Luther Burbank was in trouble. The 66 year-old horticulturist was watching helplessly as his dreams of a secure future and assured legacy faded through no fault of his own, but because of the failures and scandals of other men.

"Do you think Luther Burbank is an honorable person?" Would have been an interesting question to ask on a public opinion poll in 1915 (well, except polling wasn't a thing, yet) and the replies probably would have shown a sharp divide.

To many he was the Plant Wizard, a man with almost mystical powers to bend nature to his will, someone with integrity and nearly saintly bearing. Others viewed him with disdain; a conman, or the dupe of conmen, or at best, someone so injudicious he entrusted his reputation to men who ruined it. Which answer pollsters received was decided not only on who they asked, but also when in 1915 they asked the question.

Burbank was in the news much that year. He was being celebrated for different reasons both locally and nationally; that tale will be told in the following article. This piece wraps up the stories of the two companies which used his name - and in 1915, both companies dragged his name through the mud. The best thing that can be said about them was that they were run by men who were not very competent, and the worst was that both companies exploited local trust in Burbank himself to peddle worthless stock to Sonoma County residents.

Both companies were founded in 1912 and introduced in previous articles here. Most prominent was the Luther Burbank Company, which completely took over the commercial side of his business selling plants and seeds. Burbank was elated. “For fifteen years at least I have been endeavoring to make some such arrangements,” he told the Press Democrat. “Henceforth I shall only engage myself in the creation of more novelties in fruits, flowers and plants.” The deal was for Burbank to be paid $30k, followed by annual payments of $15,000.

The Luther Burbank Company had problems from the start. It had little to sell except for his spineless cactus, which Burbank was already cultivating commercially at a cactus plantation near Livermore. And it didn't help that the Company was run by an enthusiastic young go-getter and former bank teller who had no experience running any sort of business, much less a highly-specialized nursery. (For more, see part II of this series.)

What they did have to sell was corporation stock, and about $375k (equivalent to about $10M today) worth of shares were sold - which was quite a lot, considering the main asset was the intangible value of the Luther Burbank brand and faith that he would not approve any products which were not top quality. Most of the shareholders were from the usual Bay Area investor class, but a block was set aside for Burbank's friends in Santa Rosa.

The company was never financially sound, however, and had paid Burbank only a fraction of what was agreed upon ($5,920 total for the years 1913-1914). By the midsummer of 1915 rumors were circulating that the business was failing.

And here is where Burbank may have broken the law: As the corporation was trying to sell a new round of stock, the PD and other local papers reported he gave an interview stating the company was in fine shape (the newspaper wasn't named, and the rumors weren't specified). Although Burbank wasn't on the Board, he was completely dependent on the company for his income and certainly had insider knowledge that the company was headed off the cliff - after all, he had been complaining privately about their inability to pay him more than a fraction of what was owed. Keeping that info secret would be considered securities fraud today.

Then just before the end of 1915, Luther Burbank pulled the trigger and sued the Luther Burbank Company. Interviewed by the PD, his lawyer said, “Burbank has been the victim of stock pirates…They paid him the $30,000, sold stock like hot cakes and never paid him another dollar." A few weeks later, the company declared bankruptcy and liquidated.

All of those who had invested - including Burbank's friends in Santa Rosa - lost everything. Locals had to remember he had personally reassured everyone the business was fundamentally secure, and not too long before.

The Luther Burbank Company failed for the reasons most businesses fail: It was just badly run. Had they better management, more investment, more time, yap, yap, they might have survived, as would many companies that flop. But that comment about "stock pirates" aside, it was not a scam. The intentions of the Luther Burbank Press, however, were another story.




The rest of this article can be read at the SantaRosaHistory.com website. Because of recurring problems with the Blogger platform, I am no longer wasting my time formatting and posting complete articles here. I will continue to create stubs for the sake of continuity, but will be publishing full articles only at SantaRosaHistory.com.

- Jeff Elliott

Imagine (or remember): It was near the end of that day in 1969 and you were winding down, watching TV and planning to stay up late - a Johnny Carson anniversary show was coming up and everybody would be talking about it tomorrow. You were deciding between the 10 o'clock news on channel two, Hawaii Five-O or that new NBC series by the former Press Democrat reporter. 

Then too much happened all at once.

"And then came the jolt and the furious shake, lasting for seconds but seeming like minutes. Everyone could feel it but many couldn't see it: the lights were the first to go," said Dick Torkelson's article in the Press Democrat the next day.

Earthquake! A bad one. Sharp flashes of light from outside flooded the dark room as if the house was struck by lightning, only there was no sound at all. Omygod, had Santa Rosa been hit by an atomic bomb?

"Books and dishes cascaded down," Torkelson continued. "Shouts filled households as parents groped in darkness for their children. Residential streets filled instantly, everyone wondering if there would be more."

Such were the first few terrifying moments of the Santa Rosa Earthquake of October 1, 1969. Earthquakes, actually, as another one followed about eighty minutes later and was just about as violent (see sidebar).

No one was killed and while many buildings were damaged, none fell down. Now more than a half-century later, it's only remembered for the unusual double shake. But that event changed Santa Rosa's future dramatically, as it became the driving justification for the city to later bulldoze 30 acres of downtown in order to build the shopping mall - the worst mistake in the long list of planning mistakes made by the City of Roses. How this tragedy unfolded will be told in upcoming parts of this ongoing series, "Yesterday is Just Around the Corner."




The rest of this article can be read at the SantaRosaHistory.com website. Because of recurring problems with the Blogger platform, I am no longer wasting my time formatting and posting complete articles here. I will continue to create stubs for the sake of continuity, but will be publishing full articles only at SantaRosaHistory.com.

- Jeff Elliott


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