The morning call., 1894-04-28

The Commissioners cut the ie0gar pal.
ance of S28, 1914 So on safe deposit vaults
rentals in half, making 1t Sl4,O47 AZ. Inc
same reduction OF 90 per cent Is made on
furniture and fixtures. The ledger BAL
ance is STATE 55: the estimate OF the Com
m>sioners S7357 rs.
AS shown by the general account the
liabilities due to depOsitors aggregate
S1.556, 091 49, The resources as estimated
by the Commissioners are:
Cash, S4269 81; mortgage loans. $685.
$50 "a; collateral loans, SS1. 800 IA; CON-
mercial loans, SIS. 346 IS; stocks. bonds
and warrants. S27S. 1T9; real estate owned,
1926. S45 90: safe deposit vaults, S14 041 ~
furniture and fixtures. S7357 70; due from
banks and bankers, SS937 Sc; taxes, 1924 81.
Total. Slab, 914 81, or deficiency Of
S137, III 81.
In conclusion the Commission say:
Our examination Is dated the 14tb day OF
ApriI, and was continued until and including
the 26fh inst, during which time we have ex-
amined many witnesses under oath and made
careful examination into The vouchers repre-
senlng the expenditures and payments COM
planned of In this report.
III reference 10 the management OF the bank
we desire TO say:
First-Wr found, upon examining the en-
ployes of the bank under oath. that several OF
them had been threatened by The vice. president
and others and requested not TO testify before
our commission Ill regard 10 certain transac-
tons.
Second-Snce the 1st of December the board
of directors have been constantly changing
from month to month thereby jeopardiZing the
s2fety of the bank.
Third-That the majority of the board OF di.
rectors have been and now are under the con-
troll of II. II. Mcdonald Jr. and Mr.. Jenning.
son, and do not represent the interests OF tile
depositors or stockholders
FOultb-That The vice president. who is prac-
tically the manager of the bank, and the board
of directors do not have the confidence OF the
public or depOsit0rS, and In consequence new
deposits are seldom obtained.
fifth-That large blocks OF stock OF the cor
poratiOn have been transferred TO persons out
side of the State. and we are of the opinion
That this has been done for the purpose OF
avoiding personal responsibility TO the depos
itors.
Sxth-That many complaints have been made
TO The Commissioners by the depoSilors In said
bank for ungentlemanly and bad treatment by
some of he officers when they were seeking in
formation about their deposits and business OF
the bank.
Sevenlh-The testimony taken before the
commission shows that many memorandum
checks were drawn by The manager OF the bank
In favor of individuals. where The same were
not iDdOrSed ana where The evidence shows
that the parties named did not receive the
money.
EiehIh-From the testimony taken before
this commission we have ascerlalned that pass
books ageregating thousands of dollars have
been purchased from depOsltors at discount
and the same paid IN fun by the officers of the
bank, aud favOritism has been shown TO many
large depoSItOTs.
We specially call your attention TO the fact
That The enormous sum of S92, 956 go has been
paid out for attorneys fees, salaries, adver-
Using and sundry expenses, since December /.
1898. This we consider crlmiBaily extraVa-
giant. We iDclose herewith an itemiZed ac-
count OF said expenditures
The commission will heartily indorse any
effort that can be accomplished 10 rebabitate
the bank by additional capital. whereby fhe
bank may be placed in the hands of responsible
and well-known bankers, doing business &C
cordiEg 10 banking rules. Ia an economical and
safe manner.
In conclusion, we find, first, that the bank is
insOlvent. and second. that Ii appears 10 this
Board OF Bank Commissioners That IL Is unsafe
Ter The corporation aforesaid 10 transact buSl-
ness, and we thereby inform you OF such fact.
Respectfully. w. h. KNIGHT.
e. II. DUNSM0OR,
j. b. FULLER.
Board Of Bank Commissioners.
San Francisco, April 81, 1894
When asked about the ilemiZed state
ment of the fees paid attorneys and other
expenditures which the Bank Commission
ers referred 10 as crimiDaIly eXtravagant
Attorney General Hart declared that he
would not at this time make the names of
the persons public who are charged with
having collected extraYagant fees.
About fifty attorneys have been en-
gagged IN various portions of the State in
bringing foreclosure suits for the Peopls's
Home Savings Bank" said Mr.. Hart. 1T
would not be wise to give their names at
this time. Ii Is true that the bank has
paid out in attorneys fees much larger
sum than [ regard as necessary"
The Acknowledgement stated that he had
not decided upon what course he should
nursue with reference to the report OF The
Commissioners. 1t might be advisable 10
bring suit against the bank and ask for
the appointment OF a temporary receiver.
II think the Bank Com nissiOners have
underestimate The resources. but since
made the examination in January condi-
tions have changed. Foreclosures have
been pushed and the bank finds itself with
a lot of idle lands ON its hands. The dry
weather has caused realty to deprecate
fully 20 per cent, and this reduces the re-
sources OF the bank.
There have been great eXtravagances
in the management since January in the
payment of salaries and fees. Ibaye made
two examinations Of the bank, and l am
heartily sick of The whole business. 1 wish
ii wonld either pay up or quit" concluded
the Attorney-General.