The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-05-14
TISSUE OF FRAUD.
Continued From, First Page.

uuch hotter, am not pessimistlc IN my
views Int am simply telling you what l
bonastIy feel. l do not believe President
pierce knew anything OF Leonard's and
Uavward's shady transactions. He puts
Tho whale blame upon Leonard. whom he
stipmatizes as a cold FLOODED man."
In opposition TO this dark side of the
story 5. F. Lieb. attorney for the bank,
told YOUR correspondent to-uight that not
only would the depositors be paid in full,
but there would be over $4,000 left to be
divided among the shareholders. This, he
said. was without including any supposed
dividend from either Leonard's estate or
Hayward's estate, and allowing So, 600 for
contingencies. 1t also included the $50, 600
for certificates of deposit not entered on
the register. But. he added, in making
that statement, it was provided that some
thing unexpected did not turn up.
Mr.. Leb was asked as to fresh develop
ments. lie admitted that money had been
taken from the bank by Leonard and Aay-
ward on their personal notes to such ex
traordinary extent as to bring their opera
tons under the designation of fraud. lie
was asked as to the more startling de-
Veopments, but declined to commit him
self. pointing out that. as attorney of the
bank. lie could say nothing. He admitted
that there was collision between Leonard
and Hayward and something had been dis
covered of more serious nature than
fraud, which he hoped might vet be salts
factoriiy explained away.
From other reliable sources il was
learned that Leonard drew considerable
sum from the bank on Tuesday, the day
before it closed. The amount is yariouslv
stated from 5000 to $4,000. 1t is also
stated that a respectable workingmau
named Morse late Tuesday night saws
man leave the bank with what looked like
a bag filed with coin in each hand. which
were held under his coat tails. Thinking
il was probably some one robting the bank
he went up to him and was surprised to
find that the man was Viee-Pre sident
Leonard.
An effort wac made to see Morse to-
night but without success. Information
was, however, received from reliable
source that Morse had publicly made the
statement.
That Leonard is not shamm ing sickness
Is beginning to be believed. Those who
saw him Tuesday and Wednesday saw he
was looking haggard and careworn. Your
correspondent visited his house tonight.
bnt was unable to see him. The family
doctor is in almost constant attendance
and fears brain fever. lie has therefore
given orders that the patient must not be
disturbed by callers. he was, after con-
siderable difficulty. seen in bed Yesterday
morning by Directors Franck and Dibble,
but what then took place is not divulgsd.
The deposltors are up in arms 10 defend
their rights. This morning circulars were
distributed through Santa Clara signed By
f. B. KinstOn. Town Treasurer, and
others calling meeting for tonight in the
town hall. The meeting was largely at
tended and the greatest interest was mani
Tested in the proceedings. The object OF
the meeting was to ascertain who would
be willing TO act in emergency. Speeches
were made, in which Vice-President
Leonard and the directors wers roundly
denounced for the rottenness of the banks
affairs.
As showing how strong the feeling is in
the matter it was vigorously discussed as
to whether it would not be advisable for
the depositors TO employ an attorney and
expert accountants to act for them and see
that Their interests were duly conserved.
One speaker declared that they must do so
II avoid any possible chance Of collision
against them. No final action was taken,
but another meeting will be held to further
discuss matters.
After the meeting had adjourned. the
deposiiors gathered in knots on the street
and eXcitedly discussed the situation.
Although the feeling was intense no
threats of violence were made, but it was
evident that the guilty parties will not be
allowed to 60 UNPUBLISHED.
The aged mother and brother of the late
Cashier Hayward have arrived here from
Trenton, Ohio, tor the express purpose of
defending and vindicating his reputation.
They firmly believe he was innocent, and
that Leonard is trying to shield his own
reputation by throwing the blame upon a
man who cannot defend himself.
Further startling developments are ex-
pected Monday.