The morning call., 1893-08-17
NOT THE SHERIFF..
Hart Wants the Bank
Commissioners.
THEY ALONE To LIoUIDATE.
Notice Of Motion to- Gust Sheriff
MeDade .FiIed-Proceedings to
Be Heard at Once.

Late yesterday afternoon Attorney
General Hart and J. i. Coggswell' filed
with the County Clerk notice of motion
10 set aside Judge LEWIS appointmentof
Sheriff McDade as receiver of the Pacific
Bank.
Hart bases his motion on statutory
grounds. He asserts that in 1868 the
Pacific Bank was incorporated as a
Savings aud Loan Association. and still
continues to be SO. therefore it cannot De
adjadged insolvent under petition or
under any insolvency proceedings Sec
ondly. that the court had no jurisdiction
in the matter, and the answer of h ii.
Mcdonald Jr. TO the original petition was
filed without the consent or authority OF
the stockholders.
The Acknowledgement goes on to say
that the Bank Commissioners have. been
in possession of the affairs Of the Pacific
Bank since and ON the Esd day of
June of the present year; and that under
the law they alone, are possessed
of exclusive jurisdiction, supervision and
control. On that ground il is claimed that
the banks affairs can only be liQuidated
by the Commissioners. It is shown that
in 1868 the corporation was Known as the
Pacific Accumulation and Loan Company,
and that In 1S65-1S66 the name of the con-
Germ was changed to the Pacific Bank.
Accompanying Harris statement ia the
affidavit of J. l.. Coggswell. .In this affiant
states that he IS one of the largest stock
holders In the Pacific Bank. and as such is
entitled to consideration. The answer of
4. Ii. Mcdonald Jr. was fled, Coggswell
says, without the authority of the stock
holders.
There is also the affidavit of w. H.
- ~ A., D., IL NJ lee
supporting Harris statements regarding
The Bank Commissioners being IN possess
sion. and desiring full control of the Pa
c6c Banks affairs.
Judge Levy has made an order shorten
ing the time of notice. and the motion of
the Attorney General will be heard at 2
O'Clock this afternoon.
Sheriff McDade is still In possession of
the affairs of the Pacific Bank as receiver.
and with his attorney. NJ |. Sullivan, was
busy looking into the accounts and get
ting the lay of the land.
There ia absolutely nothing new in
the matter" said Mr.. Sullivan, "but. Mr..
McDade will hold on until such time as au
assignee Is named by the creditors of the
bank. There was no other course open to
the courts, and it was simply the duty of
the Judge TO name the Sheriff. In fact, he
had NJ other ALTERNATIVES, and McDade Will
hold for ninety days. or until a successor
- dRI6cu upOus. lie law IS nlHlt, III y.
opinion. and this is the view taken by the
courts"
During the day there was difference
between Receiver. McDade and Deputy
Bank COMMISSIONER Wiley as to the legal
Ity OF the latter's action In collecting eer-.
tam moneys due the bank and depositing:
them in the name of the commission. Will
lev declined to commit himself, so far as
positive statement was concerned, but At
t0rnev- General Hart expressed his belief
that Wiley was in the right, while AttOr-
ney Sullivan was positive that the Deputy
Commissioner had no authority TO touch a
cent of the funds under anv circumstances.
d.: 5. Dorm, for the bank, also took hand
In the matter, and gave out the informa-
ton that he had been opposed to the pres
ence OF Wiley from the first.
Ii all resulted in the latter's being told
by the Sheriff that il lie insisted upon re-
malng in the bank he would be elected by
the strong arm ofthe law. No conclusion
has yet been reached, and that is how the
matter stands.
AS result of conference heEd during
the afternoon between the Bank Commits
sioners Matt l. Sullivan and Attorney
General Hart the following letter was
handed to the Bank Commissioners bv
Receiver McDade. tits in the nature of a
lorna demand on them for the assets of
the Pacific Bank, the receiver claiming
that their duties are confined to the exam
nation ana report oE the affairs OF n bank,
and If its capital be found to be impaired
to close the. bank:
TO W: IT. Knight, II. Ger5erding and Charles
u. DulsmOor, Bank Comm ss ioners of the
State Of California: Take notice that tile Pa.
cihc Bank, a corporation. was adjudIcated :in-
solvent by The Suuefior Court of the city and
county OF San Francisco on the 18th day of
August. 1898; thaton said date was by said
court appointed receiver of the said tnsolyent
debtor; that pursuant TO the order appointing
me receiver l. have taken possession of the
premises of said Pacific Bank, its books and
assets In said banking premises, on said 18th
day OF August. 1898.
ceiyed from you, ii. l.. Wiley. after the suspen-
sion OF business by said bank, and. prior TO Ihe
said 10th day. of August, 1898, took from said
premises the sum Of $25, 900, moneys belong.
Ing to said, bank aud other assets. have
demanded from said Wiley the surrender OF
said moneys and other assets. but acting under
instructions from your body he refuses to de-
liver the TO me-
i now. demand from you tile immediate de-
livery of said $25,000- and other assets
taken az Aforesaid by said Wiley from said
bank. and request OF you Information as TO tile
whereabouts OF said iuoneys. and other assets.
Upon failure TO comply with this request, l
VIII institute snch proceedings against you as
a body, and each of you individually. as the
circumstances OF the case require.
Dated San Francisco, August. 10. 1893
j. j. MCDADE, Receiver.