Travel Reference
In-Depth Information
PALACE HOTEL
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William Chapman Ralston left his home in eastern Ohio to join the hoards of people clamoring to
make a fortune in the gold fields. His ultimate success, however, came from the discovery of silver
from Nevada's Comstock Lode, ten years after gold was discovered at Sutter's Mill.
Ralston's sizable fortune permitted him to open the Bank of California in 1864. The bank and
other business interests led to bigger dreams. Ralston wanted to turn the city from its roots as a gold
rush boom town into a thriving metropolis. To do this, he chose to erect a hotel of timeless elegance
and unprecedented luxury.
Ralston hired an architect to research the finest hotels in Europe. His goal was to make them
all pale in comparison to his dream. After taking on Senator William Sharon as a business partner,
Ralston began to pour his personal wealth into constructing the $5 million Palace Hotel.
His Bank of California had grown in value with the success of the various mining operations
but not all of them were profitable. Over time, the bank was forced to take back several worthless
properties and write off a number of bad loans. Also, the national depression of 1873 had weakened
many banks and forced the closing of some of the larger eastern establishments.
The downhill trend accelerated for Ralston when he got involved in other business deals that
turned bad. Just weeks before the hotel was to be completed, Ralston was given the unfortunate
news that his bank had to close, cutting off his funding source, and forcing him into personal bank-
ruptcy.
The next day his body was found floating in San Francisco Bay. Although Ralston often took a
swim in the Bay, and some friends speculated that he may have had a heart attack, most observers
believe that he had committed suicide.
The loss was great for the city. It was estimated that 50,000 people turned out for his funeral.
But the construction of the Palace Hotel continued under his partner, Senator Sharon, who acquired
many of Ralston's assets. The hotel opened on October 2, 1875, with great fanfare.
As the largest hotel in the world, the Palace attracted guests from all over. They were fascinated
by the hotel's four “rising rooms,” referred to today as elevators. There would be no more tedious
climbing of stairs to get to the spectacular views from the top floor. And when a guest needed some-
thing, they only had to activate the call button in each room. Service was taken to a new level.
The Great Earthquake of 1906 did some damage to the property, but the resulting fires fin-
ished it. The entire hotel was gutted by the flames. It took three years for a replacement to rise
from the ashes.
