The morning call., 1894-05-26
NOT TO MEET YET.
Scope Of Judge Hebbard's
Injunction.
DIRECTORS IN A QUANDARY.
Opposition Committee Named by
DepositOrS.
FIVE RESERVATIONS ARE READY.
Sheehan's Letter Results in the APP
pOintment Of Committee
OF investigation.
DIRECTORS IN A QUANDARY.
FIVE RESERVATIONS ARE READY.

before Judge Hebbard at O'Clock in the
afternoon with their promised motion to
modify the decree of Injunction in the
Peoples Bank case.
After some delay had occurred owing to
the non-arriyal Of Attoruey-General Hart.
Mr.. Deimas explained the reason of his
motion. He spoke TO a very small
audience, as besides the Judge and the
officers OF the court the only interested
parties present were Attorneys W. Fl.
Hutton, Shortridge and James Alva
Watt. Hart came in about an hour late
and made up the quintet.
Mr.. Delmas urged that it was entirely
wrong that the Peoples Bank directors
should be placed in such an unfortunate
position as they at present occu led. On
the one side were some ten thousand de-
pOsItors clamOrinR for their buried money
ana demanding the Immediate resigna-
ton Of the board of directors; on the
other side was Tie injunction restraining
the directors from taking any sort of ac-
ton, thereby precluding them from even
formally TesIguinE.
IL was urged thai the directors were per-
1ecuy wiling 10 rise 10 the call of the
people and resign their Offices But TO DO
that II would be necessary to hold a meet
Ing Tor that purpose. and as each director
stepped out It would be necessary TO ap-
point his successor.
Again, Mi. Delmas claimed that the d.
Tecl0TS were not proper parties TO the suit
Instituted by the Attorney General in The
name Of the people. 1t was purely
statutory proceeding and concerned the
bank alone and its business, and there
was nothing which could possibly pre-
Veat ANY director from throwing up his
office when he so pleased
On these grounds tlerafOra MIR IbaiUOsS
moved that the order OF injunction crIgi-
nally granted against the PEOPLES Bank
be so modified as to allow the directors to
held meeting for he purpose Of formally
Iesiguing and of eiecouE their successors
a rs OF names OF probable successors, all
OF them exceptionally good aud true, Mr.
DeImaS he'd 10 his hand, and it was hoped
mere would be no opposition to the mOdi-
ncauon scheme so modestly presented.
Judge Hebbard asked for further ex-
preston or feeling upon the subject, and
Nj. Hutton rose 10 speak On behalf Of a
large number of depOsitors. The motion
OF Mr.. DeImas had his hearty Endorsement
as be personally knew that the resignation
Oh Inc present board of directors was the
one wish ever present in the minds of the
i0ug-suHeTlDg creditors
Both Attorney General Hart and James
Alva Watt were called upon, and at last
Mr.. Watt responded. He said he person.
ally had no objection to the directors being
allowed 70 resign, but as attorney for the
receiver he wished TO offer an amendment.
Ihe depOsitors in a body should oe con-
quilted on this proposed step. He under
stood that some names OF future directors
were being brought forward by other IN
terested parties than Mr.. Delmas, and
While he agreed that there must be a
change be thought that the depOsitOrs
should be called together and asked TO ax-
press their decided opinion upon both
QuestiOnS-that OF resignation and that Of
succession.
TIE Attorney-Gener8l was heard to saw
that the affairs OF the defunct bank should
be wound up as economically as possible.
He knew of some good men who had
been proposed as successors to the present
directors, and he thought il best TO get the
depositors TO meet ana agree upon the
men they desired to fill each vacancy
caused by each resignation.
Judge HebDaTd said: Il see now the
rock upon which you split, ana with it the
point which Is going to make most trouble
II this case gets as far a. the Supreme
Court. 1t IS upon the power of the direct
Ors 10 elect their own successors YOu
are agreed that they may be permitted 70
resign, but IL Is upon this election Of sue
cessOrs that you disagree"
Mr.. Delmas rose to say few words in
reply. He said a great MANY. He said
that for the first time he had heard of some
TlVa! organization, some rival directors
ticket What did that mean? Was there
some ak 10 grind? Was there some scheme
sh0at whereby 1t was TO be SAID TO the
directors, y GU may resign if you please,
but you shall appoint IN your place the
men whom we name? This was not a
scheme 20 put in men and their attorneys
to expect large fees and all together make
capital out Of the change.
The idea was simply his: Angry credi-
tors, depOsitors Of tile bank, had de-
maaded the resignation of the directors.
III
had the appointing Of their successors.
AS matters stood under the present in juno
ton they were tied hand and foot, while
indignant creditors went so far as TO
threaten them with personal violence If
they did not do what the law actually for
babe them to do.
Mr.. Hutton cordially agreed with Mr..
Delmas in all that he said.
Judge Hebbard then said that he had
heard that the object for which this modi-
fCation of the Injunction was asked for
was that the charges Of fraud al present
pending against the directors might be
dropped ana the insolvency of the bank
become the only question at issue.
Mr.. Delmas Indignantly replied, THAT
is not SO, sir. These directors do not wish
to resign. Bun they obey the voice of
clamoTOus depOsitOrs, who insist that they
shall Their position would be more tnan
comic II 1t we're not al The same time 50
tragic. But If they are to be charged with
endeavoriug TO escape the investigation OF
their alleged fraudulent acts they Will
positively refuse to resign"
Attorney General Hart said he did not
oppose the resignation of the directors,
but Judge Hrbbard said that he intended
10 get the opinions of as many depositOrs
as he could. He did not recognize, nffici-
ally, any one present as representing de-
posltCT, therefore he could not tell what
Tue majority would desire. Under the cir
cumstances he would not at present graft
the modihcation Of the Injunction as
prayed Tor, bat would grant an order to
SHOW cause, If so desired
Messrs. De mas ShOrtridga and Huttop
all shook their heads and said they'd let
the matter drop. We neither want nor
ask for an order 10 show cause" said Mr..
Delmas. We've done all we could. We
are sick and tired of this whole business
and, while we have acted for the best. we
give way. Oar list Of proposed directors
is one that contains none hut the most
iFreproachable names. What could the
people want better than that? II isn't
easy 10 get good man to ACCEPT such a
thanklass office as that of director Of the
Peoples Bank. We shall ask for no order
TO show cause"
The parties then left the courtroom and
expressed their Indignation outside.
There is a movement on foot among the
leposit0TS Of the Peoples Home Savings
Bank to take the matter of securing names
for a new directory for that institution out
of the hands Of the committee of seven.