The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-24

McCauley assumed ONCE, cnecKeo
against Boggs' bank accounts, got money
out of them when he could and when ne
couldn't used the current revenues. lie
followed naturally enough his predeces-
sor's lead. He got $1,000 into Harry Lom-
bard's State Savings Bank day or two be-
fore it failed, and Harry went to the Jap
anese village. The failure OF that house
put Whitehouse in as receiver and re-
suited in Boggs' arrest and prosecution,
though he was acquitted, and revealed that
Boggs had deposited not only warrants,
but notes of his own and others as city
funds, and that the bank had subscribed
by thousands to the campaign fund under
the head of election expenses
Boggs was acquitted because the evil
dence against him was wholly that OF
another's making. e., the books OF the
bank, which, the court held, were conclu-
slve as against the man who MADE the en-
tries, but as against no one else, and so
Boggs escaped without verdict from the
jury, went to Oregon and bought gold
mine. which ne was operating when ar
rested again. few days ago..
McCauley assumed office in April, 1894,
and almost Immediately built an elegant
residence, furnishing it resplendently with
the costliest of goods. Grattan II. Wheeler
went to New York as the agent of the
Mutual Investment Company. w. B..
took hundreds of thousands of city war
rants and went to Chicago to attempt to
dispose of them. A deal was engineered
through the City Council whereby bonds
and securities were demanded of every
bank having city money on deposit, and a
contract was made with the Bank of Ia
coma permitting it 10 remain undisturbed
for one year.
1t was the approach of the close of this
M ho nj
ment OF a new finance committee that
brought suddenly to a close the career Of
the Bank of Tacoma, with some SOS, 900 of
city money ostensibly on deposit there.
An assignment was made to friend of the
president, but the court appointed Tilton
receiver. The books were stolen before the
receiver could get possession, but enough
been borrower to the extent OF over 900, 600
that he had overdrawn; that he had had
$4,000 for election expense" that Vince
Ter was sent remittances monthly OF hun
dreds OF dollars and that Boggs' deposits
had consisted of cash, notes, warrants or
"any old thing"
Now, then, had come time for the
banks and brokers from whom Boggs had
cut loose to get their revenge. The Colu M
tory of city funds. At one time over
$4,000 had appeared to the city's credit.
1t WIS also the depository for large
amounts of county funds. A job was set
up whereby the Commissioners should de-
mand count of the county's funds. 1t
was done. Every bank having county
funds was required to ''dig up" the full
amount in coin. The Columbia National
was forced to take its best securities to a
rival to procure funds to carry on business
and at the same time meet the county's
demand. 1t was met, however, the banks
officers apparently expecting to get their
gold back next day and go on with busi-
ness.
The Commissioners, having once well
housed their treasure, put guard about
ii and would not allow it TO go back. The
had then pending in the Controllers office
an application for a stock assessment,
whereby it claimed it would be able to
meet all demands. 1t owed the city over
100000, while its side issue, the German
American, owed some $5S,0O0. The city,
at the same time, had pending demand
on the Columbia for $1,000, to meet the
semi-annual interest on City Hall and
funding funds at New York City. Now
began in earnest fight for life-on the
one hand the Columbia and German
American struggling for respite, and on
the other all the banks of the city to force
them out.
In order 10 gain time suit by the twin
banks was begun to cancel all their obi
cations to the city on the ground that its
deposits with the banks consisted of war
rants, the validity of which the city de-
MED. and that therefore the banks owed
the city nothing. The city then brought
suit for receiver for the GermaE-Amerl-
can and it was holly contested. The
court granted receiver. An appeal was
taken and denied and the receiver put in
possession through force. The books, Sc
curities, cash and vouchers were not there,
having been taken into the Columb la
Nationals vaults.
Political strings began to be pulled on
the Controller of the Currency to compel
him to appoint receiver for the Column
bia. The bank, however, had strong alli-
ances East and counter pressure was
being exerted. However, Bank Examiner
Clary was enlisted and he teegraphed his
superior, with the result that he was
ordered to take possession. No receiver
has yet been appointed.
Thus ended most remarkable fight for
existence, the inside history OF which
would make romance of itcelf, the con-
tending interests being shown-a cashier
fighting away from prison gates; a set of
stockholders at the East strongly DESTROYS
OF preventing failure, many OF whom
had voluntarily come to the rescue with
SUMS VI iOb Vi WdIIdutS
somewhere, either sold or unsold, liability
on which was the same whether void or
valid; the best securities tied up to pro-
cure a suppo sedly temporary loan.
The receiver of the German-American
having gained possession, the cashier of
that institution gave up hope and made
clean breast of all its operations, telling OF
how both Boggs and McCauley had been
in receipt of regular salaries from the
bank and duplicating the officers of the
Columbia National in extensive frauds
upon the city and county. Notes OF
Boggs for Sill, 300 were also found among
the securities supposed to belong to this
bank in the vaults of the Columbia.
The result of these exposures was the
arrest of Boggs, the removal of McCauley
from Office and his subsequent arrest, the
arrest of Peters the cashier, and OF the
County Treasurer Public clamor now is
for the arrest of all in any wise concerned
in the encouragement of Boggs in his evil
practices-those who paid him commits
sions and aided him in covering up his de.
felt with fictitious bank deposits and all
whom the law can in any wise reach.
My judgment of the situation is, how
ever, tina. so many and SO prominent are
the persons implicated. and so multifari-
Gus are the qualifications OF the city war
rant, bond and hank plot, that all engaged
in it will never be brought to punishment.
A few scapegoats may be made samples OF,