The morning call., 1894-05-04

men you have robbed nave sworn II. ana am
one. A DEPoSlToR.
Beside this epistle Law type written
copy of a poem which some one had evi-
IDENTIFY thought applicable.
Late in the afternoon d. G. DiXson, act
ing for Receiver Sheehan, served Judge
Hebbard's order on Secretary Hiram
Graves to open the other vault. MIR.
Graves consulted with Delmas and Short
ridge and shortly afterward MIR. Short
ridge telephoned the receiver that he
thought Mr. Graves had better wait until
te-dav, as an application had been made
to the Supreme Court to have Judge Heb
bard's order closing the bank and appoint
ing receiver set aside, and action on this
appeal might be taken to-day.
The petition of Shortridge and Delmas
to the Supreme Court was for writ of
prohibition.
AS a result of an article which appeared
in Yesterdays Examiner In connection
with the Peoples Home Savings Bank
troubles, Attorney l.. E. Phillips and
Hiram T. Graves. secretary OF the bank,
filed q libel suit against w. K. Hearst, in
which they demanded S150,000 damages.
In speaking of the taking OF S247 80 from
the special deposit fund of the bank
James Alva Watt, the attorney for the re-
ceiver. said last evening:
''Of course, it was DisapprOprlated. The
money did not belong to the bank. TWAS
directors had no right to use i"
Mr.. Watt confirmed the statement that
Attorneys Demas and Shortridge had
been paid S25O0 of their fees as counsel.
or the special deposit fund about $3.50 was
deposited by renters of boxes as security
for the return Of boxes taken out. On the
return of the boxes they were entitled to
have their money restored
The one-dollar tag mentioned in the
statement rendered, Mr.. Watt declared,
was probably placed there TO cover the
amount due on one of the boxes which one
OF the renters had not paid, but stood
ready to pay.
Mr.. Watt, but we have not examined all
the securities as yet. Ii securities were
taken out it was theft. and those who en-
gagged in the undertaking will be held
criminally responsible.
"The resolution of the board restoring
Swanberg's securities was not valid and
the securities were not legally removed
legally consummated. The meeting was
not legally called and the transaction was
not consummated until after the service
Of the receiver had been made"
Some new facts have been ascertained
with reference to the meeting at which the
directors authorized the return OF Swan
berg's securities.
Vice. President r. H. Mcdonald Jr.
stated that the meeting had been called to
take some action in reference TO the notes
of II. W. Westphal and c. o. Swanberg.
and after some discussion the following
resolution was proposed by Emil Beller-
man, and. on his motion being seconded by
Mcdonald, was unanimously adopted, the
secretary calling the roll and each and
every member of the board present voting
therefor:
Resolved, That the secretary OF this bank be
and he is hereby instructed, on or after May 2,
10 allow Messrs. Westphal aud Swanberg to
change the securities on their $4,000 note,
which is now due, as follows: That in lieu of so
shares of the NJ organ Oyster Company's stock,
the par value of which is $4,000 aud 45oo
shares OF the Merchants Ice and Cold Storage
Company's stock, the par value of which Is
S45. GOO, now held by this bank as security on
said note, we accepted from Messrs. Swanberg
and Westphal as security on said note letter
of credit issued on the Pacific Bank for S40,-
600, and retain 1000 shares OF the Merchants
Ice and Cold Storage Company's stock, the par
value of which Is $4,000; |. e., 10 surrender to
Messrs. Westphal and Swanberg the 80 shares
OF Morgan Oyster Company's stock We hold
and 500 shares or the Merchants Ice and Cold
Storage Company'S stock, and accept In place
thereof the aforementioned letter OF credit
drawn by the Pacific Bank of San Francisco for
$40. 600 in lieu of the securities surrendered TO
them.
The Pacific Bank was indebted to the
Peoples Home Savings Bank in the sum
Of $500. 900. When the loan was consum-
mated to Swanberg, the Peoples Home
Savings Bank credited the Pacific Bank
with $40, 600 on its account.
In speaking further Of this transaction
Attorney Watt said: Swan berg and all
tho directors of the Peoples Home Say
ings Bauk ought to be indicted for con-
spiracy to defraud the bank. The resolution
was drawn subject to the approval of the
attorneys of the bank. The securities
were taken out when the directors knew
that the receiver was coming. 1t will be
the receivers duty to recover those securi-
ties. The Grand Jury may indict all who
were connected with their abstraction
from tho bank"
C. o. Swanbarg made the following
statement last evening":
II have been a customer Of the Pacific
Bank since the early '70's, and have had
many heavy transactions with that IN
stitution. Until the present financial diff
culties arose l have always received any
thing 1 asked for. When the bank be-
came embarrassed / owed it large sum
of money, and was requested to pay off as
rapidly as | could. [ did so until the
debt was reduced to about $4,000 Dick
Mcdonald requested me to transfer this
amount to the Peoples Home Savings
Bank. because the Bank Commissioners
had directed that the accounts between
the two banks should be reduced.
II complied with McDonald's request
by giving MIR. Westphaps note with my
Endorsement and 400 shares of the Morgan
Oyster Compsny's stock, with the under
standing that after this l should suit my
own convenience in paying the original
inde btedness.
About fourteen days after this trans
action / was asked by Dick Mcdonald If
/ could n OF raise some more money. l told
him | would try to do so. In the mean
time other directors of the bank asked ne
if [ could not do something toward paying
off my note and helping the bank out Of
its difficulty.
"Dick Mcdonald came again to me and
said, You must try to pay US off. You
know it is only from our friends that we
can ask assistance when in trouble.
Il then told him that 1t was impossible
for me to raise the money in San Fran
cisco, and we agreed, the other directors
of the Peoples Bank being cogniZant of
the fact, that should getiMr. Westphai to
put up his note for $40, 900 in the Pso pies
Home Bank with my Endorsement secured
for 400 shares OF the Morgan Oyster
Company's stock and 1000 shares of the
Merchants Ice and Cold Storage Conn
pany's stock.
''For this note and the securities was TO
get check on the Pacific Bank. For that