The morning call., 1894-05-05
IS INVESTIGATING.

When Receiver Sheehan, who viii begin
a thorough examination Of the assets and
records of the Peoples Home Savings
Bank to-day. reaches a certain stage in
the examination be viii be confronted
with some strange fact $
1t is stated that fees were paid which
were not authorized y vote of the di-
rectory. and it is certain that there was
clashing in the directory which was lately
depOsed by the receiver.
Treschery on the part of some one is
limited at, and the expenditures will be
thoroughly investigated. Even Dick Me
Donald was not supreme in the bank
which it was thought be controlled, and
things were done without his knowledge
or consent which will not show up in
proper light.
An emissary of an interest hostile to
Mcdonald was in the bank, and the loot
Ing, it is said, cannot all be justly charged
to him.
Time viii shortly show that there was
no concerted effort on the part of the d-
rectors TO pay out eXtravagant fees. An
eXaminatiOn of all these matters will be
made. and the reason why such eXtrava-
CANT fees were paid for small service
rendered, and By whose authority the or
der for money vas drawn, will be made
public.
The payment Of over $4,000 within a
few months was not all authorized by a
directory vote. How much of this sum
was so authorized will be shown by the
minutes of the meetings
Receiver Sheehan was given the combi-
nation of the second vault yesterday morn
ing and the vault was opened. Hiram L.
Graves, the secretary, refused to give up
the combination or 10 open the vault. The
receiver believes that he was awaiting the
action of the Supreme Court.
Attorney Shortridge stated that the
court was too busy yesterday to act upon
his request for a writ OF prohibition. In
speaking of the appointment of a receiver
Mr.. Shortridge said: "If such appointment
holds. no bank in the city is safe. The
bankers are very uneasy over the affair, as
IN these panicky times, if the appoin ment
Of a receiver is within the law as made in
the case of the Peoples Home Savings
Bank, then any holder Of a single share of
stock in any bank eau file comp laint and
throw that bank into the hands Of re-
ceiver.
Bank Commissioner Knight came in
this morning" said Receiver Sheehan.
I'VE opened the security vault and looked
for the Swan berg securities. We found
that they had been taken, as reported.
We also examined the bond safe. 1t had
been reported to the Acknowledgement that
the Los Angeles Electro halfway O0Dds
had been abstracted. We found that this
report was untrue. The bonds were there
as well as the Phoenix bonds. So far as
we have examined no other securities have
been removed.
Receiver Sheehan states that there is
money to be paid in from the sales OF
lands, and money to be paid out on taxes
due; but that he viii take no action until
the decision of the Supreme Court on the
petition of Attorney Shortridge for a writ
OF prohibition, is made known.
THE attorneys Will take the proper
action for the recovery of the Swanberg
securities after we know what action the
Supreme Court has taken," said Receiver
Sheehan. "DT. Boushey, the president OF
the bank, called here this morning. He
stated that he was served with the order
of the court appointing me the receiver al
5 o'clock on the afternoon of May 1, and
that be had obeyed the order of the court
taking Do part In bank proceedings suDse-
quent to the order.
He was not present at the meeting
which resulted in SwanbeTg securing the
securities. We think that meeting was IL
legal" continued the receiver. "The
original order provided fo- the return OF
the securities to Swanberg On or after
May 2 Then an adjournment was taken,
TO meet the next morning, May 2, but 6
subsequent meeting was held on tie even.
ing Of May l. 1t was held without cal
and the president was not notified. We
found the rough minutes of that meeting
between the two doors of the main vault.