The morning call., 1894-05-25

sioners could then limit the number of en-
ployes and fix their salaries. He thought
that two men. perhaps one. could do the
clerical WORK of the bank. A cheaper Of
fee ought to be obtained.
Both committee and attorneys admitted
that liquidation of the bank was desired.
Attorney Shortridge added that Judge
Hebbard states that the Injunction meant
Just what it said. and that the directors
could not meet to resign.
Il shovel Judge Hebbard the names
submitted by the committee" said Mr..
Shortridge, land asked if he objected to
those names. ae stated that be did not.
[ asked him what the trouble was, and he
told me that he would make no more ex
parte orders. The matter must be brought
up in open court, and the injunction could
not be violated. l told him that if he
would agree;tO cite me. oftheIdirectors, for
contempt l would advise them to meet
and resign, but [ am informed that if one
step is taken we shall be in contempt.
THAT was the way the matter rested
last night. l went to-day 10 see him again
to ascertain if the directors could meet to
res go, and was told that the motion must
be made in open court"
Hebbard seemed disposed to think that
the Bank Commissioners and the rece liver
should be consulted in choosing new di-
rectOrs. incidentally, he remarked that
NJ. II. Sherman had owed the Pacific Bank
S165000. His notes were returned and
bonds taken at par were substituted.
These bonds had, it was said, been guaran-
teed by Sherman. but Mr.. ShOrtridge said
be had seen no personal guaranty, and
did not know whether it was in existence.
The bonds had been transferred to the
Peoples Bank, in settling accounts with
the Pacific Bank, ana had been guaran-
teed by the latter institution. Suit had
been brought to recover $4,000 due on Los
Angeles Electric Railway bonds, and suit
had been brought against NJ. II. Sherman
to recover $4,000 overdue on note against
him.
Attorney ShOrtridge stated that he had
Director Keeney's resignation, and could
get all of the others except that of Mont
gOmeTy. He had hopes Of obtaining that.
''The law requires that the designations
shall be placed in the hands of the presi-
dent of a corporation. Judge Hebbard
cannot hold them, and he told me that he
should return the resignation of DR..
Boushey to that gentleman"
Mr.. Shortridge stated that he was will
ing that the depostors should name four
directors from five names submitted-M
II. Logan, j. II. Culver. p. B. Flint, w.
b. Wilson and j. j. O'Farrell, and would
name for his side Henry Ii. Scott, George
W. Dixon and DR.. Frederick W. Harris.
If Charles r. Montgomery would not re-
sgn then he would take one name off his
list.
Attorney ShOrtridge said he would pre-
sent these names TO Judge Hebbard to-day.
The committee had previously agreSd to
take four instead of five representatives on
the directory, but a spirited discussion
arose over the name of j. j. O'Farrell.
This name had appeared in list of ten
names which the committee had given
Attorney Shortridge some days ago as
acceptable. When the list was cut down
to five O'Farrell's name had been omitted,
that of S. a. Mcdonnell appearing, and
the committee insisted that the four names
be selected from the five reported at the
mass-meeting of the depositOrs. Snort
ridge was firm in insisting that the list as
presented by him to Judge Hebbard
should be selected
Pike wanted the committees men elected
first. Shor fridge regarded this as retiec-
ton upon the honesty of his motives. II
don't want you to iDsnuate anything of
that SORT" said be.
Pike stated that such was not his inten-
ton. Then the committee reviewed its
negotiations with Livernash and its lack of
success in getting promised resign ations,
which caused Shortridge to remark: Il
don't see why you should run TO Liver
nash, anyway"
Then Pike insisted that O'F&rrell's name
should be dropped. Shortridge would not
agree, which caused Pike to shake his fist
and declare: We'll force the selection Of
our men,"
Here it was that Keeney. one of the
directors, who had sat through the confer
ence, made the remark which almost pre-
cipitated fist fight in the attorneys Office
Finally when matters had quieted, it
seemed 10 be the understanding that Short
ridge should make motion in open court
this morning for modification of the re-
straiuing order, so that the directors mig hit
meet, that he should have five and IL pos
sible six designations secured, and that the
committee should meet with him in the
afternoon.
Later in the day the committee met
Charles r. Montgomery on the street.
Mr.. Montgomery declined to resign, but
stated that he would act in full accord with
the new members of the board if the gen.
tlemen named by the depositors' committee
should finally be selected
The committee of seven worked from 9
o'clock in the morning until 80 P. N, in
en- deavoring to secure designations of the
old directors and held an evening session
which lasted well on into the night.
Chairman Hutton denied that he had
offered the place OF general manager of
the bank to Receiver Sheehan. but stated
that the receiver had sought to obtain
from him the promise of it. He charac-
teriZed statements made by Receiver Shee-
han and Attorney Watt as untrue In
this he had the support of the committee,
which also declared that the visit of Shee-
han was not for the purpose of consulting
about the personnel of the board.
II never talked with Sheehan alone be-
fore Saturday last" said Mr.. Hutton, ''but
once, and then | complained that he was
bearing the bank property"
The following statement was volunteers
By H. d. Pike, secretary of the depositors'
meeting;
SAN FRANCISCO, May "a 1894.
regret that my remarks made at The mass
meeting of depositOrs in B'na Birth Hall on
strued to have refer ence to the entire press of
this CITY. In the haste OF Speaking Der hans