The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-06-15

senting the depositors had been told that
the Pacific Bank was willing to turn over
Its building and $4,000, but the savings
bank thought it was entitled to more. The
savings bank now holds a mortgage on the
building to cover $500, 1000. Mr.. Mccarthy
thought a little diplomacy might prevent
long litigation, and that within thirty
DAYS a deed to the property would be given.
h. ID. Pike, formerly a member of the
committee, asked how much on the dollar
the depositors could expect.
Mr.. Mccarthy replied that as most OF
the assets were real estate and mortgages
their true value was problematical. The
bank owned, besides the mortgage on the
Pacific Bank building, and its real estate,
about 1920 600 worth of Los Angeles Elec-
trio Railway bonds, which were now in
>cluded in trust, of which Cashier Brown
of the Bank of California was president,
and were well looked after
He believed they would be worth IS or
90 cents on the dollar in year or two. If
the depositers had to deal with the Watt
Sheehan regime, said Mr.. Mccarthy. they
would not realize over 20 cents on the dol
lar, but as it was he thought they would
come out pretty well, the credit for which
he gave TO the press.
Mr.. Williams then told of his trip of in
spection of the banks assets in Southern
California, and mace some severe structures
upon the banks unique investments and
Mr.. Sheehan's mismanagement He also
charged Judge Stanton L. Carter with I'M
lawfully acting as agent for the bank at
Fresno. Said Mr.. Williams:
The history OF the bank from its incorpora-
ton was based on fraud, and ii had better been
named McDonalds bunko bank, for they-the
McDonalds-were disreputaple thieves in the
looting of a bank, which could be supported by
documentary evidence.
| say this, he said with all due respect to
the prisoners serving time in San Quentin.
The Bank Commissioners called the attention
of Acknowledgement Hart TO its condition in
December, 1891, stating that the management
was bad and showing that the Pacific Bank
was then indebted TO the Peoples Home
Savings Bank in the sum of S9SS 1863 Sian
amount equal to the capital stock OF the
Pacific Bank.
of the Attorney-General has done his duty
to the State and people he should have en-
Joined both banks from doing any further bust
ness and saved 10 the depositors nearly all their
money.
''Why did he not do so?"
''The fact that there are seven Cancelled
checks drawn TO his order on the People
Home Savings Bank answers why"
Resolutions We're finally offered and
adopted denouncing the Bank Commits
sloners, past and present, and declaring
that the Bank Commission is failure,
furnishing soft nests for decayed poll
ticians. Judge Murphy of the Superior
Court was criticized by them for one of his
case
and j. A. Watt and John f. Sheehan were
bitterly denounced. The resolutions de-
clare that the Bank Commission ought to
be abolished.
The sentiment was expressed that J. F.
Sheehan has feathered his nest long
enough at the expense of widows and
orphans, and if the board of directors
cannot imbibe enough nerve tonic to cast
him adrift, that the depositors, as a last
resort, call upon the President at Wash
ington or the Mikado at Toxic for a
brigade of heavy artillery TO dislodge him
from his position.
Mr.. Williams was very severe on the
various real estate investments through
out the State made by the McDonalds in
telling of his trip south, and referring to
Mr.. Flournoy's appointment as the bank S
attorney to succeed James A. Watt, he
said Flournoy had once made some very
damaging discoveries. One was that
Rolla Y. Watt, Samuel K. Thornton,
George D. Stone. j. R. Hillman, Henry
Marshall and B. F. Michaels had voted
$500 to T. Karl Spelling, who is Stock
holder Goldtrees counsel-virtually feeling
an opposing lawyer. Director I. n. Mer-
rell had refunded money illegally paid to
him: said Williams, but Thornton, Hill
man, Michaels ana Marshall had not done
so.
In his reference to Judge Carter of
Fresno, Williams said Carter had pre-
sented a bill to Attorney Flournoy against
the bank for 1914, which subsequently ne
reduced, taking off $500. Carter had col
lected in interest alone due the bank,
$3.50 90. This money collected by Carter,
Mr. Williams thought, ought to have been
properly deposited at the bank and the
bill also presented there.
He enumerated a number of friends
Sheehan had provided billets for at the
different farms and tracts of land included
among the banks assets and gave figures
to show what he thought such assets are
actually worth. In his estimation they
might realize 80 cents on the dollar.
+ Since the reorganization the office ex-
penses have been reduced to less than $500
monthly, while the taxes have been greatly
reduced by having the assessments low
cred.