The morning call., 1895-01-14
Still Another Muddle That Nav CauSe
iore Delay.
DEPOSIT0RS HlY GET SOME STOCK.
General Sheehan Reports to the Directors.
Books and Records Denied
to Experts.


elect directors, and if indications are ful-
filled it win be one of the llveliest bust
ness meetings which have been beld in
banking circles for a long time.
The opposition, comprising those Of the
stockholders who are not in sympathy
with the present management, are moving
every influence in their power 10 obtain
control of sufficient stock 10 elect board
OF directors which will not. perhaps,
change the course of tie administration
now in charge, but which will. at least,
be more willing to submit to the dictation
Of the unsatisfed faction. The present
directors have no fear that the threats of
the opposition can be carried into effect,
but they make all sorts of charges and
bitterly offer any amount of proof re-
CURED to Substantiate them.
One of the grounds upon which the
government" rests its charge Of lack of
faith and fragrant deceit is the fact that
for some six weeks past there has bean an
expert iG the Office of the bank examining
the stock books. etc. ostensibly for the
purpose of collecting data for the infOrma-
tiOn of dissatisfied stockholders ia the
ranks of the opposition, but really, it is
claimed by the directors, for the express
purpose Of gathering information to be
used 10 the overthrow OF the directors
now in Office. 1t is alleged too, that the
stockholders. led by E. J. Livernash, Dick
MeDanald'S attorney, have been holding
meetings and have been usinI every art
and artlfice to secure proxies. DIT. Jen-
ningSon of Chicago, who owns 300 shares,
but which are held by the bank as Sc
curity for a note for $1,000 was, the d.
Tect0rs say, offered a considerable sum If
he would let his proxy go to Mr.. Liver
nash. Failing ia securing this proxy the
opposition has secured an Injunction
against the voting of this stock, bnt the
directors say they can get along without
il. Several more such transactions are
alleged by General Sheehan, the secretary
of the present board. but he believes the
present administration can still hold its
own easily.
On January last General Sheehan, who
had been appointed receiver OF the bank,
was, at his own request. relieved from his
position, and the bank is now in lquida-
ton. General Sheehaa is now secretary
of the board of directors and manager of
the banks affairs. He mas submitted the
following. which is the substance of a re-
port upon the condition of the assets of
the bank. 10 the board of directors:
GENTLEMEN: On May 2 1894 after my ap-
pOintment as receiver by the court in the suit
brought by The Attorney General and the Bank
Commissioners, there was found in the vaults
OF the bank in cash. as counted by the Bank
Commissioners, the sum OF Ssh 20, about
$500 OF which was for advances on box rents. |
The total amount OF assets as per the books is
now S1,S7S $50 50. Among the asses is in |
clnGed the claim against the Pacific Bank !
building and ground and the amount OF the
JenningsOn note. The amount due deposltOrs
IS .543,8lS 20. Cash on hand and in banks, !
500, 266 49,
It must be remembered that nearly all the |
assets consist Of farming land and orchards |
aud vineyards and bonds Of the Los Angeles |
aud Phoenix Electric Railway Companies. |
Nearly all The mortgages on San Francisco |
property had been retas d before Nav 1 last
and IN the cases of mortgages upon farms and |
orchards suits in foreclosure had been COM
menced, consequently the present management |
had but little 10 realize upon Immediately |
city property nearly all gone and about forty |
separate tracts Of land upon our hands. incur |
ring expense rather than bringing income In !
The present state OF agriculi ure In California.
great pOr,ion of tn outlay since the man. |
agement of the bank was placed In the hands of |
Il receiver was for delinquent take. of the past |
year and also for t1xes OK 1S94-95, and the re- |
ceIver was able 20 collect a sufficient sum of |
money in time 10 save The properties OF the |
bank from sale by til Tax Collectors of the |
varinIs counties for delinquent taxes of |
169394 He was also compelled TO pay water |
taxes w irrigation districts 10 save lawsuits; |
also Sherffs' fees in foreeiosing SUITS and there
was paid the additional sum of $500 10 the |
Sheriff OF Fresno County on a contract made
between lie former management OF The bank !
ana The legal authorities, wherein in the sale of
tie Humphreys ranch The bank bought the in |
teFests of the Reclamation Company, which |
sum had 10 be paid or else all proceedings |
would be annulied.
Soon after the receiver took charge of the |
DanN's affairs lie was notified by the mort |
gagors OF various tracts of land, especially !
those located In Riverside County, that they |
could not pay the taxes on the same nor were |
they aDle-lO pay the expenses of care OF the |
orchards. This neeessitated immediate action |
as the orange tracts formed gOOdly portion of !
the assets OF the bank, and II the orchards were
neglected the bans would suffer a great loss |
Accordingly, The receiver. acting under the in
siTuclions OF Judge Hebbard OF the Superior |
Court, took charge of all such tracts and paid |
the expense of care for tn same cultivation |
irrigation, etc. But this money so expended |
will return TO he bank during the coming |
spring, and / estimate that the receipts from |
orange tracts OF Riverside County alone will |
net the bank over taxes aud all other expendi-
lures several thousand dollars, 1t appears to |
me that In tn future, with the arrangements [ /
have made and Will good season for agrIcul- |
turists, the bank will realize fair income from
tWo-thIrdS of the properties which have b. an |
turned over 10 il.
In the amount OF money collec ed thus far
there has been but little loss from the proper |
ton OF total assets. In The same ratio we |
would pay dollar for dollar, but this we cannot |
hope for unless we have revival OF the Lind |
excitement OF seven or eight years ago. We |
have a great deal of property in The counties OF |
MADEIRA and Fresno. On some of these prop.
critics we VIII come out even in good time. On /
others we will lose heavily. We also have a |
large loan In an outlying district in Los An
Peles County, the Monte Vista Tract, Oh which !
we cannot possibly hone 10 realize the amount
due, some 10000. The West Redlands orange |
tracts, OH which is now Que 1923 COO NAV.
with good luck aud good management. realize |
the amount u has COST the bank. We have a
large sum OF money invested in orange tracts
IN riverside and vicinity. but at present there
Is no demand for that kind of property but the
recent advance 10 the price of oranges may en-
aOle US TO sell TO advantage within a rFasOnabie
period. 10 Our Investment in N Diego we
VIII not suffer any great loss.
nave made an investigation OF the Los
Angeles Electric Railway properly, of which
we nold ponds 10 the amount of $500, 600. This
STOCK ought 10 realize In time nearly face value, |
out az present we probably could not get more
than 90 cents on the dollar for a.
In regard TO the Car1sa Plains Tract in San |
LUIS ODlspo county, on which is now Que about
$4,000, am negotiating with parties who
propose 10 COLOMBO il with Eastern and Furo-
pean people. am somewhat familiar with that
country myself, and believe two-th of tina
land 10 be very good. In rainy seasons il will
proouce good crops of grain, and should a rail-
ROAD cross II, connecting the San JOAQUIN Val
ley with the ocean or The coast lire railroad we
might De able to realize fairly on the property
In any event l consider the property worm
holding until better times come / have also
arranged 10 lease every property which can be
disposed Of in that way
do not believe in city people or corpora
lions directly working their ranches through
managers. My experience is that it is not
profta bic 10 the owner OF the land. I have
therefore, tn every Instance, except 70 cases OF
the orange groves, arranged so that The prOD-