A couple months ago, Charles wrote about the Ada Hancock explosion, the truth of which has been skewed by legend. While he gave the corrected side of the story, there's a more practical piece of history that resulted from that incident — it's legal and meant something to lawyers at the time, which is probably why people changed the story and focused on treasure instead!

On the evening of April 27, 1863, the shallow draft  steam tug left the Los Angeles harbor wharf and headed to the coastal steamer Senator. Aboard were Phineas Banning , the mercantile and transportation entrepreneur who owned the town of Wilmington  and who also represented Wells Fargo; his brother-in-law William T.B. Sanford, company accountant and assistant Wells Fargo agent; and Wells Fargo messenger William C. Ritchie, in charge of an iron treasure box containing $10,755 in gold dust and bullion from the Colorado River mines. There were 50 other passengers and the crew.

A sudden squall struck the Ada Hancock, heeling her over. Cold water contacted hot iron and the boilers exploded, killing 26 people outright. Among the dead were Sanford and Ritchie, while the force blew an injured Banning clear of the boat. Only seven persons aboard escaped injury from an accident the Coroner's Jury declared to be "entirely attributable to the overpowering force of the elements."

A Fort Yuma  merchant named George F. Hooper  lost his gold and sued Wells Fargo, though the Company denied culpability. In fact, California Supreme Court Justice Lorenzo Sawyer  affirmed: "There was evidence tending to prove, that the explosion was caused by the carelessness of the engineer, and other officers."

But in March, 1865, the Court upheld Hooper's claim. (Hooper v. Wells Fargo, 27 Cal. 11-49.) Thereafter, Wells Fargo's receipts added a disclaimer: The Company, "not owning or being interested in the means or vehicles of transportation," would not be liable for accidents caused by "the negligence or misconduct" of carriers.

Within 18 months, that would change when Wells Fargo established its Great Overland Mail Stagecoach line across the country.