The morning call., 1894-05-09

frame of mind. If I had been guilty of
crime should not be foolish enough 10
remain in this city. If l were not sure
that | was free from guilt should have
fed long ago. Ii / were a criminal my
first thought would have been when the
bank closed to have left the country.
"The proposition which Sherman made
to the directors of the Peoples Home Saw.
ings Bank. as narrated in THE CALL, is
nothing compared to some things which
he has done. After the Pacific Bank
closed, and while Sherman was a director
and stakeholder, he proposed tha. $4,000
should be paid by the bank for his attor-
neys. and that certain guarantees should
be returned to him. The consideration
which he offered was to use his influence
with the Bank Com mssioners to make
them cease their attacks on the bank"
Papers were served yesterday on Swan
| berg and the directors who voted him the
securities. in the suit brought by the re-
celver for their recovery.
There is plan afoot to rehabilitate the
Peoples Home Savings Bank. The plan
is to give deposisOrs representation upon
the directory, and TO NIL the other places
on the directory by substantial business
men of tins city.
Chairman Hutton of the committee of
depesitnrs will probably be offered place
in the directory.
as was expected yesterday against either
Pacific or Peoples Home banking officials.
The Jurors met at l 30 O'Clock in the
| afternoon and held very prOtractpd ses-
| sion, an adjournment n OF being taken until
after 8 o'clnck. AS the jury adjourned to-
meet at s o'clock to-day instead of contin-
| ming the session until the regular meeting
sday next Friday, the impression Is that
| whatever indictments may have been de-
| cded upon will be presented to Presiding
Judge Hebbard this afternoon. The sup
! position has been that Hiram 7. Graves
and Charles Montgomery may be indicted.
The waiting-room of the Grand Jury
was crowded Yesterday when that body
met. Charles Montgomery was there, and
later appeared Secretary Hiram T. Graves
| of the Peoples Home Savings Bank. Ac-
| com panying them was l.. +. Phillips, Who
acted as their attorney. James A. Watt,
| counsel for the receiver OF the Peoples
Home Savings Bank, put in an appear
ance. and shortly afterward G. o. Swan
| berg entered.
The party held regular conversational
| bee on the subject of the books Mont
gomery protested against being suspected
of any wrODgdolDg, and said that he had
been in the bank only since April Is
last. He held that the bank directors had
acted rightly in returning Swanberg's
$4,000 securities. because they did not
belong to the banB.
"They should attack Others" he said.
'I have discovered some iniquites in high
places during the short while | was at the
bank. I'm not through with this yet. jest
wait, and you will see some big people
fall"
Swanberg cautioned Montgomery not to
say too much. He talked quite loud him
self about his famous securities, and said
he was going 10 sue the Peoples Home
Savings Bank for having retained them so
| long. Against the old bank directors and
the Bank Commissioners he was very
wrathy. He wound up by saying he was
sorry for "Dick" Mcdonald. although the
latter had caused him more trouble than
all the rest of mankind.
Hiram Z. Graves was first called by the
| jury. From the fact that he and others
were examined yesterday it was evident
thai they have not yet been indicted, for
the Grand Jury could not be likely to de-
eide Oh their cases and aflerward call
them in for explanations. Secretary
Graves remained in the Grand Jury room
an hour, and afterwarG said he was asked
four questions at a time. He was ex.
amlned on the matter of the Swanberg
securities. but other subjects were treated
of which he did not feel disposed TO dis
close.
In an affidavit filed by Mr.. Graves with
the Grand Jury, after stating that he bad
only acted in the capacity of secretary
since after April 2S, 1894. he treated of the
Swanberg matter. In explaining the Swan
berg securities and their return the atfida-
Wit after reciting the already published
history of the meeting Of the directors
when the securities were voted to be- re-
turned gives the resolutions which were
drawn up. They are as f0llows
WHEREAS. in the month of March, 1893, this
bank and the Pacific Bank were in financial
difficulties, and IL was at that time imperative
tlats said banks should have large amount OF
money and whereas,C. o. Swanberg was, at said
time, director OF this bank, and customer