
dency.
When James G. Fair assumed the presi-
dency of the bank of Nevada two years
ago the Bonanza firm were in troubled
waters. In the early part of 1887, during
the absence of John W. Mackey and owing
TO the inability Of James q. Flood, who
was then seriously, to attend to its affairs,
the bank got seriously involved
in a disastrous wheat speculation
through Cashier George Brander's
poor judgment which nearly wreck
ID the enormous fortunes of its
stockholders. When the senior partner of
re finn arrived on the scene from Europe,
Il took ali the financial ability of which he
is possessed to avert the danger which
threatened the resources of the Bonanza
firm.
They were engaged in enterprises all
over the world, and the expense attached
20 some of them was particularly heavy,
e specially lii handling the new Atlantic
4 be company, which at that time
was about passing through the most
precarious period of its history. Money
was tight in the city and rendered more so
by the rumors prevalent of financial
trouble in more than one quarter. The
wheat market had smashed, and the fail
IRE which followed among leading opera
.ors did not strengthen public confidence
in the situation. Real estate was in light
demand, and, although stockholders in
the bank made every attempt to
realize on private fortunes to save
the institution they had taken such
pride in founiini, difficulties beset them
on every turn, and it looked, at one time.
as though their endeayorS would prove
futile.
H. was then that Senator James G. Fair
came to the rescue, we'll provided with
funds which he had Just realized from the
sale of the South Pacific Coast railroad.
He came TO the relief of his old-time part
ners and placed his spare millions at their
disposal. He also devoted his personal at
tention to the rehabilitation of the bank
affairs, assuming the position of
president, which he has since filled. The
losses incurred by the different wheat fac
tions are estimated at from SS.O09,0O0 TO
Sl0000,0u0, which include Il million in gov
erument bonds belonging to Miss Jennie
h IF
firm were trenched on heavily to make
them good. Business has run along
smoothly.
On the death of James g. Flood his son
took his place and now assumes the presi
dencY of the Nevada bank, it being under
stood loans advanced by Fair have been
paid.
ROADS FINED FOR MANIPULATlONS.
CHICAGO, H., Oct. IA local paper
says: AT the meeting of managers of the
Interstate Commerce Railway association
yesterday the Rock Island requested that
Chairman Walker be authorized to make
q full investigation of the charges against
the Missouri Pacific and Fort Scott roads
for cutting and manipulating rates from
Kansas City. These charges were con-
sidered by the southwestern division of
the Western Freight association at its
meeting the day previous and the fact was
established that the roads had been taking
grain from Kansas City and St. Joseph on
bills of ladinC over two years old. lt was
also proved that the Missouri Pacific had
taken grain to Kansas City for the local
consumption ut that point and issued
fraudulent bills of lading therefor. Chair
man Midgley inflicted a fine of 500 against
the Missouri Pacific, Sl00 for the
Kansas City otfense aud 800 for
an offense at st. Joseph and a fine of 800
against the Kansas City, Fort Scott x
Memphis. The latter is not member OF
the association and therefore Chairman
Midgley's action in regard TO it is final
AS regards the Missouri Pacific, Rock
Island and other roads, they contend that
the penalty inflicted was not commensur-
ate with the ofiense. They claimed the
manipulations charged against that road
involved an amount exceeding SO, 600 and
consequently it could we'll afford TO have
the matter disposed of by paying 500.
The penalty assessed against the roads
showed the company was guilty Of violat-
ing the interstate commerce railway as
well as the western freight association
agreement, aud moreover that il Is guilty
OF violating the Interstate commerce law.
The interstate agreement inflicted penal
ty OF not less than Sl01, and the forfeiture
of the revenues secured from such viola
ton. After stormy discussion
the matter was referred To
chairman Walker for furthar action =