CALIFORNIA, NEW YORK, AND KANSAS.
1857-1859.
Having closed the bank at San Francisco on the 1st day of May,
1857, accompanied by my family I embarked in the steamer Sonora for
Panama, crossed the isthmus, and sailed to New York, whence we
proceeded to Lancaster, Ohio, where Mrs. Sherman and the family
stopped, and I went on to St. Louis. I found there that some
changes had been made in the parent, house, that Mr. Lucas had
bought out his partner, Captain Symonds, and that the firm's name
had been changed to that of James H. Lucas & Co.
It had also been arranged that an office or branch was to be
established in New York City, of which I was to have charge, on
pretty much the same terms and conditions as in the previous San
Francisco firm.
Mr. Lucas, Major Turner, and I, agreed to meet in New York, soon
after the 4th of July. We met accordingly at the Metropolitan
Hotel, selected an office, No. 12 Pall Street, purchased the
necessary furniture, and engaged a teller, bookkeeper, and porter.
The new firm was to bear the same title of Lucas, Turner & Co.,
with about the same partners in interest, but the nature of the
business was totally different. We opened our office on the 21st
of July, 1857, and at once began to receive accounts from the West
and from California, but our chief business was as the resident
agents of the St. Louis firm of James H. Lucas & Co. Personally I
took rooms at No. 100 Prince Street, in which house were also
quartered Major J. G. Barnard, and Lieutenant J. B. McPherson,
United States Engineers, both of whom afterward attained great fame
in the civil war.
My business relations in New York were with the Metropolitan Bank
and Bank of America; and with the very wealthy and most respectable
firm of Schuchhardt & Gebhard, of Nassau Street. Every thing went
along swimmingly till the 21st of August, when all Wall Street was
thrown into a spasm by the failure of the Ohio Life and Trust
Company, and the panic so resembled that in San Francisco, that,
having nothing seemingly at stake, I felt amused. But it soon
became a serious matter even to me. Western stocks and securities
tumbled to such a figure, that all Western banks that held such
securities, and had procured advances thereon, were compelled to
pay up or substitute increased collaterals. Our own house was
not a borrower in New York at all, but many of our Western
correspondents were, and it taxed my tune to watch their interests.
In September, the panic extended so as to threaten the safety of
even some of the New York banks not connected with the West; and
the alarm became general, and at last universal.
In the very midst of this panic came the news that the steamer
Central America, formerly the George Law, with six hundred
passengers and about sixteen hundred thousand dollars of treasure,
coming from Aspinwall, had foundered at sea, off the coast of
Georgia, and that about sixty of the passengers had been
providentially picked up by a Swedish bark, and brought into
Savannah. The absolute loss of this treasure went to swell the
confusion and panic of the day.
A few days after, I was standing in the vestibule of the
Metropolitan Hotel, and heard the captain of the Swedish bark tell
his singular story of the rescue of these passengers. He was a
short, sailor-like-looking man, with a strong German or Swedish
accent. He said that he was sailing from some port in Honduras for
Sweden, running down the Gulf Stream off Savannah. The weather had
been heavy for some days, and, about nightfall, as he paced his
deck, he observed a man-of-war hawk circle about his vessel,
gradually lowering, until the bird was as it were aiming at him.
He jerked out a belaying-pin, struck at the bird, missed it, when
the hawk again rose high in the air, and a second time began to
descend, contract his circle, and make at him again. The second
time he hit the bird, and struck it to the deck.... This strange
fact made him uneasy, and he thought it betokened danger; he went
to the binnacle, saw the course he was steering, and without any
particular reason he ordered the steersman to alter the course one
point to the east.
After this it became quite dark, and he continued to promenade the
deck, and had settled into a drowsy state, when as in a dream he
thought he heard voices all round his ship. Waking up, he ran to
the side of the ship, saw something struggling in the water, and
heard clearly cries for help. Instantly heaving his ship to, and
lowering all his boats, he managed to pick up sixty or more persons
who were floating about on skylights, doors, spare, and whatever
fragments remained of the Central America. Had he not changed the
course of his vessel by reason of the mysterious conduct of that
man-of-war hawk, not a soul would probably have survived the night.
It was stated by the rescued passengers, among whom was Billy
Birch, that the Central America had sailed from Aspinwall with the
passengers and freight which left San Francisco on the 1st of
September, and encountered the gale in the Gulf Stream somewhere
off Savannah, in which she sprung a leak, filled rapidly, and went
down. The passengers who were saved had clung to doors, skylights,
and such floating objects as they could reach, and were thus
rescued; all the rest, some five hundred in number, had gone down
with the ship.
The panic grew worse and worse, and about the end of September
there was a general suspension of the banks of New York, and a
money crisis extended all over the country. In New York, Lucas,
Turner & Co. had nothing at risk. We had large cash balances in
the Metropolitan Bank and in the Bank of America, all safe, and we
held, for the account of the St. Louis house, at least two hundred
thousand dollars, of St. Louis city and county bonds, and of
acceptances falling due right along, none extending beyond ninety
days. I was advised from St. Louis that money matters were
extremely tight; but I did not dream of any danger in that quarter.
I knew well that Mr. Lucas was worth two or three million dollars
in the best real estate, and inferred from the large balances to
their credit with me that no mere panic could shake his credit;
but, early on the morning of October 7th, my cousin, James M. Hoyt,
came to me in bed, and read me a paragraph in the morning paper, to
the effect that James H. Lucas & Co., of St. Louis, had suspended.
I was, of course, surprised, but not sorry; for I had always
contended that a man of so much visible wealth as Mr. Lucas should
not be engaged in a business subject to such vicissitudes. I
hurried down to the office, where I received the same information
officially, by telegraph, with instructions to make proper
disposition of the affairs of the bank, and to come out to St.
Louis, with such assets as would be available there. I transferred
the funds belonging to all our correspondents, with lists of
outstanding checks, to one or other of our bankers, and with the
cash balance of the St. Louis house and their available assets
started for St. Louis. I may say with confidence that no man lost
a cent by either of the banking firms of Lucas, Turner & Co., of
San Francisco or New York; but, as usual, those who owed us were
not always as just. I reached St. Louis October 17th, and found
the partners engaged in liquidating the balances due depositors as
fast as collections could be forced; and, as the panic began to
subside, this process became quite rapid, and Mr. Lucas, by making
a loan in Philadelphia, was enabled to close out all accounts
without having made any serious sacrifices, Of course, no person
ever lost a cent by him: he has recently died, leaving an estate of
eight million dollars. During his lifetime, I had opportunities to
know him well, and take much pleasure in bearing testimony to his
great worth and personal kindness. On the failure of his bank, he
assumed personally all the liabilities, released his partners of
all responsibility, and offered to assist me to engage in business,
which he supposed was due to me because I had resigned my army
commission. I remained in St. Louis till the 17th of December,
1857, assisting in collecting for the bank, and in controlling all
matters which came from the New York and San Francisco branches.
B. R. Nisbet was still in San Francisco, but had married a Miss
Thornton, and was coming home. There still remained in California
a good deal of real estate, and notes, valued at about two hundred
thousand dollars in the aggregate; so that, at Mr. Lucas's request,
I agreed to go out again, to bring matters, if possible, nearer a
final settlement. I accordingly left St. Louis, reached Lancaster,
where my family was, on the 10th, staid there till after Christmas,
and then went to New York, where I remained till January 5th, when
I embarked on the steamer Moles Taylor (Captain McGowan) for
Aspinwall; caught the Golden Gate (Captain Whiting) at Panama,
January 15, 1858; and reached San Francisco on the 28th of January.
I found that Nisbet and wife had gone to St. Louis, and that we had
passed each other at sea. He had carried the ledger and books to
St. Louis, but left a schedule, notes, etc., in the hands of S. M.
Bowman, Esq., who passed them over to me.
On the 30th of January I published a notice of the dissolution of
the partnership, and called on all who were still indebted to the
firm of Lucas, Turner & Co. to pay up, or the notes would be sold
at auction. I also advertised that all the real property, was for
sale.
Business had somewhat changed since 1857. Parrott & Co.; Garrison,
Fritz & Ralston; Wells, Fargo & Co.; Drexel, Sather & Church, and
Tallant & Wilde, were the principal bankers. Property continued
almost unsalable, and prices were less than a half of what they
had been in 1853-'54. William Blending, Esq., had rented my house
on Harrison Street; so I occupied a room in the bank, No. 11, and
boarded at the Meiggs House, corner of Broadway and Montgomery,
which we owned. Having reduced expenses to a minimum, I proceeded,
with all possible dispatch, to collect outstanding debts, in some
instances making sacrifices and compromises. I made some few
sales, and generally aimed to put matters in such a shape that time
would bring the best result. Some of our heaviest creditors were
John M. Rhodes & Co., of Sacramento and Shasta; Langton & Co., of
Downieville; and E. M. Stranger of Murphy's. In trying to put
these debts in course of settlement, I made some arrangement in
Downieville with the law-firm of Spears & Thornton, to collect, by
suit, a certain note of Green & Purdy for twelve thousand dollars.
Early in April, I learned that Spears had collected three thousand
seven hundred dollars in money, had appropriated it to his own use,
and had pledged another good note taken in part payment of three
thousand and fifty-three dollars. He pretended to be insane. I
had to make two visits to Downieville on this business, and there,
made the acquaintance of Mr. Stewart, now a Senator from Nevada.
He was married to a daughter of Governor Foote; was living in a
small frame house on the bar just below the town; and his little
daughter was playing about the door in the sand. Stewart was then
a lawyer in Downieville, in good practice; afterward, by some lucky
stroke, became part owner of a valuable silver-mine in Nevada, and
is now accounted a millionaire. I managed to save something out of
Spears, and more out of his partner Thornton. This affair of
Spears ruined him, because his insanity was manifestly feigned.
I remained in San Francisco till July 3d, when, having collected
and remitted every cent that I could raise, and got all the
property in the best shape possible, hearing from St. Louis
that business had revived, and that there was no need of
further sacrifice; I put all the papers, with a full letter of
instructions, and power of attorney, in the hands of William
Blending, Esq., and took passage on the good steamer Golden Gate,
Captain Whiting, for Panama and home. I reached Lancaster on July
28, 1858, and found all the family well. I was then perfectly
unhampered, but the serious and greater question remained, what was
I to do to support my family, consisting of a wife and four
children, all accustomed to more than the average comforts of life?
I remained at Lancaster all of August, 1858, during which time I
was discussing with Mr. Ewing and others what to do next. Major
Turner and Mr. Lucas, in St. Louis, were willing to do any thing to
aid me, but I thought best to keep independent. Mr. Ewing had
property at Chauncey, consisting of salt-wells and coal-mines, but
for that part of Ohio I had no fancy. Two of his sons, Hugh and T.
E., Jr., had established themselves at Leavenworth, Kansas, where
they and their father had bought a good deal of land, some near the
town, and some back in the country. Mr. Ewing offered to confide
to me the general management of his share of interest, and Hugh and
T. E., Jr., offered me an equal copartnership in their law-firm.
Accordingly, about the 1st of September, I started for Kansas,
stopping a couple of weeks in St. Louis, and reached Leavenworth.
I found about two miles below the fort, on the river-bank, where in
1851 was a tangled thicket, quite a handsome and thriving city,
growing rapidly in rivalry with Kansas City, and St. Joseph,
Missouri. After looking about and consulting with friends, among
them my classmate Major Stewart Van Vliet, quartermaster at the
fort, I concluded to accept the proposition of Mr. Ewing, and
accordingly the firm of Sherman & Ewing was duly announced, and our
services to the public offered as attorneys-at-law. We had an
office on Main Street, between Shawnee and Delaware, on the second
floor, over the office of Hampton Denman, Esq., mayor of the city.
This building was a mere shell, and our office was reached by a
stairway on the outside. Although in the course of my military
reading I had studied a few of the ordinary law-books, such as
Blackstone, Kent, Starkie, etc., I did not presume to be a lawyer;
but our agreement was that Thomas Ewing, Jr., a good and thorough
lawyer, should manage all business in the courts, while I gave
attention to collections, agencies for houses and lands, and such
business as my experience in banking had qualified me for. Yet, as
my name was embraced in a law-firm, it seemed to me proper to take
out a license. Accordingly, one day when United States Judge
Lecompte was in our office, I mentioned the matter to him; he told
me to go down to the clerk of his court, and he would give me the
license. I inquired what examination I would have to submit to,
and he replied, "None at all;" he would admit me on the ground of
general intelligence.
During that summer we got our share of the business of the
profession, then represented by several eminent law-firms,
embracing names that have since flourished in the Senate, and in
the higher courts of the country. But the most lucrative single
case was given me by my friend Major Van Vliet, who employed me to
go to Fort Riley, one hundred and thirty-six miles west of Fort
Leavenworth, to superintend the repairs to the military road. For
this purpose he supplied me with a four-mule ambulance and driver.
The country was then sparsely settled, and quite as many Indians
were along the road as white people; still there were embryo towns
all along the route, and a few farms sprinkled over the beautiful
prairies. On reaching Indianola, near Topeka, I found everybody
down with the chills and fever. My own driver became so shaky that
I had to act as driver and cook. But in due season I reconnoitred
the road, and made contracts for repairing some bridges, and for
cutting such parts of the road as needed it. I then returned to
Fort Leavenworth, and reported, receiving a fair compensation. On
my way up I met Colonel Sumner's column, returning from their
summer scout on the plains, and spent the night with the officers,
among whom were Captains Sackett, Sturgis, etc. Also at Fort Riley
I was cordially received and entertained by some old army-friends,
among them Major Sedgwick, Captains Totted, Eli Long, etc.
Mrs. Sherman and children arrived out in November, and we spent the
winter very comfortably in the house of Thomas Ewing, Jr., on the
corner of Third and Pottawottamie Streets. On the 1st of January,
1859, Daniel McCook, Esq., was admitted to membership in our firm,
which became Sherman, Ewing & McCook. Our business continued to
grow, but, as the income hardly sufficed for three such expensive
personages, I continued to look about for something more certain
and profitable, and during that spring undertook for the Hon.
Thomas Ewing, of Ohio, to open a farm on a large tract of land he
owned on Indian Creek, forty miles west of Leavenworth, for the
benefit of his grand-nephew, Henry Clark, and his grand-niece, Mrs.
Walker. These arrived out in the spring, by which time I had
caused to be erected a small frame dwelling-house, a barn, and
fencing for a hundred acres. This helped to pass away time, but
afforded little profit; and on the 11th of June, 1859, I wrote to
Major D. C. Buel, assistant adjutant-general, on duty in the War
Department with Secretary of War Floyd, inquiring if there was a
vacancy among the army paymasters, or any thing in his line that I
could obtain. He replied promptly, and sent me the printed
programme for a military college about to be organized in
Louisiana, and advised me to apply for the superintendent's place,
saying that General G. Mason Graham, the half-brother of my old
commanding-general, R. B. Mason, was very influential in this
matter, and would doubtless befriend me on account of the relations
that had existed between General Mason and myself in California.
Accordingly, I addressed a letter of application to the Hon. R. C.
Wickliffe, Baton Rouge, Louisiana, asking the answer to be sent to
me at Lancaster, Ohio, where I proposed to leave my family. But,
before leaving this branch of the subject, I must explain a little
matter of which I have seen an account in print, complimentary or
otherwise of the firm of Sherman, Ewing & McCook, more especially
of the senior partner.
One day, as I sat in our office, an Irishman came in and said he
had a case and wanted a lawyer. I asked him to sit down and give
me the points of his case, all the other members of the firm being
out. Our client stated that he had rented a lot of an Irish
landlord for five dollars a month; that he had erected thereon a
small frame shanty, which was occupied by his family; that he had,
paid his rent regularly up to a recent period, but to his house he
had appended a shed which extended over a part of an adjoining
vacant lot belonging to the same landlord, for which he was charged
two and a half dollars a month, which he refused to pay. The
consequence was, that his landlord had for a few months declined
even his five dollars monthly rent until the arrears amounted to
about seventeen dollars, for which he was sued. I told him we
would undertake his case, of which I took notes, and a fee of five
dollars in advance, and in due order I placed the notes in the
hands of McCook, and thought no more of it.
A month or so after, our client rushed into the office and said his
case had been called at Judge Gardner's (I think), and he wanted
his lawyer right away. I sent him up to the Circuit Court, Judge
Pettit's, for McCook, but he soon returned, saying he could not
find McCook, and accordingly I hurried with him up to Judge
Gardner's office, intending to ask a continuance, but I found our
antagonist there, with his lawyer and witnesses, and Judge Gardner
would not grant a continuance, so of necessity I had to act, hoping
that at every minute McCook would come. But the trial proceeded
regularly to its end; we were beaten, and judgment was entered
against our client for the amount claimed, and costs. As soon as
the matter was explained to McCook, he said "execution" could not
be taken for ten days, and, as our client was poor, and had nothing
on which the landlord could levy but his house, McCook advised him
to get his neighbors together, to pick up the house, and carry it
on to another vacant lot, belonging to a non-resident, so that even
the house could not be taken in execution. Thus the grasping
landlord, though successful in his judgment, failed in the
execution, and our client was abundantly satisfied.
In due time I closed up my business at Leavenworth, and went to
Lancaster, Ohio, where, in July, 1859, I received notice from
Governor Wickliffe that I had been elected superintendent of the
proposed college, and inviting me to come down to Louisiana as
early as possible, because they were anxious to put the college
into operation by the 1st of January following. For this honorable
position I was indebted to Major D. C. Buell and General G. Mason
Graham, to whom I have made full and due acknowledgment. During
the civil war, it was reported and charged that I owed my position
to the personal friendship of Generals Bragg and Beauregard, and
that, in taking up arms against the South, I had been guilty of a
breach of hospitality and friendship. I was not indebted to
General Bragg, because he himself told me that he was not even
aware that I was an applicant, and had favored the selection of
Major Jenkins, another West Point graduate. General Beauregard had
nothing whatever to do with the matter.