The morning call., 1894-05-11
JURORS AT WORK.
Bank Affairs Still Keep
Them Busy.
Depositors Arrange to Hold a Com.
mittee Meeting With the Direc-
tors This Evening.

Grand Jurors Delafeld and Summer
hayes spent good portion of the day a
the Pacific Bank yesterday pursuing theil
inquiries into the affairs of that institu
ton.
The action of the depositors at the mass
meeting in B'nai Birth Hall on Wednes
day evening has caused the Grand Jury to
take up another line of Investigation,
which promises TO lead to results not al
first anticipated.
Inquiries are being made into the ser.
vices which Frank NJ. Stone rendered the
Peoples Home Savings Bank, with the in.
tention of ascertainlng why so much OF
the banks money went 10 him in legal
fees.
1t is quite likely that Nj. Il. Sherman
will be summoned before the Grand Jury
to explain certain dickers which he con-
suDmated with the Peoples Home Saw
ings Bank and the Pacific Bank. and other
propositions which he proposed, but which
the directors refused to ratify.
The attorneys for Charles r. Mont
gomery, one of the directors of the
Peoples Home Savings Bank, have re-
quested that the Grand Jury act on the
evidence presented and give Mr.. Mont
gomsry then a chance to defend himself.
Ii is believed that the Grand Jury will
return several indictments to-day.
A committee of depositors waited on
Receiver Sheehan yesterday to request the
use of the back rooms of the bank build
ing for joint meeting with the directors
Of the bank this evening. They were
assured that the rooms would be at their
service.
c. o. Swanberg called at the bank yes-
terday morning to secure a box which he
N In 10 told hty
Receiver Sheehan that he would have to
get an order from Judge Hebbard before
he could obtain the box.
One OF the strange things in connection
With the management of the bank when
so much literature was printed urging
that dimes be saved and deposited instead
of being spent for liquors and cigars was
the order to the employees always to ac-
commodate neighboring saloon-keepers
and cigar-dealers with small change.
When M. ID. Merritt. after two weeks
service as a director, rendered his resigna-
tion he did so in these words: II hereby
tender my resignation as member of
your BOARD" No reason for the resigna-
tion was attached. Dick Mcdonald was
not pleased with this brief communication,
and when week later DR.. w. L. Jenning-
son offered his resignation, coupled with
the usual regrets and couched in the most
sympathetic strain. Dick took occasion to
hold up the Jenningson resign alton as a
model upon which directors should act In
future when they had resign atiOns to offer.
Suit has been commenced in the Superior
Court by +. A. Williams, both on his own
account and as assignee for other cred
itors, to recover S11, 145 49, amount al
legged tn have been lying In deposit in the
Pacific Bank at the time of its failure on
June %. 1893. r. H. Mcdonald, James NJ.
Mcdonald, Frank V. Mcdonald, Simon
Meyer, H. c. Meyer and Pau r. Mabury
are made defendants in the action, and are
sued for propo rtionate amounts of this al
legged indebtedness. according to the num-
Der of shares held by each defendant. OF
the amount so claimed S4620 16 stands in
as due TO j. B. Gonyeau; 5000 to T. M.
Stevens; James +. Logan, 1924
George A. Knight will defend Dick Nc
Donald when the case comes to trial on
the indictments brought by the Grand
Jury.
C. o. Swanberg related some further de-
tails in reference TO his securities yester-
day. He declared that Dick Mcdonald
forced him into the arrangement which has
eliminated in the present troubles.
Prior TO the failure of the Pacific Bank
Swan berg owed $4,000 on a note This
was secured by S120, 900 worth Of securities
nberg declares that the note was for
thirty days and gave the bank the power
to sell his securities after that time. He
states that Dick threatened 10 sell his
securities. which would have ruined him,
II he did not enter into the arrangement
for the second note with the deposit of
securities, the letter of credit from the
Pacific Bank and the sequel of the trip 10
Sweden, and that he had to yield to the
threats of Mcdonald.