The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-10-31
Captain Jim Admits That He Has
Been Buying Bankbooks at
a Discount.
JUDGE SAWYER'S DILEMMA
He Was Lately Counsel for the Bank.
Wreckers and Now Serves
the Directors.

Captain James M. Mcdonald and Judge
E, d. Sawyer were on the stand yesterday
undergoing the inquisition which A. J.
Clunie was conducting in Judge Hebbard s
court. They were both at great disad-
vantage.
Judge Sawyer is counsel for the directors
of the Pacific Bank, who Mr.. Clunie is en-
deavoring to have removed from their
office on the ground that they are not
serving the best interests of the depositors
and stockholders, but rather are looking
out for the interests of the McDonalds. the
wreckers of the bank.
Judge Sawyer was called to the stand,
and Mr.. Clunie asked him:
"Have you not received some letters
from DR.. r. II. McDonald?"
Eyes, sir.''
''Will you be good enough to produce
those letters in court?"
mo, sir; will not"
"Why do you refuse?"
"Those letters are privileged communi-
cations from client to attorney"
ooh, they are?"
eyes, sir"
you are the attorney here for the board of
directors of the Pacific Bank, you are also
acting as counsel for Dr. McDonald?"
'Well no-not just that. When l
became attorney for the board 1 ceased to
be attorney for Mcdonald"
"Ah, then you will be at liberty to bring
the letters into court"
The witness said he would decline to do
so, but Clunie argued that if Sawyer, while
acting as attorneys for the McDonalds the
wre ckers of the bank, had received any
information relative to the transfer of
property to evade responsibility which he
(Clunie) thought was most probable, he
ought to be required to produce it.
Sawyer on the other hand held that he
could not be required to give up informa-
ton confided to him in the capacity of
counsel for client.
Clunie said the letters could be sub
mitted to the court who would Judge as to
their character and relevancy.
Sawyer asked for time to think it over.
He subsequently brought a package of
letters which he said had been received
since he ceased to be his attorney.
Clunie wanted the others, and Judge
Sawyer asked for more time to think it
over.
J. L. Coggswell was called He is one of
the present board and gave the same testi-
mony as all the others-that he knew
bank and had never examined the assets
and liabilities. He became a director at
the request of Captain Mcdonald.
Then Captain James NJ. Mcdonald was
called, and for the remainder of the after
noon was subjected TO a gridiron ex-
perience.
Mr.. Clunie wanted to know if Captain
Mcdonald did not draw dividend on his
stock after Frank Mcdonald had told him
that if he drew out his deposit it would
break the bank.
Captain Mcdonald confessed that he did
draw dividend of 81 a share, but after
ward said he believed this was before he
received notice Of the banks condition
Mr.. Clunle asked him if he would be
willing to submit to the court the letters
he received from DIR. Mcdonald since tha
bank broke and which he said he did not
answer.
The witness said he had no objection and
would produce them.
Then Mr.. Clunie wanted to know all
about the captains purchase of bankbooks
at 80 cents on the dollar and of Mr.. Far
NUNS circular letter to depositors said to
have been sent out at his instigation.
The captain admitted that he had
bought depositor's claims against the
bank to the value of 100000
When court adjourned Captain McDon-
aid, rcd in the face and perspiring, left the
stand with evident signs of rslief He will
probably take the stand again this morn
ing.