The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-05-02

mlssoners. On the 18TH OF May. 1894. Mr..
sherman took up his debt to the Pacific Bank
by paving therefor in these bonds OF railroad
which he absolutely controlled. at pai. This
was done upon the understanding between the
bank. Sherman and Farnum, approved by
Knight as Bank Commissioner, that these
bonds should simultaneously be bought by the
People's Home Savings Bank at par. This IN
Gersiandlng was carried out on tnat DAY anu,
under the MANAGEMENT Of Farnum, the Peoples
Home Savings Bank, with the approval OF Com
missioner Knight. paid par, or Sloo,ooo.
for those bonds There is much more OF TINS
transaction, but time will not permit fuller
statement. MIR. Commissioner knlgnt now
signs report in which these very bonds are
valued at only 20 cents on the dollar.
we respectfully request that you lnvesti-
gate and report the reason OF this new Vaiua-
ton. What has caused the depreciation OF
these bonds? If they have not deprecated
why IN the eyes of Mr.. Commissioned Knight
were they worth par on May y, 1888.
and are only worthi 20 cents on May IA,
1894? II they were overvalued then, who was
TO be benefited by the generalization? Ii they
are undefValued now, who is to be Injured Dy
the differentiation?
Again. under Mr.. Farnum's management. the
Peopie'S Home Savings Bank purchased medi.
ateiy or Immediately from Mr.. Sherman 200
bonds OF the Los Angeles Con sOldaed Electric
Railway Company Ga railroad then ana still
controlled hy Mr.. Sherman) at par. These
bonds are now valued by the Commissioners at
only 80 cents on the dollar. What is the reason
OF this depreciation? Is the road less valuable
or less prosperous than 1t was when Mr.. Farnum
bought these bonds at par from his cousin IN
May, 1898, or were they purposey Overvalued
for some ones benefit at the time they were
bought?
These are but specimens of the valuations of
the Commissioners. Time does not permit an
examination of the whole list. We have said
enough, however, we trust, 10 enlist your
offca attention TO The matter. and. with full
confidence that you will discharge your respun-
siDe duties with sense OF fairness, impair
TALLY and justice such as becomes your high
office. We beg leave TO remain, very respect
fully, DELMAS & SHoRTRIDGE.
Dick Mcdonald remained in the rear
portion of the bank nearly all the day.
He did not appear in the front office of
the building. This seclusion resulted from
the events of the day before. when threats
were made by angry depositors toward
him. On that day crank walked I'D to
the paying teller and threatened to throw
bomb behind the counter. The paying
teller jumped over the counter, and the
crank fed before him. This fact did not
tend to quiet Dick McDonald's nerves.
But an event happened Yesterday morning
which caused much graver apprehension.
The bank still holds c. 0. Swan berg's
securities, despite McDonald's promise
that they should be returned. Swanberg
strobe into the directors room in an angry
frame Of mind. He spoke very aDgrily.
and it was feared that he would attem pt
TO do Dick Mcdonald violence. At one
time it was thought that Swanberg could
not be restained from wreaking personal
vengeance on Dick Mcdonald. but he was
restrained by the persuasion of those
present.
After that event inquirers were told that
Dick Mcdonald was not in the bank, al
though he was present.
Several depositors called as usual at the
bank in the morning. j. j. Jarvls resides
out of town. He called for his 2 per cent
apportionment and was refused on the
ground that he should have called at the
time the app0rtlonmeDt was made. The
reason was that the bank had been almost
drained of its money. Jarvis has $500 in
the bank.
T. Mahoney, carpenter of Los Angeles,
has $4,000 in the bank He had long con-
ferenca with Director Keeney in which he
spoke in the most uncomplimentary terms
of Dick Mcdonald. He has been a de-
positor in the banks of the McDonalds for
several years.
One OF the pitiable scenes about the
bank is the daily appearance of feeble
man of 70 years. who waits patiently
through coed portion of the day in the
hope that lie may be able to get his money.
He has $500 on deposit 81 am too old
and too feeble 10 work." said he yester
day. "All l have is in the bank. Ii do
not get it shortly shall have TO 60 to the
Aims house, though | dread that above all
things"
Charles H. Kinney ia a depositor in the
Peoples Home Savings Bank. He was
present yesterday. He came across the
plains with DR.. r. Fl. Mcdonald in 1849
He blames the old doctor, who, he says,
wheedled him into depositing with the
bank.
Swanberg's partner, Westphal, applied
for his per cent apportiOnment. Hiram
L. Graves, the secretary. refused to allow
it, although overdue. =
Westphal had been waiting for it several
days. Finally it was allowed. The
amount was 1856. and this was tine last
sun of money paid out yesterday. There
were but few cents left available after
this payment. which. no doubt, accounted
for the secretary's hesitancy about paying
the sum.
Attorneys have received their fees in
advance. All the higher officials have
had prompt payment. The hangers-0n
have been paid and we'll paid, but the
janitor, who scrubs the floors and dusts
the rooms. and who was formerly in the
employ of the Pacific Bank, must wait
The hanks are still in arrpare IN him