The morning call., 1894-05-10
What Director Montgomery Says
He Can Prove.
SAFES HOLD EVIDENCE OF CRIME
DepositOrs Meet in B'nai Birth Hall
and Discuss the Affairs of
the Bank.

Ienceu 10 san Quentin,
This was the somewhat startling state
ment which Charles r. Montgomery, a
director Of the Peoples Home Savings
Bank, made last evening 1t is freely con-
ceded that guilt in connection with the af-
fairs of the Peoples Home Savings Bank
exists. Representatives of the various fac
tions which have fought for the control of
the institution unite in declaring that
crimes have been attempted or committed.
All of the attorneys who have been cou-
nected with the bank declare that the
securities which are attracting so much at
tention in the Grand Jury belong to Swan
berg and not the bank. If their legal
opinion is correct Swanberg merely got bis
own when the securities were given back
TO him, and the only points in dispute. if
the attorneys are right, are whether the
securities were returned before the direc-
tors were aware that a receiver had been
appointed, or whether, with the knowledge
that Judge Hebbard had named John f.
Sheehan receiver of the Peoples Home
Savings Bank, the directors hastily re-
solved to give Swanberg his securities be-
fore Receiver Sheehan could get possession
of the institution.
If the various attorneys who al different
times advised the return of the Swan berg
securities we're right in their opinion that
they legally belonged to him. the return,
if an offrnse, might be more of a technI
cal one than a criminal act. If Charles
i. Montgomery can furnish evidence
which will show that the bank was
wrecked by criminal acts and can estab-
lish who the criminals were, the Grand
Jury might find something more important
TO attend to than the Swan berg securities.
The faction which is behind R. Ii. Nc
Donald Jr. claims to have discovered that
the Southern Pacific influence is against
Dick, and give a very plausible reason
why il should be so, and why NJ. H. Sher-
man should find favor at Fourth and
Townsend streets.
The Grand Jury evidently means bust
ness in the way it is sitting matters con-
Bank.
1t is the desire of the jurors to probe the
inside workings of those who were inter-
ested or participated in controlling the
management of the institution.
The reason why no further indictments
have been filed since Dick" Mcdonald
was taken into custody is because the
jurors wish to be masters of the situation
by having the most complete testimony in
connection with the banks affairs.
Yesterday the Grand Jury set it's inquisi-
torial auger boring into the banks man.
agement at a rapid rate, keeping the bor-
ing process up until after o'clock. The
waiting-room of the jury was filled all the
afternoon with people interested and with
curiosity seekers.
Some of those whose names have been
mentioned in connection with indictment
regarding the Peoples Home Savings Bank
were on hand, and it cannot be denied
they appeared anything but at ease.
Charles Montgomery, one of the directors,
showed up early, but did not remain long.
Hiram T. Graves was a nervous attendant
during the session. With him was Attor-
ney l.. Z. Phillips. VINO said that he had
substantial bonds made cut in case there
was any trouble in the way of indictments.
Charles o. Swanberg, the return of
whose $4,000 securities started the jury's
Investigations, ambled into the jury wait
ing-room, but he had lost ali'his boisterous
and communicative mood OF the day pre-
vious. At his side was his partner West
pha. Later there entered other persons
connected with the wrecked bank now in
the hands of Receiver Sheehan.
The question on every lip was, "Win
they present any indictments to-day?"
Every time the door of the inner and
secret circle opened there was buzz and
eager looks of expectation. but the deputy
sheriff in charge of the door only intensi-
So hu 1linn mi
ness.
In his chambers on the other side of the
City Hall Judge Hebbard waited patiently
hour after hour for the jury, but at 5
o'clock he left the hall, when word was
conveyed to him by The Grand Jury that
there would be no indictments presented.
The jury kept on with its investigations
and called for witness after witness with
out any signs of being tired or without any
recollection of the overdone roast. AS the
witnesses emerged from the Grand Jury
rooms it was evident that they realized
the serious nature of the situation. When
questioned as To what they had been ques-
toned on they were nervous and evasive.
and finally said that ''it was all about
those Swanberg securities"
1t was soon evident, however, that the
Swanberg securities were being used to
cover multitude OF sins. From the num-
ber of witnesses examined and tie length
Of their stay with the Grand Jury it ap-
peared plain that that iDquisitoral body
was going over pretty wide field of inves-
tlgation. Some of the witnesses had no
connection with the Swanberg securities
at ALL
About $3.50 o'clock Assistant District
Attorney Hosmer entered the waiting
room. lie held book in one hand and
four papers that looked suspiciously like
indictmentsi iu the other. Hosmer remained
in the Grand Jury room while all the wit
nesses were being examined, but while
there was an interval when no witness
was called he Joined the ranks of the
nervous bank officials and weary reporters
on the outside.
Hosmer acted for District Attorney
Barnes, who was unavoidably absent,
being off on trip TO the southern part of
the State.
When the Grand Jury began its session
l.. E. Phillips sent in an other communica-
Ion in which he called attention to the
fact tha. his client Hiram T. Graves re-