The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-04-25
PETER PAYS PAUL.
Royce's Scheme to Meet a
Debt.
HE WAS DEEPLY INVOLVED.
The Great Lawsuit Was to Enable
Royce TO Repay Sums He Had
Borrowed Without Interest.

Little by little the mystery of Colonel
Royce's defalcatons has come to light. He
is now shown TO have stolen the funds of
the Veterans Home Association to make
good certain debts which he owed.
Head over heels in debt as he turns ont to
have been, it was perfect godsend to Royce
when be was elected treasurer of the asso-
citation at the beginning of last year. And,
coundent in the result of the only impor-
tant lawsuit lie had on hand-that of SGeen
versus Hendy-whcreby he was TO realize
at least S25.000 by fees alone. Royce fore
saw, as he thought, certainty of being
able to make good the moneys he drew be-
fore the unSuspectinG directors could find
preteXt TO investigate affairs.
Unfortunately for Royce when within
an ace of accomplishing his deep-laid
scheme he found himself threatened with
exposure, and in weak moment thought
10 take the only means in his power out of
the difficulty.
All this Royce has admitted. To a promi-
nent officer Of The Veterans Home Associa-
ton Royce said Yesterday: 81 have not lost
the money at poker as is supposed by some
have not gambled the money away in any
shape CT form; hut have used the money
in certain sums from time to time in max
ing good my Indebtedness TO certain persons
whose money held and TO whom l stood
in a fduclary position. That is all l have
tC say at present"
50 there is very little mystery attached to
the affair after all. When Colonel Clark T..
~. Royce. the well-knOwn attorney and
politician OF San Francisco, was found last
Friday week in room in the Burlington
Hotel in helpless condition and well nigh
insane, II was popularity supposed that lie
was the victim Of a foul outrage. But when
the truth came cut and Royce was diScOy-
cred to have inflicted the wound upon him.
self IN his desperation, people began to
wonder what he had done with the money
that he had stolen from the Veterans Home
Association.
That lie was in debt previously to his
appointment as treasurer never seems to
have crossed any ones mind. Always a
relicent man, his own personal friends knew
little OF his private affairs. He was ex-
tIemely popular and seemingly well-to-do.
But when man is in Colonel R0yce's
position and has little or no practice, it Is
easy TO see that lie cannot afford to live in
the style he affected and keep above the
world. For some years past his law prac-
lice has consisted not of a steady income
from regular business, but of Two or three
large suits IN which he was engaged and
which he had undertaken ION contingent
ci9s."
The Scientifically case was the one upon
which Royce pinned his faith. This was
suit arising from dissolution of partnership.
Stetu and Hendy came together in the
iron trade in 1872 and resolved to separate
la 1915. FROM this arose a suit in which
Steen sought an account OF moneys with in
terest due him on the partnership by
Herdy. The first Judgment was for $50
81 q in favor Of S,eeD, but the Supreme
Court, on appeal, Ok an exception to some
CT the accounts and reduced the amount
very considerably. The interest was re-
tuced and the result was that n sum Of
SIG59S % was paid by Hendy into court,
Which sum was collected by Royce as
cfee:'S attorney. Now q new Judgment
has been obtained for S16.950 20. Ali this
is shown by The Supreme Court records on
tie first and second appeals.
Royce was NOT satisfied with the judg-
menls recorded, ana has been fighting the
case over again, endeavOrDg to get a larger
sum allowed. The case Will probably be
determined during the next term in the
Supreme Court
All these contingency" suits have not
turned out as Royce expected, and he has
been often pressed for money to meet de-
lGauds for the furtherance Of his schemes.
tx or seven years ago one of ROyce's most
intimate friends knows OF his having been
NEST seriously involved Indeed, at that
line lie did not know where to turn for
money.
Another Of Royce's suits was on behalf of
III RathEob OF Calaveras County. This
was ~uIt respecting a mine belonging to
E7yce's client, which was sold in England
Tor o-uo,0J0. The money was to be paid in
IlslIi.meuts, and these were for time reg
cisco Bank in this city. But after awhile
int company failed TO pay up. and Royce
lad TO take the matter up on behalf Of his
client and much expense and trouble was
sons 10 an the case.
Outside these large litgations, from
which Royce hoped to gain large sums, but
which We're attended with a large amour |
oi risk, Royce appears to have had but
small practice His old friend and ally. ex-
Justice julius Reimer, speaking of him
lass night, said:
when ! retired from the bench and went
back to practicing law my offices were next
door f" Royce's. had thus capital Op-
u0ItunliY OF studying him and his practice.
! can safely say that he had not many
clients, and when / heard of his removal to
eHsive Offices in the Croker building l
"as staggered. l was convinced he could
NOT afford it."
Nor did Royce stint himself in his home
expenditure. He has a most comfortable
Trsid nee on Pacific avenue, which is said to
cost him $500 Der month to keep MP, and he
apparently had always ready money at
his command.
But repeated calls upon him from estates
which lie handled and the necessity Of con-
unualy advancing money for the further
aucc uf his lawsuits rendered him after awhile
insOlyent, and the temptation given him by
reason OF the ample funds at his disposal
q 'Se belonging to the Veterans Home
esoc.ati0n-proyed too strong, as Royce
himself admits and thinking to clear him
nave rendered an absolute decision in his
favor. he helped himself from time to time
as occasion demanded.
s. good deal Of gossip has arisen from the
fact ttat J. d. Napier, wealthy resident
Of Ohio, and relative Of Mrs. Royce holds
an assignment from Royce Of his interest
ia the S,een lawsuit Royce when ques-
toned on that point yesterday said: 81
was financially obligated to Mr. Napier
and. being in q hole, and not knowing what
a fuff artff -,
him"
Mr. Napier has since come forward and
expressed bis perfect willingness 10 have
the assignment reconYeyed to the directors
OF the Veterans Home Association and to
thereby fOreg0 Ills claim.
Another sensation has been caused by the
remarks OF Judge Ham of Napa, who
threatens to bring the whole. matter before
The Grand Jury and TO prove criminal negi-
gence on the part of the directors. But his
remarks are commented upon rather Sc
verely by one of the directors, who says
that the Judge is angry because he failed to
get reelected to the board.
Be the truth what it may, it seems strange
that the directors of a benevolent public
Institution like the Veterans Home Asso-
citation should be willing year after year to
elect treasurer without requiring bonds for
bis fidelity. Their fault is Iectifed now, it
is true, but too late. In order to make up
the deficit the directors will have to pinch
here and scrape there, and some one is 60
Ing 20 suuer.
But the directors are trying all they know
TO ind some means Of restitution Of some OF
the money.
IF we could but get some Of it back"
said w. c. Burnett, president Of the assoc-
alton, I'VE should show the public that we
are doing something. But fear it will be a
difficult task"
It is asceriained beyond doubt that
Royce did not steal by means of false
checks. No money once deposited TO the
associations account at the First National
Bank ever found its way out without the
check being counterslgned by the pres-
dent. 50 that it is very evident that Royce
received money from time to time and
simply placed It 70 his own account in
place of that Of the association.
And the manner Of his dealings with the