Californians Shocked

"One of California's outstanding citizens," was what San Francisco's Mayor James Rolph Jr. called James A. Talbot of Richfield Oil Co. in 1928. An outstanding act of Outstander Talbot had just been the offering of his private tri-motor airplane to Mayor Rolph and his visiting friend, Mayor James John Walker.

Last week Citizen Talbot went into his long-rumored bankruptcy. For one day it seemed that Mr. Talbot was merely a businessman whose strength had been weakened by overexpansion, who was left floundering in Depression's flood. But the next day California Corporation Commissioner Raymond Le Roy Haight made charges which, if true, will strip the last vestige of decency from the friend of Mayors. Also involved in the hideous charges last week was Clarence M. Fuller, onetime Richfield president, still solvent but jobless.

Early this year Richfield Oil Co. of California, whose $85,181,551 assets contained only $921,691 in cash against $24, 745,564 current liabilities, went into receivership (TIME, Jan. 26). It was soon rumored that Cities Service was in control of the company, would absorb it. But Cities Service, it developed, awaited definite figures on Richfield. Last week Commissioner Haight, after an eight-month investigation, revealed that Richfield has a $54,000,000 deficit. More sensational was his statement that there are "strong indications" that the records had been falsified. And even more sensational was his assertion that Outstander Talbot and the "brilliant" Mr. Fuller had used the company's money to pay their sons' expenses, to clothe and bejewel their wives, to keep their yachts in order, and to pay club dues.

The news was a shock to Californians, for Mr. Talbot was the Pacific Coast's big example of a boom-made man. Two decades ago he was clerking for Western Pipe and Steel Co., later was its president. He made smart deals, such as securing an option on Japanese steel under embargo during the War, selling to the Government when steel became scarce and the embargo was lifted. His drive and Mr. Fuller's flashy marketing and advertising ideas kept Richfield running its rapid expansion course. He was quiet in business, rewarded justly and reprimanded mercilessly. He was an air enthusiast, held much stock in Fokker Aircraft Corp. before General Motors took control, also helped found Western Air Express which has likewise been aided by General Motors (TIME, March 16). He had a $150,000 "air yacht," also the seagoing Krupp-built Carissima. He gave big parties, was said to have been one of the semi-mythical "Big 10" bull market operators, was reputedly worth $20,000,000. He never turned bear, clung to Los Angeles real estate. The Richfield crash dazed him, ruined his health. Friends fondly predicted he would soon stage a remarkable comeback. But last week they admitted that any comeback will be contingent upon his manner of answering the charges which have piled upon him.

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