CHAPTER XVI.

GOVERNOR MCKINLEY'S FINANCIAL TROUBLES.

One of the sad events in the career of President McKinley was the loss of his fortune in the year 1893. It was during his first term as Governor of Ohio, and was a period of humiliation and anguish to the Governor and his wife, but they met the crisis with that quiet fortitude that ever characterized them, and found friends in abundance to aid them in their distress. This money trouble was not brought about by any wild speculation on the part of the Governor. He had never evinced any desire to seek riches through such agencies, and so faithfully had he applied himself to the people's interests that, notwithstanding his years of hard work, he was worth not to exceed $20,000, which was invested in securities and real estate.

The difficulty which swallowed up the Governor's fortune, and that of his wife, resulted from his endorsing notes for a friend. This friend was Robert L. Walker, a capitalist banker and manufacturer, of Youngstown. Mr. Walker was president of the Farmers' National Bank of Youngstown, the Girard Savings Bank, a stamping mill company, a stove and range com. pany, and was interested in several coal mines in Western Ohio and Eastern Pennsylvania. He was one of the strongest men in the community, was supposed to be worth more than $250,000, and enjoyed the confidence of everybody who knew him.

When Major McKinley returned from the war and was ambitious to become a lawyer, he found the struggle a hard one. His service as a soldier had not enabled him to save anything of consequence, and when poverty pressed him he turned to Mr. Walker for aid. He was not disappointed. Mr. Walker proved a friend in need, and the Major was not the man to forget a kindness. After he entered political life, he again had need of financial assistance. In his first congressional campaign his expenses were heavy, and it became necessary for him to raise $2,000 with which to cancel a mortgage on his wife's property. Mr. Walker loaned him the money, and it is probable that at subsequent periods other loans were made to the Major. He was constantly under heavy expense, owing to the illness of his wife, and had no regular income save his salary of $5,000 as Congressman.

The first loan was repaid by Major McKinley out of his salary within

two years, and it is certain that all of his subsequent financial obligations were promptly met up to the time of the crash.

Under such circumstances it was not strange that Major McKinley, having become Governor, and having become possessed of some money of his own, should be called upon to help out his old friend when he needed a little accommodation. Mr. Walker applied to the Governor to indorse his paper from time to time and the Governor willingly accommodated him, never questioning the amount, nor the circumstances for which the money was required.

These accommodations were spread over a considerable period of time, and it is probable that in the course of his business Mr. Walker took up many of the notes endorsed by the Governor. But his affairs became more and more involved, and early in 1893 Mr. Walker informed the Governor that he was in great need of money and asked the Governor to endorse his notes, which he desired to have discounted. The Governor did not hesitate an instant. The man who had befriended him needed aid, and so far as the Governor could render it he did so. Governor McKinley understood at the time that the notes signed by him aggregated about $15,000. They were good at any bank in Ohio, and no trouble was experienced by Mr. Walker in discounting them.

The Governor gave no further thought to the matter until February 17, 1893, when Youngstown, as well as the commercial circles of Ohio, were startled by the announcement of the assignment of Robert L. Walker. A judgment for $12,000 had been entered against the Youngstown Stamping Company, and inability to meet it caused Mr. Walker to assign. As soon as the fact became known Mr. Walker's other enterprises began to topple, and the next day all were swallowed up in the crash.

Governor McKinley was on his way to attend a banquet given by the Ohio Society in New York when he was informed of the disaster which had overtaken his friend. He cancelled his engagement in New York by telegraph and immediately started for Youngstown. In the meantime those interested had been figuring, and it was estimated that the liabilities of Mr. Walker aggregated about $200,000. His available assets were figured at about one-half that amount.

At Youngstown the Governor began to receive telegrams from banks all over the state, announcing that they held some of his paper. He had been led to believe that the notes had been discounted at only three banks, and was at a loss to understand the situation, until it transpired that instead

of a liability of $15,000, his name was on paper amounting to nearly $100,ooo! The Governor was under the impression that many of the notes he had signed were executed for the purpose of taking up notes previously given and which had fallen due. It was soon found that the old notes had not been paid, and that the Governor's obligations amounted to far more than he was able to pay.

The Governor had not a particle of interest in any of Mr. Walker's properties, and all that he had done for that unfortunate gentleman was done out of pure gratitude. After a conference with his Youngstown friends, in which the true state of affairs was disclosed, the Governor said:

"I can hardly believe this, but it appears to be true. I don't know what my liabilities are, but whatever I owe shall be paid dollar for dollar."

At this time Mrs. McKinley owned property valued at $75,000, which had been left her by her father. As there seemed no other way of meeting the crisis, the Governor and his wife, on February 22, made an absolute assignment of all their property to a board of trustees, to be used, without preference, for the equal payment of the creditors. The trustees were: H. H. Kohlsaat, Chicago; Myron T. Herrick, Cleveland; and Judge Day, of Canton, Ohio. Friends urged Mrs. McKinley, at this time, to retain an interest in her property, but she refused to do so, transferring all her fortune to M. A. Hanna, of Cleveland.

This calamity weighed heavily upon the Governor, and he thought of giving up public life and returning to the practice of his profession. To friends with whom he talked, he said:

"I did what I could to help a friend who had befriended me. The result is known. I had no interest in any of the enterprises Mr. Walker was carrying. The amount of my endorsements is in excess of anything I dreamed. There is but one thing for me to do-one thing I would do-meet this unlooked for burden as best I can. I have this day placed all my property in the hands of trustees, to be used to pay my debts. It will be insufficient, but I will execute notes and pay them as fast as I can. I shall retire from politics, take up the practice of law, and begin all over again."

It was at this time that the Governor's friends throughout the country began to bestir themselves for the purpose of aiding him financially. The Chicago Inter-Ocean started a popular fund for the purpose, and money began to roll in. Governor McKinley refused to accept a dollar of this money, and it was by his direction returned to the donors, with his thanks for their disinterested friendship. His friends were not to be denied, how

ever, and a number of them decided to subscribe privately to a fund to take up the Walker notes. Among these gentlemen were M. A. Hanna and Myron T. Herrick, Cleveland; P. D. Armour, Marshall Field and H. H. Kohlsaat, Chicago; and Bellamy Storer and Thomas McDougall, Cincinnati. The management of the fund was placed in the hands of Mr. Kolilsaat, who afterwards said of the matter:

"One of the chief reasons why the subscription plan was adopted was because a number of subscriptions were received anonymously and could not be returned. There were over 4,000 subscriptions sent in, and when the last piece of paper was taken up bearing Major McKinley's name, no more subscriptions were received, and some were returned. No list of the subscribers was kept, and Governor McKinley does not know to this day, with the possible exception of four or five names, who contributed the money.

"When Governor McKinley saw the publication of the subscription scheme he wrote me absolutely declining to receive a dollar. Mr. Hanna and his other friends told him to leave the matter alone, for if his friends wished to assist him they should have the privilege."

The indebtedness having been satisfied in full, Mrs. McKinley's property was deeded back to her, and she and the Governor were left in the same position financially they were before the crash occasioned by Mr. Walker's failure.

It was a graceful and fitting act for the people thus to have relieved the Governor of the burden resting upon him. He had given practically all his life to the public service, and was comparatively a poor man. If he had given to his own interests the same fidelity which he devoted to the interests of the public his financial reward would have been such that he would have had no need of assistance in carrying such an indebtedness. As it was, he did the only manly thing possible. He acknowledged the debt, and made such preparations to pay it as were within his power. He did not consider the hardship he must endure in "beginning all over." People had paid out their money on their faith in his endorsement, and he did not intend they should lose a penny. It was no stain on the Governor's honor that he had endeavored to help a friend and been financially ruined in the effort; and he was in no wise to be criticised when he permitted his friends, for whose interests he had so long labored, to bear the burden his generosity had put upon him.

CHAPTER XVII.

MCKINLEY'S LOYALTY TO SHERMAN, BLAINE AND HARRISON.

Governor McKinley's splendid record as a public servant made him a presidential quantity long before he was put forward for the nomination as the "favorite son" of Ohio; but he was ever loyal to his party's interest, and his party associates, and at no time allowed ambition to blind him to duty. This was clearly evidenced in the Republican National conventions held in 1884 and 1888. It was in these gatherings that Major McKinley's claims to leadership or at least to be considered as one of the prominent men of the nation in the councils of his party-came to be recognized. He was a "Blaine" man at this convention. In supporting Mr. Blaine he but represented the overwhelming sentiment of the Mahoning valley; and yet, while he favored Mr. Blaine, he had the kindliest feeling for the illustrious Senator from Ohio, John Sherman, who at that convention was also a candidate for the Presidency. Major McKinley was a strong advocate of the sentiment that all legitimate means should be sought to nominate Mr. Blaine, but if that was impossible, Ohio should cast a solid vote for Mr. Sherman.

The Ohio Republican state convention was held at Cleveland in April, 1884. McKinley went to Cleveland fresh from a tariff debate in Congress, and was made permanent chairman of the convention. The Blaine following manifestly was in the majority at the convention, but the Sherman men had the best organization, and most of the "old-time" politicians of the state were pronouncedly in favor of the Ohio Senator. The great struggle at the convention was on the election of four delegates-at-large. Although it was well understood that Foraker's first choice was Sherman, the Blaine men generously acquiesced in his election by acclamation as a delegate-atlarge. A number of names were then presented for the remaining three places, and a sensation was created when one delegate mounted a chair and nominated Major McKinley.

Major McKinley from his place as presiding officer thanked the convention, but said that he could not allow his name to go before it at that time, as he had promised that he would not allow his name to be used while the names of certain candidates were before the convention. The uproar became