“Father of California Wine” Charged in Mint Deficiency
by Robert L. Harrison
Agoston Haraszthy (1812–1869), a Hungarian born nobleman and California Pioneer, is best known for his work developing the wine industry in the Bay Area. In 1858 Haraszthy wrote “Report on Grapes and Wine in California” recognized as the State’s first important thesis on winemaking. He brought more than 300 varieties of European grapes to the State and was often referred to as the “Father of California Wine.” It was his two year employment as the Melter and Refiner in the United States Branch Mint in San Francisco that led to a charge of embezzlement against him.
Haraszthy left Hungary in 1840 and eventually settled in Wisconsin. Although he was a wealthy son of a noble family, he immigrated to a new land. He explained his decision this way: He came to America “for one reason only — namely, to see this blessed country for myself.” While in Wisconsin he founded the oldest incorporated village in the State, Sauk City. He eventually left Sauk City to seek a warmer climate for relief of his asthma. In 1849 Haraszthy captained a wagon train destined for southern California.
Settling first in San Diego, he experimented with imported grapes vines, opened several businesses and became active in civic affairs. San Diego County selected Haraszthy as sheriff in 1850 and just a year later he was elected to the California Assembly. He served in the Assembly from January 1851 to May 1852.
Haraszthy moved to the Bay Area in 1852 and tried to raise grapes in San Francisco. Finding it too cold and foggy there he bought land in San Mateo and eventually moved to Sonoma where he bought a small vineyard. While in San Francisco he joined with others to form the Eureka Gold and Silver Refinery, a large private precious metals processing plant. In April 1854 President Pierce appointed Haraszthy as the first United States Assayer in the San Francisco Branch Mint. By year’s end the San Francisco Branch Mint produced $4,084,207 ($126 million in 2020 dollars) in gold coins.
In 1857, as the Mint’s Melter and Refiner, Haraszthy was charged with embezzling $155,551 ($4.7 million in 2020 dollars) in gold. He would seem to have been an unlikely character to embezzle gold while at the Mint. He was a well-known wealthy community minded citizen with extensive land holdings. The United States Grand Jury found that for the eight months between September 1856 and April 1857 the Mint refined 1.373 million ounces of gold with about 10,746 unaccounted for ounces.
The loss in processing the gold may have been, at least in part, explained by the physical condition of the first Mint building in San Francisco. In the 1850s the Mint was housed in a small brick building on Commercial Street at the outskirts of the financial district. The problems with the building were described in the June 5, 1857 Daily Alta: “The wastage at the Mint is immense, owing to the badly constructed chimneys and flues. A large amount of fine gold dust escapes and is lodged in the chimney and upon the roof of the Mint and adjoining houses. The sweepings from the roofs of Davidson’s Building amounted to three hundred ounces. Eleven hundred and eighty ounces were collected from the [mint’s] chimney after two and a half months work.”
An April 3, 1857 Grand Jury Report concluded that “the building in which the business of the Mint is conducted is altogether unsuitable for the purpose ….” The Grand Jury Report of October 12 th noted the existing building was “badly constructed, and totally inadequate to conduct the business requirements of the country.” The Jury recommended, “The [new] building and machinery should be constructed as to enable the Branch Mint to refine and coin at least $60,000,000 per annum …”
A new San Francisco Mint building was ultimately opened in 1874 and still stands today at 88 Fifth near Mission Streets. Known as the “Old Mint”, it was designed in Greek Revival style by Alfred B. Mullet and took seven years to complete at a cost $100,000 ($1.6 million in 2020). It survived the 1906 earthquake and fire when it held $300 million in gold, about one-third of the bullion that backed the nation’s currency. It continued operations until 1937 when the third and current San Francisco Mint building was opened.
The investigation of Haraszthy continued into 1861 when the criminal charges against him were finally dismissed. The United States followed with a civil suit in an attempt to recover $157,327.03 from Haraszthy. The March 14, 1861 Sonoma Democrat described the rulings of Judge McAllister at the trial: “There is no evidence in this case to prove the slightest fraud in the defendant….” The precise amount of the deficit against the defendant is unclear. “The jury will dismiss from their minds any and all testimony tending to prove loss of bullion…. unless the specific amounts can be determined by such testimony.” After a short deliberation the jury found for Haraszthy on all counts and he was totally vindicated.
In 1857 while under investigation, Haraszthy bought a small vineyard in Sonoma and named it Buena Vista. He expanded the vineyard and hired Charles Krug as his winemaker. He tested new practices including using tunnels for the storage of wine barrels made of redwood. Haraszthy’s vineyard continued to grow, eventually exceeding 5,000 acres. As reported in the January 3, 1863 Marin Journal, “Col. Haraszthy, of Sonoma, estimates that the amount of wine to be produced from his vines this year will be about 40,000 gallons.” His Buena Vista vineyards were recognized in an 1864 Harper’s Magazine article as “the largest establishment of its kind in the world.”
Despite his early success, by the mid-1860s his vines were growing brown and weak. Some blamed it on his experimental techniques but the problem was later identified as phylloxera, a root disease unknown at the time in California. The infestation forced Haraszthy to lose the Buena Vista winery and in 1867 he filed for bankruptcy.
In the following year Haraszthy turned to a new enterprise in Nicaragua. He joined with a physician, Theodore Wassmer, to develop a large sugar plantation. His wife soon joined him but just two months after her arrival she died of yellow fever. After going back to Hungary to settle her affairs he returned to Nicaragua with his seventy-nine year old father. The elder Haraszthy did not adjust well to the climate and died on his way back to Hungary.
While his life was flamboyant and adventurous, Haraszthy’s death was uncertain and mysterious. On July 6, 1869 he set out alone on a mule to inspect construction of a new sawmill. He apparently fell into a river, was drowned and washed out to sea, or was consumed by alligators. His body was never found.
In March 2007 Haraszthy was inducted into the Vintners Hall of Fame by the Culinary Institute of America. The award was accepted by his great-great grandson Vallejo Haraszthy.
Originally published at https://annetkent.kontribune.com.
