The morning call., 1894-05-01

a correct appraisement Of the assets. 1t
was agreed that should be present when
this examination was taken up. noted
| the adjournment and the time set TO re-
sumo the examination in my book. l
| had no reason to doubt that the commits
sion would keep faith. l supposed that
thew would proceed as judicial officers.
| When Thursday came, to my utter sur
prise, the Commissioners announced that
they would not go on. as they did not de-
sire to make further examination.
"In this action they violated their agree
ment with me, and told them so to their
faces. The Commissioners concluded to
report adversely before they began their
examination. They did not desire to 60
into details, probably because Mr..
Knights term of Office was drawing to a
| close.
"They filed report with figures far be-
low their previous valuations"
Mr.. Shortridge was extremely bitter in
his reference to the action Of the Bank
Commissioners. He declared that they
had saddled John E. Farnum. soD-in-Iaw
of Bank Commissioner Knight, upon the
manager of the Peoples Home Savings
Bank when it became involved. The
Phoenix bonds. which the Commissioners
valued at $4,000. and which were sup
posed to be worth S165.000 when taken,
were referred to by Mr.. Shortridge.
AZ propose to show that these very bonds
were put into the Pacific Bank by Nj. 81.
Sherman, and transferred to the Peoples
Home Savings Bank at the figure quoted.
with the approval of the Bank Commits
sioners.
"The Commissioners find that the banks
liabilities exceed its assets by S137, 600.
The Phoenix bonds ana the Los Angeles
electric railway bonds, if valued at the
figures at which they were taken, would
nearly make up this difference. M. 81.
Sherman guaranteed the bonds. He owes
both banks great amount of money, and
it was through Bank Commissioner Knight
that he was enabled to foist these bonds
on the banks"
Mr.. Shortridge added something about
Sherman's hostility to the Peoples Home
Savings Bank because he might settle for
20 cents on the dollar. and spoke of the
admitted hostility on the part of the Com
missioners to R. II. Mcdonald Jr.
"The purpose of the report is to throw
all of the odium on Dick Mcdonald, when
Bank Commissioner Knights son-in-law
was general manager of the Peoples Bank
at the time il became involved"
Mr.. Shortridge stated that he had seen
Attorney General Hart, and that Hart had
undertaken a thorough Investigation.
Colonel Warfeld, assisted by Mr.. Dixon,
began the work OF examination for the
Attorn General to-day" said Mr.. Short
ridge. "At his last examination. January
26, he found the bank solvent A most
thorough examination will be made now.
when l arrived here this morning l
found David Nagle here. What right he
had to be here cannot conceive, and / de-
manded why he should come 10 the bank
Ex-Secretary Palmer was also here. At
the request of Colonel Warfield he opened
the combin alton. Mr.. Nagle. as a deputy
United States Marshal. will. presume, al
tend to his duties. We shall certainly attend
TO ours, but by what authority he was here
l do not know. l know. however. that it
was an outrage.
THE Attorney General will be given
every assistance in our power to further
the examination. This corporation. how
ever, is not to be browbeaten by men who
owe the bank, whether they be Commits
sioners or anybody else, and the sooner
this fact becomes known the better.
Last week, am told. depositors could
sell timebooks for 60 or 20 cents on the dol
lar. To-day a depositor told me he was
offered only 25 cents on the dollar.
'lf anybody can show me how the ac-
ton of the Bank Commissioners has
helped the depostors should be pleased
to learn.
''All this bushwhacking and threatening
does nobody good. The money due the
bank we shall see is paid. One man who
owes $40, 200 has been to see me several
times. He stated that if suit was brought it
would bring other creditors upon him and
ruin him. l told him that we must have
money. To-day he stated that he could
pay considerable portion of his note to-
morrow"