The morning call., 1894-04-05
HE CLAIMS BIAS.
Attorney Stevens Makes
a Statement.
OBJECTS TO JUDGE HEBBARD
Affairs of the Banks Grow More
Confused.
THE INJUNCTION PROCEEDINGS.
Electric Bond Contract of the Peo-
pies Home Savings Bank With
the Pacific Bank.
THE INJUNCTION PROCEEDINGS

junction proceedings against the stock
holders of the Pacific Bank l would have
the case dismissed" said Attorney Martin
Stevens, yesterday. who the day before Sc
cured 4 restraining order from Judge
Trout to prevent the meeting OF the stock
holders Of the bank. The stockholders de-
fed the order, met and elected directors,
who in turn chose officers for the institu-
ton.
IL went to Judge HebbaTd's chambers
this morning." continued MI Stevens
Ito secure an order for transfer OF
case in which / am interested. Judge
Hebbard remarked that he had assigned
the Injunction proceedings on the order
issued by Judge Trout TO himself. L asked
him why he did so, and be replied to CEN
tralize the proceedings. 10 my inquiry
why he did not assign the case to Judge
Levy. then, he replied: 1 am determine ed
IA stop this litigation. OF course, you un-
derstaud that the contempt part of the
proceedings need not come before me-
when the time comes TO move In this
injunction suit will have it taken from
Judge Hebbard or [ will tell him TO dis
miss it. I feel satisfied what the result
would be before Judge Hebbard. | am
willing that the case should go before
Judge Trout, where il naturally belongs
before Judge Levy or any of the other
nine Judges. | secured the Injunction
from Judge Trout. Common courtesy
should have led Judge Hebbard TO assign
the case TO Judge Trout instead of to him.
After the interlocutory decree was
issued by Judge Hebbard, when Reel
Terry appeared in open court to ask a
modification, he was accused by the Judge
of acting in bad faith. Mr. Terry replied
that he was bound 10 protect his clients
against the advice OF previous counsel
when he found that by acting upon that
advice they had become bound hand
and foot, although he did not think
their chains had been legally placed upon
d them. In that lnterlOcutOry decree the
stockholders were restrained from meet
ing al all. Captain Jim did not then hold
DR.. McDOnald's proxy. and the order
which restrained DR.. Mcdonald from act
Ing now apples TO James NJ. Mcdonald.
1t was gross want OF courtesy to ignore
Judge Trout and assign the case TO him
self.
when Mr.. Baggett fled suit 10 Dust
the directors If the Pacific Bank and pro-
cured an injunction and the appointment
of a receiver. Judge Sanderson naturally
assigned the case 10 Judge Hebbard, as
his was the department in which the case
originated. Judge Hebbard takes an en-
tlTely d ffeTent course now.
All idea Of Cancellation between the
factions fighting for the control of the
Pacific Bank has disappeared. r, Il. Nc
Donald declared yesterday that when
Captain James NJ. Mcdonald stated that
he was acting 10 accordance with the
wishes of DR.. r. u. Mcdonald he said
what was not the case.
My father wired to Captain J. N. Nc
Donald tOknOw whom he intended to place
on the directory" said Dick Mcdonald.
He received no answer to the message. |
have the list of the directors whom my
father desired to see chosen. Only two of
the names In that list appear 10 the
directory selected By Captain Jim-his own
and that of my father"
Frank NJ. Stone states that be does not
believe that the election held on Tuesday
was legal one. He and other attorneys
are engaged in preparing papers to begin
contest and atfidayits are also being made
ready 10 bring proceedings 10 contempt OF
court for the defiance of the order OF Judge
Trout by the stockholders.
The directors Of the Peoples Home
Savings Bank held protracted meeting
yesterday afternoon. 1t was announced
that the cash on hand would enable the
bank to pay to the depOsitOTs Immediately
a dividend of 2 per cent. a sum of money
would still remain on hand.
1t was stated that the title TO a large
tract of land in Fresno County had been
approved. and that negotiations for lis
sale had been made. so that within the
next ten DAYS the money arising from this
sale would enable the bank to pay off an
other app0rtionment of 2 per cent 10 the
depnsitOrs. With the new spporti0ument
the bank will have paid out about $780,
coo. It's officers stale that " thin a year
al the depositors will be paid 10 full.
According to the statements made yes
terday quite large sum of money will
come into me bank from an unexpected
source. The bank holds a guaranty on
S2OO,C worth of bonds of the Los An
geles Consolidated Electric Railway. exc
cuted by the Pacific Bank. When The
Peoples Bank accepted these bonds and
placed the amount to the credit OF the ac-
count Of the Pacific Bank on sums due the
former by the latter, it was with contract
that the Pacific Bank should, upon SIX
months notice, repay the amount of $780,.
OJO with accrued interest in exchange for
the bonds.
10 other words, the contract was so
worded that by giving six months notice
the Peoples Bank could return the 200
bonds to the Pacific Bank and receive for
them $500. 600 in cash with interest.
1t was stated that might keep Captain
" James Mcdonald as president of the Pa
eiic Bank quite busy Tor the next three
months IN making collections to make this
exchange.
The directors at the meeting Yesterday
declared that they anticipated no suit or
contest over the carrying out of this CON
tract, because it had been made by John
E. Farnum, while manager of the Peoples
Home Savings Bank. and now that he was
manager of the other institution, the
Pacific Bank, he would naturally desire to
see that the contract he had made should
be carried out. At the time the contract
was made, it is statsd, Mr.. Farnum
desired to have a thirly-day clause in
the document, but the period was ex-
tended to six months at the request OF
Frank Y. Mcdonald, so that if call were
made for SO large sum of money the bank
would have sufficient time in which to
raise il. Notice will accordingly be given
that the Peoples Bank desires the money
from the Pacific Bank in exchange for the
bonds. If the money is not forthcoming at
the expiration of the term of notice then
suit will be brought and an application
for the appointment OF a receiver Of the
Do fin ha ODD