The morning call., 1895-01-15

again with "Dr." Jenningson, Dicks legal
adviser, Attorney Livernash, and others of
the former ring. And with their names
are associated those Of Sheehan, Stone,
Watt and the last board of directors.
The plaintiffs are three stockholders who
aver they bring suit on their own behalf
and also on behalf of such other stockhold-
ers as may see fit to join in this action.
Some of the Peoples Home Bank history
is given. On June %, 1894, E. III. knight,
a stockholder of the bank, brought suit for
the purpose of decreeing that certificate
of stock for 1857 of the banks capital stock
be declared to have been fraudulently is
sued, and that the same be delivered up
and cancelled and that William Jenning-
son be enjoined from transferring this
stock or from voting it at any meeting of
stockholders.
An Injunction was then issued accord
ingly and JenningSon was restrained from
voting last July. The plaintiffs in the
present suit aver they believe that that
action was taken at the instance of John
+. Sheehan, James Alva Watt and the
board of directors, that they might control
the voting of this stock.
Much worse than that is charged, for the
complaint signed by Judge Sanderson
states that Watt and Sheehan paid, or
/. Wiley the sum of $500 as considera-
ton for voting stock at their and s. K
Thornton's direction.
1t is further claimed that Watt, Sheehan
and Thornton, acting in concert and with
full knowledge of the former injunction
proceedings, caused and allowed the dis
puted stock to be voted for the purpose of
electing board of directors favorable to
their own interests, and to put themselves
in control of the corporation. The cunning
trio are likewise accused ofknowing that the
1857 shares of stock was treaSury-stock
of the bank, had been illegally and fraudu-
lently issued; that an injunction prohibit
ing its voting had been issued, and that at
the July meeting they removed the former
board and elected board to suit them
selves. Here is the conspiracy through
which the bank passed into its present
management. For Immediately after cleo
ton the new directors selected J. Alva
Watt as attorney at $500 a month and
Sheehan as secretary at the same figure.
PcSuliar methods regarding the calling
of Yesterdays meeting are brought to
light. Sheehan published notice of the
stockholders annual meeting in the
Journal of Commerce, where stockholders
would not see it. The advertisement read
that meeting would be held January IA,
1895, at II 80 A. NJ, in room "a, fourth floor,
Mills building, for the purpose of electing
a board of directors for the ensuing year
and the transaction of such business as
came before the meeting. 1t is signed by
John +. Sheehan, secretary.
Room "a on the fourth floor has been
vacant for some time and is still vacant.
The bank offices are on the tenth floor, and
still more queer work is suspected in this
evident effort TO deceive stockholders. Dur
ing the last week, SO the complaint alleges,
stockholders went to Sheehan's office to in
quire the time and place of holding the
meeting. Sheehan replied:
$50 and find out for yourself"
Then it is stated that the plaintiffs de-
manded on January an inspection of the
bank journal and books and records, but
were refused by Sheehan and Stone Shee-
han replied he would permit no inspection
of any books or records of the corporation
until after the annual election.
The California Safe Deposit and Trust
Company, representing 100000 of depos-
itors' money, made a similar demand and
met with like answer. Sheehan stated to
all as his ground for refusal that informa-
ton sought for would be used to his detri-
ment and to that of the management.
1t is charged that the directors have
worked under common understanding
since July 1894, under the complete con-
troll of Watt and Sheehan, and that the
corporation is no longer carrying on bust
Last November Watt and Sheehan levied
an execution on the McBonalds' stock,
which had been transferred to Edward |
Livernash at Dr. McDonald's request to be |
voted in the interests of depositors, but the |
defendants seized and sold it to themselves
to assist them in perpetuating themselves in
power.
An Injunction was issued on this sworn
statement, and will be heard next
Friday. The directors and officers of the |
bank must then answer for their high |
handed action of yesterday.
If YOUR eyes require treatment Berteling