The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-05-02
The Peoples Home Bank
InsOlvent.
SHEEHAN MADE RECEIVER.
Attorney-General Hart Gets a
Court Order.
PHILLIPS BARS SHEEHAN OUT.
PHILLIPS BARS SHEEHAN OUT.
Dick Mcdonald, Frightened by {
Deposition, Has 1t Announced
That He Is Not In.

|
rear door, stood guard over that instltu-
ton for good potion OF last night.
When the Bank Commissioners reported
that the Peoples Home Savings Bank was
insolvent Attorney General Hart began a
second investigation of his own. r. FL.
Wartield was appointed to expert the
books, vouchers and transactions of the
bank. He completed his labors yesterday
morning. The result was verifcation
of the findings of the Bank Commissioners.
The Acknowledgement was forced to take
different stand from that taken upon the
result of his investigation in January.
He and the Bank Commissioners held a
| conference yesterday morning. The re-
| suit was perfect agreement upon line
of action.
| Papers were filed with Judge Hebbard
de cIaring the bank insovent; asking that
| it be closed; that the directors be re-
| strained from carrying on any business.
and requesting the appointment of re-
ceiver. The suit set forth the findings of
| the Attorney General, which are similar
to those which appeared 10 the report OF
the Bank Commissioners some days ago.
Judge Hebbard granted the restraining
order asked ana appointed John F. Shee-
han receiver of the Peoples Home Saw
ings Bank, with bonds fixed at $500
General SheehaD filed his bond late in the
afternoon with d. NJ. Burns and Daniel
T. Cole as sureties. each in the Gum of
$4,000. and the bond was approved.
When it became known that a receiver
had been appointed. Attorney L. E. Phil
lips ordered the doors of the bank locked
| 10 n M
did not wish inside the bank. Citizens
having deposits in the safe deposit came 10
the door ana after tedious wait aud a
| thorough scrutiny were admitted one by
| one. A young man who appeared with a
note addressed to Emil Bellerman, the gen.
eral man ger, was refused admittance and
was not permitted to hand his note in
through the door, the superstition evidently
being that the note might contain some
legal papers with which il. was sought to
| seek service.
| However that may be, the doors were
opened to others of whom the bank officials
did not seem to stand in fear. The object
of locking the doors was to keep Receiver
| Sheehan from entering and taking posses
| sion of the bank.
General Sheehan drove up to the bank
in carriage at o'clock. BE hammered
on the door and the bank attaches watched
him through the half drawn curtains. At
| torney Phillips came TO the front of the
bank. He said: "Who is it? Sheehan ?"
Then he smiled satirically and walked to
the rear of the bank. The bank doors
were not opened to the receiver.
Attorney Shortridge arrived at o'clock
in the afternoon. When Informed of
what had taken place he held counsel in
the directors room for a half hour.
Mr.. Shortrdge said that the bank would
not resist General Sheehan's entrance to-
day If he came clothed with the proper
legal authority, but that the matter would
be contested in the courts. The following
letter was addressed to the Attorney-Gen-
eral early in the day, before the applica-
ton for the appointment Of receiver had
been made:
SAN FRANCISCO, May l, 1894
Hon. ". II. II. Hart, Attorney General. City
DEAR SIR: Since you are now officially en-
gag, d in making an investigation TO verify the
correctness OF the report OF the condition OF the
| PEOPLES Home Savings Bank lately rendered TO
you by the Board Of Bank Commissioners, and
since all parties are interested in making that
Investigation as thorough as may be, we ven
| ture with great Difference and respect to sub
nit for your consideration few suggestions
ur0n that subject.
The Commss ioners report that on the / 4tn
day Of April, 1894, there was a deficiency be-
| tween assets and liabilities OF S137.177 61."
| In your own official report, datec January e.
1894, you stated that the bank had on the pre-
ceding day surplus of assets over liabilities
| surplus as TO depOsiIOrs, S227.213 &C."
Thus. assuming the correctness of both reports,
IL would appear that In period OF less than
three months. during which no change in the
financial atmosphere has been noticed, the
assets of the bank have decreased in the
has become OF those missing assets?
Have they been distracted from the
Bank? Ii SO. how and by whom?
The Commissioners vaguely hint at some such
| that the practices OF the bank "are deceiving
and, perhaps. dishonest" aud THAT many
memorandum ehecks were drawn by The man
ager of he bank IN favor OF individuals when
the same were not entered, and when the evil
dence shows the parties named did not receive
The money" The vagueness of these State
ments makes 1t impossible adequately to under
| stand them II true or refute them II false
| Where charges OF criminal nature are made
the meanest culprit Is entitled 10 know SPECIFIC
| ally whereof he Is accused. that he may confess
| with intelligence or deny with advantage. In
private life 10 tax another with dishonesty
without being able to put ones finger upon the
| specific act charged is the mere refuge Of a
malicious and slanderOus soul. We would
therefore respectfully request that In your
| investigation the truth OF ibese vague insinua-
lions be fully gone into. III they are false
the alarm and excitement which they
have caused should be allayed by declaring
them false. II they are true they should be re-
duced to a specific form. Let tile guilty parties,
If there are such, be named. Let the particular
acts OF delinquency with time, place and cir
cumstance be stated. Let no man who has dis
| honestly taken one dollar from the Peoples
| Home Savings Bank escape UNPUBLISHED. How
ever exalted or humble let the guilty parties, II
there be such. stand unmasked before the pub
/ lie gaze But let no man be assafed or his
character besmrched by an accusation whose
| vagueness, while il may aid malice TO magnify
its enoimity. places it beyond the reach of re-
futation. We, as the attorneys of the bank,
charged with the duty paramount 10 every
duty of protecting its depositors. make bold to
offer you all the assistance at our COM
mand 10 detect and bring to lient any
| wrongdoiDg that may have taken place in
that Institution. AS to the financial condition
of the bank we venture TO make u few sugges-
lions: 1t is of common notOriety hat the agl-
! ialiOn which has taken place about the affairs
OF this bank has had most disastrous effect,
| especially upon the interests OF the depositors.
IL is current report that many books Of deposit
have been sold lately as low as 25 cents Oh tile
dollar Ii this enormous loss TO the depOsitors
} be inevitable and compelled by The financial
condition OF the bank II remains only TO be de-
pIored. III. on the other hand IL IS the result Of
a panic caused by an unjustifiable aud false
report OF the financial s0lvency OF the instltu-
tion. prompted and eDgendered by personal
motives let the blame fall upon the heads of
| those who have so far deviated from their duty
as TO bring about such result.
As an evidence OF the fairness OF the vaua-
lions placed by the Bank Commissioners upon
the assets OF the bank we select one single ex-
| ample. The Commissioners say, .'We deduct
on 165 shares of Phoenix Railway bonds, $49,-
| ThA lns. Qsa