The morning call., 1894-05-08
STRANGE FACTS UNEARTHED.
One of His Projected "Dickers
i'm Securities.
DIRECTORS HAD TO REFUSE 1T
Dick Mcdonald Is About Ready TO
Disclose All and Involve the
Rest in Ruin.

Dirk Mcdonald has all along threatened
that if he was made the victim, as ne e4-
pressed it, OF the circumstances surround
ing the wrecking of two banks ne wouiu
drag others down to ruin with him. he Is
now ready to talk after his confinement
within the walls of the County jail. AS
announced in THE CALL OF yesterday he
stated that he was prepared to place pe-
fore the Grand Jury facts connecting M.
Fl. Sherman directly with the wrecklng OF
the Pa cific Bank and Of repeated attempt
to assault the mon ney-drawers OF the feo-
pIe's Home Savings Bank. He declares
that Sherman was the means of Withdraw
ing over 81 .Oo0. 900 from the Pacific Bank.
and he declares that Sherman used the cluo
of the Bank Commissioners with which W
obtain this money.
Dick declared that papers were IN tne
possession of his attorneys, Delmas q
Sbortridge, and that they would supstan-
tiate his charges.
Something like two months ago BANK
Commissioner Knight made casual eX-
animation of the Peoples Home Savings
Bank, after which he made remarks re-
f1ecting upon its management and lis
directors.
The next day M. 81. Sherman, whose
cousin, John E. Farnum, manager OF the
Pacific Bank, is the son-iD-law OF BANK
Commissioner Knight. appeared at the
bank with a proposition. 1t is charged
that Sherman said that if his proposition
was acceded to he would see that the
Bank Commissioners would cease their
hostility toward the Peoples Home Saw
ings Bank.
Sherman presented resolution. pre-
pared by an attorney whom he had sent for
to come from Los Angeles. and asked Its
adoption by the board.
A copy of this resolution is in the pos
session of Delmas and Shortridge, who
have been acting in behalf of DICK NC
Donald, along with letters bearing on the
subject. The resolution as originally
drafted contained the most startling prepo-
sitions, but some of these were omitted
before 1t was presented to the board OF
directors.
This is the resolution which Sherman
asked the board to adopt:
RESOLVED, That The president and secretary OF
the Peoples Home Savings Bank, a corpora
ton, be and they hereby are authorized and
directed to exchange for ffty-three bonds OF
the Los Angeles and Pasadena Railway Com
pany Cat par value of $4,000, less three years
coupons detached therefrom), the following de-
scribed notes, mortgages and judgment and to
execute the necessary instruments TO assign,
transfer and deliver the same, TO wit:
One note and mortgage bearing date the 10th
day of September, 1890, signed John A. Muir'
and MARY r. Muir" amounts now to about
$500.
One note bearing date Of the 9Th day Of June.
1893. signed l.. E. Mosher, and upon which
there Is now due about $500.
Then follows the usual form Of the
adoption of such a resolution, which M. ID.
Sherman had thoughtfully inserted, after
which appears the following:
WHEREAS, NJ. H. Sherman is obligated to the
Peoples Home Savings Bank. corporation,
upon three certain promissory notes. as follows,
to wit.
One noie bearing date of 22d day Of Octo-,
Der, 1889, signed Hattie Z. Sherman and
I'M. II. Sherman" and amounting now TO about
S11 ,S5S. secured by mortgage OF even date
herewith upon property situated In the Ter
ritory Of Arizona.
One note bearing date Of the 18th day OF
April 1890, and amounting now to about S19,.
600, and which is secured by four certain
promissory notes dated April IA, 1890. OF
which last four mentioned promissory notes
are secured by certain mortgage OF even date
Herewith upon property situated in the Terri
tory of Arizona and signed by said M. E. Col.
lps. which last four mentioned promissory
notes and the mortgage accompanying the
same are placed with said bank as collateral
security to the said last mentioned Sherman
notes.
One note bearing date the 21st day of Sep
eta cd III md
an. III. Sherman" amountss now to about
S12.75o and secured by certain mortgage OF
even date Herewith upon property in the Ter.
rjtory OF Arizona, executed by the said George
III. Wilson, and
Whereas, All the said mortgages given as
collateral security for the payment OF the said
three notes are upon properly situate In the
Territory of Arizona and are of very doubtful
and uncertain character, and
Whereas, A proposition has been made to
exchange fifty bonds of the Los Angeles and
Pasadena Railway Company GOT the par value
of $50 o0o) less that years couronssdetached
rherefrom for said three years notes and the
said collateral thereto, and
Whereas, Upon due consideration II appears
TO be for the best interests OF the depositors OF
said bank that such exchange be made. now,
therefore,
Reeolved That the president and secretary
be and hereby are authorized and directed to
execute for and In the name OF said corpora
tion all necessary Instruments TO assign, trans
fer and deliver said three notes and all the
said collateras thereto upon receipt OF fifty
bonds of the Los Angeles and Pasadena Rail-
way Company with three years coupons de.
tached therefrom.
Following this Sherman has inserted,
"At the same time and place the following
resolution was also passed." and the reso-
luton reads:
WHEREAS The Peoples Home Savings Bank
owns 225 bonds OF the Los Angeles Consoli-
dated Electric Railway bonds; and whereas, a
proposition has been made 10 exchange two and
a half years. coupons from the said 225 bonds
for thirty.four bonds Of the Los Angeles and
Pasadena Railway Company (of the par value
of S34, ,ooo), less three years. coupons detached
therefrom; now therefore
Resolved, That the president be and he here
by is authorized and directed to exchange TWO
and a half years. coupons from the said 225
bonds OF the Los Angeles Electric railway
.,..u..,r for tbtrty-four honns of the Los An