The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-05-07
MDoNALD'S DOWNFALL.
TIE saw FRlNCLsco B<NE WREcKRs
Lang UTsHEs nv JAZZ.

| ne Ceuia Get Out ~ sc Coutd Rata.
eIee,ooo Rsii-Ht- Lavish Method. 81
Throwiue oth-r Fsspie's Messy Abo,,.
Ban FRAScrsco MAY e-The Indictment and
arrest Of young Richard II. Mcdonald for lar.
eeny and embezzlemeut OF funds Of the Pscia.
and Peoples Home Banks. OF which the de.
tails were teleeraphed yesterday. vas the tain
Of the town to.dsy. II leaked out late at night
that three directors OF the Peoples HON.
Bank. Graves. Montgomery. and jenkins. had
also been indicted for the larceny Of s4oo,D
worth Of bonds deposited as collateral In its
vaults Warrants for their arrest will not b,
made out till tomorrow. Meanwhile Dich
Melon aid languishes in . cell in the countv
jail. and his efforts to secure ball have been
futile. No one believes he can obtain the biz
bail required. as even his friends know he /.
cowardly. and would ESCAPE at the first oppor.
tunity In order to avoid trial. which will mean
conviction.
The newspapers OF this city have been filed
for weeks with accounts OF MeDonald's jug.
Cling with the Affairs Of the two banks which
he wrecked. Nothing more cynical than his
attitude toward the all depositors he ruined
has ever been seen, except the conduct Of
Ferdinand Ward In the Grant failure. No
Donald and his clerks actually lsuRh led at poor
people who came to the Peoples Bank and
begged with tears for some Of theiS money.
One GAY tne Cashier WAS SO neo0leaelY t0gOIent
that he narrowly escaped being lynched By an
Indignant mob. While he was pretending TO
settle the affairs OF the two banks. Mcdonald
was really aiding his friends to get their coli
lateral out He also drew out over $780,.
600. which he paid to lawyers and others
for their services. In fact the running
expenses OF the Peoples Home were far great
or during the past six months than In the cor-
responding period when It was open and doing
business
The last straw that led to the indictment
was the clearing out Of the savings bank vault
OF all coin and the stealing Of securities
worth $40 600. which had been deposited as
collateral for q loan, The specific charge against
st So shs rom n a.. p P !Sns
i BsnE f9p n zen thSpsand OF this sum va:
S tSs whss
greenbaoks, was stolen from HIS satchel on the
1ys ss train and that ne never got any clue
assistant cashier under Nc DonaId's orders. AS
the ball bond Is pl. At 500. oS0 4 !. Isssrded
pn ssssy BOND a means ths s Mo- Mo-
lns Several do.rssm A r.:
JIM sss s%ps Nth
Ventures With Sanf funds run M into 'ii srss
hgnFes perh h,,los the m9:t shameless wa, the
Ss &c srss 81. p SHGh Tsis
literary smbitions, Over $3.50; 600, OF good
money went into THIS periodical but the great
or part OF this sum never reached the editor.
The local business manager lived very fast
and so did another man connected with the
Establishment In New York. The printing
though the magazine could have been printed
for . few hundreds McDonald's portrait
pose. and along. with some article on banking
or politics. which was written for him BY ex-
Coy. Sheldon.
Mcdonald was accustomed to keep pile OF
these magazines In his private office at the
bank and give copies to visitors. One OF his
articles. praising the Scotch system Of bank
ing on which the Pacific Bank was conducted.
actually appeared only three days before the
bank collapsed. As q Il 10 ancial and moral freak
Mcdonald must be classed with Ward aud
Ives. He has the same disregard Of all moral
obligations. and the same gambling instincts.