Los Angeles herald., 1892-02-24
A Sensation About San Die
go's Broken Bank.
A Warrant Issued for the Ar
rest of President Collins.
Receiver Pauly Finds 1t Necessary to
Bring a Criminal Charge.
Misappropriation of an Enormous Sum
of Money the Charge-rhe Com
plant Filed by Receiver Pau1y.
The Story ofthe Failure.

San Diego will today probably expert
ence big sensation, in the arrest OF
one of the most prominent bankers of
that city.
A HERALD reporter yesterday met
close friend of Receiver Pauly of the
California National bank of San Diego,
who is so intimately connected with
that gentleman in business and social
ways as to know pretty we'll what he in
tends to do.
Some months ago the southern coun-
try was startled by the announcement
of the failure OF the bank alluded to;
the institution was placed in the hands
of the bank examiners for while, and
then Mr.. Pauly of this city was ap-
pointed receiver. Little has been heard
of the condition he discovered it to be
in since he took Office, but there have
been rumors that some serious results
would soon be made known of a
sensational character. On Friday of
last week the HERALD was given the tip
again, and yesterday after hard work
digging up the facts, as stated above,
information was received OF so reliable
character from friend of the re-
ceiver that the facts as learned are mat
ter for publication.
In brief, these are that a complaint
was sworn to in the United States court
in that city charging President Collins
of the defunct bank with misappro-
priation of the funds of the bank to the
extent of 100000, and that an officer
has gone to San Diego to serve the war
rant, and that the arrest will probably
eoccur today.
The United States marshal's Of
fee officials and other officers
of the court claimed yesterday
that they knew nothing about any
such action, and naturally enough de-
clined to corroborate the assertion, but
it can be relied upon.
More than this it is unnecessary to
state now, but it may be added that this
charge against President Collins is not
the only sensational feature of the un-
fortunate affair.
THE BANK FAILURE.
The California National bank of San
Diego suspended on November 18th, last
year.
The suspension, three months ago, was
the absorbing topic of conversation.
There was no disposition to lay any par
ticular blame on anybody. The three
other banks met all demands with their
usual promptness all day, and there was
nothing to indicate that any failures
would follow the California banks
trouble.
Public confidence in J. w. Collins,
president, and s. G. Havermale, one of
the best known directors, was very great.
The press of San Diego and the people
believed that between them and the
many friends of the embarrassed insti-
tuition everything would be brought
around all right. There was nothing
in the nature of a run on any OF the 9TH
er banks during the day.
During the night succeeding. the
special train arrived from this city with
large supply of coin with which to
fortify the banks in San Diego. The
presidents of the Los Angeles banks
were in San Diego all day, investigating
the local banks, and canvassing the sit
uation generally. They pronounced all
three institutions in perfectly sound
condition.
Bank Examiner Chamberlain arrived
and made an examination. A very good
feature of the situation was that George
v. Sims, of the Lombard Trust COM
pany of London, who came to San Diego
to look about for investments for his
company, and who expected to become
interested in several matters with Presi-
dent Collins, examined the bank and
declared that if Bank Examiner Cham
berlain would give him authority to do
SO he would bring out money enough
from New York and London to re-estab-
lish the bank on sounder basis than
ever. However, Mr.. Sims has not been
heard from since.
DrJUCIHAT CTTr ~rrrnE