The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-05-17
LURED BY HOPE.
Good Words for Home
Bank Depositors.
REPORT OF. IFS COMMITTEE.
Hutton's Glowing Picture of the
Ph@nix Road. i. ... =.
ITS STOCK WORTH. FACE VALUE.
One Woman Proposes to Ask DR..
Mcdonald TO Pay the Depositors. :.
His Heart BIeeds. !: -. u. +.


wreck aud the temper ofthe speakers was
calmer. SeveralQf them took occasion to
give DICK Mcdonald few hot shots no ".
and then and the drift OF the proceedings
was as to the best course. to be pursued to
get back some of the money entrusted 10
the bank. ~ =: -
After Chairman Quarlman had. called
the meetingto efder:and Secretary IL. d.
Pike had read the. minutes of the last
meeting, HID Hutton moved that rules
Of order be adopted to prevent theTeeur-
renee of. scenes such as. We're Witnessed at
the meeting held q week ago. A COM
mttee drew up a: series of rules. which
We're adopted, and then the secretary read
supplementary report or The ommittee
OF seven recently appointed TO pilot the
depositors out.of this financial meshes into
which they have fallen, -.
The report setfOr5h that the committee
had spent mueh TIME in trying TO inter
view the directors Of the bank. and had
finally succeeded In: seeing each one OF
them. IL -.
a plan had been suggested by which
settlementof the affairs; had been made
practicable, the committee: said, which
was directly In line with the Instructions
The committee had received. This plan
was to cut down the expenses of the bank,
arrange for the disposal of the property
and the reaching of a dividend The dl-
rectors had all eyuced disposition to Sc
cure harmonious settlement.
The Acknowledgement. and Bank Com
mlsSlOners had also promised assistance. !
since we last met" continued the re-
port, 1.-The Supreme Court has rendered
decision In the Pacific Bank case, the effect
Of which Is that the board Of directors Of
bank situated as Is The Peoples Home
Savings Bank shall wind up its affairs
under the supervision of the Bank Com
mlSslOnerS. This has removed one Oh
stacle from our path. as we are BOW fully
ADVISED OF what course to pursue"
As 10 the amount the depOSltOTS might
hope u save from the wreck the committee
reported that its further investigation had
confirmed it IN the belief that depositors
would get so cents on the dollar i
I'VE have made a special examination"
the report stated. 'aS to the i, 000 acres of
land in San Luis ObisDO County, upon
which the bank loaned S150,000 and which
was rated by some reports at $4,000 We
have information that since the bank
closed its doors $4,000 has been offered for /
that land.
|Further, one of the members of cur
Committee he'd a long interview with Mr.. |
HARDY, eX-AssessOr of San LUIS Obispo
County, who assured him that the land |
was the choicest In the vicinity, aad that [
he would appraise it in a good year at 50 +
per acre, or S145,0O0.
'On the subject of bonds, which have !
been commented on somewhat by others, /
our information leads us to believe that /
these bonds have been guaranteed by the |
Pacific Bank and by NJ. Ii. Sherman. The |
Pacific Banks guaranty should be good for
40 to 80 cents on the dollar for any loss this |
bank may suffer. Whether Mr.. Sherman
is good or not we do not know"
The committee thought that some of the
assets might be disposed Of this year. 1t
( again urged depositors to sue stockholders
and to mplOy reputable attorneys TO take
the suits on contingency.
The report was adopted, and Secretary
Pike stated for the information of the
meeting that when he had addressed one
of the directors the man had questioned
his authority, saying. "You only repre-
sent some of the depOsit0rs " hiie | repre-
sent them ALL" This man was George
ShultZ.
A depositor who said his name was C. A.
Sullivan threw little more life into the
meeting by denouncing Dick Mcdonald.
He said the people who went out on the
road and robbed were much better than
the man who robbed the bank when
ever l see anybody aking the part OF that
man l think be partakes of his acts, and
whenever see anybody taking up for
Charles Montgomery l think he is partak-
ing of Charles MOntgomery's acts.
81 had laid aside a little money for old
age; / went away TO Colorado, and before
1 left l put Ii in that bank. When l came
back the doors we're closed had been
robbed by that horrible Mcdonald. IdOn't
want to see him sent to the penitentiaTy. l
would rather see him hanged"
This met with sympathetic applause, in
which the entire audience joined
Mrs. Darling OF 80 Rincun place moved
that committee of three be appointed TO
ask DR.. Mcdonald to pay the depositors
now
This occasoned a derisive laugh, in
spite of the grim mood of the deposit0rs
but the speaker con tinued: dick has said
that his father told him that be would
rather pay the depositors than see the
bank 90 under. Now, let's give him a
chance. DR.. Mcdonald says that this
affair makes his heart bleed. Let's give it |
a chance. He has one son 10 prison and
one in exile; suppose we try him, any
way?" j
"His heart bleeds, does itg' said man
in ths back part OF the hail.. '1f it does |
it bleeds for more" Il
Another deposition said ''No use to APP
peal 10 a Mcdonald anyway, ands this |
one is too old. He has gone away, too.
and l thigk he went away on account of /
this very thing.
The hope of having DR.. Mcdonald turn /
protector of the depositors was abandoned. |
Blanks were then sent around the audi /
ence Tor signatures. a printed heading |
authorized he committee to act for the /
, persons whose names were affixed, but not |
TO collect their deposits or incur any eX-
pense except that which was authorized |
by voluntary subscription. A large num-
Der VI nose present signed these slips.
MI Hutton 1hen made a speech. in
whleh ne Ihrew out hope to the depositors
IN iaIge 11Iuhks. which were greedily-
caught. lie SAID, first, that the directors
must resign, they cannot serve a03 he
fore Saturday there would. 10 damn h. =
change in The directory Then he go
that the Phoenix Railroad nroner,,, 49, 1.oa
worth dollar for dollar and taILea 3 vas
the value of the building lots the 80
owns.
This was big news for all those who
have paid attentionato the affairs of ths
bank. Receiver Sheehan has reported |
that, though S165,00 was invested in Inc
enterprise. the Whole affair was not now
worth $4,000.
Hutton went on to talk of other prom.
erty the bank had. He said that the safety |
vaults were worth $4,000, the furniture
$4,000.
the bank is paying a rental of $3.50 |
month where it is now, but if we were to
move out the place would be vacant and
4 those valuable safes would be worth only
so much steel and old iron. But If the |
\ bank remains In possession some other
bank may be induced to take the property
at something like fair value. The bank