Los Angeles herald., 1892-08-11
SAN D|EG0'S BUSTED BANK
The Cashier and Teller Are
Now Under Arrest.
Result of Indictments Found by the
Federal Grand Jury.
Deputy Marshal Marsh's Work at San
DiegO-The Two O'Briens Under
Arrest Charged with Max
ing False Entries.

Deputy United States Marshal Marsh
is on an expedition to San Diego, which
has some sensational features. He left
day before yesterday for the Bayncli.
mate city to arrest George N. O'Brien
cashier OF the defunct California Ma
tional bank of San Diego, and Henry
O'Brien, teller of the same bank,
his brother.
Both men were indicted by the United
States grand jury last Friday, in their
final report, charged with making false
entries on the books of the bank.
George O'Brien has been indicted here
tofore, and is under bonds for his ap.
pearance, but Henry has never before
been brought into the celebrated San
Diego case, in criminal way. There is
also third man in the affair, S. @.
Gregg, who was also teller in the bank.
He is now under bonds, and was in Los
Angeles yesterday morning.
The fourth man in this quartet of peo-
pie whom the government had impli-
Gated by Indictment in the making away
with about a million dollars, was the un-
fortunate president of the bank, ]. W..
Collins. whose tragic suicide at San
Diego, a few months since, was such a
startling feature in the matter.
The O'Brien brothers have lived in
San Diego for some five years past, and
have moved in the best social and busi-
ness circles. Since the exposure of the
curious methods of the bank, they have
remained, and have seemed to set at
naught any intimations that they have
been mixed up with any devious meth
DDS which President Collins may have
adopted to carry on his large and liberal
ideas of the investment of funds de-
posted in his bank.
The indictments against these men,
however. according to those who have
investigated the accounts Of the bank,
reveal such startling methods of keeping
the funds balanced, that the Messrs.
O'Brien have been called upon to ex-
plain the discrepancies upon criminal
charges.
The general idea of the governments
charges against the defendants is that
they were fellow conspirators, partners,
pals, or what you may call them, with
the deceased President Collins, in mis-
appropriatlng the funds received by the
bank. The government believes that
they could not have been ignorant OF
the lapses from commercial integrity of
their superior officer. The indictment
against Gregg, for instance, illustrates
the methods by which the funds
constantly decreased, although the
books showed the proper balances.
When President Collins became short
in funds, after investments in more or
less unfeasible enterprises, the theory is
that he gave to his subordinates some
such instruction as to credit him with
the receipt of $4,000, or whatever the
sum might be- from some eastern bank,
as cash received, and that the money
was not received. Nevertheless, that
by connivance with the officers who
have been implicated in the affairs of
the bank, he was credited with the
money, and that his account always
showed something to his credit. 1t was
almost like Fortunatus's purse, or a rub
on Alladin's lamp; the genius of the
institution was always ahead.
These transactions, be it remembered,
were no petty ones. The president Of
the bank was man of large and specu-
1lative ideas, even if at the expense of
the depositors. He spent no dollars in
cy, neither the seductive turn of the
cards, nor women; but he believed in
himself and his business ability, and
invested in schemes of improvement
that San Diegans should credit him with.
The coy resistance of response
that resulted from these schemes,
wherein he sank near a million dollars
that did not belong to him, taught him
lesson too late, and bullet in his
brain ended it. Hstg if4
!. The men who were with him are now
to disclaim connection with his plane, if
they can. There are many items where
credits are given for money received
which the government claims was never
received, and that the books were fixed
to make it fit. That finally the time
came when the outflow of money so
largely exceeded the amount received
that there could be no Disgusting the
true character of whole series of trans
actions. s94 q svsd sg 55 btH
The O'Brien boys have defense. 1t
I is one which, it is said, they expect to
stand or fall by, and that is that they
were simply instruments in the hands
Of one more astute than themselves.
They claim that they only executed the
orders or directions of their chief, and
that they knew nothing, nor did they
realize that there was anything wrong
in the management of the bank.
The government officials have been
very reticent about the present arrest,
but they do not think there will be any
difficulty about the arrest of Henry OF
George O'Brieh. They have shown nc
opposition to escape, and seem to rely
upon the line Of defense which has been
outlined.
Deputy Marshal Marsh was expected
to arrive with his prisoners yesterday
but as he was obliged to go to Tia Juans
first, it is thought he will come on the
first train with them today.
My hands are as white as snow. Moline