New-York tribune., 1910-01-05


The Bank of California became one of
the best known financial institutions of
! the country. It's credit was OF the high
est, alike in London. Yokohoma, Canton.
Shanghai. Honolulu and throughout
South America. It was of immense SER
vice in aiding the development OF the
country, furnishing facilities for the es-
tabIishment of manufactures on the
coast and for building up the foreign
| commerce of San Francisco. 1t was an
institution in which the community took
| a pride, and when men spoke Familiarity
OF "the bank" everybody knew that the
Bank of California was meant. 1t re-
warded its stockholders WE'LL giving
them a 1 per cent monthly dividend, at
the same time accommodating hand
some surplus.
The years thus ran on, and Mr.. Mills
still found it impossible to realize his
cherished purpose of retiring. At last,
when the three or four years he had first
consented to serve had stretched out to
nine, he insisted on carrying out his
plan, and on the 10th of July, 1873. re-
signed the presidency of the bank He
left it in splendid condition, with tts
capital secure, large surplus, highly
profitable business first rate organization
and unlimited credit. Two years later.
when he was summoned back to help
to rescue 1T from utter wreck, he found
1t with liabilities of thirteen and half
millions more than its capital and sur
plus and with only a hundred thousand
dollars cash in it's vaults!
WILLIAM c, RALSTON.
From the establishment Of the bank
William c. Raiston had been associated
with Mr.. Mills as cashier, and had dis
played business capacity of an order
approaching financial genius. He had
previously been engaged in private bank
ing in San Francisco, and Mr. Mills had
then lent him a large part OK the
capital employed This business relation
had been entirely satisfactory. Mr..
Ralston prospered and acquired both
reputation as a banker and great per-
sonal popularity among business men,
whom he was ever ready to assist to the
verge of prudence. In the Bank or Call
fornia he displayed the same traits and
added to his popularity, so that on Mr..
Millss resignation the cashier was nat
urally promoted to the presidency.
Mr.. Mills had resigned from the
directory, also, but the new president
begged him not to insist on this. AS
Mr.. Mills had always attended to the
foreign business and was the one officer
of the bank whom foreign bankers knew,
there seemed to be a reason for this. and
so Mr. Mills consented that his name
should remain on the board until the
next regular election. But he was now
preparing to go abroad. He found
his own business so burdensome that he
was unwilling to assume responsibility
for that of others, and he insisted per-
emptorily that at the next election his
name must be dropped. At the time or
this election Mr.. Mills was out of the
state On his return he found that Mr..
Ralston had again placed him on the
board. He at once demonstrated Vigor-
ously, but Mr.. Ralston was so pertina-
cious in urging him to accept that Mr..
Mills saw no way of escape without fore
ing an actual breach with his old
cashier. Nevertheless he resolved to
The ownership of two hundred and fifty
shares of stock was necessary to make
a man eligible for the directorship. He
ordered all his stock to be sold, and dis
missed the subject from his mind. When
the next election was held he was again
absent. Returning, he learned to his
amazement that his name still appeared
as director Mr.. Ralston had bought
two hundred and fifty shares of his
stock and, instead Of transferring it, had
kept it standing in Mr.. MilIs's name.
Before the bank failure and four or five
days before the condition of the bank be-
came known William Sharon went to
Mr.. Mills with an appeal for help to save
Mr.. Ralston from failure in his personal
speculations. He said that nine hundred
thousand dollars would carry him
through. Mr.. Mills could not forget the
years of association nor the constant
consideration and courtesy that he had
continued to receive from Mr. Ralston
after his retirement in everything ex-
cepting the matter of the directorship.
He overlooked, too, a certain lack of
frankness on the part of Mr. Ralston in
iCSoiU ~ inc OI the Dank, and he
at once agreed to help. Within an hour
he had seen Ralston and had arranged tc
let him have about four hundred thou
sand dollars that day and three hundred
and fifty thousand more in the next two
or three days, in all seven hundred and
fifty thousand dollars. The rest he had
no doubt Ralston would be able to get
elsewhere. 1t was afterWard learned
that there had been an overissue of
about twelve thousand shares of the
banks stock. This stock was taken i'm
and retired just before the failure by
Ralston and Sharon, and that was where
Mr.. Mills's money went.
RALSTON'S DEATH.
Two days later Mr.. Sharon went to
Mr.. Mills again with the news that the
bank itself was in trouble. From the
day of his resignation Mr.. Mills had
never attended meeting of the direc-
tors nor assumed the slightest respon-
sibility for their acts. He was not q
director by his own option. But his
name had continued to be used as n
he were still associated with the manage
ment OF the institution of which he had
long been the head, and he had made
no public protest. He now felt that he
would stand in a false position before