The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-05-12
LOOKS VERY DARK
The Sorry Showing Made
by Manager Leonard.
UNWIsEL LAND sPECULATIoNs
Stocks Swallowed Some Money.
Threats of Criminal Prosecution
by Treasurer kington.
Special to THE MoRNrNe CALL.

SAN JOSE, May 1.-THE unanticipated
suspensiOn Of the Bank of Santa Clara
County continues to be the chief topic of
conversation in this city and vicinity.
Tne accounts of the bank are said to be
in considerable confusion, and until these
are exported definite knowledge Of its
condition cannot be obtained.
I,aupears from Mr.. Leonard's petition
in insolvency that his total liabilities
amount 10 sl9l. 81, of which about
Sl25O00 was money borrowed from the
SUSPENDED bank. His assets, consisting
chiefly Of real estate and mining stocks,
he values at S1i5, 900, but their total net
value after deducung liens and incum-
brlnces is estimated to be only about
$4,000. 1t is supposed that Mr.. Leonard
assumed Mr.. Hayward's shortage of
$4,000. which amount is included in his
leouard's) liabilities.
Matters are further complicated by the
fact that the town of Santa Clara has
about 10000 OF public money locked up
in the suspended bank. In case this is not
forthcoming Town Treasurer Kington in
Inmates that he may bring criminal suit
against the bank officials, as the public
money was in the nature of trust fund.
money IS q mystery. Part of it doubtless
was swallowed up in stock speculation, as
Mr.. Leonard virtually admits in his petit
ton.
IL the opinion of well-posted real estate
men Mr.. Leonard lost heavily during the
snort-lved San Jose boom" of 1887. 1t
is known that he invested large sums in
property on the Alameda, hoping
te make a sudden fortune through
the rapid advance of land values.
The bottom soon dropped out of the boom,
and the same property would not bring as
much to-day as Mr. Leonard paid for it six
years ago. In one tract known as Prime
Ridge" he is said to have invested So. GOO
fora half interest which is now considered
20 be worth not over $4,000 On account
Of these and similar unfortunate specula-
tons it is supposed. judging from facts
that Eave recently come to light, that Mr..
Leonard has been in financial d fficultes
most Of the lime since the Inflated boom Of
1857. and that in the vain attempt to save
hims elf from financial ruin he has kept on
borrowing money from the bank and plung-
Ing deeper and deeper into the mire, until
tie crash came.
\ careful and accurate man, whose Opin-
ion on such subjects carries weight, admit.
ted to The CALL correspondent that this
disastrous bank failure showed pretty con.
clus!veIy that one OF two things was true
Either the Bank Commissioners have been
deceived by some manipulation of the ac-
counts and papers of the bank, or else
their examinations of the officers of the
bank were lacking in thoroughness. Il
may be mentioned that Mr.. Leonard:
petition in insolvency states that the un.
secured loans made to him by the bank
common ed as far back as December II
1891, seventeen months ago, at which date
there is loan Of $50 borrowed money
security none"
Bank Commissioner Knight was ex.
pected down to-day, but did not arrive
Meanwhile nothing has been or can bt
done toward uuTaveling the Snarl until III,
commissioners take action. Nicholas Bow
den, who was retained yesterday as attor
ney by tile bank. decided today to with
draw because be found that the interest.
Of some Of his other clients conflict will
those Of the bank. S. f Ljeb was chosen
O. lake lis place.
J. is reported Tonight on reliable author
ity that three more certificates of deposi
aEgregating S25,OO0. issued by Mr., Hay
ward, on which the money had been paid
and which did not pass through the regu
lar channels of the bank, have beer
uuearthed. Meanwhile the general stu
alton remains unchanged. Most of tht
deposiiors are still confident of receiving
their money in full, and passboOks anC
certificates are being handed in to assis
the bank officials in Strengthening matter
ont. So far as known there is nc DANCE
OF other firms or banks being seriously
involved through the failure.