The morning call., 1893-07-06
BANKING SCHEME.
Plan to ReorganiZe the
Pacific.
DANIEL MEYER IN THE DEAL
Favorable Reports Concerning the
Condition of the Peoples Home
Savings Bank.

The natural anxiety existing with regard
TO the result of the Investigation OF the
affairs of the Pacific Bank by the Bank
Commissioners has been increased. rather
than allayed. by report In circulation re-
gard;ng the reorganization OF the bank
under different management.
Daniel Meyer, the banker, is credited
with fathering the scheme tor reOrganlZa-
ton. He has won considerable reputation
n the past in this kind Of work, but hith-
erto the insurance companies have received
most of his attention IN this line of action
He is In the present instance supposed to
be acting in behalf of the owners OF 1900
shares of the capital stock and of a number
of moneyed men who desire to get control
of the Pacific Bank Gu satisfactory, which
of course means profitable, terms. There
are 10000 shares in the bank, OF which the
Mcdonald family proper own 5011, Captain
j. Mcdonald and his personal friends 1888
ana the Meyer faction 1000 shares.
DR.. Mcdonald is at present in New
York for the purpose of submitting to an
operation. He is 70 years OF age and can
aot be expected to take very active part
in Strengthening out affairs. That duty
falls principally upon the son, Frank ",
who is also in New York. How he regards
the overtures being made by the Meyer
syndicate is not known. but Mr. Meyer.
upon being, asked regarding the deal yes
terday said: "Telegrams are passing be-
tween here aud New York, but so far
nothing definite has been arranged. Yes
he added in response to query, some
such arrangement for the rehabilitation Of
the Pacific Bank is on the cards"
While such plan would obyiate the
necessity for the appointment of a re-
ceiver there would be many Interests to be
placated. One stakeholder. in the present
condition of affairs, could resist and gain
relief from the courts if the banks assets
are disposed off contrary to his wishes.
True, few "klchers" might be guieled by
payment in full for their stock. or at the
rate of S145 per share. but that is a rather
precaTlous Way, as 1t really offers pre-
MUM to the man who objects.
r. II. Mcdonald. who is the only repre-
sentative of the family at the bank Just
now, is inclined 10 find brightness even in
the present uncertain state of affairs. Il
have been surprised he said, 'as well a
gratified at the number of people-mere
business acQuaintanceS and not In the or
binary acceptation Of the term friends
who come ia every day and say that when
our doors are opened again they will
10 all they can to assist in helping us out.
The bank will be found all right and it Is
absurd to think that in the absence Of any
means to relieve the recent financial pres
sure the same cause that brought US
to grief might have closed the doors of
other similar Institutions. l know of one
large and influential bank in Boston that
was on the verge of disaster. For an hour
the directors discussed the ACCESSIBILITY of
closing the DOORS The clearinghouse.
however, came to their assistance and
riois on no iS In
solvent and so is this, but you cannot a.
ways realize Immediately on securities
without heavy loss"
Meantime the Bank Commissioners con-
tinue to probe into the books and will not
he able To form any clear idea of the
assets and liabilities for several days.
Commissioners Gerberding upon being in
terrogated yesterday regarding the atti-
tude Of the commissioners toward any
new syndicate that might be formed to
take over control OF the bank said: in
such case many Interests would have to be
considered and it might be difficult to adj
just differences; but we of course could
have nothing to say against any plan that
tended 10 the benefit Of all those directly
concerned.
with regard TO the Peoples Bank. I be-
lieve 1t will come out long way better
even than the Pacific"
The Pacific Bank fled demurrer yes
Smith, who was the first to attach the
premises and pronounce the bank insol-
vent. The demurrer was based on purely
statutory grounds, simply stating that the
facts implicated 90 not con s,itute cause OF
action.
Accompanying the demurrer is an aft
davit sworn to by r. II. Mcdonald Jr, the
manager of the bank. In this Mr. Melon
aid sets the assets of the bank at s., coo, 600.
in addition to which the capital stock
amounts to 81. 000,0 600 and there is a reserve
fund of SS00.O0O The debts of the bank
amount TO S1.8O0.0O0, of which Ferdinand
Smith is creditor 10 the extent of S21, 1873.
Notice has also been filed that Judge
Cofey has granted the bank an extension
of time in which to amend the motion
heretofore made to dismiss the attachment.
1t is gratifying to know that the
Peoples Bank has been carried on salts
factoriiy. Columbus Waterhouse. presi-
dent Of the bank, in conversation with
CALL reporter yesterday, said: Il don't
think any one can say one word against
DR.. Mcdonald, although one may, of
course, differ from him in matters of detail
in the carrying on OF the business. If he
will only give US a majority Of the stock
then | think public confidence will be
strengthened and the Peoples Bank re-
sumo business with every promise of it
having most prosperous future.
1.-The secretary and |, from our investi-
cations. feel perfectly assured that the
bank is solvent to-day and in good condi-
ton, but the Pacific Bank people were
represented by four out Of the seven
directors, and naturally they dictated the
policy followed, in some cases contrary to
the wishes of the minority. The Pacific
Bank drew On us heavily to settle Eastern
accounts, but in every instance secured US
with good property"
With regard to the older organ cation.
its future destiny cannot be outlined until
the Bank Commissioners have made their
report, which will be some time at the end
of the week. While it is generally believed
that the depositors will be paid in full, the
stockholders may suffer.