The morning call., 1893-05-18

losing every cent they were possessed of.
Almost the whole Of the assets consist of
personal notes Therefore the only black
spot on the rosy color OF the report is, How
many of these notes are forgeries? As
Knight says, 1.-THE only way to determine
this is 10 see the makers of each note" As
there are somewhere between rs and 100
makers scattered all the county it will take
some considerable time to see them.
When knight made his examination last
December there were $4,000 in notes, of
which he made a list, and which are now
missing. Knight, as stated in this morn
ing's CALL, saw Mr.. Scully and another
gentleman who asserted that their notes
were forgeries, and the presumption is
that a great many are on the same footing.
Were these notes now missing replaced by
other forged notes and included IN the
assets is the question still TO be answered.
and if it is answered in the aff1 native
then call of 10 per cent would unQues-
tionably be necessary.
Cashier Brandon will continue his work
of exporting the books and will incorporate
the results in the form of addenda to COM
mis- ssioner Knights report 1t will take
him few days yet. He does not expect
that there will be much to add.
Cashier Hayward's brother said to-day
that the only notes found against his
brother were joint note with Leonard
for S250O and his own note for $500, max
ing together $4,000
Something curious hangs upon this.
Leonard, in giving his liabilities last week,
put his Indebtedness to the bank at about
$4,000, but held himself also responsible
for Hayward's indebtedness, which was
given out from the bank as 500, 600. This
now would seem to have been intended for
S290O
Leonard. assuming Hayward's response
bility, is down as owing the bank S1S5,000.
If the difference between $4,000 and $1,000
is taken from S135, ,000 it will leave SOS, 300,
LeonaEd's original statement Of his in
debtedness. Assuming this to be correct.
there would not be over $4,000 in forged
| paper. as $40, 600 is accounted tor in fraud
| ulent certificates of deposit In partial
| confederation of this assumption. when
| Leonard, who is slowly improving, was
seen this morning by j. A. Horne berger of
| Mountain View, one of his most intimat te
! friends, he said it would be found that
! things were not nearly so bad as painted
! That remark was make before Knight was
| in position to know what his final report
would be, so Leonard could not have got
any tip.
A Santa Clara paper in its issue this
afternoon about o'clock tbeing held back
| for the commissioner reporO contained a
bitter attack on bank-looters. Several hot
headed individuals were loud in their talk
of lynching Leonard, but it was nothing
but talk. What iniensifies the feeling
against Leonard is that, although he knew
| two days before the bank closed that the
| jig was up, he took in all the money he
could get on deposit the next day and even
got checks for tidy sums from business
men and others.
Leonard is. it is understood, acting under
the advice of his attorney IN keeping his
mouth shut. He will not speak unless he
| is compelled to do so in court. and it is be-
lieyed he will escape that ordeal. 1t is
openly stated here that powerful Influences
are at work to prevent the arrest OF Leon
ard on criminal charge, so as to preclude
an investigation in court of the bottom
facts concerning the wrecking of the bank
lest other regulations should suffer.
Commissioner Knight is being handled
without gloves for not being more careful
anu AZ idSt ttt-
tcember, II is claimed hat w hen hg dis
covered President Pierce's $4,000 note he
should have then, considering that it repre-.
sented so large an amount. have made it his
duty to have seen Pierce about it.
Whether or not the knowledge of this
feeling against him has reused his dander
ne has been singularly irritable ard unap.
prOachabie since Monday. %H'
IL is now known that there are at least
three wealthy men anxious to start q ban /
in Santa Clara, and even if the deiunct
bank is again brought to life another one
will likely be started in opposition.
An absurd newspaper canard, to the
effect that the bank depostors yesterday
determined to apply Ior writ OF attach.
ment so as to throw the bank into the III
solvency court was the cause OF much
mirth here this morning. Justice of the
Peace Harrington. chairman of the recent
depositors' meeting. said the depositor.
were not pack of fools. No such thins
was ever dreamt of
] Another equally absurd report was cir
culated that the towns funds, amountins
to 1000. being on special deposit. wouk
, be lost, as Leonard would be personally
responsible for them. The funds are oI
ordinary deposit aud will be repaid alon,
with thr others.
,