The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1895-01-18

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ant of +be Contra Costa Water Company. |
E. F. Kendall is an auditor in Wells-Fargo /
EXPRESS Office, and the other members OF |
the committee are respectable business |
men. or mechanics who had their savings
in the People's Home Bank. But these are |
the men whom Sheehan calls anarchists, !
agitators, ringleaders OF the gang;
A searching letter was sent to Watt and
Sheehan Yesterday by the trust company
in reply to their communication OF the day
before In this letter it is quite evident
that the trust company feels not Dlt
nervous about calling a spade spade, for
certain insinuations made by Sheehan ana
Watt are resented as ''unfounded in fac"
meaning nothing more nor less than that
wilIfuI misstatements have been made.
Every baseless assertion is answered with
a refreshing independence that must cause
+he bank-manager and his attorney to
souirm and groan in spirit. So far, no
communication in the Peoples Home
Bank middle has come out with such posi-
tive and sweeping denialS, or conveys such
a good idea of how much queer work has
been done on the inside of the ring. 1t is
as follows:
James ARA Vat Esq, attorney for the Peoples
Home Sduinqs Bank, and to General John F. Shee-
han, secretary and manager Of SAID bGnk-GEN-
TLEMEN: Replying TO the communication OF
James Alva Watt bearing date the 10th day OF
January, 1895, we would say that our letter
referred to in your communication was mailed
as soon as il was prepared, and at the same
time we addressed a Communication of similar
import together with a copy OF the letter Tor
warded you, to the honorable Board OF Bank
Commissioners OF the State OF California.
We called upon you to-day at your ofhces, &C.
cepting the invitation contained in your letter,
and for the further purpose OF making further
demand on the proper officers OF the Peoples
Home Savings Bank for an inspection OF the
stock and. transfer books and the records OF the
meetings of the board of directors and stock
holders, and for an inspection OF such other
records and papers as we believe that we are
entitled to by the provisions OF law.
Your letter contains insinuation that 1t is
the design of our institution to emorOil in It'll
CATION the Peoples Home Savings Bank, and
that our purposes are either to secure the con-
troll Of the liquidation of the bank and thus
financially better ourselves, or otherwise TO
make an unnecessary showing OF dlhgence on
our part in connection with the contracts en-
tered into between ourselves and our aSsignors.
These inSinuations we deem 1t our duty to
resent, for they are unfounded in fact. 1t has
been our design and aim and SUCH mas been
the advice of our attorneys TO endeavor to Sc
cure a prompt and speedy liquidation
of the assets of the Peoples Home
Savings Bank, with little htiga-
iton as may be consistent with the best
interests of that institution. Whenever we are
satisfied that the best interest OF the depoSltors
will be conserved by the compromise OF any
action or by settlement out of court we shall
favor such proceeding, but not otherwise. The
executive committee of the depositors have
have expressed their confidence in us, so we
have felt ii entirely unnecessary TO take any
action for the purpose OF making "show OF
diligence"
AS for the assertion that we are endeavoring
TO obtain control of the liquidation Of the bank
from mercenary motives our answer is that we
have valid contracts with 2500 deposltors, who
have assigned claims aggregatlng more than
500, 900, which amply compenSates US for all
services that may be rendered by ourselves or
our attorneys.
ali al
sent' less than one-fourth of the depoSitors
We beg to remind you that the claims assigned
aggregate about one-half OF the total liability
of the bank to depositoTs, and know that the
support and encouragement of large number
of depositors has been assured us who have
made no assignment.
We note the fact that the suits OF Knight,
Goldtree, Sedler and others were directed
against the former management Of the bank,
and know that in certain OF these suits your
General Sheehan was appointed receiver by
the Superior Court of your city and county, the
orders of which court we respect. In certain
of those suits there are allegations, showing
that large sums of money aggregating many
hundreds OF thousands OF dollars are now due
and payable from the Pacific Bank 10 the Peo-
pies Home Savings Bank. The allegations in
those suits show that balances on the books in
large amounts in favor OF the People
Home Savings Bank were Cancelled fraud
ulently by the transfer from the Pacific Bank
to the Peoples Home Savings Bank OF bonds
and securities and other property taken at
figures largely in excess of their market value.
Now, our protest against the settlement of the
affairs of these two banks by resolution which
might and probably would prevent any &C.
counting was aimed in the interest of the depos-
itors and not against them. II, after careful
consideration, it would appear for the best in
terest OF the depoSitors, we should enter no
protest but from information possessed at the
present time we believe that for more than
one reason it would seriously imperl the in
! terests that we represent.
AS for the allegation that we have made any
| alliances with Mr.. Livernash or with Richard
Mcdonald Jr., or with any one connected with
the former management of the bank, we have
only this to say: Our company has formed no
alliances with factions of stockholders or any
directors, or any one connected with the former
management of the bank. Nor did we make
any combinations, considerations or alliances
with Richard Mcdonald Jr. Mr.. Liyernash or
with any one, directly or indirectly, connected
with the bank. We understand it TO be our
duty to represent the interests entrusted to our
care, and this duty we propose to fulfill fear
lessly and regardless OF consequences, and no
insinuations OF this character will deter US
in the proper performance OF this duty. In
a conversation had by US to-day with you in
your Offices we asked the question as to what
action had been taken On the demands made
by US on the 18th day OF December, 1894,
wherein we demanded that steps be taken by
the Peoples Home Savings Bank to call in the
entire unpaid capital, amounting to the sum
of $3.50, 666 g. We received the information
that no action had been taken by your board
on that demand as yet Now, we further re-
quest and demand that definite action be taken
at an early date on that demand in order that
we may definitely determine the procedure
necessary, ii any, on our part.
In conclusion we would add that we have but
one aim, and that is to obtain an economic and
speedy administration of the assets of the Peo-
pies Home Savings Bank, and this without
any hope of obtaining any other or further
compensation Tor our services or the services
of our attorneys than may properly belong to
us by the contracts that we have already en-
tered into with the depositors. In so far that
we are satisfied that your actions are in the
same direction we shall cooperate with you,
and will be pleased to extend any aid that may
be within our power. Very respectfully yours,
CALIFORNIA SAFE DEPOSIT AND TRUST
COMPANY,
By J. DALZELL BROWN,
Secretary and Treasurer.
GUNNIsoN, BOOTH & BARNETT,
Attorneys for the California Safe Deposit