The San Francisco call., 1896-06-25
Soon His Ire Cooled and Then
the Trial Proceeded
Peacefully.
T. S. WILLIAMS ON THE STAND
Claimed in Report That General
Sheehan Was Wasting the
Banks Money.

The pugilistic spirit which at present
pervades the atmosphere has not only
broken out in the Police Court, but threat
ems to invade the sanctity of the Superior
Court as well. For while yesterday in
the Peoples Bank suit before Judge Sea-
we'll 1t seemed probable that General
Sheehan's warlile spirit would lead him
TO cause bodily pain and mental anguish
TO Attorney Bartnett. The general is very
touchy about his honor and when the at
torney intimated that Sheehan had IN his
possession certain letter, which Sheehan
denied having, the officer stopped twirling
his mustachios and demanded an explana-
ton of the presumptuous attorney.
AT the opening of the court the ques
ton of admittin Attorney Bartnett's
amended complaint was argued before the
court. Judge Seawell, after listening to
the argument, denied the motion to admit
the amendment and the attorne duly ex-
cepted. Attorney James Alva Watt was
recalled 10 the stand.
He gave a lengthy account of the pay
ment Of the Lower Kings River Reclama-
ZION District claim. He had given the
money TO w. E. Johns, who represented
himself as the agent of the district, but not
until Johns produced receipt signed by
y
ton and transfer of the bank stock, Watt
denied that he or Sheehan or Stone had
bought up any stock.
Stock had been transferred to Hardee,
Watts stenographer, at Watts instance.
Watt had no definite understanding
with Hardee in the matter, but had merely
told him in a general way that lit would
be all right" Although Watt voted this
stock by proxy he did not consider him
self the real owner.
When the directors of the bank had fixed
Watts salary they were aware of the
amounts that had been paid to him previ-
ously. The salary was not considered ex-
orbitant; in fact several of the directors
had expressed the opinion that it was too
low. Watt himself declared that he
thought his remuneration was quite mod
crate considering the vast amount Of work
he had done.
Watt had found great difficulty in get
ting men TO serve as directors on the bank
when he attempted TO reorgan1Ze 1t. Watt
bad -audeavored to get certain depositors
TO act as directors, but could not get the
necessary number. He was, therefore,
compelled to get outsiders, who were not
directly in the bank, to act on the board.
Mr.. Watt requested PERMISSION to state,
in order to clear himself OF certain Ins1nua-
tions, the amount of work he had done
while attorney for the bank. He told IN
detail the various me- ctters which had oc-
cupied his time almost exclusively. Watt
had represented the bank in nearly two
score different cases, agEregating nearly
s.. 200 900. Although Mr.. Watt worked on
this business harder than he had ever
worked before be found it necessary to
employ extra Office help and outside legal
assistance. In addition to work on actu-
ally pending actions Watt was called upon
for legal advice almost constantly by
Sheehan. Furthermore, he had to be up
at the bank on Market street a great deal
in fact he believed he had spent two
thirds of his time there for considerable
period.
At the opening of the afternoon Judge
S. C. benson, the agent of the Lower King
River Reclamation District was called. An
assessment had been made on land which
the Peoples Bank had mortgage upon.
benson urged the assessment as a prior
claim. He, however, came to an agree
ment with Dorm d Dorm, attorneys for the
bank, that both claims be paid pro rata
The assessment was not made, and it began
10 look as though it would not be paid.
Then w. E. Johns came to benson and
offered to pay $500 on the original assess
lnent of S2532 IA. benson accepted this
offer and gave receipt for the amount.
benson supposed that Johns was repre-
sentative of the hank, and accordingly
gave him the receipt.
Ex-Mayor Ellert was put on the stand.
He said that Johns had come to him
claiming to be the representative of the
reclamation district. Watt did not ques-
ton Johns authority In the matter, as he
paid him the full amount, $2532 IA, and re-
ceived Judge benson voucher.
E. J. LiVernash was asked a few Ques-
tions ard at the conclusion of his testi-
mony an exciting little passage-at atarms
occurred between Attorney Bartnett and
General Sheehan. Bartnett declared that
c,t Is noeTo
letter Sheehan declared tnat he had been
hunting diligently for the letter and had
been unable to find it. Upon Bartnett's
reiteration of his previous declaration
Sheehan, who was standing close to the
attorney, demanded if Bartnett meant to
call him liar
Order was restored by the clerk and
Sheehan's choler having vented itself he
subs1ded.
7. S. Williams, who acted as director of
the Peoples Home Savings Bank during
the most of 1895, gave testimony which
counteracted somewhat General Sheehan's
valuations upon the various pieces of prop
erty of the bank. Williams had taken
trip through Southern California in De-
Gem Der, 1895. examining the bank proper
ties. He found that Sheehan had ex-
pended money ostensibly for the purpose
of renting the property, but upon exam
ination of the property Williams found
there was absolutely no call 1or expense OF
any kind.
4 report was made by Williams to tn
board of directors in March, 1895, upon his
return from his trip in the south. Shee-
hans estimate of the value of the Southern
California property was $49S, ,oOO. Williams
estimated it at $272, 900. In this report
Williams says: II do not think that the
management has been iudicious and eco
nomical, and suggest that retrenchment
should be our watchword if we wish to
save anything from this wreck tor The
creditors
T. Carl Spelling was questioned in re-
gard to his services to the bank. he had
assisted Attorney Watt in his legal work,
especially looking up statutes and clta-
tions. AT the conclusion of Spelhng's testi-
mony. Judge Seawell adjourned court
until 10 o. clock this morning.
Inspector CIeary Resigns.
Nike Cleary, the Customs Inspector, has not