The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-03
Manipulation by Which the Jen'
ningson Stock Was Voted
for the Watt Directors.
DENIAL THAT COIN WAS PAID
Judge Hebbard Swore That His Prom
Use Made to the Depositors Was
DUAL fei.

The salient features of the trial of j. 5.
Williams Jr. for publishing an alleged Ii
bel on Judge Hebbard, as they were de-
veloped Yesterday, consisted in the estab-
Iishment of the fact that James Alva Watt
had drawn $4,000 from the bank on &C
count of his attorneys fees and expenses
before the board of directors had allowed
him a dollar.
1t was also developed that 3440 shares OF
the bank stock had been gwen to William
Jenningson for his note for 500, 900, and
that after Jenningson's wife had, as his
proxy, voted these shares for the Watt
Sheehan directors, BOO of the shares were
cancelled and the note wiped off the books
The attorneys for the defense inquired as
to whether Mr.. Watt had paid Mrs. Jen-
ningson for the service she had rendered
him by voting for his directors, but Mr..
Watt, under oath, denied that he had
paid her anything.
1t was admitted by the prosecution that
the bank depositors at their meeting had
said disparaging things concerning Mr..
Watt and his reputation.
Judge Hebbard testified that his promise
to the depositors' committee that he
would allow the directors to resign and
elect new board was qualified with the
proviso that all the. parties in interest
should agree as to the personnel of the
new directors. The parties in interest
having failed to agree on this point, the
order of injunction remained in force.
General Sheehan resumed the stand yes
terday morning, having brought with him
rfafr Oo1re of - 49,, ITao
was directed by Mr.. Thornton to the pro-
ceedings of the stockholders meeting OF
July 5, 1894. After the record had been
identified Mr.. thornton offered it in evil
dence for the purpose OF showing that at
that meeting MesSrs. Watt and Sheehan
secured control of the management OF the
bank, having previously agreed as to the
method by which that controll should be
secured.
Mr.. Thornton read the record aloud. 1t
set forth the fact that the stockholders
had met on the date mentioned ior the
purpose of removing the directors and APP
pointing others in their stead. The call
for the meeting was issued by DR.. Bouchey.
The meeting was called to order by DR..
Bouchey. 1t was found that 1852 shares of
the capital stock were represented. After
rollcall Samuel NJ. Shortridge demanded
that the books should be produced in
oruer to ascertain whether the list of the
stockholders was correct one, but the
books were in the custody Of General
Sheehan and he would not allow them to
go out of his hands. The matter was
| finally settled by the secretary offering to
| certify to the correctness of the roll.
Then the existing board of directors
were ousted by a majority vote, and on
motion of James Alva Watt the following
named directors were elected: George
Stone. Rolla V. Watt, S. A. Mcdonnell,
| S. P. Young, l. L. Merrell, S. K. Thornton
and John Z. Hillman. The meeting then
adjourned.
| Mr.. Thornton asked the witness, Gen
eral Sheehan, whether the record to the
effect that be had refused to produce the
| books was correct, and the witness replied
| that he believed it was. He was asked
| whether at the time he knew as a fact that
upon the election of these directors he
| would be appointed secretary anu manager
of the bank. He replied that he expected
some such action was 10 be taken, and he
admitted that. he helped to secure the
election of the directors named, with all
of whom he was acquainted.
The witness was asked whether it was
true that William Jenningson owned up
ward of 3440 shares as set down in the
minutes of the ballot for the directors,
and he replied that he believed such to be
the fact. In response to another question
General Sheehan said that he could not
say that at that time he was aware that
two injunctions were about to be served
forbidding the voting of those 3440 shares
OF stock. He left all law questions to mis-
attorney.
Mr. Thornton inquired as to whether
the $40 shares had been issued and paid
for. The witness replied that the stock
was sold by the Mcdonald board of direc-
tors to William Jenningson for something
over 100000, taking his note for that
amount. The note and the whole tran
saction were subsequently wiped of the
books and the BOO shares of the stock
were Cancelled something over year ago.
Presuming that that STOCK had not
been represented at that meeting there
would have been a presentation OF
5476 votes, less than two-thlrds OF the
total stock. The witness believed that the
3440 shares were voted for the successful
directors. There was only one opposition
candidate, Charles Montgomery.
The witness enied that he had asked
Mrs. Jenningson to vote for the board OF
directors, or that he had paid her any
money for doing SO. She held her hus-
bands proxy.
do you know whether James Alva
Watt paid her any money for her voter
asked Mr.. Thornton.
Il do not" was the reply. Il don't
think 1 ever conversed with Mr.. Watt on
that subject"
The witness went on to state that S. K.
Thornton held some proxies-that OF +.
ID. Knight and George Stone-at that
meeting, and that Mr.. Thornton was
personal friend of his and that the stock
holders had the highest confidence in him.
Mr.. Foote objected to this line of exam
inatlon, and Mr.. Thornton explained tnat
he proposed TO establish the truth of the
assertion in the circular to the effect that
James Alva Watt procured the election of
the directors for the purpose of obtaining
control of the management of the affairs
of the bank.
The objection was sustained, and Mr..
Thornton passed on TO another line of in
quiry. He asked the general to identity
the report filed by him in court in Janu-
airy, 1895. as receiver OF the bank. The
witness did not know whether he had
made any other reports, but he believed
that he had previously made a general re-
port of affairs to Judge Hebbard.
General Sheehan, how much money in
cash, assets in cash, were turned In to you
as receiver between May 10, 1894, and jan
uary 8, 1852" ask Mr.. Thornton.
The witness could not state without
consulting the books but he received for
the bank more than 100000. He dis
bursed during the same period $40, 995.
l.eIs el,a ha1.a hare for