The morning call., 1893-04-29
AFTER DIRECTORS.
The Grand Army Will Stir
Things Up.
THE VETERANS HOME STEAL.
The Directors May Have to Pay
ROyce's Shortage-A Merry
War Promised.

OF the association and from all reports the
Grand Army and Mexican veterans are
going to make it extremely uncomfortable
for somebody.
Apropos of the coming trouble ii may be
said that there Is no question in the minds
of several lawyers of this city that the old
board of directors of the Veterans Home
Association, which elected c. Z. X. Royce
their treasurer, are liable for the amount of
his defalcaiiOn and the majority of the
members OF the old board are painfully
aware of this fact.
The Veterans Home Is quasi public
institution receiving support from both the
State aud the United States. 1t is said
that under tile articles of incorporation of
the Veteran Home Association the direct
ors are bound financially and otherwise for
the action of the officers they elect. Their
constitution says that the directors shall
elect from among their number certain
committees, among which is an auditing
committee, and 1t goes on to say that:
The auditing committee shall examine all bills
and claims against the association, and il found
to be correct shall ind0rse their allowance and
approval on the same In writing, and no order
shall be made for The payment OF ANY bill or
claim until IL is lndOrsed, allowed and approved
Dy such committee, ana must previous 10 each
quarterly meeting OF the board examine the
books OF the secretary, treasurer and any other
officer who may transact business In behalf OF
The association, ana must report fully thereon TO
the board at such meeting.
That this was not properly done in the
case Of Treasurer Royce goes without say
ing, and while the constitution and bylaws
OF the association say nothing about the
financial liability of directors for failure to
obey the rules laid down the lawyers say
that the laws Of the State, under which the
Veterans Home Is Incorporated, do specify
distinctly that the directors of the home
shall he liable for any loss of moneys due
to their negligence.
James A. Waymirp, William j. Ruddick,
Samuel Deal, +. II. Herrlck. George ii.
Stevens. w. c. Burnett, 81. T. Hnbbert, w.
II. II. Hart, c. Z. X. Royce, L. d. Ham ard
NJ. ID. Hyde, and these are the men upon
whom the burden will fall of reimbursing
the association for the defalcations of
Rovce
Yesterday afternoon the executive COM
mittee OF TIE present board of directors of
the Veterans Home met with W. ii. Jordan.
the counsel selected to act fer them In this
matter, and had long conference. While
it is not authenticity stated, there is never
theless every reason to believe that even
should Royce succeed in recovering double
the verdict in the Steen-Hendy case that he
has a right under the decisions TO expect
the association would still be unable to col
lect dollar from that source.
1t is also minated that Royce has not
only assigned his interest in the Steen-
Hendy judgment to Mr.. ROthgeb of Ala
media, but that he has also assigned that of
his client, Mr. Sleen.
Royce's contract with Steen was for one
half the amount recovered and all costs and
expenses which he, Royce. might have in
Cured in the suit. When Royce wanted to
assign his Interest in the judgment Steen as.
sented and il is said Royce secured his as
sent in such a way as to use his clients in
terest in the Judgment as well rs his own.
This inference is borne out by the fact that
Royce assigned $40, 300 of a S37, eco Of which
he was only to received one half.
Again the Plumas County lands are found
to be in the possession of other parties by
deed and not mortgage. So that the out
look for recovery by the directors is not
bright. They dou't want to shoulder
$4,000. but it begins 10 look as if there was
no other way out of it, especially if the in
depreciation of the law under which the
home is Incorporated is correct as given by
several good lawyers.
Royce is getting better, out now that he
knows he is going to be prosecuted it is
probable ne Will cease making oyeTtures for
restitution OF the stolen funds and stand
trial on the whole count.
The newest phase Of the matter was
brought ont last evening at a special meet
ing Of the Grand Army. held in the depart
ment headquarters on Eddy street
The meeting was called by Department
Commander E. c. Seymour and was at
tended by the DOS department command
ers and members Of tile Council of Ad-
mInIstrati0n.
Briefly stated. the meeting was for the
purpose of devising the best means TO clear
the department Of the odium that now at
taches 10 Ii on account of the disclosures in
the Royce case.
The main result Of the meeting was the
appointment of committee of five TO at
tend the meeting of the Veterans Associa-
tn Ia Iai Mnudatv fnh
meeting is called for the purpose OF investi-
eating the action of the directors of the
Yuuntville Home, and il will be the duty of
the committee appointed last night to rep
resent the Department of California Of the
6. 4. r. at this meeting.
The situation which requires such
course Is described as a wheel within Il
wheel" The directors are elected from
both the Veterans Association and the
Grand Army Of the Republic in the follow
ing manner: twenty members Of the
Grand Army and five of the Mexican War
Veterans are selected, from which the di-
rectors are chosen. Eleven Of this number
are elected by the votes Of the entire
twenty-five
This method has proven to be source Of
some miSundcTstandings, and has led to the
Charge that wel-organized ring has been
able 10 conduct the affairs OF the home for
years.
After the meeting last night Department
Commander Seymour was seen by re-
porter OF IHE CALL. The meeting" he
said, was called simply to adopt measures
for the protection Of the department. We
hardly anticipate any trouble, and in that
case there will be no call for a committee,
but In the event that the Veterans Associa-
ton sees fit to refuse some demands which
We propose TO make the committee will be
July prepared TO take decisive action in
the matter.
mo, ii is not possible to tell what will be
done at the meeting on Thursday night
Some specific action Will be requested, but
whether such action will be taken or not
cannot be told at this time. Upon the ac-
ton taken Monday night depends the
course which the committee appointed to-
night will follow"
Major Warfeld. past grand commander Of
the department, made similar statements
tie said that the committee appointed last
night were all members of the Grand Army.
who had occupied high positions Ia the
department, and in whom the comrades had
the highest confidence.
We look to this committee TO clear the
department OF all charges which might he
made against 1t, growing out of this affair."
II IL is found that the directors of tue home
have acted in negligent or unwarranted
manner, II Is probable that some resIRna-
ttons will be asked for.
The committee Twill see that the affairs
OF the nome are Strengthened out and
placed In such shape that there can be no
further scandals. On Monday night the
eommitteelwll be fully prepared to act
There are upon II two men OF recognized
business ability and one of the best lawyers
In the State
Another outgrowth OF the meeting last
night VIII be movement TO place the
1ountville Home under the charge OF the
Government. 1t vas the unanimous sense
OF the meeting last night that plans be
formulated whereby the matter could be
brought up IN proper shape at the next
Grand Army encampmeni of the State
Department. An attempt will be made
then 10 have the department unit for The
proposition.
POOR WORK CONDEMNED.