The morning call., 1894-04-15
GOT HIS FEE IN ADVANCE.
Suit to Make Him Disgorge Will
Follow.
DIsBARMENT ACTION TALKED OF.
Directors of the Peoples Home Saw
iDgs Bank Take Summary Steps
With an Attorney.

Frank NJ. Stone, the attorney, has been
retired as counsel for the Peoples Home
Savings Bank. He was summarily dis
missed yesterday, and the directors have
under consideration the advisability OF
bringing proceedings in disbarment against
him.
Stones haste to have published his cor
resEondence addressed to the directors
before the board was in receipt of the
communication aroused the indignation OF
the members of the board. His haste to
draw his salary in advance yesterday
morning simultaneously with the publica-
tion of this statement of his in morning
paper needs DO comment:
"This year l receive $4,000. paid to me as
a refining fee for one year by resolution
of the directors on January s. OF this
have drawn $4,000. As matter of course
could have drawn the rest on January g.
but preferred to let the depositOrs have
the first chance. l will obtain my money
and propose TO earn it.
The directors will endeavor to recover
the 5000, which they claim has not been
earned.
The board of directors of the Peoples
Home Savings Bank met yesterday after
noon at o'clock. There were in attend
ance DR.. Julius Boushey, the president,
Charles Montgomery, r. 81. Mcdonald Jr..
Emil Bellerman and a. L. Jenkins.
DR.. w. T. Jenningson's resignation as a
director of the bank was accepted, and a.
/. jenkins was elected to fill the vacancy.
a resolution summarily dismlssing
Frank Nj. Stone as counsel of the bank
was introduced and adopted. At this in
slant E. D. Merritt, one of the directors,
w. E. Palmer, the secretary of the bank,
and d. S. Dorm entered the room. As
soon as Mr.. Dorm learned of the action
taken with reference to Stone he rendered
the resignation of Dorm 81 Dorm as counsel
for the bank. Stone had been associated
legally with Dorm & Dorm in the affairs
of the bank, and Mr.. Dorn's action was
regarded by the directors as purely one of
courtesy. The board hesitated about act
ing upon the resignation. and requested
the firm to remain and attend to certain
foreclosures and other proceedings which
had been begun.
A resolution was passed by the board
requesting the tender of the resignation of
Dorm g. Dorm. The resolution continued
and concluded with request that the
firm complete the foreclosure of suits and
other litigation heretofore entrusted to it..
Following this the board appointed Del
mas & Shortridge 10 succeed Stone as
counsel for the bank.
In speaking of the affairs of the People S
Home Savings Bank r. II. Mcdonald Jr.
said last evening:
''At meeting of the board of directors
of the Peoples Home Savings Bank to-day
Frank NJ. Stone was summarily and incOn-
tinently dismissed without notice from his
position as the banks attorney. Mr.. Stone
must have anticipated that bis treachery
and duplicity, his coarse and brutal attack
upon me-not only in the Chronicle, but
also at yesterdays meeting of the board
would meet this deserved oppro brium, for
early this morning, upon the opening of
the bank. he drew $1,000. the balance of
his fee for the year 1894. This was done
without the knowledge of any of the
officers except the secretary, who thought
probably that it was right. The officers do
not blame Mr. Palmer. the secretary, but
they have only unmeasured condemnation
for Stone and will commence suit against
him at once to compel him to disgorge.
"This latest revelation of the greed and
avarice of this self-styled reformer, Stone,
ought to throw searchlight on the in
famous character OF the man who has SO
basely betrayed the secrets of his ellen Is.
the Peoples Home Savings Bank. He
poses in the organ he uses as the friend of
the depoSitors. and as anxious to reduce
expenses, vet he commits this last act.
Delmas & Shortridge have been retained
as the banks counsel. The resignation of
Dorm & Dorm as attorneys for the hank
was offered and accepted, the directors
passing eulogistic resolutions in reference
20 the Messrs. Dorm for their faithful SER
vices. Their resignation was an act OF
courtesy to Mr.. Stone, / suppose. as they
had been associated together in the BANK.
''lt is rumored that Stone had been in
frequent consultation with NJ. 81. Sher-
man, the wrecker of the two banks, OF
late and it was deemed an wise also to have
Stone connected with the prosecution OF
any suits against Sherman on his guar
antics of the Los Angeles Electric Rail-
way bonds.
"Stone has clamored for my resignation
as director of the Peoples Home say.
ings Bank, so that he might get control
himself. First he tried to persuade me,
then he tried to threaten me, and finally be
said that ii l did not resign from the di.
rectorate be would secure my Indictment
but that If I would resign and leave the
State Of California he would guarantee
me that no Grand Jury would file an in.
dictmenp against me.
Il fatty refused to resign and welcome
now and at all times an investigation oi
my conduct, public or private. Iannounce
fatty and finally that do not propose tc
resign from the board of directors of the
Peoples Home Savings Bank. Certainly
not while 1 am under fire. In the frs
place, unlike most corporations. the Pa.