The herald., 1893-06-27
ATToRNEY-GENERAL HART.

The Chronicle Publishes q Criticism of
Hts Da"a.~t
The San Francisco Chronicle of Sun
day published an attack on Attorney
General Hart and his relations to the
Pacific bank, from which the following
extracts are taken:
The most serious thing yet brought to
the surface is Attorney-General Hart'e
peculiar relations to the bank. In jan
usry last the bank commissioners re-
fused to pass the Pacific bank, and,
under the law, notified Mr.. Hart of the
fact officially.
He did not take any action looking to
the protection of the stockholders and
the depositors, but permitted the funds
to be further wasted by sending more
good money after bad"
In the meantime, however, he became
debtor to the bank in the sum of
$lS 900, which may be all right, but has
a mighty suspicious look, in the light of
his past conduct.
The Chronicle mentioned the fact
that Mr.. Hart was q heavy borrower
from the bank yesterday.
'I owe to the Pacific bank about
5000" said Mr.. Hart. '.'Tsn thou
sand dollars of this borrowed before
became attorney-general. Since that
time my account Increased to the figure
given. They hold gilt-sdgsd securities
to double that amount, consisting prin-
cipslly OF mortgages on real estate"
After making thie statement the at
torney-eenersl desired to explain mat
ters. Insisting that bis words be put
ANxr,. sv,k khaf int
spoke as follows: 'The fret intimation
received OF any need OF my interfer-
ence with the Pacific bank wss when
the baak commissioners notified me
that the McDonalds we're indulging in
wild speculations and that ought to in
vestigate the affairs at their bank.
Il Immediately did as requested, and
| found that the Pacific bank owed $685.
600 to the Home Savings bank, 81, 400,
900 to the depositors, and between $400,-
| 900 and $500,000 to New York banks.
Appalled, by such state Of affairs, I
consulted several financial authorities
in this city on the subject, and they ad-
vised me to go easy. | was told by
them that a closing of the Pacific bank
at that time would precipitate run on
/ all the banks, and that an unexpected
crash OF that nature would cause gen.
eral financial panic.
81 was absent from the state So days,
during which time | met DR.. Med nald
and Frank D. Mcdonald in New York.
There l called their attention to the fact
that the Pacific banks indebtedness
must be lowered. AS result the Peo.
ple's Home Savings bank received am.
Pile securities to cover the $63S 900 debt
making that bank as solid as any SINH
lar institution in the state. Some $500.
600 were paid to depositors besides.
Had | closed the bank in December
or even in April the financial crisis
which commenced in New York, April
9th, would have had it's beginn ng in
this city, and great many OF Caliior.
MAS financial institutions would have
been wrecked. AS it stands now the
Pacific bank was some 81, 800 600 better
off on June 22d, when it finally closed
its doors, than it would hsvesbeen had
insisted on a suspension of business
earlier in the year. My private sccount
with the bank did at no time influence
my actions as state officers. am vel
enough off to be able to owe S100,00t
and to secure my creditors amply /
necessary"