The morning call., 1895-02-09
M'DOAALD'S REASON.
He Learned Poetry and
Talked Politics.
CHANGED WITH THE MOON.
The Commissioners Knew the Bank
Was Falling.
THEY SUSPECTED THE STATEMENT.
G. II. Dunslnore Says 1t Was Known
There We're Worthless Assets Car.
ried on the Books.

The first half-hour of Yesterday morn
ing's session of Judge Murphy's court was
passed in listening to the arguments of
counsel upon the question of whether or
not they should be allowed to proceed with
the details of the banking business to
prove that certain circumstances preceding
the loading of the four big checks upon the
banks assets had made such action justi-
fable. After half an hours argument the
court decided not to decide, and said the
questions would be ruled upon as they
were asked.
| Louis Vesaria took the stand when the
case opened after the arguments of counsel
| had concluded. Mr.. Vesaria was an en-
| ploye of the Pacific Bank, and had held
several high positions in the office. He
knew E. II. Tharp, the notary, but had
never seen him administer an oath to any
| one in the bank. The witness had often
| signed papers requiring the attention of
notary, but he was not allowed to say
| whether or not he had been sworn. Like
previous witnesses for the defense, Mr..
Vesaria had not seen the interesting con-
versation over the note-tellers desk on
| December 81, 1892. to which Mr.. Water
| house referred in his testimony.
| The witness was then questioned as to
| his knowledge of the relations, friendly or
|
| aid and Waterhouse, Dorm and Sherman.
| In cross-examination the same line of
| inquiry was followed, Barnes suggesting
| by his questions that the payment of
| large fee did great deal toward allaying
| the i'll feeling between Dick Mcdonald and
| Dorm. Objections from Livernash pre-
vented the District Attorney from proceed
| ing very far in this direction, however, so
| he took up the question of checks again.
Livernash objected, the court overruled
| the objection, and an exception was noted.
G. II. Dunsmore, secretary of the Bank
| Commission, was then called.
"Were you, as Commissioner, aware of
| the exact financial status of the Pacific
Bank?" asked Livernash.
II knew it was very insecure and that
the Attorney General had been notified
that it would probably gointo insolvency"
II wouidn t assume it to be true" con-
tinued the witness, in answer to the courts
question whether he would not believe the
bank sound when the assets appeared so
large and when the statement was properly
verified because there were among the
assets securities which we knew to be
valueless. We had reported our views to
the Attorney General and there our duty
ended; that is the reason we did nothing
further in the matter. The commission
did what it could to put the bank upon its
feet, but it had known for long time that
the Dank was unSOunQ.
J. K. Carter took the stand to testify as
to the ink with which McDonald's sigma
ture was written at the bottom of the semi
annual statement, the idea being to show
| that the signature of the bank official was
affixed at the bank and the signature of
| the notary was written at his office. Mr..
Carter testified to what was quite evident,
that different inks were used in the sigma
| lures. Emil Bellermann and E. H. Sharp
gave corroborative testimony.
George d. Fay, the real estate man, was
called to testify to the value of DIR. Nc
Donald's property, in order to show that
his 100000 check was good for its face
value. He was not allowed to give any
evidence of that kind.
In the afternoon the insanity phase of
| the defense was opened. After Bellermann
and W. H. Eastland had been prevented
from testifying as to the offer of $4,000
| for the bonds Miss Marie Bredell, who
knew r. H. Mcdonald, told how his eyes
| dilated in a manner which her slight ex-
| perience told her was insane. He was also
nervous and irrational and subject to wild
| flights of fancy, as she had found in con-
| versation with him.
| Emil Bellermann then came back to the
witness-stand. He did not consider Dick
well balanced. Dick had an idea, he said,
| that he was the greatest man in the State
| in political way, and he used to confide
! his political aspirations to Bellermann.
| He wanted to be Governor, and he told
| Bellermann he was studying elocution in
! order to properly fit him for the oratorical
duties which belong to a talkative Cover
| nor He used to recite long stanZas of
poetry to the great WEAKNESS of the wit
| ness.
Bellermann then went on to tell how
! Dick purchased a stereoptlcon and sent
! the ianitor of the bank around to various
| - L. L. -
| occasion Dicks pictures would appear on
the wall This was the beginning of his
| gubernatorial boom. The witness re-
| membered one time that Dick tried to OBJ
tain control of the school board, the idea
being that it would be stepping-stone In
his path toward the governorship.
An effort was made to show that Dicks
| laugh was also insane, but the court, on an
objection from Barnes, did not allow the
testimony.
j. B. Warren had also noticed an insane
| look in Dicks eyes-a CLEAN or fash
which suggested some mental disease and
he noticed, too, that when talking serious
business he would frequently break off
upon some trihing subject entirely irrele-
want His laugh, the witness said, was
common subject of discussion among the
employees of the bank, for it was a wild,
unnatural and senseless laugh. His opinion
was that Dick was like ship with too
much deckload for its ballast. In other
words, Dick was unbalanced.
Cross examined, the witness said Dick
was very susceptible to fiattery. Any one
who would flatter him could lead him on
to almost anything. He could be induced
to make loans of the widest character
under the influence of few honeyed words
from his fancied friend.
Mr.. Vesaria and c. III. Durham ended
the day, both giving testimony regarding
Dicks strange way of conducting himself.
Mr. Vesaria was not intrusted with any
condolences about the governorship, how
ever, and from Mr.. Durham this bit of in
formation was drawn-that during the full
nounced, and that they waxed and waned
with the silvery CLEAN of the queen of
night.
-s