The morning call., 1894-05-08

Concealed in the legal verbage are the
most astounding statements. Some OF Tue
securities referred to which Sherman de-
sired TO regain were taken by the DahA at
Sherman's request, while his cousin, John
E. Farnum. the son-in-law of Bank Com
mission knight, was manager Oh Tue
Feople's Home Savings Bank.
After having succeeded in getting the
oank to take certain securities sherman.
in resolution which he had had prepared,
speaks of certain of these securities as ol
a doubtful and uncertain character anu
wants to get them back. He also speaks
OF serious defects which appear 20 eAis'
in the 166 bonds of the Phoenix Railway
Company" which he wanted to get DacK,
though he does not say he wants them oe-
cause OF their defects. In exchange ne was
to give bonds of the Pasadena Railway,
road which has never been built ana Ior
which no trust deed had been recorded.
He does not say anything OF the uncertain
character of these bonds IN advocating the
dicker with his prearranged resolution.
1t is charged that Sherman SAID ne
could "pull Bank Commissioner Knight
down" if the board would pass the resolu-
tion 90 that the Bank Commissioners
would not further trouble the BANK.
Sherman stated that he must have set
tlement. Dick Mcdonald declares that
Sherman used similar tactics when ne
forced the bank to buy S165.0O0 OF Phenlx
bonds during the management OF farnum.
He has also said that Frank M. Stone
favored Sherman's proposition, but that
ID. S. Dorm opposed it.
The board did not act upon sherman
proposition. Then he took to letter-wrlt-
ing, addressing various persons connected
with the bank. One day he would write
letter in the most ELUSIVE style, brlmmlng
with "My dear friends" and loving ex-
pressions. and on another day to the same
persons he would address threatening
note ii he did not act 80 as to have his
proposition accepted.
OF the notes mentioned 10 the resolution
friends.
As it was expressed last evening: "The
directors felt that they would rather with
stand the raids of the Bank Commissioners
than be forced into such transaction as
that demanded by Sherman. which would
release him from every kind Of liza
bility."
Dick Mcdonald has made the following
authorization:
MAY 7, 1870 P. NJ.
This is to certify that Delmas & Shortridge
have charge OF the civil side OF bank litigation
in which am concerned, and Ed j. Livernash
of all criminal charges against me-
r. II. MCDONALD JR.
Messrs. Delmas & Shortridge stated that
they had never acted with reference to the
criminal charges any more than to take
friendly interest in Mr.. Mcdonald while
arranging to secure an attorney. but that
they would continue to act in the civil
matters in which he was interested.
e. J. Livernash, who now appears as
counsel for Mcdonald. said: "Messrs.
Delmas & Shortridge have attended to the
civil side OF matters, but have never ap-
peared as attorneys with reference to the
criminal charge.
"They have acted merely in friendly
way pending the employment of an attor-
ney. They find they must take either the
civil or criminal side. Were they to take
both, the issues might conflict. They de-
cided to remain with the civil cases. This
distinc elton is not indicative of change of
attitude toward or friendship for Mr.. Nc
Donald. l appear now as counsel as to
the criminal charge. Within week or
ten days l shall he associated with one of
the most prominent attorneys In the city
upon this case.
81 have succeeded to-day in getting
three men who will qualify as sureties for
Mr.. McDonald's release. We have de-
cided to await further action of the Grand
jury before applying for Mr McDonald's
release, as we desire to know what the
aggregate of his bond will be If further in
dictments are found. If the bail proves to
be excessive then We will apply for re-
duction.
'Mr Mcdonald has asked the Grand
Jury to indict Frank NJ. Stone and NJ. 81.
Sherman" continued Mr.. Livernash. II
think we have ample evidence to secure
their Indictment. and the Grand Jury has
plenty of time in which to act.
IF any indictment against these men is
not found, then we shall swear out war
rants for their arrest. There are others
whose prosecution we shall ask; men
whose names have not yet been men,
toned.
Mcdonald and his friends have per-
sistently declared the guilt of others.
Now we propose to prove their guilt. 1t
would be unfair to the public not to do so.
after what has been said. We concede
that there was guilt in the bank. bur the
guilt was that of others who have sought
to make Mcdonald the scapegoat, and we
propose to have all the matter brought out
in court"
Quite a number of friends called at the
County Jail to see Dick Mcdonald. He
appears TO take his detention quite philo-
sopbically, and does not seem to be wor-
ried over the situation.
j. A. Watt. attorney for Receiver Shee-
han, began an action In Judge Hebbard's
court yesterday for the recovery of the
Swanberg securities. The action is brought
against all of the directors Of the PEOPLES
Home Savings Bank, the directors OF the
corporations issuing the sureties and
against c. O. Swanberg and 81. W. West
phal. A restraining order to prevent the
disposal of the securities was also asked.
1t is reported that the attention OF the
Grand Jury will be called TO the obtaining
of $11OO from the Peoples Home Savings
Bank by Fl. l. Wiley for which it is