New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-06
A BANK WRECKER INDICTED.
RICHARD II. MDONALD JR., IN THE
Tolls AT LAST
PRESENTED BY 4 GRAND JURY FOR EMBEzzLE-
MENT-IIIs CAREER IN SAN FRANCISCO.
fBY TELEGRAPH TO THE TRIBUNE.

tBY TELEGRAPH TBIsUSEl
San Francisco May 5.-The indictment fol
embezzlement of Richard II. Mcdonald, jr.
for his frauds in connection with the Peo-
PIES Home Savings Bank was not unex-
pected, the Grand Jury has been urged FOR
several weeks To take some action I'm this noto-
rious case. What led 10 the Indictment was
doubtless the shameless act OF Mcdonald and his
| associates on Wednesday night In robbng the
vaults of the Peoples Home OF the few thou
sand dollars in coin which was left there. as well
as all the negotiable securities. receiver had
been appointed that day and when he took
charge on Thursday morning he found only
81 10 in the vaults, along with certain memo
randa, showing that the cashier had robbed sev-
eral special deposits This robbery of the bank
vault was only the natural sequence OF young
McDonaid's criminal acts while in charge of the
two banks. and the gravity OF the charge against
him was recognized by the Judge when he made
the bail bond 100000. the largest bail for such
an offence ever cXacted in California Melon
AIDS conviction il regarded as certain. even by
his friends. several OF whom advised him "a
seek safety in flight last night. He proved OBJ
stinate, however. and is confident that he can
secure the required bail.
The story Of McDonald's reckless banking s a
rema rkable one. For FIVE years he was able 10
convince many shrewd business men that the
banks he controlled were solvent. whereas they
have been practically bankrupt all this time
Mcdonald loaned right and left on very poor
security He advanced $500 900 - the John Brown
Coiony. and when the colony iaile' he bank
was forced u carry on the enterprise. In the
same way nearly 100000 sunk IN The Gila
River Canal in Arizona and $4,000 IN a River
side bank which made reckless advances 10
oranro-yrowers and land boomers. over n
quarter Of a million went into an electric street
railroad in Los Angeles which was not needed,
and has never paid interest on It's bonds, while
a half dozen visionary enterprises absorbed
$4,000 each.
Mcdonald had political ambition and yearned
To run for Governor, so he cbia!ncd possession OF
The Californian illustrated Magazine and In
four years spent over $50 00) on ii. He bought
a complete printing outfit. hired a large staff.
and ran 1t as though il were an Eastern maya
zine. II never paid expenses. but Il enabled Nc
Donald 10 print number ~ articles on pohucal
and Industrial subjects over hts own name. al
though ne didn't write any OF them. E%-ToV-
ernor Lionel A. Sheldon was the author and his
receipts are I'm evidence. Mcdonald gained unen-
viablc notoriety I'm domestic way by the ex-
posure Of the Illicit relations between his first
Wife Clara Belle. and an adVcnturer named
Seneca Swain. The latter actually secured Jew
elrv and dresses which Mrs. Mcdonald rur-
chased and WAS his way East with $1,000
worth Of plunder when he was captured He
has been in San Quentin six years and VIII soon
be released Old Or. Mcdonald. the father OF
Young Richard is now I'll I'm New-fork. He has
repudiated his son. who recently made a fruit
less trip 10 New-TOrk 10 secure his fathers proxy
bv which he hoped to regain control OF the
Pacific Bank.