Article Text
(Section Six) PAGE THE ARIZONA REPUBLICAN, PHOENIX, SUNDAY MORNING, MARCH 1927 Ralston Played Big Part In Building West
Banker Never Received Credit For Activities
LOUIS P. KIRBY But vigand would not forget, William Ralston, genius long list of milwhich included Mills and William Sharon, might have been rich in the "bonanza days" of west. He was carpenter's son, and made his with empty almost built the Bank California which that was strongest second only Bank England the finaninstitutions the world. He did more than the first to spend making San city, among the first confidently the the industries California. He not only brought great wealth to his group of associbut helped numbers others way to His defeat them with$6,000,0000 bank suddenly time looked upon calamity by thouin him the spirit new California which rising the confusion of goldtale the great tragedy of that from were amassing great
Born In Ohio born old enough his father the shop the buildings. After years this, he felt the yearning to something and wandered away, years the steamthe then headed for California and the gold fields. opportunity banking Panama with Garrison and Captain Fretz held him there and delayed years, to do when he reached There opened private bank in association Joseph Donahue and Eugene the firm name being Donahue, Ralston and Comguided business he inspired started the Bank of Callafter begun his activities in San Francisco. Among the men he took with him enterprise had been banker later figure financial New York. Mills said brought capital of about with him from Sacramento. Among his other associates were Haggin been then giving more attention ting increase from the they Nick Luning, Michael and John Earle.
Dominant Spirit the Ralston continfor time but the spirit start and long before elected president His careful had made their beginning by they would that and their made that certain: but without Ralston's dash seizing without his confidence California future increasing moneygathered about probably never have that to them within the few Ralston. realizing that he hand infancy city the the the adjacent was interested seeing profit where other men could grasping the value where other men might see absurdity Men to his bank, knowwould support they sound proptheir meant solid and lasting city state. prospered: money poured directions. his support included building railroads. steamship Australia and China, wgolen sugar silk buildings, the of mines.
Watches Mine Progress
Lack of interest the possibiliwas imthat time, when turned their attention that rection. had use for funds in fostering the trade which the cities of world. watched the progress mine velopment quick where advantage offered. Although daring, his judgment usually in taking hold perity making millions for his But deceived. mistake of which his enemies talked much was made victimized in the "Great Diamond Two Arnold Francisco 1871 diamonds said, they had from the in Colorado. Their caused tremendous excitement. Men who bonanzas in and silver taken the in mood that gems would brought in the The swindlers, duping small victims. obtained enough money buy abroad diamonds sufficient quantity "salt" hole they had This they did with much He reported they had shown him diamond mine. The adroit swindlers slipped New York, pretending that they seeking buyer there.
Get $500,000
Ralston. eager to share the mense sight, wired for them to return, promising $500,000 for diamond mine. The rogues disapafter the money. blunder, met the loss from his own pocket, returning the money those diamond company which had been formed. He overlook the Comstock region the mines opened there. His bank advanced money for the development of many these also the building mills, then, finding need Virginia City, he began to around for the His choice fell upon William Sharon, another man from Ohio, who been real estate some time had fortune about made real estate, when he tried his hand at speculating in mining stock. When he spoke of Sharon during conference his associates, one objected the he wastes his time playing poker."
Good Poker Player
Ralston smiled. There were many men those days who play poker. he good poker he asked. one on the coast can play poker better,' the said Ralston, "he is the man He had way. Four years later, Sharon had made many millions the servBank of that was called "King the stock," until Mackay and Fair that title dubious. end of six years, he was elected United States senator from Nevada, being the first of "bonanza kings' "railroad kings" to gain that honor.
Money Begins to Flow
After reached the Comstock money began flow into the bank from that direction in such volume that no one disposed criticize Virginia agents' poker or any thing else did in way before the end year from which of $2,000,000 made, and zealous in carrying out Ralston's that not long before bank was control many of the more promising properties in the district. of the field from equally testants. That condition did not continue. The eyes of four formidable men had been watching him. When they were ready, they started memorable Their spoils made them the Comstock, These watchers John W. Mackay and James G. Fair, young men who had made their start in Virginia City as mine laborers, and James Flood and william O'Brien, kept saloon on Washington street, Francisco.
Mines Wrested from Bank
Before the four united, Fair made effort control Hale mine, but failed. Sharon the California were strong for him. United, succeeded in wresting the mine from bank. After that, they thirteen other mines which been under bank control was bitter fight, for millions some street saloon some of the victors would not forLoss of profit from the mines tured by the Mackay group Virginia took away millions have flown into the Bank of that stitution many other sources than Comstock its prosperity kept wealth increasing saying in San Francisco "Ralston caught the hares and that his friends picked the fat ones. The that had caped from hands. some the hares' Comstock. One was the Belcher mine, which cost him about he paid something near share for the 10,000 issued. After the the Point adjoin Belcher than $5000, givthe mine stock market value of
Stocks Real Bonanza
Of course, $50,000,000 worth gold or taken here the market. The money that came into Ralbank put to many comhelped build mills, factories and stores; aided all of enterprises, some their present magnitude giving proof of how clearly Ralston looked into the turned his hand to hotel Pick putting first Grand hotel San then Palace hotel. The Grand, with its 500 rooms, was great The was opened, causing him to down cide to the Palace losses site About chosen the The Palace hotel much the than he expected. Estimates, the plans that the cost would That sum had been defeat spent the foundation was finished. additional were for completing the furnishing them rich and 000 bending every energy bring him ruin.
No Economies
Stress did not cause him to praceconomies in putting the finishing touches on the hotel. marvel the people of the city; admired by seasoned had seen the world's best hotels. Every step taken by Ralston indicated confidence continued good fortune: belief that he and his family hold permanently high in the was build. his city home he $300,000, placing model the "bonanza kings," were drifting into San Francisco their lions, which they were quick to imiHis country home at Belmont, San Mateo said to have the time, and another idea for those had opulent had begun yearn for splendor. these wonders in the career of Ohio carpenter's seen in the course of 10 years. In that short period had the most brilliantly man in San Francisco, city filled with successful men.
Friends Everywhere
He had friends everywhere be cause his money reach every who had need of and Farmers, turn and obtained his not gifts, of course: he banker, bent on making money, too. Even Collis and Leland Stanford, when they daringly took hold the building the Central Pacific railroad, went money before masterly their began bring in millions, and he let them have There was nothing similar to the M. then San Francisco and no the interested in the welfare of the young men, their about the streets. some idea was Ralston's mind. He helped many young older finding and in reaching the right sort of sociates, interested others in the same sort of efforts.
Gets James Lick
One of these was James Lick, the old piano tuner, whom fortune clung closely that thing he add Lick had become great land owner in San having luckily bought the the house, more than acre, cost him gold dust, which brought from the placer dig gings. Knowing that Lick was bent upon putting Ralston called his the young needed training equip them gainful pursuits and them greater value the nity, and the result was technical school, which long served useful purpose in San Francisco. his enemies had upon sometimes but most often covertly. He suffered some losses, retrieved the situation some brilliant stroke financial genius. that was invincible: that man men bring all great wealth now, shared belief. came suddenly, when he strongest, his pressing upon him that had to find his difficulties. He had made investment in the the at Virginia City. adjacent the Virginia and the Callfornia mines, from which the Macgroup had taken the richest the Comstock Mining experts believed that the bodies dipped into Savage ground, had Ralston to act determinedly for control of the mine,, recalling that loss of control other barred him from bonanzas when they were close within grasp. He expected soon to have his hands millions from Savage mine bonanza. The for the sent the stock up to $650 share. One the made $5,000,000 in this fight.
No Bonanza There and shovel quickly proved was This information could not be kept from his enemies. first sent stock $50, which Ralston. time there was costly struggle control ash Ophir mine, again in expecthat little more Ralston fought such struggles, beginning that which the MackayFair group away control the Hale Norcross mine, had last vast to have his The 108,stock sent up $300 value of $34,000,000. Ralston won, but it was ruinous victory. The Ophir mine failed produce bonanza. Now Ralston's enemies leaped forward, striking him every that ing reports, to the bank. that critical time, James Flood of group, which had grown rich from mines wrested from Ralston, suddenly drew $6,000,000 from the bank.
Bank in Jeopardy
The bank found itself in jeopardy, with $30,000 Liabilities to about $15,In this crisis, Ralston's associates gathered decide what should be done. Every that conference largely picking out the hares" caught by Ralston. listened explanation of the bank's condition to his declaration that with like the sum suddenly withdrawn by could weather storm. At the of his statement man had all of his daring ventures for said: wait in the other room talk this over?" Ralston stepped through the door closed. He who had no voice now in deciding bank's fate. that Ralston had given him his when pocket, proposed bank. the will if the rest of you wfll as much," he said. but The others were to do with this. The decision was to close the bank.
Ask Resignation
A few minutes later, D. O. Mills opened the door and approached Ralston. directors have decided to ask for your resignation," Mills been of the Ralston the had started the flow of millions into its treasury. Ralston immediately wrote out his resignation. Then he slipped out of the bank through side door. time he appeared at North Beach, ping with was AuThe keeper knew him. He had gone there often afternoon for plunge in the salt water. Seeing that overheated his long walk, the despairing walked the hot August heated to go into water Mr. Ralston.' The crushed and suffering man no heed this He stripped and entered the water.
Body Found in Water
Search for him began two hours when he did the bath house. His under found lying where he had tossed them, were still wet with tion. His body was found in the His death brought forth such grief that his enemies were and his friends were stirred, after all, to the bank. From the wreck of his great fortune, $60,000 for the that had his life as the bank been saved could than fulfilled his helped the period of difficulty. As his enemies rich and long death, his friends were Ralston never has received adequate credit for what he did for Callfornia.
Marriage opens man's eyes and his pocket book simultaneously. generous man doesn't give his friends away.
