The herald., 1894-05-06
BEHIND PRISON BARS,
Dick Mcdonald Indicted for
Embezzlement.
He Took Funds of the Pacific
Home Bank.
Promptly Arrested and Lodged in
the County Jail.
His Bail Fixed at &1OO, 0OO-rhe Prls-
His Bail Fixed at $1O0, ooo-rhe Pris-
oner Makes Threat Against Gen.
M. IL. Sherman-Los Ange-
les Electric Bonds.

By the Associated Press
SAN Francisco, May g. f. H. Nc
Donald, jr., vice-president OF the Peo-
ple's Home Savings bank, was this after
noon indicted for epbezzlement. The
specific accusation has not been made
public but it is we'll known that the
charge against Mcdonald arises out OF
the mismanagement of the Peoples
Home Savings bank.
Judge Hebbard fixed his bail at $100,-
600 and issued a bench warrant for Nc
Donald's arrest. 1t had not been served
at a lete hour this afternoon. McDon-
aid, however, had been advised OF the
action OF the grand jury and began his
preparations to secure bail. He refused
to say anything for publication.
1t is known that the Indictment is
direct consequence of the recent inves-
tigation made by Attorney General Hart
| into the affairs of the bank. Hart ap-
peared before the grand jury this morn
ing.
'Dick" Mcdonald was arrested short
lv after A o'clock, at his residence on
| Seventeenth street. He expressed
perfect Willingness to accompany the
police officers. They first went to the
city hall and from there proceeded to the
county Jail.
The frst caller was A. L. Jekins, a
friend of Mcdonald and director OF the
bank, A few friends and 3. M. Short
ridge, his attorney, called in the even
ing.
Mcdonald took his arrest quite coolly.
al have not yet learned with what l
have been charged" he said in an inter-
view. When the warrant was read
he looked thoughtful for moment and
said:
81 did not take 900. I could not
have taken the money on the day
charged, for that was the day following
the tfo5sng OF tho Pacific bank, when the
bank com missioners were in charge, If
remember rightly. l am quite certain
that the bank closed on June 22d, and
this paper charges me with felony
the embezzlement OF bank funds.-on the
23d OF June. ] do NOT nndOrsband it.
When asked if any money had been
taken from the bank, Mcdonald rather
reluctantly admitted that his brother
Frank had started east with a Gum of
money. This he declared was less than
$4,000; about $14 900, he thought. he
disclaimed having anything to do with
the taking of this money.
When asked what steps he would take
to secure his release, Mcdonald stated
that he had not yet seen his attorneys
and could not say. He thought he
would be able to furnish sureties in the
amount aeked, and that his uncle,
Captain JIM" might not be unwilling
to go on his bond.
81 suppose Delmas & Shortridge will
act as my attorneys" he added, Though
I have not seen them as yet."
Mcdonald did not seem to take his
arrest very sorrowfully. He was not
particularly nervous and betrayed
scarcely any change of demesnor, ex
cept once, when the name of Sherman
WAS casually mentioned. Then his eyes
flashed
"Shefmsn's turn will come yet," he
said. 'Just wait. If"
Then he stopped and changed the SUBJ
iect OF conversation. He denie that he
had done anything wrong, and seemed
quite hopeful that he would soon be re-
| leased, snd that the action of the grand
jury would be nullified by the oourts.
There was hurrying around for
bondsmen this evening. Charles r.
| Montgomery called on Attorneys Shor5-
| ridge and Delrnas to discuss tae situa-
tion.
| The indictment charges Mcdonald
| with felony in having, ON June %, 1892.
while president of the Pacific bank, en-
bezzled $40, ,00o of the banks funds.
A committee of depoaitors had con-
| ference at the bank this morning with
Receiver Sheehan and Attorney General
Hart. The attorney general entered
| into detailed explanation of the dis
crepancies between his sppraisement of
the assets of the bank and the two ep-
praise ments made by the bank COM
nissioners. His estimate of the value
| of the safe deposit department of the
bank, on the basis of q 7 per cent
return, exceeded that OF the commis-
sioners by over $4,000. His estimate
OF the value of the Los Angeles con-
| solidated electric bonds is 80 cents on
the 81; that of the commissioners is 80
cents. He said the interest of per
cent on the bonds had been paid up to
the present time, though the company
had been at sn expense OF
$255,O0 during the past IL months
for street paving. The company
had Cancelled 1926 single paesss and
200 family passes, and the attorney
general estimated that this cancella-
tion has added about $4,000 year to
the roads income. Other economies
had also been effected by the company
30 aA to add to the vszue of it's secur-
ities. There are 10 miles of road in-
clu aed in its system.
Regarding the Phoenix, Ariz., railroad
bonds, estimated at 70 cents on tho 81
by the Gonna iseioners, Hart insisted
| ~ l. al, - ,a fafr nd