Daily Los Angeles herald., 1879-04-15

dockage system (the lack of which
sensibIy injured our commerce),
and thereby committed political
harikari. John e. may be "chaste
as the icicle that hangs upon the
northwest corner of Dian's tsmple,n
but We despise his communistic at
tempt to monopolize all the virtue
Ia California for his Vagabond Con.
stitution.-Ne0s Letter, April 18th.
The State Supreme Court decided
that under the present Constitu-
tion Governor John G.. Downey
was not entitled to a bonus lin ad-
dltion to interest) for loaning money
of the Farmers and Merchants'
Bank, Los Angeles, of which he
was President. And now the pres
ent Constitution is not good enough
for Ex-Governor John G. Downey
Argonaut.
A STRANGE CASE IN LOS ANGELES,
BY a recent decision of the Su-
preme Court, ex Governor John G,
Downey, of Los Angeles, is made
to appear in II light pretty nearly
as bad as our Savings Bank man.
ager who loaned money to Pinney
on the worthless navy certificates.
1t seems that Governor Downey
was u director in, and the Presi.
dent of, Los Angeles bank, and
That he loaned, or caused 10 he
loaned by the bank, certain
moneys, one of the conditions be.
ing that the borrowers should per-
init him, Downey, to participate
with them in the profits and pur.
chase and sale of certain lands.
The profits were large, and Dowuey
oy his contract with his borrowers
was to receive one sixth there
Of but the bank sued him
to recover his share, on the
ground that the profits, if there
were any, were the property of the
bank and not his. The case was
carried up to the Supreme Court,
and. the other day, it was decided in
favor of the bank. The Court very
properly held "that a director of
bank acts in fiduciary capacity,
and is but a trustee of the stock.
holders, and courts of equity would
not permit him to make profit for
himself to the exclusion of other
stockholders. The contract with
Downey constitutes part of the con
sideration which the borrowers
paid or agreed to pay in obtaining
the loan, and the profits thereon
are as clearly the property of
the corporation as is the interest
accrued and stipulated to be paid
on the face of the note itself.n This
decision will be regarded as lust by
everybody, but what shall we saw
OF the honesty of man who could
make such contract through mo.
tiyes of self interest 1t seems to
us that a man who receives peri
odical consideration for making a
speculative loan from money which
is held In trust for Others comes
pretty near being AMY body
may fill the blank space to suit
himself. BY the way, Gov. Dow
ney Is an ardent supporter of the
new Constitution. 1t is gratifying
to know that one of the chief bene.
fits claimed for that mongrel con-
Germ is that it will throw obstacles
in the way of such questionable
banking as that Downey has been
guilty of.-Stock Report.
II we judge from Gov. Downey's
TRADE in the Chronicle this morn
ing, that gentleman must be terri.
bly, angry at the Supreme Court for
deciding that the profits made in a
speculation which he and his
friends went into with money that
he advanced from the funds of d
| bank of which he was director, be-
ionged to the bank and not to him
When a man not only gets caught
n such a questionable transaction
out is made to disgorge the profits
| of it. it is calculated to make him
rave and call people regicides,"
and "monsters," and all that. Gov.
Downey ought not to have loaned
mis- banks money on contingent
fee. He ought to have done like
per cent. down in advance.-StOck
Exchange.
Ex-Governor Downey rivals
Denis Kearney in singing billings
gate. He meets argument by de-
nunciation. Thus: "Among all
the efforts of the venal press, the
penny-a.liners and debauched vag.
abonds who put forth their shallow
objections to the Constitution, 1
have not read or seen one worthy
of considerations Considering
that the gentlemen of whom he
speaks are morally, socially and in
tellectually his superiors, it must
be admitted that John Downey, by
an accident once Governor of Cali
fornia, does not possess any nice
perception Of modesty. 1t is not
surprising, therefore,if if he describes
Nicholas Luning, and rich men
generally, as "great monsters of in-
iquity." 1t is u crime to be rich
according to this Los Angeles usur.
er; but is a far greater crime in his
eyes for rich man to have an
opinion of his own. Accordingly,
John @. Downey advises the organ
ization of 20, 900 men to watch these
villains on the day Of election, ''and
when found buying votes let them
be handled without mercy" We
thought the law provided for this
offense, but Mr.. Downey counsels
violence.-.S. F. Post, April 18th.