The San Francisco Call. Newspaper, June 29, 1901, Page 1

- VOLUME XC-—NO. 29 SAN FRANCISCO, SATURDAY, JUNE 29, 1901. PRICE FIVE CENTS. WILLIAM DRESBACH, ONCE FAMOUS AS “KING OF THE WHEAT PIT,” IS SUMMONED BY DECREE OF DEATH In His Attempt to Corner the Market in 1887, He Used Millions Belonging to the Nevada Bank and Went Down to Defeat and Ruin, Causing Losses to Fair and Flood. il S UBLR P | | | DRES ESBACH, fa- markets own ali the away . ves- Death had s and He retired on tired and weak. rday morning his condi- ing and Dr. W v d and He was 67 years of. age. one time was looked poleon of the wheat market. at 2 crash se that swept awa ¥ other wealthy men were fortunes of still others impaired. cost James G. Fair $4,000,000 and Flood even more. His effort to cor- the market of the world was réus to the Nevada Bank, backing him, but also to him- more serious extent. that ). C. rer not only which w The mc rieG life of Mr the st rema ble incident in the va- Dresbach was his connec- od and Nevada Bank was in 18§7. At that on with wheat This ime there was a well defined rumor that deal. jeneral Boulanger was about to over- throw the French Government and that war in France would be the resuit. peculators in thie country, anticipating the probable turn in affairs, attempted to | swrner the wheat market. Among them was Willlam Dresbach. He was then a prosperous broker doing business at 316 street and a prominent mem- Exchange, having been r for two terms. George W. Brander was then manager of the Nevada Bank and he gave Dresbach mil- lions with which to speculate in wheat. It is said to this day that this vast sum was given without the knowledge of either John W. Mackay or James C. Flood, the swhers of the bank. Disaster in Wheat Pit. Speculation was rampant at this time ind the wildest excitement prevailed. Dresbach was such a power that one aft- trnoon at & meeting of the Produce Ex- shenge, despite the unanimous vote of California ber of the Produc. its presiding offic WHO AN ONE-TIME “WHEAT: KING” HAS PASSED AWAY AFTER EVENTFUL CAREER. | the members to do a certain thing, Dres-| | bach, who was_then president, opposed | the action and in a vol trembling with "chtlon threatened to resign if the mem- bers carried out their plan. This startling announcement had its effect. The mouth of every man in the room was closed and Dresbach had his way. Every effort was made on the market |to force prices upward until ‘§pe 3d of August, 1887, when the gigantic bubble burst. The price of selling 1888 wheat, . which on August 2 touched $2 17% per cen- tal, fell to $135 and on Septembet 6 it went 2s low as $122%. The attempt to corner the wheat mar- ket proved disastrous. The -commodity | fell until the speculators were ruined. J. [c Flood was in danger of lasing his en- tire fortune, and had not the late James G. Fair come to his assistance he would have- lost all. As it was he dropped in the neighborhood of $6,000,000. Brander lost his position and sank into | obscurity. Dresbach’s vast fortune was | swept away. In his anxiety to pay off his creditors he lost. every dollar he possessed nd had to begin over again. His wife saved a little out of the wreck and Dres- bach ‘set up in business on a small scale. Many of his customers stood by him, but he never rose to such an important place | in the market as in the days when he was called ‘the “wheat king.” He was a reg- It is said of him | ular attendant on Change and dabbled in | 1 “bucket shops” like any other speculator. | Dresbach’s Varied Career. | Mr. Dresbach was born.in the village of Halve, Germany, in 183. He came to 1()“5 country in 1852 and took up his resi- dence in St. Although but 18 ‘years of age, he displayed the thrift and business sagacity that later aided him Loiis. in his gigantic ventures, and he soon had a competency. His business was general merchandise. At t period gold was discovered on the Fraser River |and excitement filled the land. Young | Dresbach beeame possessed of the gola | fever and sold out his store, and, with many others, started for the land of promise. He remained in British Colum- bia for some years and later drifted to California. He settled where the town of Davisville now stands, and he has the distinction of having named the town. He opened a store in ‘this place and soon established a prosperous -busi- ness. He bought and sold wheat and gen. eral merchandise. As a seller of wheat he attracted general attention. He be- came connected with the late Isaac Friedlander, and with his assistance dis- posed of 30,000 tons of wheat in one day. Mr. Dresbach came to this city in 1577 and opened an office on California street. He joined the Produce Exchange, and was soon one of its most prominent and energetic members. He was elected vice president, and held that office from 1884 |to 1855. He was then elected president, and proved to be one of the most ener- getic officers that well-known organiza- | | tion ever had. When the news of his death reached the exchange yesterday a notice to that posted on the board, and at W. Mc. sizent of the board, called a | spectal. meeting and formelly announced | the demise of Mr. Dresbach. He said that ‘the funeral arrangements had not been announced, but he would declare | an adjournment that the members | might have an opportunity of attending | the funeral. A ‘committee composed of | E.. Mehlert, -Arthur Page and Herman | Eppinger was appointed to draft resolu- | tions. { [ Advocated “Dollar Wheat.” | Mr. Dresbach’'s taking off was dis- cussed generally by the wheat brokers. | They all paid’ him the tribute of being | a man who was not only kind, but never | thought of ‘himself. During the big | wheat deal that destroyed his fortune | he saved many of the small brokers by | selling them enough wheat to allow them | to fulfill their contracts. One broker is | reported to have said that when Dre: | bach had money all brokers had money. | He was known throughout the State as | the “farmer’s friend.” He champloned | | their cause and did everything in his | power to advance their interests. He al~ | ways offered them high prices for their | wheat. “Dollar wheat” was his hobby, | and he was a persistent “bull.” He was also an earnest advocate of an associ- ation of farmers for the purpose of ship- ping their own wheat without employ. ing middlemen. His scheme was never realized. Mr. Dresbach was a Mason of high | standing. He was a Knight Templar, and | was a member of Sacramento Command. ery No. 2. He was also a member of the Merchants’ Exchange. Mr. Dreshach was a member of the Board of Supervisors appointed by Gov. ernor Budd to take the place of the oust~ {ed hoard. He hefd this office for two | weeks, when the duly elected City Fath- iers were reinstalled in their places. Deceased leaves a widow and four children. The latter are Mrs. H. H. Ful- ler, Miss Florence Dresbach, Miss Irma Dresbach and Willlam Dresbach Jr. The latter is employed in the ticket office of the Oceanic Steamship Company. The funeral will take place to-morrow morning from the late residence, 220 | Union street. The interment will be Laurel Hill Cemetery. s0 — HONOR NEGRO BICYCLIST Peculiar Demonstration Occurs at & Railway Station in Paris. PARIS, June 28.—Major Taylor, a negro bicyelist, left this city to-day on the way to the United States. At the railway sta- tion he was surrounded by a ecrowd of | admirers. One woman presented him with |a bouquet. In an interview he said he had recelved enough flags “to tapestry his bedroom.” He said he regarded tho French champlon, Jacquelin, as the best European rider. Willlam K. Vanderbilt was, a passenger on the same train, but he departed unnoticed by the crowd. | pected | banks is assuming a very ugly aspect. | Smith, an officer of the Pittsburg, Snaw- | which practicaliy ruined | The amount of the checks interchanged | is said to have reaciied the heavy total of | between $1,200,000 and $1,300,000. | Bank admits securing a certified check of | affairs has been completed. AND OVERLOOKXK VANDERBILT |, UGLY RUMORS - FOLLOW THE FAILURES Peculiar Transactions of Banks and the Mar- quands. Officers of the Seventh Na- tional May Be Prosscuted by Government. =i Illegal Irregularities in “Kiting” Checks and Making Loans Are Among the Allegations. Lo £vecial Disnatch to The Call. W YORK, June 28.—It was the ex- that happened when the failure was announced to-day of Henry Mar- quand & Co. The house had caused the downfall of the Seventh National Bank:! and succumbed to the inevitable. The stery of the relations of the failed firm with the Seventh National and’ Park Rumors of a creditors’ protective com- mitlee forpning are heard, and with it talk of a complete investigation by the authorities. The receiver appointed, Frank Sullivan mut and Northern Road, the financing of the firm and bank, states that the firm's loans are well secured, but Wall street estimates the lia- bilities at $8,000,000, of which $2,000,000 is owing to Henry G. Marquand, the vener- able father of the senior member. Great sympathy Is expressed for Marquand Sr. Extensive Check-Xiting. The report of extensive *‘check kiting" by Marquand & Co. between the Seventh National and Park banks is confirmed.’| The Park $300,000 with collateral. | No further statement as to the affairs of the Seventh National were made pub- | lle. The former executiye officers’ made | no reply to the charge of President Thomas that the bank's troubles were | due to thelr large loans to Marquand & Co. on unmarketable secunities. Very little information was obtamN. to-day -in regard.to the sictual conditio of the Seventh National Bank. Bank Ex- aminer Raynor continued at work on the books, but he had nothing to say as to the result of his in\'gsflgntion. Former President Kimball was at the bank in the morning, but left at noon and did not again return. No one at the bank knew where he went. No opportunity was had | to ask him concerning the questionable $330,000 check transaction with Marquand & Co. through the Park Bank, which | refused to accept the Seventh Na-| tional's certificate without good collat- eral. Willlam Nelson Cromwell, special counsel for the Seventh National, and ; President Thomas had a conference in Cromwell's office. When Thomas came out he said he might make a stalament‘ later in the day, but he did not. well said no statement will be issued by the bank until the investigation of its Crom- | Banks Make Overtures. “Before we say anything more,” he added, “‘we want to know exactly wherej we are.” He was asked in regard to the vague | rumor in Wall street that another bank | had made overtures to the Seventh Na- | tional .with a . view to taking over its | business and winding it up. In repiy he | said: “Two banks have made oveftures of that kind, but that's all I can say. Wall street about convinced ftself | to-day that no more national banks will be involved by the present erisis. The Ninth National, which has been looked upon with some suspicion because two of its directors were also directors of the Seventh National, showed up so well at the clearing house that doubts as to its condition vanished. Possible Prosecution. There was some talk to-day about a pos- sible prosecution of the Seventh's officers by the Federal authorities for their con- duct of the affairs of the bank. The gen- cral impression is that the statute regard- ing the restriction of loans has been vio- Jated by the bank in the $§1,600,000 loan to Marquand & Co. One certification is also fllegal, although generally practiced by the most substantial banks in New York City. The postoffice cleared to-day through the sub-treasury. No instructions have been received there from Washington as to the future depository of postoffice funds. Whether depositors in the bank will get their money out dollar for dollar may de- pend upon whether the loan of $983,000 made by Edward R. Thomas last Tuesday will be permitted t6 stand as a preferred credit. Fletcher Heath Is Ousted. HAMILTON, June 28.—The directors of the Miami National Bank of Hamilton are determined to remove all suspicion against their institution which might arise from the fact that Fletcher Heath, vice president of the Seventh National Bank of New York, was also vice presl- dent of the Miami Bank and acting presi- dent. A meeting was called and a reorgan- jzation cffected, whereby Fletcher Heath was not only ousted from the vice presi- dency, but also' from the board of direc- tors. F. W. Whitaker, former president of the bank, was elected president; O. M. Baker, the cashler, was elected vice presi- dent, and Charles E. Mason was elected cashier. It is stated that Mr. Heath's holdings in the Miami Bank have been purchased by President Whitaker and his assoclates. | who on June 17 fatally shot Dr. John G. | Jessup at the Adams residence, 1801 Wal- BERKELEY JUSTICE OF THE PEACE SAYS KILLING OF DENTIST JESSUP N = ONLY AMOUNTS TO MANSLAUGHTER The District Attorney of Alameda County Takes a Different View of the Matter and May File an Information for Murder Against Chatles G. Minister. + | ARM: AFTTER MISS ADAMS TESTIFIED HER. FATHER KIS3SED HER.. S ~J o STRONC, T appearing to me that the offense in the within depositions mentioned, to- wit, manslaughter (I will designate it manslaughter), and that there is | sufficient cause to believe the within named Charles G. Adams guilty thereof, 1 order that he be held to answer to the same in the Superfor Court of the county of Alameda, State of California, and that he be admitted to bail in the sum of $4060, and he is committed to the Sheriff of Ala- meda County until he ‘shall give such batl.”” ? Such was the decision of Justice Robert Edgar of Berkeley vesterday afternoon at the preliminary examination of Charles G. Adams, the former Episcopal minister, nut street. Adams’ attornéys, L. 8. Church and Neil McConaghy, were satisfled with the or- der, although Church made a forcible | argument for the discharge of his client, claiming that the shooting of Jessup was excusable homicide. District Attorney Allen was unfavorably impressed with Justice Edgar’s ideas upon the evidence and it is not at all unlikely that an information alleging murder will be filed against Adams, a course which is within the province of the District Attor- ney, provided he believes the evidence warrants such a charge. % In spite of the seriousness of the situa- tion for Adams, the hearing in the hot, stuffy courtroom at the Town Hall yes- terday was akin to a ‘“‘comedy of errors.” Error in Complaint. Matters did not run smoothly from the start. The case was well along before the District Attorney found that the com- plaint he was proceeding under forced him into the position of acdlsing Adams of having murdered Jessup while the den- tist was still alive. The error was in dates, the complaint reciting that Adams did willfully, feloniously * * * kill and murder John G. Jessup on June 17, whe_re- | as death did not occur until the following day. So after all the morning session had been exhausted the lawyers stopped pro- ceedings, had a new complaint drawn and | started anew. The case hinged on the testimony of | Miss Agnes Adams, the frail invalid| daughter, who was the innocent cause of the tragedy. For the first time since the | shooting the father and daughter met. She was sitting in the courtroom along- side her ffriend, Miss Colmore, when Adams, fiuch improved in appearance since his arrest, walked briskly into the chamber, accompanied by Marshal Kerns, The greetings were quite undemonstra- tive. Adams stepped over to his daugh- ter, leaned toward her and whispered a | few words inaudible to all save herself and her comipanion and then moved away, taking his'seat by the side of his counsel. It was when the young woman was called to the witness stand to tell the story of the tragedy that Adams gave: expression to his feelings. He had until | then faced each witness, intent upon catching every word; quick to correc: apparent errors, and busy with explana-/| tions. When the daughter took the wit- | day. | veyor, | Dr. G. B. Hoagland, the physician who | public. Adams, the Unfrocked — MISS Apama 7 -~ IDENTITIES THE PiSTol A THE BDEFENDENT ADAMS +: % PRINCIPAL CHARACTERS AT || PRELIMINARY EXAMINA- | | TION OF JESSUP'S SLAYER. | S — ness stand and - the -lawyers 'and oth- | ers interested crowded about her .to| catch her hardly audible utterances, then Adams turned away and sat with bowed head. His face flushed, and he nervously toyed with the stenographer's pencils while the story came painfully from the girl's lips. Begs for a Kiss. ‘When Miss Adams. had completed her narrative and started to rejoin Miss Col~ more, Adams pulled himself together and walked over to her. “Kiss me, my child,” he said. She involuntarily drew away, but only for a second, and then she saluted her father and quickly - walked out of tne room into the adjoining court chambers. | Adams followed every phase of the hearing closely and watched every move of the lawyers and the witnesses with eager eyes. He was loquacious and‘joc- ular, and seemed to enjoy the side plays that crept into the serious work of the . P. A. Haviland, Deputy County Sur- opened thes proceedings by pre- senting a diagram pof the Adams resi- dence. He gave all the minutiae about doors, windows, stairways, measure~ ments and distances, and was relieved by attended Dr. Jessup after the shooting. The physician was afflicted with a defec- tive memary. He couldn’t tell without his books what day the homicide oc- curred. After wrestling awhile with the doctor, Distrigt Attorney Allen discov- ered tue errof in the complaint. After that was rectified by the introduction of a new one the case was started afresh and Hoagland was recalled and repeated the testimony he had given at the Coro- ner's inquest about the case and the au- topsy. He thought that only one case in a thousand like Jessup's was saved. Jessup Did Not Expect to Die. Then the District Attornes called W. J. Mortimer, a dapper young man, who said he was a real estate dealer and a notary Mortimer had taken a statement from Dr. Jessup and the prosecution wanted to get it in evidence. “Did you, have'any’conversation with. Dr. Jessup about his:injurles?” inquired the "District-Attorney. ““Yes, sir;, he told me he wasn't going to- die,” replied Mortimer, and with it the chances of getting' that statement went a-glimmering, for the law requires an ante-mortem statement cannot be ad- mitted to evidence unless the person making it belie he is about to dle. “Did he say anything else?” queried Allen, still hopeful. “He told me he wasn't afraid he was going to die,” was the reply. “That's all,” said the District Attorney. Harold L. Atkinson, living at 2101 Hearst avenue, could not assist the District At- torney on that line. Then John a carpenter at 1331 Spring street, explained how he found Jessup lying wounded the porch of Armstrong, on the Adams residence. Armstrong took a pistol he found near the wounded man home, but subsequently the weapon, which was Adams’, was turned over by hin: to Marshal Kerns. Deputy Coroner John E. Streightif iden- tified the bullet taken from the body of the deceased at the post morten examina- tion. After Dr. Hoagland had given some ad- ditional testimony about his conversations with Dr. Jessup concerning his condition, Thomas S. Allen, at whose residence Jes- sup lived, was summoned. Responding to District Attorney Allen’s queries, Allen said: “When Jessup was brought home, he said, ‘I guess I've got my ticket.” plied: ‘I guess not. through.” Marshal Kerns retold the story of Ad- ams’ arrést, and then produced the pis- tol, which was loaded. Attorney Church took the weapon and.while he was exam- ining it, Adams interrupted, saying: “Here, press down on the barrel at the chamber to open it.” Daughter Tells of the Shooting. Miss Agnes Adams was next called as a witness. She was clad in a dark taflor- made gown. Her face was screened by heavy veiling. Her voice was weak and hardly audible. Her story was the same as she told at the Coroner’s inquest, al- though theylawyers went less into detail. She gave the principal points in the tragic tale, just as she did at the inquest. She told of how Dr. Jessup and herself had gone to the Adams house. They entered and the doctor stood at the foot of the stairs. “Then father cried, sald Miss Adams. “It's 1, Charlie,” “‘Don’'t come upstairs or I'l shoot, said father, and the doctor yelled back, “I will if-1 have oceasion to come.’ “T asked Dr. Jessup not to'go up. Then father asked if I was there and the doc- tor said, ‘Yes.” “Again father said, “Don’t come upstairs or T'll shoot.” “Dr. Jessup started up two or thres steps, and I held him by the coat. Ha I re- You may pull ‘Who is there? ™ “Dr. Jessup replied, Continued on Page Three.