The morning call., 1893-12-20
JUNE COLLECTIONS NOT PAID.
Are Tied Up in the Pacific Bank
Failure.
HE FOLLOWED AN OLD CUSTOM
And Deposited in the Insolvent Bank
:: Is the Reason Why tie Will
2. Stand Suit.

EThs proba bilities are that there will be
another suit growing out Of the failure of
the Pacific Bank filed in the Superior
Court before many more days pass away.
Should this come to pass. the title of the
case will likely be: The State of Califor-
MIA plain tiff, VS.. j. n. E. Wilson, State
Insurance Commissioner. defendant.
At tbs time Of the failure of the Pacific
Bank, in June last. The CALL published
the fact that among those who were
caught IN the crash was the State Ipsur-
ance Commissioner for the sum OF
5000 81. At about the same time the
r Commissioner addressed a letter to the
Controller of State, e. p. Colgan, notify
ing him that this amount was tied up in
the defunct institution. In this letter the
Commissioner cited that, following the
custom established by his predecessors, he
. had. during the month of June, from time
to time deposited in the Pacific Bark the
State funds of which he was custodian.
tn view of this state of affairs-that the
bank was .lDsolvent-he said, he was not
able 10 forward the June collections, and
deemed it proper TO notify him officially of
the state of affairs.
This letter was productive Of a reply
that whether the Commissioner deposited
somewhere else was q personal matter
with himself, but that the law required
that a remittance be made every month
Several letters of this character passed be-
tween the controller and Insurance Com
missioner. and on December II the uti-
matum OF the Controller was received at
the Commissioners Office IN the folio
letter.
SACRAMENTO. December II, 1898.
Hon. j. ". Il. " WlIsOn-DEAR SIR: L beg TO
again refer you TO the matter OF the receipts
and fees of your Office for June, 1898 which
have not yet been paid by you into the State
Treasury in accordance with the law, and iu
ILLS connection TO call your attention TO my
particularly the latter, which still r mains un-
answered. According 70 your letter of June
80 tue amount OF fees collected by you during
june 1898, is S29S8 Al. Demand is hereby
made on you TO forward to me Immediately an
itemzed statement showing the amounts col
lected by you IN your Capacity as Insurance
Commissioner during June, 1898 and TO nav
immediately into the State Treasury the amount
shown, by such statement 10 be collected. If
this demand be not complied with within tweu-
ty days from the date hereof / shall state an
account against you, as provided In section
437' Political Code, and bring an action against
:: E. P. CoLGAN.
On the date Of its receipt and since that
time Mr.. Wilson has been in Mexico look
Ing alter some mining property he has
there. He will not arrive home until
$50. unaware that the civil suit will
~ ht. 4 message was received from
|z d lis deputy, from San d ego yes
rday Saying be would leave there for
y pine on the next boat 1t is almost cer-
saip fact. however. that when he has been
made acquainted with the determination
of the controller to bring suit, he will de-
eide to let the matter go into the courts.
as he has already expressed himself during
the controversy between the two Offices
shaT h. not NIL ind
was rendered against him. The ground
. taken by bin for this stand is that in
: placing the funds Of the State in the Pacific
: Bank he was but followiD ing a rule estab-
llshed since the creation Of the Office OF In
surance Commissioner.
.~'. EEe amount of money collected by the
effiee during the month of June last was
S2g8S Al. OF this amount $500 was used in
:the paymens of salaries and clerk hire and
S587 80 lies tied up in piece of paper in
the Commissioners safe and marked,
'.Ra1ancs of June collections" The rea-
sons why this portion of the collections on
hand has not been forwarded is that the
Controller could not give a receipt for part
payment on any month. Thus it is the
mOney must remain where ii is until the
case is settled.
Deputy Insurance Commissioner N. NJ.
RhoTer, in the absence of Mr.. Wilson,
yesterday made the following statement of
the case:
- nave Deen IN my present DOsltlOH lot
eighteen years, passing through several
ADMINISTRATIONS. With but one exception,
that of Mr.. Wadsworth, it has been the
custom of ALI Commissioners since my
time, 20 deposit the State funds in the
Pacific Bank. The safe furnished this
Office by tee State is a very poor one and
notaL all safe depository for monthly
collections. 1t is my impression that dur
ing one Of the administrations a request
was made for new safe and was refused.
Under these circumstances the money
collected must be deposited somewhere,
and Mr. Wilson, following his predeces-
sors, eHoss the Pacific Bank. l cannot
say what Mr.. Wilson will do In the mat
ter, as lie has not said anything to me
about 1t, but it is my impression he will
let. Yt 60 10 trial. / learned this morning
That Deputy Collector Douglass was in the
= city yesterday, but whether on this matter
or lot do not know, as he was not in this
!: Office at ALL"
The collections of the Office for all
months both prior to and after June have
been regularly remitted, this one month