The morning call., 1893-05-19
The Santa Clara Bank to
Reopen.
A CALL OF TEN PER CENT.
President Pierce Resigns and Director
Franck Promoted-No Forged
Paper Among the Assets.
Special to THE MoRNINe CALL.
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e-y----

SAN JOSE, May 1o.-DuSlnesS men anu
others in Santa Clara were jublant to-day
when it was announced that the directors
of the bank had at meeting this morning
decided TO resume business within the
next sixteen days. Every one wore
cheerful smile in marked contrast to the
worry and anxiety that have been tAesrule
since the bank closed down. -
In view Of the statement submitted by
Commissioner Knight clearly showing
that the bank is more than soIyent,th
is feeling of regret. shared bysdirsctors,
shareholders and depOsftors ealkes% that
ca!mer counsel did, mot prevail. when
Leonard confessed his rascality, and so
avert the exposure which has taken place.
But the directors were SO paisie- sfrieken
that they refused to listen TO the advice of
Attorney n. Bowden to considerthe situa-
ton calmly and If need be send TO San
Francisco for assistance tokeepthe bank
going till the real position of matters.c0u
be aseertained by Commissioner Knight.
On the contrary, they hastily concluded to
close the banks doors and suffer all the
agonies of torture, suspense and adverse
criticism which followed. 1t has been
another case of shutting the stable door
after the horse has been stolen.
Prior TO ihe meeting this morning Presi-
dent Pierce and Director Franck called
upon Leonard and asked him pointblank
whether or not any of the personal notes
amounting to SS67.3 1888 held by the bank as
assets were forged. He soemnly assured
them that they were all genuine. This in
formation was obtained by your eorre-
spOndent from both these gentlemen, who
also stated that Leonard's health was I'M
proving rapidly, and that probably by
Monday he would be able to be in the
bank and give Cashier Brandon valuable
assistance in getting things in shipShape
order.
The meeting was held shortly after 10
o'clock, those present being President
Pierce, Directors F. C. Franck, j. Fl. Dib-
bic, 5. l. Jamison. w. d. Hudson, Jacob
Eberhardt, DIR. Kinsbury and r. l. Pierce.
The only absentee was Harry Pierce. S.
F. Leib, attorney for The bank, was also
present.
On the meeting being called TO order,
President Pierce voluntarily rendered his
resignation, giving as reason that as his
residence was now in Alameda he could
not give that time and attention, person
ally, TO the affairs of the bank which was
essential in the present state of affairs.
The resignation was accepted, and f. c.
Franck was unanimously elected to fill
the vacancy. Mr.. Pierce Still holds his
position as director.
1t was unanimously decided to make n
call of 10 per cent on the entire capital
stock of S30O,O0O as suggested yesterday.
which wouht bring SIN sf8 zoe ~ enabEe the
directors to meet all claims against the
bank. The directors were anxious to issue
the call at once, but Attorney Leib advised
them to wait till the next legal meeting on
June 3 before doing so. Then business
would be resumed.
Tie positioni of cas- hier was rendered to
Hamilton W. Stevens of the' Santa Clara
Valley Mill and Lumber Company. bnt he
declined 10 accept il, and it is likely Frank
j. Brandon, the cashier pro tenn, will be
induced to continue permanently in the
position.
After the meeting adjourned ex-Presi-
dent Pierce said to your correspondent
that he was exceedingly glad things had
turned out as well. Altllbugh;shce bad re-
signed the presidency, he would continue
TO take an active partin carry ingson the
business of the bank. He bad been grossly
maligned by some papers but he could
stand it.
"All the forged notes." he said, 'have
apparently been destroyed. They were
simply used to prevent discovery when the
Bank Commissioner was making his an
nual examination, All the notes now in
the bank are gilt-edged.
1.-The bank will resume business after
making the call on June 3. We are now
looking out for a thoroughly trustworthy
and efficient manager. We have two OF
three names to select from, but the al
pointment will not be made till our next
meeting on Saturday morning.
''The bank is perfectly solvent and we
will soon regain the confidence OF our
patrons. It Is to be regretted that We
were so hasty in closing our doors" The
new president, who was present, heartily
echoed this expression of regret. The ex-
president was in most cheerful mood and
talked freely and pleasantly. .
The election of MIR. .Franck as presiden,
is hailed with general satisfaction. No
man is better known or more highly re-
spected throughout the country. He is
spoken Of as a shrewd. conscientious and
conservative business man and blessed
with large fortune. He is now the
largest stakeholder.
At 10 uiOAp thau pIpUdpIo lIdG all the OlO
directors will continue as such, as they are
all ackn owedged to be good men and per-
fectly reliable. Some of the leading de.
pOsitors were seen. and they were all
delighted at the decision to-rest1ne busi-
ness. The bank would continue to have
their patronage, and the bitter.l lessen the
directors had learned would: they thought,
be useful In the future 1t was reported
that large number, OF persons Indebted
to the bank had called today and ex.
pressed their willingness to pay up al
once. but Cashier Brandon was instructed
not TO collect any money until manager
was appointed on Saturday It was con.
fidently asserted that within sixty DAYS
over 100000 would be paiu in and de.
positors paid in full. Among the callers
was J. A. Hornberger OF Mountain View,
who expressed his readiness to pay up the
entire $4,000 for which he was security
on Leonard's notes by June 1.-....
An effort was made to-day to find out
what was the extent Of. Leonard and Hay.
wards peculations. 1t was figured out in
this, way: The capital.paii le is S1S5, COO
surplus S70,000 undivided profits S15, 600
total, S220. 600. Deduct from this S125, ,O00
excess of assets over liabilities. as per the
Commissioners report. and S95. COO is left
To-day. however, an additional amount Of
SS771 was discovered, reducing the excess