The herald., 1893-08-08
CITY BANK ROTTENNESS.
Attorney Collins Questions
the Receivers Statement.
Clearing House Members Will
Protect Treasurer Shorb.
The Depositors Ask That an Assignee
Be Appointed.
Mr.. Collins Flatly Denies That He Owes
the Bank Anything-The Bankers
and the Supervisors-A New
Suit Filed.

In its issue of last Friday the Times
pretended to give a correct list OF the
assets of the City bank which were re-
garded as doubtful. Among these was
mentioned q note OF H. o. Collins for
$500. The reporter volunteered the in
formation that this note was guaranteed
by Mr.. Childress and was worthless.
Mr.. Collins was seen by HERALD re-
porter yesterday in relation to the
alleged note, and gave the following ex-
planation:
''In 1889 was engaged as the attor-
ney Of the Riverside Cold Storage COM
pany, the plant being at that place,
while the headquarters were at Chicago.
The plant stood by the railroad and be-
sides the storage part also embraced an
ice factory. 1t was worth about 30,000
| to SAC, 900.
"Finally the company become in
volved in it's affairs and failed to meet
liabilities at Riverside amounting to
about $1,000. Suit wac brought for the
purpose OF levying an attachment on the
plhuts huOWluk tn6b HAtOco uOnCthAnk x
was done the plant would be sacrificed
at ridiculously low figure, l wrote to
the attorney of the company in Chicago
and explained the situation.
"The plant was personal property and
and If sold by the sheriff could not be
redeemed within certain time as is the
case with real estate. The attorney re-
piled and told me that while the affairs
of the company at that period were in
volved he thought that matters would
be adjusted and urged me to endeavor
to raise the money in some manner and
buy the property.
"I spoke to Mr.. Childress, and he
came to my Office and stated the exact
situation to him. He said he would not
advance any money to the company. but
would buy the plant and sell it to them
again when they could redeem, charging
q reasonable sum for his risk and
trouble.
"In the meanwhile, judgment was OBJ
tanned by the Riverside people, and the
sheriff seized the plant.
''Mr. Childre.s had been down and
seen the plant and said he would buy it.
Before he bought it the company went
completely to pieces, being in my debt
| to the extent of $500 for legal services.
The only property that they had and by
which / could possibly settle their in
| debtedness to me being this plant.
"Itold Mr.. Childress that had lien
| of $500 on the plant, and that could
not allow it to be sold unless my money
could be secured to me. Mr.. Childress
said that he did not care to purchase
the property if there were any incum
brances upon it, but that he would him
self meet my claim, which he did. j
then turned my lien over to him, &C
that he could show it to the company al
receipt for having settled their in
debtedness to myself.
"The transaction there ended, botf
between Mr.. Childress and myself, and
the Chicago corporation as well.
II have never owed the City bank any
money, nor have ever given them my
note. How the matter happened TO 90
appear on the books l cannot say,
"The etatement by the Times is incor
rect in that the paper appears in the
receivers report as my note. The only
reference to it is under the head of billi
/ receivable, and none 10 made to any
| note. Their statement, also, that Mr.
Childress had relieved me from all in
| debtedness on the note was ridiculous,
for had it been my note, Mr.. Childress
nor any one else could not have re-
lieved me from my responsibility.
81 consider that have been misrep
resented, so make this correction.
also appeared before Judge Mckinley
TODAY and obtained an order for Tire re.
ceiyer of the bank to show cause why
that particular clause in his report ehell
| not he stricken out"
THE BANKERS AND THE SUPERVISORS.
There was very important confer
ence late yesterday afternoon between
the board of supervisors and a commit
tee from the Los Angeles clearing house
with reference to the funds of the county
in the City bank.
AT so o'clock Major Geo III. Bone
brake, Judge K. NJ. Wldney. Herman "
Hellman, John E. Platter and Dr.. W. u
Cochran filed into the board room ane
took seats around the desks.'
Only Chairman Cook and Supervisors
Francisco and Hanley were present, an0
District Attorney Dillon.
Major Bonebrake started the ball 0
conversation rolling by stating that thu
board probably knew why the clearing
house committee had called; that !
was to see if some arrangement OF
harmonious nature could not be made
with reference to the $22 600 OF coHnt.
funds in the City bank. In the preeen
state of public feeling he. did not thinl
the Supervisors or the clearing hous
wished to do anything to unsettle conf
dence. In fact the presence oil the com
mittee was to arrange things go that IN
county would be absolutely sure or IT
money. They would like to know tn
idea OF the supervisors.
Chairman Cook replied briefly tina
the board OF supervisors had no dif
position to take any action but wha
would be the best In this matter the
could know no one but County Treas
urer Shorb and bis bondsmen.
The matter of bringing suit agains
Mr.. Shorb and his bondsmen or som
action bad been considered very serious
| ly by the board for several days, an
) they had determined to take som
, action today (Tuesday). They had dc
ferred counting the money in the treas
! ury until then to give the treasurer
chance to have the money. But tn
} board was controlled by law and woul
do its duty.
Judge Widney said that he coul
easily see the responsibility OF tn
board. What the clearing house wlshe
,, to do was to find sons means by whic
they could keep the- responsioilit
of lie Grand Belts and his boadsme
alive. They were perfectly willing I
come up and paw the full amount Of th