The herald., 1895-06-12
What a Wheat Deal Cost the
Late Senator Fair
HE BORROWED EVERYWHERE E
II Was Necessary in Order to Garry Out
His Scheme
The Secret OF the Gigantic Speculation Only
Came Out on the Death of the
Famous millionaire
Associated Press Special Wire.

Associated Press Special Wire.
SAN FRANCISCO, June 1.-THE spe-
cia! administrators of the late James G.
Fair are rapidly closing up the big wheat
deal, which was the last venture OF the
late millionaire, and one OF the few dis
astrous speculatlons in which he was en-
gagged. Although the public was unable
to tell for certain who was buying such
vast quantities OF wheat at such high fig
ures leading commercial men OF the city
and the officers .of the most prominent
savings banks were able to max pretty
shrewd guess in regard to the matter.
To nearly all of these institutions the
senator had applied for large loans. On
the street speculation was rife, and no
satisfactory explanation of the grea
wheat deal was ever given until the veil
Of secrecy was withdrawn by death.
Senator Fair mad to borrow large sums
of money to carry on the venture. He
first used his warehouse receipts as col
lateral for money. He obtained funds on
them from the following sources:
The Nevada bank OF San Francisco
made loan OF $780, 600; George Whittell
advanced 81, 244, All, and received that
sum and interest to the amount OF S53,
-
estate lew days ago. The Bank of Brit
ish Colum ola lent $50, ,000 for which cit
charged $l1 225 interest. Balfour, Guth
rie & Co. furnished $50 600 and received
s207l as interest and insurance. These
four loans aggregate the sum of 81, 46S. Si4
together with interest and insurance.
They have all been paid by the special
administrators of the estate.
In addition to these loans the eX-sena
tor was compelled to give gilt-edged bonds
for the accommodation. These loans
were al follows: Bank of British Colum-
bia, 500, 900 made December II, 1894. in
terest per cent. This was secured by
three hundred bonds OF $40, 600 each of
the Southern Coast Railway company.
Bank OF British Columbia, SIS, 900, made
December 20, 1894, interest at per cent,
secured by forty bonds of the Pacific
Rolling Mill company at $1,000 each; forty
bonds of the Southern Pacific of Arizona
of $1,000 each, and twenty ponds OF the
Northern Railway company of $1,000
each. Mutual Saings bank of San
Francisco, $500 600, made December I,
1894, at per cent interest, secured by
four hundred South Pacific Coast Rail
way ompany's bonds of $1,000 each.
Mutual Savings bank of San Francisco,
$780, 900 made December 7, 1894, at per
cent interest secured by two hundred
South Pacific Coast Railway company
bonds OF $1,000 each. Balfour, Guthrie IL
Company, $50, 600, made December 10,
1894 at AZ per cent interest. secured by
one hundred South Pacific Coast Rail
way company's bonds of $1,000 each.
Bank of California, $780, 900. made Decem-
Der s. 1884 at PER cent interest, secured
by sixty bonds of the Western Railway
of California of $1,000 each. Anglo-Cali-
foinia bank, S1O0 900, made December
is, 1894, at So per cent interest. secured
by two hundred bonds of the South Pacific
Railway company of $1,000 each Hibernia
Saving and Loan society. 500, 900, with
interest at per cent, secured by ninety
seven bonds or the Northern Railway of
California of $1,000 each and thirteen
bonds OF the fic Rolling Mill COM
pany OF $1,000 each. The James Lick trust,
10000, with interes A. at per cent. Sc
cured by m mortgage on the Lick house.
All of these loans have been paid and the
collateral released, except the Lick
house mortgage and the special ad
istrators say that it will be paid tomor-
row.
The most surprising feature of the
whole affair is that. while the leading
financiers of the city were aware of the
fact that Senator FAIR has been borrow
ing these large sums OF money. his cor
nection with the gigantic speculation
never leaked out SO as TO become the
property of the street.
To pay the storage on the enormous
quantity of wheat which the ex-senator
bought in tho course of the deal con-
sumed a very considerable fortune in
itself. The special administrators paid
S22 ,533 for the storage OF the wheat. In
addition to all these expenses the wheat
stored in Contra Costa county was taxed
to the amount of $25, 96l and the wheat
in Solano county was taxeu $50, all
of which has been paid.
This vast quantity of wheat was sold
recently by the order of the court for
S3050, 500. Two previous sales, however
had been made, one of 14,900 tons in
May, which brought $265, 597 ald the
other of 5000 tons in the same month,
which brought $l73 800.
The above are some OF the figures Of