Los Angeles herald., 1892-02-25
Marshal Gard Nabs Him Yes
terday Morning.
The Transactions on Which the
Charges are Based.
Collins Says He Has Expected Grim
inal Proceedings.
The ssHerald's" Exclusive Publication of
the News Yesterday-Marshal
Cards Statement of
the Arrest.

Yesterdays HERALD contained the
statement that complaint had been
sworn to charging President J. w. Col
lins of the California National Bank of
San Diego with embezzling 5000, 900 of
the banks funds. This, like all other
items of Importance, was published ex-
clusively by the HERALD, the San Diego
papers even not mentioning anything
about the matter.
COLLINS ARRESTED,
An Associated Press dispatch received
yesterday afternoon about the affair,
read as follows:
SAN DIEGO, Feb. 24.-J. w. Collins,
president of the California National
Bank, which suspended November 10Th,
was this morning arrested by United
States Marshal Gard on orders from the
attorney-general at Washington. Col
Tins is charged with embezzlement to
the amount OF 100000. He will have
preliminary examination before Court
Commissioner Ward. Until yesterday
there were strong hopes that tina bank
would resume, as 80 per cent of the
stockholders had arranged to meet the
necessary assessments.
MARSHAL CARDS STATEMENT.
United States Marshal Gard, who
made the arrest, was asked to send the
HERALD statement of the matter, and
kindly replied as follows
Special dispatch to the HERALD.
SAN DIEGO, Feb. 24.--I arrested Col
Inns this morning as he was coming out
from breakfast. He was perfectly col
lected and said: 81 expected something
like this.' took him to my room and
sent for United States Commissioner
Ward, who fixed his bail at $50, 900,
which is not yet given; his presumed
hackers being almost bankrupted by
the bank failure. G.
CHARGES AGAINST COLLINS.
The charges against President Collins
for embezzlement of the 5000, 900 en-
brace number of counts based on vari-
GUS transactions. From a person familiar
with. the result of Receiver .Pauly's in
'vestigations, a statement of the allie
cations on which the complaint is based
was obtained yesterday as follows:
4 When Receiver Pauly commenced his
investigation he soon discovered certain
facts that excited his suspicion. The
bank, you perhaps know, when it sus-
pended, owed its depositors something
over $700,000 and had other liabilities
amounting to $500, 1000. Hundreds of the
poorer people of San Diego, who were
attracted to the bank because it paid in
terest on deposits, have lost their ali.
The criminal charges are based on the
facts that are said to be shown by the
books of the bank; one of these allega-
tions is that there were many certif-
Gates of deposit for thousands of dollars,
issued by the bank to Collins, and which
were negotiated abroad, when at the
very time they were issued there was
very little if any money in the bank. 1t
is also asserted that collaterals deposited
by debtors to the bank as security for
loans, were taken out and hypothecated
everywhere and anywhere that loan
could be obtained.
1t is further asserted that several de-
posits were received after banking hours,
on the last day the bank was open for
business. One of these instances was
the deposit of $1,000 of the funds of the
fire department by the chief. 1t is on
such transactions as these that the
charge of embezzling the 5000, 900 is
based.
The city of San Diego loses by the
banks failure over 100000 and the
county over 100000.
The banks creditors have been expect
ing to see the institution resume, which
is now impossible.
The complaint,w which was issued some
days ago by United States Commissioner
Van Dyke of this city, sets forth that
Mr.. Collins, while president and director
of the California National bank, did
embezzle 100000 of the funds OF the
bank.
OTHER DETAILS.
1t is rumored that further develop
ments just as sensational as Mr.. .Collins's
arrest are likely tofollow.
The warrant for Mr.. Collins was issued
last week, and since that time has been
in Marshal Cards possession. On Tues
day night he received orders to make
the arrest, which he did as above stated.
Marshal Gard handled his task with
discretion and skill, and deserves credit.
Courage. Girl Graduates.
The most recent discovery (regarding
;o +bot brains