The morning call., 1893-07-25
The Pacific and Peoples
Mean Business.
TWO VERY EARNEST TALKS.
Shareholders and Management Want
ComprOmise-An Unknown
Capitalists Offer.

"'Gn. result from TWO meetings held re-
spectively 10 the Pacific and Peoples
banks yesterday. There was considerable
discussion at both meetings, and it was
stated that the participants succeeded in
clearing lot of ground.
AT the Pacific Bank the meeting was
composed of stockholders and at the
Peoples of directors.
The stockholders meeting at The Pacific
Bank was very earnest, the discussion
rising at times to warmth and giving oppor-
tunities for friendly sarcasm. About
twenty st0ckh olders attended. including
several ladies, over 5000 shares of the
10000 being represented.
The main difficulty at present in the
way OF settlement Of the bank affairs is
stated to be disagreement between the
present management controlling the stock
and the remainder of the stockholders.
The latter favor some plan whereby the
arrangement of the bank will undergo q
change, but there are circumstances be-
sides the fact of majority again st them
which make the feasibility of their propo-
sltion problematical. to say the least of it.
Four proposals of DR.. r. H. Mcdonald.
who owns 5011 shares out of the 10000
shares of the bank, were submitted:
First, that he would pay al assessment OF
500 psr share on his stock If the other
large holders would do the same, and he
would loan small holders, il they desireII,s,
the money to pay their proportion OF the
their stock as collateral Secont that he
would withdraw from the bank aud ex
change his stock fer the Assets which the
Bank Commissioned pronounced doubt
Third, he would sell all his stock,
ether stockholders joining him in the sale,
at fairly appraised price. Fourth. he
would meet the other stockholders half
way in providing for an immediate pay
ment Of the debts due depositors aud
others. These were read by K. ID. Nc
Donald, who acted as president.
Another report was also submitted by
J, Bowen, and might be described as rep
resenting the sentiments OF the small
stockholders. 1t involved the winding upof
the Pacinc Bank and founding new one,
to take charge of the affairs of the bank.
pay off the creditors In full and divide the
assets among the stockholders. A propo-
sition that two assessments, each of SO
per share. he levied On the stockholders,
one payable at once and the other in sixty
DAYS, was discouraged by the announce
ment that no assessments could be levied
on the bank assets while they are under
at achment.
Except TINS proposition Of Mr.. Bowers,
the offers submitted were not extensively
discussed. and the assessment feature of
the Bowen proposition did not meet with
general favor. Most Of the time was taken
up in questions as to the status of the
bank.
One shareholder asked whether r. q.
Mcdonald Sr. would be willing to take I'D
two of tho bonds belittled by the Bank
Commissioners. he said that Mr.. Nc
Donald had declared the Commissioners
had acted sweepingly in undertaking those
securities as assets. Now. hore was a
chance-would he by taking W merely
two Of those dlscredited securities give the
bank $500, 900. which would be sufficient
TO run The bank? r. II. Mcdonald Jr.
said he did not know how the other shars-
holders would regard the proposition. but
he thought it was one that ought to DO
submitted to his father.
There were several other questions to
consider. and the whole matter was
finally referred to committee OF five to
report on Monday, August q, on plan of
action. The committee consists of W. A.
Grade (chairman). j. j. Bowen, Emanuel
Meyer. j. Fl. Wallace and Urish Wood.
TIE three courses open to the bank are:
To 60 on with the business of the bank
by making good tho unpaid capital; to
start new bank after paying all debts; to
60 into voluntar liquidation. The plan
in favor of winding up the bank and
starting new organization is said to be
favored by General Wiley. in charge on
behalf Of the Bank Commissioners.
The shareholders fav0riug the making a
practically new departure think that the
funds have net been wisely invested in the
past, but that if time is given. by judi
ciOus man agement, tho full value of the
assets can be realized and every creditor
paid in full. But they arc strongly OF the
opinion that such unwise investments
should be made impossible for the future
by placing the duty Of investment in their
hands, i.e., by chaneinE tho management.
The phold.rs of this idea arr confront
cd, however, by a formidable obstacle in
the form of solid majority of 5011 shares,
represented by the Mcdonald interest.
which is, of course, the managing interest.
It is pro bal BILE that some compromise will
be reached looking toward the doing away
of the Objectionable assessment feature
on the one hand. and modifying the ex-
treme Mcdonald complexion OF the man
aeement on the other.
Both parties appear to agree on the
necessity for time and that the bank
should not be harassed by the Sheriff or
other official process. 1t 10 said that
already several attorneys are moving In
the matter on the mistaken principle OF
tempting, but the stockholders maintain
that the bank is likely to prove very
lively corpse yet
The reporting Of the committee has been
set for nearly month hence. In the
interval the Superior Court may render a
decision which will seriously affect the
position of the bank.
At present the bank 10 practically at.
tached, and all propositions looking to Its
relief are abortive. as the assets cannot be
touched to carry out any OF them.
The Superior Courr, however, has been
asked to decide whether the bauk Is not q
savings bank, IN which case the assets are
not liable to assessments. 1t was attached
as a commercial bank. In the original
charter of 1865 the institution was de-
scribed 40 the Pacific Savings and Ac-
cumulations Bank, and 1t was not until
much later date that, by act OF the Legis-
lature, Its scope was extended and the
name Topped to that of the Pacific Bank"
The question now is. whether this later
act changed the bank from savings to
commercial one. At any rate, the orig
inal charter remained unchanged. and it
is claimed by some that the bank has been
operating ever since the issuance Of that