The morning call., 1893-05-16


interest on note.
Most of the directors were out and in
the bank during tie day. and affairs were
generally discussed, but no regular meet
ing was held.
An INTERESTED spectator, who is watching
ON behalf of his fellow deposItors for
something to turn up, was Justice of the
Peace Harrington. He does not believe
in the passive condition of the directors of
the bank, and thinks that mueh more
aggre ssive policy in regard to those re-
sronsble for the banks rotten condition
would be in better taste AMI more business
like.
1t is utterly impossible to say yet, and
Mr.. Knight is the authority for the state
ment. what the loss will amount to.
Things are in such tangled shape vet that
no one can give anything but a mere guess,
which might be very wide of the mark.
How is 1t possible when it will not be
known for some time yet how many of the
notes held by the bank are forged and how
many are genuine? As one of the direc-
tors said to-day, there has been far too
much theorizng in figures. with nothing
tangible to work upon.
Director J. H. Dibble told your c0rre-
spondent to-day that banker from Tucson,
Arizona, was prepared to step In and con-
tinue the banks business. taking over all
the unuuestionably good securities, the
balance to be met by the shareholders.
providing there was not enough TO pay off
the depositors in full. His idea is TO get
some Of the old directors to join him if pos
sible, 80 as to bring in local influence and
confidence. He is said TO BE worth from
100000 to 100000.
Popular opinion appears to be decidedly
veering round against President Pierce,
and it is openly asserted that he knows
far more about Leonard's transactions
win the banks funds than he cares 10 ad-
NIT. His action. also, in granting away
within the past year, after he had formed
the James p. Pierce Company, all his
shares, except the five now standing in his
name, is severely criticised. 1t is being
discussed pretty generally as to whether
such an appoin tment, considering all the
| circumstances in connection with the
ank, could not be declared Illegal. Mr..
Pierce was seen by your correspondent to-
day and said:
1T was only last Tuesday morning that
l first heard of the banks condition, and |
had no suspicion prior to that time that
anything was wrong. | was in San Jose
that day on business and had no particular
reason for visiting Santa Clara. Director
| Franck knew about it first. | object most
emphatically to the newspapers referring
10 my private affairs. 1t is none Of their
business. l will say this, however, that
about year ago l formed the James P.
Pierce Company. At that time | divided
the shares | held in the band.
THE James p. Pierce Company and my
girls hold nearly 1000 shares, 700 of that
number being in the name of James Ralph
of the Bank of California, San Francisco,
as trustee of James P. Pierce. l retained
five shares to qualify as director, and five
each were put in the name Of my two sons
to enable them also to qualify as di-
| rectOrs."
III ad you any intention OF crawling out
OF your liability by apporiioning those
! shares, as has been charged?" was asked
u had not. Mr.. Franck, to whom that
expression is attributed, denies that lie
made use Of it. The shares are still in the
| family"
What about the $4,000 forged note?"
81 never heard of it till Mr.. Knight told
me of it day or two ago. It was used to
cover up deficits, but l never knew Of it..
| Why, | wasn't in Santa Clara from Sep
tember till March. being sick at home"
How are things looking at the bank ?'
They are very much tangled up and
nothing definite is known yet. The prin-
| cipal defaleations are in interest-beai
| certificates, which will amount TO between
100000 and $4,000. We will have to 60
| back for years to find out their full ex
| tent"
! AS surmised. the rumor that Leonard
| had fed had no foundation, as shown by
! Mr.. Knights statement. Your corre-
| spondent called at Leonard's house this
morning, but permission to see him was
| gently yet firmly refused by Miss Leonard.
She said that her father was somewha at
better to-day. but Dr. Pierce mad given
strict orders tnat he must not be spoken 10
nor agitated. Hayward's brother also en-
deayored 10 see him, but with no better
success.
A meeting OF Leonard's creditors was
held this morning, but it was secret.
1t was well attended. After an informal
discussion of the situation it was decided,
on the suggestion of Attorney ID. w.
Burchard of Spencer & Burchard, attor-
neys for Sheriff Belinger, receiver OF the
estate. to file petition for an order of sale
OF the personal property of the insolvent.
which consists chiefly Of mining stocks
and half interest in 100 tons OF
hay. There is some contention regarding
the ownership of the mining stocks, Leon
ards creditors claiming them, Hayward 5
heirs also claiming them, and the bank
laying claim to a portion OF them. Owing
to the uncertainty as to the value of these
stocks, nothing definite can be ascertained
as to the amount of the insolvent's prop.
erty that can be sold for the benefit of the
creditors.
Attorney Burehard was seen by your
| correspondent after the meeting ad-
Journed. He declined to make any state
ment as TO what developments there will
be, but he intimated that at the proper
time all the property of Leonard would be
brought into the hands of the receiver and
that there were strong circumstances
showing that it was not all in the
schedule. 1t was, he said. not so easy to
hide property as one would imagine, and
the ins6lyent would doubtless account for
various sums drawn by him from the
bank so shortly before it closed its doors.
He had no doubt that Leonard would be
compelled TO disclose the presence of this
money.
F. E. Hayward to-day applied for special
letters of administration upon the estate
of his brother. The application was
granted by Judge Reynolds, owing to
urgency. II appears that number OF
horses and wagons belonging to deceased
were left in charge Of man living on the
Los Gatos road, and since Hayward
death il is said that he has left the coun try,
leaving no accounting for the property lett
in his charge.
BROKEN WATER VALVES.
Cause of the Delay in the Departure
OF the Alliance.
VALLEJO. May 1.-THE United States