The New York Herald Newspaper, August 28, 1875, Page 3

- BURST BONANZAS. The Suspension of the Bank of California. SUICIDE OF PRESIDENT RALSTON, He Jumps from the Dock of Selby’s Smelting Works. A SKETCH OF HIS CAREER. A Characteristic Story of Pa- cific Slope Enterprise. FAILURE OF SAN FRANCISCO BANKS The Bankers Assisted by Gold from Washington. CAUSE OF THE COLLAPSE. Effect of the Failures in the City. Opinions of Leading Bankers and Prominent Brokers. The excitement throughout the country, and also, to Bome extent, in Europe yesterday, consequent on the Announcement of the failure of the Bank of Call- fornia, was yery great, It quickly subsided, however, when time was taken for And it was sepn that its effect would, toa largo extent, be local and confined within the limits of the cities of tho Pacific slope. reflection, It, however, was the occasion of considerable discussion, and was the prevailing topic of the day in all financial and mercantile circles, Late in the evening a melancholy shadow was thrown Bpon this great financial collapse by the start- Ming story, that reached this city by tele- graph, that = Mr. Ralston, the President of the Bank of California, had committed Buicide, This appalling intelligence immediately put aside all monetary considerations, and the Story of the career of tho great financier, that had come to so tragic an end, was on every tongue. This speedily gave way to speculations as to tho effect this suicide would have on the settlement of the bank’s affairs, and it was secn at once that a new and entirely unexpected complication had arisen that would demand immediate consideration. Below will be found particulars of the suicide and a sketch of Mr. Ralston’s career, SUICIDE OF PRESIDENT RALSTON. i Saw Francisco, Cal., August 27, 1875, About ten minutes past five o’clock this afternoon a tlose carriage drove rapidly to the side door of the Bank of California, when a gentleman jumped out in a Mate of excitement and ran into the bank. In response to inquiries, the driver of the carriage wid he had just left the drowned body of the President of the bank, Mr. Ralston, in charge of un officer on the beach, near the smelting works, in the north part of the tity. Mr. Ralston rode to Selby’s smelting works vharf and deliberately jumped off the dock, DETAILS OF THE SUICIDE, From the best information it appears that he went to sea bathing establishment at the north beach at about twenty-five minutes past three P, M., “undressed, Went into the water, swam about 200 yards and disappeared behind a vessel. Sogn after his body was discovered floating by the Selby Lead Works, and was brought ashore still alive. A physician vas summoned, but all efforts to resuscitate him failed, md he died at balf-past four P, Mt. Colonel Fry, his father-in-law; Mayor Otiy and a umber of prominent citizens arrived before he ex- pired. Colonel Fry and Captain Lees went to the bathing house and obtained Mr. Ral- gton’s clothes, in which were found a few dollars and his statement to the bank, but nothing bay- ing any tendency to show that he committed suicide, His body was conveyed to No, 1,812 Jackson Urcet, the residence of Colonel Fry, A boy pamed Festus Mazzcle states that he saw Mr. Ral- Bton before he reached the house; saw him sit on the clay bank near the smelting works; sav him tear up several papers and throw the Scraps into the water. Search was made for the pieces, but none could be found, It is also reported that he was seen to drink the contents of a vial before going into the water, The general impression is that he took poison before entering the water, SKETCH OF MR. RALSTON, Mr. Ralston: was the President of the Bank of Call- fornia, and he received the liberal salary of $50,000 per rear for his services, He was early connected with the passenger traflle between New York and San Francisco, ind subsequently was a member of the banking house of Donahoe, Ralston & Co. He was one of the Com- mittee of Public Safety which prevented the Southern- trs from carrying California out of the Union, and ho tnd his partner headed the Sanitary Commission sub- scription with $5,000 each, He made money by his pluck in the Washoe excitement, and was among tho first to start the Bank of California, D, 0. sills becom- ing President and Mr, Ralston the ruling spirit, As tashier he received a salary of $40,000 «year, and on the retirement of Mr, Mills he became the President. As an operator he was noted for the bolduess and brilliancy of his achievements, He advanced money largely to complete the Central Pacific Railroad, and more than once he made a bold dash, clearing his thousands as the ‘Under his chergetic, sagacious and spirited manage- ment the Bank of California throve, and within about twenty-four months the accumulated carnings of the bank amounted to about Ofty per cent of the capital, It was then decided to issue stock to those entitled for this amount and to open books of subscription for new stock to increase the capital to $5,000,000, gold, then equivalent to $10,000,000 currency. Everything worked well; cash capital of $6,000,000 gold was paid up, and the bank continued to do busi- ness on an equality with most of the banking institu. tions of the country, But the crash came, The bank was concerned in a great variety of judustrial enter- pires in Caliornia and the adjacent States, the results of which are now well known, In. various ways tho policy of the bank was one of encouragement to the young industries of the State, With an astonishing command of the details of business, Mr. W. © Ralston, the manager, took an interest In overy schome that promised to aid the commercial prosperity of the Pacifle coast and yield a fair return on Bu investment, The system of “spreading out” does hot seem to have affected the credit of the bank. On tho contrary, up to quite a recent period the Bank of California was considered in that region stable as the Bank of Engla.a, Among the re- sent investments of Ralston was the Palace Hotel building, San Francisco, an enormous structure, said to be the largest hotel in the world. This caravansary, to cost about $2,000,000 when finished, was to be ready for Guests on the lat of October next, Mr, William Sharon, NEW YORK HERALD, SATURDA United States Senator from Nevada, was one of the | owners in Hus enterprise, Wut lately sold bis interest to Ralston for an enormous sun Mr. Ralston was of medium height, compactly built, with a good breadth of shoulder, a high, capacious fore- head; thin, firmly-set lips; an oval, well shaped face, good features, a steel-gray eye and a great expres- sion of concentration and extreme mental activity. In manner he was curt, generally brief of speech and to the point, hat able upon occasion to state bis views in thoir fulness with felicity, strength and nervous vigor oflanguage. In habit Mr. Ralston exhibited intense ap- plication to business and an excessive industry, He was | a brief sleeper, and daring most%f his working hours | devoted himself to the details of his vast official busi- ness—besides his considerable private affairs, which should suilice alone to keep most men busy~ with all his | tremendous energy. His despatch of business was some- what marvellous, and the popular belief in his infallibility amounted to a superstition, His opinion of men, busi- ness projects and in tin&ncial matters generally was con- sidered conclusive. His personal power in the States and Territories of the Pacific was great, The influence of the corporation of which he was chief officer was felt everywhere, Mr. Ralston in 1868 married a brilliant and accom. plished niece of J. D. Fry, by whom he had several children, The country residénce of Mr, Ralston was sit- uated about twenty-twgi miles south of the city, in a charming valley known as “Diablo Canyon.”” Much has been said, from timeto time, of the magnifieence, luxury and beauty of Mr, Ralston’s private residence, located at Diablo Canyom, which is one of the most beautiful valleys in C@lifornia, and as a location for a country residence is certainly unequalled on the Con- tinent, 4 Visitors to California’ if prominent men, whether lawyers, lecturers, editors, Congressmen, distinguished foreigners, financiers or business men, did not consider | that they had seen the institutions of the country un- less they had visited the magnificent bank building and had been entertained at the princely country seat of Mr, Ralston, at Belmont, in Santa Clara Valley, not fur | from San Francisco. It contains a splendid music hall and all the appomtments of @ palace, and cost over | $250,000. Mr. Ralston’s charities were very considerable, but ‘were not done ina manner to be seen of men, One of his characteristics was a fondness for an unlimited number of fine horses. In the pleasant season of the year ho frequently drove between tho city and his country seat, He owned land near Belmont and parts of town sites on both sides of the bay south of the city, which he desired to render valuable by the construction of a bridge at Ravenswood and a direct line of railroad following the bay shore. With this ob- ject in view Mr, Ralston was willing that the city of San: Francisco should be taxed $2,500,000, to be given to a company to build the Ravenswood bridge; but the peo- ple did not understand it in that way. From the part he filled in the public eye of San Francisco the excite- ment caused there by his suicide can be well under- stood. It can only be compared to that in New York which followed the shooting of Fisk. THE BROKEN BANK. SAN FRanctsco, Cal., August 27, 1875, The excitement consequent on the failure of the Bank of California seems to be subsidiifg. The crowd | on California street is much less than at the opening of business this morning. The run on the London and San Francisco Bank ceased with a large sur- plus remaining» in values, ‘There was a slight run on the Anglo-California Bank on its opening this morning, but it soon subsided, The First National Gold Bank reports everything secure, and the same may be said of the Bank of British Columbia, the Pacificand Commercial banks, Private banks report no excitement, and everything gomg on as usual. Gener- ally speaking, all of the eity banks are considered sound except the Bank of California, Many rumors are current regarding the condition of the Bank of California. Ono statement, apparently from good authority, is that the bank will pay depositors in full and the stockholders fifty cents on the dollar. On the other hand, a prom- inent stockholder states that the most the bank can do will be to satisfy the demands of depositors, and it will scarcely be able to do that, There has been a slight rush at the Hibernian Bank and savings banks, but de- minds were promptly met within the rules, as ex- pressed in the bylaws of the institution. CONFIDENCR RETURNING. On the whole, confidence seems to be returning and | itis believed the woret.s over. But httle ancasiness | is felt as to the affairs of either the National Gold Bank and Trust Company or the Merchants’ Exchange Bank. The former reports a probability of soon resuming, though unable to fix atime, They have an abundance of available assets, and are only waiting the recep- tion of coin, The President, this morning, states that they paid out about a million dollars yesterday and that they have still a small supply | left. The Merchants’ Exchange Bank is believed to be sound and its saspension only temporary. MORE FAILURES AHEAD, It is stated on presumedly good authority that some half dozen heavy stockbrokers are likely to go down. No names are given, No commercial failures have yet been reported, though a squeeze 1s expected next Monday, collection day, The savings banks during the day transacted a usual business, deposits in some being larger than disbursements, There is no excite” ment on that line, MEBTING OP THE CHAMBER OP COMMERCE, Tho Chamber of Commerce held a meeting this after- noon and decided that it would probably be more in- jurious than beneficial to take any action looking to- ward postponement of ordinary accounts or notes ma- | turing next collection day. largely attended, The meeting was very SUSPENSION OF THE NATIONAL GOLD BANK. San FRraycisco, August 26—Midnight, ‘The National Gold Bank and Trust Company has sent in the following notice for publication in tne morning papers ;— > In consequence of the panic and the impossibility of obtaining coin, the National Gold Bank and Trust Com- pany will close until further notice. The bank has $1,300,000 over and above all its liabilities, As soon as coin can be obtained it will resume business ag usual, In the meantime any creditor so desiring can hate good asscts of the bank to the amount of his claim. By order of the Board of Trustees, HENRY L, DAVIS, President, THK CITY TAX MONEYS, The City Tax Collector has $275,000 of protested tax moneys on deposit i the Bank of California, for which he has certificates of special deposits. The Directors assured the Collector this morning that the money would be paid in a day or two. A rumor, not yet confirmed, says President Ralston has turned over his private means to the bank. THE MERCHANTS’ EXCHANGE RANK SUSPENDS, The Merchants’ Exchange Bank closed its doors this | morning. The directors have prepared tho following notice fur the afternoon papers :— “In consequence of the excitement and disappoint- ment of getting coin the directors deem it for the best interests of all concerned not to open our doors for the | present’? The Secretary states that the bank has $100,000 in coin on hand. The amount liable on deposits is $800,000; but against that there may bo over $400,000 in notes, The bank is perfectly solvent. The only trouble is the lack of coin, THE PALACE HOTEL. Warren Leland announces that the suspension of the Bank of California does not in any way affect the Pul- ace Hotel, his interest in which President Ralston sold some months ago to Senator Sharon. The great cara- vansery will open at the appointed date, October 1. ‘THE LONDON AND SAN FRANCISCO RANK, There is a run on the London and San Francisco Bank, but Manager Latham asserts his ability to meet all demands without trouble. MERTING OF DIRECTORS, The Board of Directors of the Bank of California held @ meeting to-day, Mr. Ralston requested to resign as President and Director, which he did, In consequence of the death of W. C, Ralston, the trustees will meet to-morrow, at half-past nine o'clock, when a statement of the affairs of the bank will be given. TUK SITUATION AT NIGHT, As regards the financial prospect, in the best informed circles it is believed that all the banks will go on with- out further trouble, and that the National Gold Bank and Trast Company and the Merchants’ Exchange Bank will resume on Monday, ‘Tho town is full of ramora. The streets at this hour (8 P. M.) are crowded with people, It is understood that owing to the oxcited feeling manifested arrange- ments have been made to call out the military to pre- { serve order, if necessary, : EFFECT IN ‘THE CITY. Not since the panic of 1873 has an event occurred in the commercial world that has startled the business community so greatly as that published in yesterday's Journals, and confirmed by subsequent despatches— the failure of the Bank of California and the suspension of business of the m boards of that city. Doubtless the latter course was the best that could be pursued under the circumstanees, for it ts cal | culated to allay excitement and afford time to those who are engaged in speculation to look around them to | make arrangements to meet the abilities of the hour, | | It will be remembered that the business of California | | has been upon a regular gold basis; therefore, whatever | | the effect of the failure may be will be confined to that | community. Thus far we are unable to ascertain that any of the banks in New York or of the Eastern cities are influenced by this misfortune, which has a moral } rather than a practical character, inasmuch as it adds | to thé already well founded feeling of distrust, and, | therefore, it has no material effect upon our local busi” ness nor interrupts in any way our industrial enterprise. THE CAUSE OF THE PAILURE. The canso-of the failure is, doubtless, over-trading. The Bank of California wasa fair reprosentative of the ambition of that wonderful State, Its officers were typical Californians, They made moncy rapidly; they expended it generously. The policy of the institution appears to have been to encourage the industries of the | Pacitic slope, trusting to the chances that attach to Ume and successful work for reward, Doubtless this was commendable, but certainly careful commercial men will wonder why more care was not shown in the selec” tion of investments, and why the property chosen was | not ofa character less subject to speculative fluctuations | than the silver mines of Nevada, young railroads, | new hotels and other similar “Big Bonanzas.” | How much the institution was interested in the various | mines from which of lato we have heard such extraor- | dinary accounts of easily obtained wealth itis dificult to say at the present time, but we can well understand how, under such teniptations as have been afforded in this direction, the Bank of California, like some of our own city banks that were tempted in like manner with our railroad securities, has yielded to the sane sense of cupidity and thirst for gain, Under these cireum- stances it is not surprising that the failure in its ruin has visited other institutions in the locality that were of a stronger and more serviceable character, ‘THK PROMABLE LIABILITIES, We have beon unable to ascertain the probable amount of liabilities of the Bank of California, but the failure, while immediately caused by a depositors’ run, was di- rectly the outcome of a conflict between two classes of California epeculators—one, the Bank of California party, headed by Mr, Ralston and Mr. Sharon, and the other headed by Messrs. Flood, O’Brien and Heyaen- felt. The latter party have established a bank in San Francisco, called the Bank of Nevada, with a cash capital of * $5,000,000, gold, and a right to in- | crease to $20,000,000. Incidental to this right have been the mining properties known as the Savage, the Caledonia, the California, the Ophir and the Consol- idated Virginia, The three latter are known as the “Big Bonanza” mines, and the Bank of California partly obtained contro! of them, | In getting this control the stock of the California was Tun up from 60 to $00, was then multiplied by five, which would make the highest price 160; it has since | declined to 53. The Ophir stock, while they were get- | ting control, advanced from 80 to 700, was multiplied by five, making 700 represent 140 in new stock; it has since declined to 46, The Consolidated Virginia, during the process of getting control, advanced from 86 to 780; it was yesterday 267, The losses on these speculations | are typical of other transactions, and throw light on the causes of the impairment of the credit of | | the bank and {ts breakdown. The opera. tions of the bank in the hotel line are too well known to need mention, That the bank has been | strained of late and pinched has been evident to bank- | ers here, who have shunned their bills, from the fact that in the past sixty days most of the bills offered in this market have been those of other institutions, in- | dorsed by the Bank of California, The inferenee has | been that the Bank of California had hypothecated se- curities with those who lent their bills, and that this borrowed exchange was used to obtain funds needed to | carry on the large operations of the bank. In the | borrowed bills which have so appeared were -those of | the Bank of British Columbia and the Bank of British North America. Comment has been made upon the probable course of Messrs. Laidlaw & Co., the agents in this city of the | bank, and they became so outspoken during the day that it was necessary for the firm to announce that they had not suspended, although their offices were thronged with anxious inquirers and a nervousness was mani- fested by those who had credits at the institution, It is claimed that if time is afforded the Bank of California it woll emerge from its difficulties without suffering loss; but all this is subject to conjecture, because it is impossible at the present time to ascertain the amount | or the present value of their securities. Messrs, Fisk & | Hatch are understood to say that the bank had no in-, terest as investors in the Canadian and Pacific Railroad. ‘This fact is also confirmed by the Secretary of the com- | pany. THE PEELING IN WALL STREET, ‘Wall street is not so excited by this great event, the suspension of several banks and the close of speculative business until the panic has passed, and does not mani- fest the apprehensions that might be anticipated under | the circumstances, The failure of Stirling, Abrens & | Co. was, toa great degree, regarded of vastly more im- portance, because of its direct effect upon commercial circles, in which the interest of Wall street and its sur- roundings are more or less identified. The misfortune upon the Pacific Slope is regarded as rather local or negative in character, while the failure in Baltimore is , looked upon as a direct and positive blow at the active | resources of trade, and is likely to affect and involve in trouble other establishments, It is said that the failure is attributable to a large shrinkage in molasses, and also to an attempt to transact business in excess of the capi- | tal of the firm. The firm have done an enormous business in the im- portation of molasses, sugar and coffee, in refining and in the exportation of flour and provisions to the West Indies. They are said to have imported not less than | 50,000 hogsheads of sugar and 40,000 hogheads of molas. | ses since the first of January, They owned the Chesa- peake and Merchants’ retinories, and were agents for | the Calvert and Maryland. Their tndebtedness to | Alexauder Brown & Sons {3 reported at $300,000. | The suicide last spring of G. A. Ahrens, the junior partner, is Delioved to have injured confidence in the house, WHAT MESSRS. LAIDLAW SAY, To determine what effect the failure of the Bank of | California had upon the credit of tie firm of Messrs. | Laidlaw & Co., a reporter of the HeratD called upon the President of the bank with whom that firm keep accounts, The President of that bank stated in | con tion that the effect of the failure would be felt first by the holders of bills of exchange drawa | against the Bank of California, Revontek—How will tho rejection of those bills of exchange affect the credit of Messrs. Laidlaw & Co.? | Paesivent—Not to their dishonor, for they have in- variably signed such bills of exchange as “agents” of | the Bank of Culifornia, and it will in no manner affect | the credit of their house, Their firm account is good | for all the money they have upon deposit in this bank, | RevorTeR—Can you tell me what the ultimate effect | will be upon the market here? PresipeNt—I see no reason why it should have any | disastrous eflect here, OPINION OF A NEW YORK BANKER. The reporter then sought for further information, and met a gentleman largely interested in tho banking | in New Yotk. He was asked for his | j the interest | views on the question and = said:—T cannot | tell you anything, for publication under my | name; but I have learned that the wife of Mr. Ralston, | | the President of the Bank of California, came to New | York last full to purchase the elegant furniture which now adorns the celebrated palace of Mr, Ralston.” RerorteR—Who will suffer by the dishonoring of the bills of exchange issued by the Bank of Calitornia? BANKxR—None bat Pacific slope men; for they placed implicit confidence in that bank, as much as in the | Bank of England, No Eastern man would go to Europe | with their letters of credit; they would have taken | Brown Brothers & Co, in preference, So the only losers are Californians, VIRWS OP A CALIFORNIAN, A Californian was then visited. He evidently knew what was going on, In conversation he said;—“L— know the whole lot of those fellows, They went to California after I got there, Mills, the original presi- , been for a short time severely shaken, He sai dent of the bank, drove an ox team across the plains. Ralston, the now president, who has Leen living in palatial splendor, came to the Pacific slope as the agent of Garrison's line of steamers, He was made | secretary of the bank first, and then president. He backed Quicksilver heavily, and held up the ‘big | bonanza.” In tact, it was well known on the Pacific | coast that if you could get the Bank of California to | back any scheme it was sure to succeed Why, look at his palace. He bought it of Sharon, and a short time ago, when this trouble first came on, Sharon bought it back. That's the story on the ‘Slope.’ Sharon owns it | now—you bet.”” } EXPERIENCE OF & LRADING BANKER, One of the leading bankers was asked what effect the failure would have on the New York market, He sax ‘Well, on Thursday, at a quarter to three P. M., 1 was on the New York Stock Exchange, and an | order rushed by me to execute orders to all stocks. A | moment after I heard from him that the Bank of Cali- | fornia hgd failed, or would close in the morning; that there was a run on the bank and its available securities were exhausted. Yesterday morning (Friday) an at- tack was made upon Western Union ‘Telegraph stock, Gould’s brokers, under orders, bought 20,000 shares and put the stock back on the list at the opening figures. ‘Then it was watched all day so that it should not fall off, and it did not, It may be interesting to you to know that Ralston, the President of the Bank of California, and Sharon, were the men who started the National Telegraph Company, as an opposition to the Western Union, Atthe Stock Exchange the short interest was large before the confirmation of the news of the failure of the bank came Friday morning, but largely increased during the day. Sellers at the de- cline on the opening of the Board were speculating, and the capitalisis took that opportunity to absorb large amounts of stock. The operators who gold on the de- cline will probably ud on Saturday that they have made @ serious mistake, for the failure of the Bank of California will not materially alter the prices on our stock list, Had this failure been announced in the middle of the day’s business there might have been quite a stampede; but its being in the moruing papers, before business commenced, gave the shrewdest operators time for thought, They concluded that Cali- fornia was so entirely distinct from our market, that there was no reason for any material de- cline in railroad stocks, in view of the large crops now in the West and the recent very decided revival of busi- ness in New York; that revival in tradé is going to give the railway cars. return freight where heretofore they have been running westward empty. As that return freight will largely increase the net earnings of the railroads, you can see that while the Operations of the Bank of California was largely based on speculations in mines, in which few of the people in this part of the country were interested, there could be no doubt that the losses by ‘that failure must full al- most entirely upon the people of the Pacitlc coast, and, of course, it can havo nothing to do with the value of our railway securities, That the first effect of such startling news should be to unsettle business matters somewhat is not surpris- ing, in view of the past condition of business affairs, But sober second thought will lead the people on the Atlantic coast to see that there is nothing in this news calculated to disturb the confidence already felt that we have passed the crisis of depression in this section of the country, and are now entering upon better times. RerorteR—Do you know anything about the real status of Messrs. Laidlaw & Co, ? Baxker--I have heard that they have signed their firm name to bills of exchange as “agents” of the Bank | of California, and that when that bank telegraphed to them to close their doors, they refused to do it. As @ matter of course, the general inquiry through- out the ‘street’ was, ‘What do the Seligmans say ?’? As that house represents the principal banking interests of Germany in this country, and its books show large credits due to wealthy residents abroad, the words of the senior member of the firm, Mr, Joseph P. Seligman, wore eagerly sought for, and when given, freely passed | on ’Change, tending to restore the confidence which had “There is no necessity for any alarm here, | the worst has passed We have heart tho | news, and it has been already discounted. This firm has a banking house in San Francisco, California, | known throughout the world as the Anglo-Californian “Bank Our correspondents and agents there keep us thoroughly posted, We are in constant receipt of news coyering all operatious of the several banks and | the ~ Operations of the principal dealers in stocks on that Exchange. In our opinion, the State of California was never in a better, financial condition than it is at present, Business is | prosperous, the merchants are receiving regular orders for goods for the fall trade—not in large bills which they cannot meet, but in amounts which enable ,them | to keep up their stocks, and for which they have ample | means to pay. The mines are yielding largely and | ‘warrant the improvements which are being made. The failure of this bank cannot be attributed to anything else, in our opinion, than to the reckless and wide- spread speculation which has characterized its management. It has failed because tho officers of the bank have allowed its secu- rities to be locked up in’ these reckless | speculations, Its result may be a panic of more or less severity among the people on the Pacifle coast, but it | will be felt more among the borrowers of money there than it will be felt here; for Mr, Ralston has had the | name of making very liberal terms. How true that is I cannot say, It is not likely, in my opinion, that the bank will resume.” TRANSFERS OF GOLD FROM WASHINGTON. WaAsuinaTox, August 27, 1875. Heavy transfers of gold to California are making by | the Treasury to-day to support the banks of that sec- | tion. Upon official notification being received at the depart- | ment that the agents of the banks have deposited gold with the Assistant Treasurer at New York, telegraphic instructions are sent to the Assistant Treasurer at San Francisco, placing credits to the respective banks mak- ing such deposits in New York. ‘Thus far more than @ million dollars have been trans- | ferred. THE FEELING IN CBICAGO. Curcaco, Il., August 27, 1875. The opinion.of bankers in this city is that the failure of the Bank of California will produce little, if any, effect in Chicago, THE BALTIMORE FAILURE. EXCITEMENT OVER THE COLLAPSE OF THE GREAT | SUGAR REFINING FIRM OF STIRLING, AHRENS *& CO.—THE LIABILITIES NOT yet ASCER- TAINED. Baurnrore, August 27, 1875. | ‘The excitement consequent upon the failure of Stir- ling, Ahrens & Co. has known no abatement to-da; ‘Thero hag been nothing like it in commercial circlos since the financial disasters of two years ago, The feeling has been much intensified by the announcement | this morning that the Calvert Sugar Refining’ Com- | pany, of which the firm was the agent, would be compelled to suspend, Stirling, Ahrens & Co, isan okt established business house, and has always been regarded by much the greater portion of the eom- | munity a8 one of the strongest firms in the city, as it was by all odds the largest and most important in a | commercial point of view. Hence, yesterday, the an- | | nouncement of their difficulties was received by every- body with the utmost surprise, and expressions of sym- pathy were universal, the more so that in their own statement they claimed that, with proper conditions from their creditor’, they would be able to meet the’ Hiabilities, dollar for dollar, To-day as the morning wore on and the leading merchants began to compare notes the business public and the community generally, as is usual in such cases, changed somewhat its tone, It leaked out by degrees from statements made by those | best infagmed that Stirling, Abrens & Co, NEVER HAD BERN A STRONG FIRM, their means being totally inadequate to the business they conducted, They were for a long imterva! at the head of the sugar trade of Baltimore, Of two sugar reflueries ana four molasses refineries, they controlled, as owners, agents and lessces, one sugar and threo of the molasses refineries, being ‘arge stockholders and | agents of the former and owners of two of the latter | and lessees of the third. In addition to this necessa- rily large business they were by far the heaviest im- porters of sugar and molasses in its raw state in this | city, They were also extensively engaged in the importation of coffee and were export- ers of the products of this country to. | the parts of the world whence the com | | of Sterling, Ahrens & Co., but since the meeting de- | will be depressing, and for somo time the interests in | aren Y, AUGUST 28, 1875.—TRIPLE SHEET. modities mentioned above are imported. In con- | nection with their refineries they owned and operated a very extensive barrel fucrory. To conduct these various enterprises a large amount of capital was necessary, and | they were always extensive borrowers. Their necessi- | ties always compelled them to pay full rates for money, and their paper never ranked as first class. In a word, they were doing a business of $40,000,000 per annum on @ nominal capital of $1,000,000. The bigh standing of the individual members of the firm and their well knows energy and capacity imparted general contdence in their stability, and their paper, although NOT RANKING AS FIRST CLASS, was readily placed at something over minimum rates, as an evidence of which it may be stated that within a | week the notes of the firm have been sold at nine per cent. The house of Stirling, Ahrens & Co. is composed of Messrs, William Stirling and Adolf Ahrens, general part and H. F. Zollicoffer, a special partner to the extent of $125,000, G. A Alirens, @ relative of Mr. Abrens, a third general partner, committed suicide | several months ago under most unaccountable eireum- stances, It is now generally believed that bis knowl. — edge of the firm’s embarrassment so preyed upon his mind as to cause temporary aberration of intellect. Their abilities are variously estimated at from $2,500,000 to $4,000,000, but no approximate estimate of their assets can be given, as no statement has yet been prepared of their liabilities. It is ascertained with tolerable accu- Tacy that $1,000,000 is due in this city} the remainder, with the excoption probably of some notes held in New York, is due to their West Indian correspondents. It is said that the bankers through whom their letters of credit were obtained are secured by collaterals, and mueh the larger portion of their uncovered liabilities is due to the banks of this city in the form of discounted paper. There has been NO INDIVIDUAL PAILURR, and there is no known embarrassment among the mer- | chants on account of this disastrous suspension. It was stated yesterday upon what was believed to be authority that the Calvert Sugar Refining Company was implicated in the downfall of this hou Later developments have unfortunately proved this statement correct. An exami- nation into the affairs of the company disclosed the fact that Stirling, Ahrens & Co. were debtors to this corpora- tion to the extent of $807,000, A painful feature of this indebtedness is that it involved a breach of faith to the company in question on the part of their agents Ster- ling, Abrens & Co., which has changed the current of popular sympathy, and the feeding now toward the firm is in marked contrast with the good wishes so uni- versally expressed yesterday, When this entanglement became known this morn- ing, @ meeting of the Directors of the Calvert Sugar Retining Company and its principal creditors was called. The resignations of Mr, Sterling as President and Mr, Ahrens as Treasurer, which had been tendered, were accepted. Mr. Gcorge J. Brown, the well known private banker, was immediately elected. President, and Mr, Robert T. Baldwin, President of the Mechanics’ National Bank of this city, was elected Treasurer. THE AVPAIRS OF THE CALVERT REFINING COMPANY, The following statement of the affairs of the com- pany was submitted:—Assets—Cash, $41,353; due by sundry parties, $1,583,041; stock of sugar, $1,105,505; refining, $609,974, Total, $8,339,963, Liabilities—Bills payable, $2,585,747; current indebtedness, $99,284, Total, $2,685,031, Capital stock, $000,000; surplus, $54,932; due from Sterling, Ahrens & Co., $807,000, included in amount above of assets, In view of this showing it was deemed advisable, in order to protect the interests of ‘all parties concerned, to suspend payment, A committee was selected, composed of B. F. Newcomer, C. Morton, Stewart and Henry Jones, to further investigate and furnish a proper state- ment of the affairs of the company to a general meeting | of the creditors, It was further determined to continue the operations of the refinery to prevent serious loss, at least until their present stock on band is consumed. ‘There has been NO MEETING OF THE CREDITORS scribed aboye tuere is a growing feeling in the merean- tile community that the failure of this firm will be much more disastrous than was at first supposed, and that H the assets will pay but a small percentage on the un- secured liabilities, This feeling is increased by a fact which came to light to-day, viz, that Sterling, Abrens & Co, when they made their last purchase of flour im Richmond, stipulated that the paper given in payment should not be placed upon the Baltimore market, and it is said that it was nego- tated in New York, The immediate BPFECT OF THIS FAILURE which they were so largely engaged will be inore or-lgss paralyzed. The remote effects, however, will probatily | be advantagous to the general businew prosperity. A business which had grown unmanageable from its varied character and immense extent, will be subdivided, and will consequently he more easily controlled. An un- wieldly combination of pursuits amounting almost toa monopoly will be broken, and in its stead competition will give a lively and healthy impetus to the different branches in which the late firm of Stirling, Ahrens & Co, was engaged, THE CITY SUGAR MERCHANTS ON THE FAILURE. In conversation yesterday among the leading sugar merchants the Hraup representative discovered gener- ally a feeling of despondency in regard to trade and trad® prospects; business in New York was dull, and at present there did not seem tu be much chance of a revival from the late stagnation. In regard to the FAILURE OF STERLING, AHRENS AND Co., of Baltimore, reported in this journal yesterday, the writer visited the substantial firm of Havemeyer, East- wick & Co, at the corner of Wall and Pearl streets, and inquired of a member of the firm in regard to the Baltimore failure, its effect on values im this market, &c, The gentleman said in effect: — “The failure of Sterling, Ahrens & Co, does not affect New York; at least the an- nouncement has made, no perceptible difference | in the market, The Baltimore house did an immense business tm the importation and refining of molasses, and in this, during the past year, they must have suf- fered heavy losses; besides, the fruit crop has a great deal to do With the consumption of molasses, and this year, in most localities, it has been good. To show you What asbrinkage there is in the value of sugar, I will state that the decline of one-eighth of one ceut por vind will insure a loss to some heavy New York ouses of ONR THOUSAND DOLLARS PER prRM!”? On conversing with a partner in the firm of Booth & Edgar, No. 100 Wall street—one of the oldest sugar firms in New York—the gentleman said :—'Undouvt- edly, Sterling, Alrens & Cu. was one of the largest con- cerns in the country; their operations were not con- fined to the relining of molasses and sugar, but they exported flour, bacon and American produce geuerally. It seems impossible for a firm so extended to keep a watchful eye over every detail of their business and stop leakage, waste and clerical irregularities, This firm is reported to have made last year the enormous | importation of SEVENTY-NINE THOUSAND HOGSITRADS of sugar and about 40,000 hogsheads of molasses, Tho | shrinkage of this alone would represent a large eapital.”” | Another merchant, who did not wish bis name used, | substantially corroborated the above sentiments, and added ‘The poor and middle classes all over the country, owing to the pressure of the times, are cur- tailing the use of colfve, tea and sugar, and even abstain- ing from these products altogether. If you will inquire of your grocer you will discover this to be the case.” FAILURE IN THE SHOE TRADE. . Moyrreat, August 27, 1875, Edmund Auget & Co., of the Dominion Boot and | bave made an assignmont, The habili- MUNICIPAL WRONGS. ANOTHER INJUNCTION AGAINST JERSEY CITY. Just at the time when the people of Jorsey City achieved a victory over a private corporation which would throw open to them Washington street, one of the main outlets for traffic, an injunction has been issued by Chancellor Runyon restraining the Mayor and Alder- mon from proceeding with the work. This injunction was issued on the application of the Morris Canal C pany and the Lehigh Valley Ratlroad Company, and the application sevs forth that the city is attempting to use private property for public use without compensativ The Morris Canal Company claims title to the lauds u der water by virtue of a grant made to that company by | the Legislature on the 3ist of December, 1824. The Board of Freeholders are restrained jointly with the Muyor and Board of Aldermen. The injunction was served on Mayor Traphagen yesterday. The legal representatives | of the city will appear before the Chancellor on the 6th | of September, A RAILWAY BRIDGE FALLS IN. | The bridge over Remson's lane, on the Long Island | Railroad, one mile west of the village of Hyde Park, fell in yesterday evening, just afier the five o’clock Northport train, bound east, had mail rain from Greenport was obi ssongers at the break, fours." No person was in) detention of four \ | ing that | person to receive Mr, Lord’s share of two-thirds of the THE CANAL FRAUDS. Arrest of George D. Lord in Rochester. DAMAGING AND CON Bennett Swears that Lord Indneed Him to Increase the Sums in the Hand * Relief Bill, Atuasy, N. Y., August 27, 1875. The Hon. George D. Lord, ex-member of Assembly, was brought before Justice A. M. Osborn, at special term of the Supreme Court to-day, under the following warrant:— Aunaxy Covyry, s:—The people of the State of New York to the Sherif of the county of Albany, Guewrixe :—Whereas complaint hay this day been made by Alexander E. Orr and Daniel Magone, Jr., of oath before Hon. A. M. Osboru, Justice of the Supreme Court, that they have just cause to suspect, and do sus- pect and believ jeorge D. Lord, of Rochester, ia this State, did on or about the 9th day of February, 1871 within this State, commit the crime of agreeing and consenting to receive @ large amount of money other than his legal salary, fees aud perquisites for per- forming an official act, to Wit:—The favoring and voting in the Assembly of this State, the said Lord then being member thereof and an officer of this State, for a certain uct entitled, ‘An act for the relief of John Hand,” passed April 19, 1871, and that said voting for and favoring said bill or act was, in fact, performed by the said Lo on or about the 19th of April, 1871, with the express up derstanding on his part, and under the influence of said agreement and consent, and that the said Lord did sub sequently, in 1874, m consummation of said agreement, receive a large sum of money, and the said Justice, hav- IVE EVIDENCE ing examined on oath the said complamants, amd it ap- pearing therefrom that there 18 just cause to suspect Uhat the said Lord has committed the said offence; We, therefore, command you forthwith to take the said George D, Lord and bring him before the said A. M, Osborn, Justice of the Supreme Court, at the county court ron in the City Hall, in the eity of Albany, to be according to law, vot ful not at your peril. Witness the said; A, M, Osnory, Justice of the Sw preme Court, at the city of Albany, in the county of Alvany, the 26th day of August, 1875. A. OSBORN, Justice of the Supreme Court, The complaint is made by the Commission appointed by the Governor to investigate the Canal frauds, It ia claimed that Lord, while a member of the Legislature i 1871, procured by improper means the passage of au act under which the State has since been defrauded of $60,000. It 1s further claimed that of this sum Lord has received $40,000, the corrupt agreement which he entered into giving him two-thirds of all the money made under the act in question, Deputy Attorney Gen- eral Fairchild appeared for the people and Mr, W, F. Cogswell, of Rochester, for Mr, Lord. Mr. Cogswell said that the prisoner would waive ex- amination, and desired to give bail. Mr. Fairchild replied that the prisoner had an un- doubted right to give bail, but that the people desired to go on with the examination in order to get the testi- mony of the prosecuting witnesses in writing for trans mission to the District Attorney of the county in which the case was to be tried. Judge Osborn then inquired of Mr, Fairchild the amount at which be thought the bail ought to be fixed. Mr, Fairchild replied, that, considering the impor- tance of the case and the readiness with which the prisoner could procure bail, it should be fixed at $20,000, Mr. Cogswell insisted that the sum was excessive. ‘The Court replied that the punishment for the crime for which the prisoner was Leld was imprisonment for five years or a fine of $5,000, or both. He would tix the bail at $15,000. James K. Walker and Daniel Rose thea presented themseives and were accepted as bail. It was then decided to take the testimony of the wit nesses in support of the complaint to be handed the District Attorney for his use when the case came up. BENNETT'S TESTIMONY. Lewis J, Bennett, of Butlalo, was sworn and examined by Mr. Magone, of the Investigating Commission, He testified that he was interested, with John J. Hand, ip contracts im 1869, 1870 and 1871, to dredge the Ohie basin, the Erie basin and the Black Rock Harbor. Through the suggestion of George D, Lord, in the winter of 1871, he employed said Mr. Lord to get an act through the Legislature providing for the relief of John J, Hand on this work. The agreement was to allow Mr. Lord two-thirds of the award, A paper was acer oP to that effect, with the name of Johu Cuyler inserted, to whom was to be paid Mr. Lord’s two-thirds, Mr, Lord Mr, Magone then read a copy of the agreement, show- r. Cuyler’s name was inserted as that of the | was a member of the Legislature at the time, suin awarded ness—-That was the agreement wo entered into; th junts for the Relief bill were presented to Mr. ‘Lord and he returned them, saying they were not Jarge enough; he directed me to raise or increase them; Mr Lord was the only one who sugested this to me, Witness further testified that the price paid under the contract was suilicient and that there Was-no justice in going to the Legislature for an extra award, Witness also said that Mr. Lord was to use his influence in oad ting the Relief bill passed, and it was understood he, being a member of the Assembly, could succeed tn the undertaking; I became assignee in 1873 ot John J, Hana’s interest the contracts; never received any- thing from the auditor on this’ award; brought sult agamst George D. Lord and Jarvis Lord to restrain the collecuon of over two-thirds of — the award; I received only $3,000; I saw Lord obtain’ vouchers for the accounts; I ted presen| the original accounts to Mr. Lord; he said they were too smali and wanted them increased; I increased them; made a false account and verified it; had uo thought of making any increase until approached by Lord; re- ceived general insiructions from him; showed Lord the account in 1874; he wanted it increased and referred me to Mr. Bowman, of Rochester ; presented the account ‘to the Canal Committee m Thaddeus C. Davis’ office; the account was returned by Mr. Bowman as being too small; changed the account; Davis veritied it as beii correct in his office; the charge of 9,164 days labor is fulse; the whole bill is of the same character; the bill was for $36,865; gave Davis $2,000; I have obtained false estimates from the inspector in charge of the work; have paid him @ large sum of money; since the appointment of the Investigating Committee my books have been changed by erasures. Mr. Alexander E. Orr, member of the Investigating Commission, was sworn and examined by Mr. Magone, He (estiied that he was familiar with accounts; had carefully exammed the accounts of the Ohio Basin; they were the accounts presented to the Canal Board; there were 45,065 days’ work charged, while there were only 2,208 days and 444 hours’ work done; he was yet engaged in examining the other two contracts, JOHN J HAND'S TESTIMONY, Jobn J, Hand, partner with Mr, Bennett, was sworn: He knew the bill for the reliet of Joun J. 1d; the con- tract for the work was at pretty low figures; he did not keep the accounts; they made a proit on the work; when he retired from the three years’ business he had made about $11,000; he received none of the amount- ot the award; he kigned the papers. however; Mr. Lord told him they would be good for nothing unless he signed them on the back; he called them “blank certitl- cates,” and pointed to the spot, saying, ‘sign there. ’”? The examination here terminated, Mr. Magone saying there were others Fas at large, and it would not be proper to make public any further testimony. LORD'S ARREST. The arrest of Lord was made in Rochester, The war- rant was placed in the hands of Deputy Sheriff Kernan on Wednesday, and he proceeded at once to Rochester, where he found Lord at his office about eleven o'clook A. M. yesterday. Alter introducmg bimself he ex- hibited his warrant for the arrest of Lord, who read it carefully and, though cool, exhibited considerable sur- prise, He announced his readiness to accompany the vilicer, but asked permission to see his wife, who, be suid, Was not well. To this the officer consented, and the visit was made. He then asked the officer to ac- company him to his lawyer's ollice, and they went there. They then took the four P. M, train and arrived here early this morning. Lord appeared thoughtful during the journey, but in good spirits, Lord returned home on the twenty minutes to twelye P, M. train, The allidavits in his case will be sent Erle county at once, and the next Grand Jury of the county will act upon them, WRIGHT WRITES A CARD, Geveva, N. Y., August 27, 1875. The despatch from Albany relating to alleged cans frauds, published in this morning’s papers, and quich atiacks the oftictal character of the late Canal Commis- sioner, Wright, has elicited from that genthmau card, which will appear in the Geneva Gazette of vo-day, concluding with the following points: First—He was not « Canal Commissioner when the Voorhees claim was considered or the award made, Second—Fourteen, instead of six, acres of Voorhees! land were finally taken by the State, and Third—Tho Original claim of $1,200 did not embrace the additioual eight acres of land, nor any portion of the $3,000 paid for interest according to law, nor $1,000 for timber buroed, nor various sums fences de- stroyed and general damage. FOUND DROWNED. Yosterday afternoon Officer Jones, of the Eleventh precinct, found the body of an unknown man floating in the East River at the foot of Seventh street, and re- moved it to the Morgue to await identification, He is described as being about five feet seven inches in height, having black hair and side whiskers, He was attired in an alpaca coat, dark pantaloons, white shirt and draw. era and elastic gaiters, An ankoown man, by! about forty years of age, fell overboard at the foot of West Eleventh street yesterday afternoon wad was drowned, body was Fevovered and seat to the Morgue