Sacramento Daily Union, 25 January 1861 in the City Intelligence column:
Fire. — About ten minutes before four o’clock yesterday morning, the building known as the Palace, on Second street, near I, was discovered to be on fire. The Palace is a wooden building, and has been known for several years as a house of ill repute. The fire was started by means of combustible material placed beneath the weather-boarding near the ground on the north side of the building. The blaze evidently ran rapidly up between the uprights, the fire spreading to a width of but about five feet when it reached the roof. In a few minutes the entire roof and upper part of the house were wrapped in flames.
The engines were on the spot promptly, but in consequence of all the wrenches having been stolen from Confidence Engine and Neptune Hose Companies’ rooms, some delay ensued before water could be obtained. The fire was quickly extinguished after the engines were gotten into service, the lower story being but little injured, except by water, the result of which was, to papering, etc., as disastrous as fire would have been.
At the time the fire was discovered the house was occupied by probably a dozen persons, men and women. Some had, and others had not, time to dress themselves before vacating the premises. The manifestations there presented have given rise to scandal and gossip altogether inappropriate to our columns. A large portion of the furniture in the building was saved. A piano was placed in the center of the parlor, and covered with bedding, which becoming saturated with water protected it from the heat.
The house was owned by Ann Woods, and was insured for $2,000. The furniture was owned by Jenny Willis, and the premises were rented and occupied by Sallie Bush. Several attempts have been made on former occasions to burn down the establishment. The damage to the building is estimated at about $1,000.