The morning call., 1893-05-15
HAS HE FLED ?
Talk in Santa Clara That
Leonard Is Gone.
DISCLOSURES EXPECTED SOON
A Syndicate Will ReorganiZe the
Bank, and Depositors VIII Be
Paid-f1ay yward's Funeral

SAN JOSE. May "a. To-day's quiet has
given people interested more or less in the
Bank Of Santa Clara an opportunity to
moraliZe upon the instability CT human
affairs. But Sunday though it was, it did
not prevent the topic which was upper
most in peoples minds from being freely
discussed.
Attorney Lieb's statement cf yesterday
that depositors would be paid in full and a
fair amount left over for the stockholders
unless something unforeseen cropped up,
has done much TO alIay excitement among
depostors.
Town Treasurer Kington. who is a large
deposltor and has championed the cause
OF other depositors, was seen by your
CORES poEdent Tonight. He was one of
the most vehement in his denuueiation of
those concerned in the banks rotten con-
dltion. lie now believes implicitly in
Lieb's Statement.
But where is the money to pay deposi-
tors o come from ?" he was asked.
From mortgages and first-class secur-
tiles on real estate" was his reply.
"Lieb told me that there could be no
better securities Of that character any
Will not, however do to force real estate
upon the market now, as it would entail
considerable loss
fancy, however, that a syndicate of
wealthy men, among whom may possibly
be some of the present directors, will step
in and undertake to pay off the depositars
in full and continue the banking business,
taxing mortgages and other assets of the
hun Tor - l.
l am giving this as my individual opinion
but 1t is shared by others. The bank is a
necessity here, and they might Just as
well do that and inspire confidence in the
people.
Tho depositors will net hold another
meeting unless an emergency arises. 1t
Will probably entirely depend upon what
to-morrow's investigation may bring forth.
We are satisfied to wait, having every con-
fidenee so far that every ones interests
are being conserved. There is a growing
feeling. however, that something still
more startling will be developed to-mor-
row. but personally am of opinion that
the defalcatiOns OF Leonard and Hayward
do not extend further back than Decem-
Der, 1891, and not much more can be dis
covered
There is no desire on any ones part,
so far as l know, to legally punish
Leonard.
Business men here have known him So
intimately for so many years that they ap-
plrent y have no desire to proceed crimi-
nally against MIN. All they want is their
share of the money he is supposed to have.
|. appears that the total defalcation, SO
far, will not exceed S16J, ,O00 and it is only
recently when the stocks took tumble
that the greatest proportion of that amount
was misapproprIated."
II is quite refreshing TO find shrewd
business men talking in such a manner
about the man who has swindled them out
ofufousands Of dollars and even committed
the grave crime of forgery and willfully
misIepresented facts TO tie directors aud
Bank Commissioner Knight.
1t was common talk on the streets oil
Santa Clara today that Leonard's sick.
ness was all pretense and that he was no,
at his residence, but had quietly slipped of
to parts unknown, although thinking men
do not place much, if any, credence upon
this rumor.
Still it shows TO what extent mems in..
aginations will lead them. 1t is argued in
of the family and the family do ctor has
stated that Leonard is sick in bed Since
Friday morning. when Directors Frank and
Dibble called at his house. no outside per-
son has spoken or s5en him.
Your correspondent called at Leonard's
house tonight about $50, but it was all in
darkness. and no one resi- ponded to the re,
peated ringing of the doorbels
Leonard is undoubtedly the man who is
most blamed. Hayward is universally
spoken of as having been most conserva.
tive in his dealings and moda of life, and
1t is thought that he may have been
brought under Leonard's thumb at first
quite innocentIy and then had fallen an
easy prey.
His body was inferred in Santa Clara
Cemetery this afternoon. There was 4
large number Of prominent residents at
the funeral. Including many depositors OF
the bank and some Of the directors.
The pall-bearers were j. G. Mcmillan.
F. c. Frank, X. Il. Donovan, C. C. Morse,
John Widney, Louis Duncan. George Glen
denning and A. Hicks. Rev. Mr.. Need
ham of the Methodist Church officlated,
and during tile short service paid a glow
ing tribute TO the memory of the de-
ceased. The mother anu brother were the
chief mouTners.
Deceased's brother was seen tonight,
and Notwithstanding the developments OF
yesterday he says he is as onfident rs ever
that he will yet be able to vindicate the dead
cashiers good name. He will remain till
the investigation is completed He has
asked permission from the directors to be
present at the exnprtinr of the honts nd
1t was readily granted.
There is one important point that seems
to be little talked about in referring to the
possibility of paying The depositors in full,
and that is tile liability of stockholders.
Supposlng the total deposits, including
those which were not on the register
amount to 100000 at least two OF the di.
rectors are reported tn be each worth that
amount, leaving all others entirely out OF
the question. The consensus of opinion
to-day. therefore, can be summed up in
two sentences: Depositnrs will be paid in
full. syndicate will take over the assets
and liabilities of the bank immediately
after the investigation is concluded and
resume business at tbs old stand.
One OF the developments eagerly looked
for is, who were the persons outside of the
bank officials that were in colIusion with
Leonard and Hayward in their pecula-
tions. Tomorrow morning meeting OF
Leonard's creditors will be held in the
Sheriff office, and some interesting facts
may come to light then. 1t is expected to
be lively meeting.
WINS HER SUIT.