The morning call., 1894-05-06
ACCUSED OF EMBEZZLEMENT
Bonds Are Fixed at a Hundred
Thousand.
OTHER INDICTMENTS TO FOLLOW
Charged With the Taking of Twenty
Thousand Dollars From the
Pacific Bank.

Dick Mcdonald lies in a cell In the
County Jail indicted by the Grand Jury
for a felony and with bonds fixed by Judge
Hebbard at 100000.
The Indictment was returned at O'Clock
Yesterday aftern0O 0On. The indictment de-
clares that r. II. Mcdonald Jr. on the 23d
of June, 1893, while vice-president OF the
Pacific Bank and controlling the moneys
at that bank by virtue of the trust reposed
in his office, did, contrary to said trust and
not in due and lawful execution Of said
trust. wiIIfully, fraudulently and felon-
Iously. convert, embezzle and appropriate
to his own use and cause to be appropri-
ated the sum of $4,000 belonging to said
bank with the purpose to detraud the
same"
Sidney NJ Smith handed the Indictment
to Judge Hebbard, who read the paper
and handing it to the clerk Of the court
said:
1.-THE person is not at present in Gus
tody, and it seems advisa BILE, therefore.
that the identity of the accused should not
now be made public. Let bench war
rant be issued for his arrest and let his
bonds be fixed at 500, 000."
The magnitude of the sureties asked
told those present who the accused must
be. In the morning AttorDey ey-Genera
Hart, John F. Sheehan, receiver of the
Peoples Home Savings Bank, John E.
Farnum. manager of the Pacific Bank,
Secretary Minor and Bank Commissioner
knight were summoned before the Grand
Jury.
The impression prevailed that the indict-
bryf fha I,ru
account of the transaction in the Swan
berg securities. This was incorrect. Nc
Donald was charged with felony on a
matter entirely foreign to the PEOPLES
Home Savings Bank. He was accused of
embezzling funds from the Pacific Bank.
and il was the testimony of Attorney-Gen-
eral Rart and John E. Farnum. manager
of the Pacific Bank, which led to his in
Gictment.
John f. Sheehan was questioned with
reference to the Swanberg securities. 1t
is not unlikely that another bill of indict-
ment may be found against Mcdonald on
account of that transaction. as the receiver
of the Peoples Home Savings Bank and
his attorney. j. a. Watt, state their inten-
ton to secure, if possible, the indictment
of all those who were directly concerned
in delivering up the securities held by the
Peoples Home Savings Bank to G. o.
Swanherg.
Dick Mcdonald was arrested shortly
after o'clock at his residence on Seven
teenth street. He expressed a perfect
willingness to accompany the police Off
GERS. They first went to the City Hall.
and from there proceeded to the County
Jail.
The first caller was A. L. Jenkins.
friend of McDonald's and director of the
bank. a few other friends and S. NJ.
Shortridge, his attorney, called in the
evening.
Dick Mcdonald took his arrest quite
philosophically. Il have not yet learned
with what l have been charged" he said
In an interview. When the report of the
Grand jury was read be looked thought
full for a moment and said: 81 did not
take $4,000. / could not have taken the
money on the day charged. for that was
the day following the closing of the Pacific
Bank, when the Bank Commissioners
were il charge. if / remember rightly.
am quite certain the bank closed on the
22d Of June, and this paper charges me
with felonY-the embezzlement of bank
funds on the 23d of June. do not under
stand ii"
When asked If any money had been
taken from the bank Dick Mcdonald
rather reluctantly admitted that his
brother Frank had started East with a
sum of money. This he declared was less
than $4,000. about S14. 600 he thought. He
disclaimed having anything to do with the
taking of this money.
When asked what steps he would take
TO secure his release, Mcdonald stated
that he had not yet seen his attorneys, and
could not say. lie thought he would be
able to furnish suretes in the amount
asked, and that his uncle, Captain Jim,
might not be unwilling to go on his bond
II suppose Delmas and Shortridge will
act as my attorneys" he added, though l
have not seen them as yet"
Dick did not seem to take his arrest very
sorrowfully. He was not particularly ner-
yous, and betrayed scarcely any change of
demeauor, except once. when the name of
Sherman was casually mentioned. Then
his eyes flashed.
"Sherman's turn will come yet." said
be. "Just wait. II"
Then he stopped aud changed the sub
ject of conversation.
He denied that he had done any wrong,
and seemed quite hopeful that he would
soon be released, and that the action of
the Grand Jury would be nullified by the
courts.
There was hurrying around for bonds
men last evening Charles R. Montgom-
cry called in attorneys Shortridge and
Delmas to discuss the situation.
At II o'clock Mr.. Shortridge said: 'It
is so late that l am afraid we shall not be
able to obtain sureties tonight. Mr.. Nc
Donald has many friends. but several
whom we sought were not at .home. It is