Sierra County advocate. [volume] (Kingston, N.M.) 1884-1960, 1893-09-22
RICHES TAKE WINGS.

Special Correspondence Ell Paso Times.
Milwaukee, Sept. Fer a
period OF over half century
Mltehell's bank was considered
one of the great financial bul-
warks of the west and northwest.
1t was worth millions and was
supposedly backed by estates
werth anywhere from ten to
twenty millions. TIA profits frs-
quently reached $500,000 a year,
and the three men who owned it
/ were considered conservative and
shrewd bankers. One can imagine
the effect of the collapse of such an
Institution, and Its failure during
the early days of the recent
financial crisis fairly paralyzsd
the entire business and social
community.
The details of the failure have
been told, but the story of the
bank and the elements that COM
bined to send 1t on tha shoals OF
the financial sea are of absorbing
interest. Mltehell's bank was
founded In 1889 by the late Alex
ander Mitchell, who for over half
century was one of the most
successful and conspicuous finan-
ciers in the west. Just previous
to Mr.. Mltehells death he had
backed two friends in q great
wheat dealt has always been
claimed that the willy old Scotch
man never speeulated himself-
and the deal failed.
This financial defeat, the first he
had ever met, is supposed to have
hastened his death, and the fact
has just leaked out that the estate
was called upon Immediately after
bis death to foot losses actually
amounting to $3.000,000. When
these we're paid, the remainder of
the estate was worth in round
Figures $5,000,000-not half SO
much as people supposed. 1t
practically all went to his emily
son, John l.. Mitchell. The wld-
ow was paid an annuity OF $780,
900 year, and she has managed
to struggle along on it, but now at
the age of 73 years she finds her
self penniless, with many moral
encumhrances, her sons great
bank a total wreck and endless
litigation in sight.
The son, John L. Mitchell, is
enc of the two United States sena-
tors from Wisconsin, and when
elected last winter he was rated as
ameng the richest men in the
senate. He is handsome man,
OF medium stature, about fifty
years of age, pleasant, affable and
very popular. He served a term
in congress and was elected to
succeed Senator Philetus Sawyer.
Mr.. MitchelPs little fiers in
pelitics may have cost him a few
hundred thousand dollars, but
this expense was nothing to man
with his income. Today, how
ever, about all in the world be
possesses is his salary of 50 200 as
senator. Heretofore he has been
giving this income to his sscrsta-
ries and clerks.
Al the time of Alexander
MitchelPs death the bank was the
only part of the estate not left
wholly to his son. 1t was equally
divided between David Furguson,
ths bank cashier for the past so
,ears. and Jsbn Johnston, the
assistant cashier, who had in
reality been its nominal head for
many years, and to the son, John
who had no taste for finances
and who was rich enough without
paying any attention to the
2s .ha l.a!alls Name !!
of these men ever speculated.
Furguson and Johnston had
grown rich and were regarded as
mflIionaires. They were shrswd
sES4sszssyyassvs, aud this natural. |
Iv sausss oas to ask the question, !
"What caused the wreck of the
bank SO admirably managed and
SO strongly backsd?' The answer