The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-06-15
Peoples Home Savings Bank
DepoSitorS Speak Their
Minds.
REPORT OF THE COMMITTEE
Resolutions Against the Bank Com
mlssioners and Others In
terested.

sioners, and the ma jority of the board of
directors OF the Peoples Home Savings
Bank, were denounced at the meeting OF
the Peoples Bank depositors last night
For the three hours it lasted it was one
continual scoring of these gentlemen, and
evidently the depositors felt better after
they had expressed themselves. 1t capped
the climax by adopting some resolutions
of a satirical nature, denouncing the Bank
Commissioners and Mr.. Sheehan in par
ticular, and insinuating that certain per-
sons ought to be in San Quentin.
In beautiful contrast to all this the sec
rotary of the depositors' committee, 7. S.
Williams Jr., who is also director OF the
bank. was warmly praised as the true
friend OF the depositors, upon whom they
felt they could put the utmost reliance.
The first thing done was the reading of
several reports by e-President E. F.
Kendall, the first being a communication
of the California Safe Deposit and Trust
Company, to which has been assigned the
claims of 2577 depositors, amounting to
SOP ,061 II.
The company stated that the bringing of
the suits, since January, against the stock
holders had caused the assignment to it of
many other claims, and 1t informed the
depositors that supplemental suit was
soon to be started which it believed would
cause all the remaining depositors to make
over their claims also.
1t reviewed its efforts to secure represen-
tation in the banks board of directors,
which were finally successful in causing
three vacancies to be filled by two mem
beers for the trust company, and Mr.. Will
iams for the depositors' committee. The
following bit of information was then
given:
Before the reorganization of the present
board of directors, that is, from May 2, 1894,
TO January Ia, 1895, the expenses OF the bank,
including taxes and attorneys fees, amounted
10 $40, 995, this being at the rate OF $4,000
month.
change has been made in the banks at
torney, which, we believe, will prove beneficial
TO the interests OF the depositors.
The various claims of the savings bank
against the Pacific Bank have had the careful
consideration OF ourselves and our attorneys
well as the directors of the savings bank
and it was only after mature thought that
claim was recently presented against the Pa
cifc Bank. The claim, it was hoped, would be
accepted as q basis of settlement between the
banks, as IL was favorable TO the Pacific Bank,
while at the same time advantageous 10 the
depositors and 1t is to he regretted that it has
been decliued by the Pacific Bank. Negotla-
tons are still on foot and it is hoped a settle
ment will yet be reached without dragging
both banks into endless litigation.
Attorneys Gunnison, Booth and Bart
nett, for the Trust Company, had pre-
sented a summary of litigation entered
into in the Logan, Schultz and Grossmayer
cases, and the two suits brought by the
Trust Company itself, the first being
against Sheehan and the savings bank to
force an inspection of the banks books
and records, and the second being TO COM
pei about 200 stockholders including
Joseph Winterburn, Columbus Water
house, James Z. Wilson and the Pacific
Bank, to pay up. The attorneys had in
n, Jal@ H. 70 ,1o&,
of the banks stock:
directors ofthe savings bank to the transferring
OF the capital stock from responsible holders
10 irresponsible traneferees. The board has
subsequently permitted no such transfers.
Mr. Kendall read the correspondence be-
tween the depositors' committee and the
Bank Commissioners with reference to the
lowering of Mr.. Sheehan's salary. This
the CALL published on Wednesday. The
report of the committee itself came next,
and received some loud applause. It was
as follows:
The effect of our last depositors' meeting
aided largely in bringing about reorganiza-
ton of the board OF directors. A few days sub
sequent to the meeting a conference was held
between Judge Hebbard, Sheehan and some
representatives of the Bank Commissioners,
the Trust Com pany and your committee. On
January 20 the reorganization was effected,
and Messrs. Coleman and Johnson of the Trust
superseded Michaels, Marshall and Hillman of
the old board of directors. Since Mr.. Williams
election to the board your committee has been
fully advised OF all that transpired. With three
members on the board much has been accom-
plished.
In our effort to ascertain If all the old members
of the board were in harmony with the Watt
Sheehan regime, we discovered that Mr. Mer-
rill, one of the old members, had been kept in
Ignorance OF the Infamous work of the board
from July TO January through the manipula-
tons of q finance committee OF which he was
not member. We placed in his hands a de-
tailed expense account of the Sheehan admin
istration, since which time he has been work
ing in harmony with the interests of the de-
positors.
Soon after the reorganization of the board
the transfer OF the stock was ordered discon-
tinued.
A motion prevailed that members refund
their fees that they were not legally entitled
TO compensation for their services
On motion of our representative the sum of
$500 per month for attorneys fees was de-
c.ared exorbltant and 1T was decided that he
should receive fair compensation for services
rendered.
In March Mr.. Williams was sent south by the
board to investigate the irrigation OF the:Red-
lands property and inspect various other real
estate. His report was very full and valuable
10 the committee as well as the board AL
though absent from his business two weeks he
would accept no compensation for his services.
James Alva Watt was removed from the Of
fee OF attorney for the bank on April by the
unanimous vote of the board, and John Flour
noy was elected 10 succeed him.
At the next meeting of the board Rolla V.
Watt resigned from the board, and George
Davidson was elected to the vacancy.
The incompetent Sheehan still holds the fort
at a salary OF $3.50 per month, with a book
keeper at S125. We have had interviews with
the Bank Commissioners to secure their as
siStance TO reduce the expense account to a
reasonable figure, but have received no salts
faction.
In summing up the situation we will state
that the affairs Of the bank are now under bet
ter control than they have been at any time
since its failure, although We are far from hav-
ing everything arranged to our satisfaction.
With the elimination of James Alva Watt and
his Christian brother Rolla from control
and the appearance of an upright attorney
his successor, and some energy and honesty
visible among some members of the board of
directors, the power for evil of the enemy is re-
duced to minimum.
After the lapse of six months we feel that the
placing of our accounts with the California
Safe Deposit and Trust Company was one OF the
wlsest acts contaminated. Not only are they
complying with their agreement, but they
nave AIDED US In other ways, such as assisting
IN securing & reorganization OF the board OF
directors, furnishing US the detailed informa-
tlon from the records, ETC. They as well as our
serves nave been vexed at delays. However,
we All know that it is next to impossible to ex-
peulte cases through the courts.
Al lmes all our patience and tact was re-
CURED 10 avoid following our natural inclina-