The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-10-01

crow" The resolution was introduced by
sVice-President Thornton and was adopted
without trouble, Messrs. Stone, Thornton,
Coleman, Johnson and Williams being
present. Speaking of this matter yes
terday afternoon Director Williams SAID:
SIT may result in realization of 100000
more cash, though | doubt if more than
1917 per cent of the capital stock is held by
responsible men,
EFrom Manager Sheehan's figures the
bank owes nearly 81 100000 to its deposi-
tors, with no other liabilities. He con-
slders the assets as problematic. The two
main items of the assets are the Pacific
Bank building and the $4,000 worth of
Consolidated Los Angeles Electric Rail-
way bonds. The Pacific Bank building is
valued at $165, 600, though the highest offer
made thus far for it has been 100000, says
General Sheehan. This property has a
frontage OF IS IS feet. At an estimated
value of $4,000 pet front foot it would figure
up $142, 900. The other assets consist
mostly of farming lands in the southern
part of the State. some of which may yet
realize handsomely as result OF the build
ing of the Valley railroad.
The complaint prepared by Attorneys
Gunnison, Booth & BARNETT said some ugly
things about Messrs. Stone, Thornton, Da-
wilson, Phelps and Sheehan, the defend
ants named. Mr. Bartnett was disposed to
speak very fayorably of Mr.. Davidson,
whose father is depositor to the extent of
$4,000. He said he could never under
stand how Mr.. Davidson came to be tied
up with the Others" but under the circum-
stances he could not do otherwise than
make him also party defendant in the re-
moval proceedings threatened.
In the complaint the foregoing as to the
action of the directors in refusing to obey
the Bank Commissioners order and the
acts leading up to it are set forth IN detail
and with full particulars. But it went fur
ther than that. The transfers of 5146
shares-over half the stock of the bank
made during last January and February
to T. q. Hardee, were alleged to be with in
tent to defraud the depositors, for the doc
ument charged that Hardee was. an in
solvent.
Manager Sheehan's explanation of these
transfers when seen later III the day was
that this was the DR.. Jenningson stock,
and was practically worthless so long as
DR.. Jenningson had possession. Jenning
son, Sheehan says, was pennlless, and be-
sides, had never paid any money on it any
way. According to Sheehan the stock had
been transferred by Richard Mcdonald Jr.
on nothing more tangible than Jenning-
sons notes, and was dummy stock.'
The complaint also charged the directors
with squandering the money of the bank
by paying attorneys fees to James Alya
Sheehan and his subordinates.
The Spelling and Morrel transactions
were also specified and matters were gone
over in minutiR and in such way as
would have made interesting reading for
the defendants in the courts. First, it
charged the directors named as defendants
with dereliction in refusing to obey the or
der of the Bank Commissioners, willful dis
obedience, fraudulent acts and gross mis-
management. Second, it alleged that the
directors and Sheehan were not fit and
proper persons to manage the affairs of the
bank.
The time limit fixed by the directors yes
terday for the payment of the unpaid
$685., 666 Sc due on the stocks is November
l. Notice will be given to the stockholders
in one of the newspapers and any stock not
paid up by November 1 is to be declared
delinquent, and proceedings will be at
once brought by the banks attorney, John
Flournoy, against the delinquent. Such,
at least, is the programme settled upon up
to date.
Manager Sheehan's explanation of the
failure of the directors to comply previ-
ously with the order of the Bank Commits
sioners was:
"There was some controversy in the
board of directors regarding the feasibility
of calling in the unpaid stock. Some OF
the board contended that the time was not
ripe. They were not sure that the bank
would realize. inasmuch as the original
stockholders had all gone out-the men
who were responsible for the wrecking OF
the bank"
A meeting of the depositors, Director
Williams says, will be held next week,
probably on the 18th inst.