The San Francisco call., 1896-06-24
ExJudge Carpenter Become
Impatient and Clamors
for the Proof.
THOSE TRANSFERS OF STOCK
Near.y Two Thousand Shares Placed
in the Name of Stenog.
rapher Hardee.

lieu ytSleIudy III the SulL Ds LAC
California Safe Deposit and Trust Coma
pany to remove General Sheehan and the
directors of the Peoples Home Savings
Bank. Much of the testimony was repe-
tition of what had already been sworn to.
Several of the witnesses testified unwill-
ingly, and even defantly witnesses Shee
han and Phelps being particularly COM
Dative. The bit of humor in the situation
OF witness Hardee, who, although he
owned no property, had been asked
to pay over $30O, 900 by Attorney Flournoy,
was the main diversion of the days trial.
Receiver Sheehan was again put on the
stand at the opening of yesterdays ses-
sion. He answered the questions of At
torney Bartlett in defiant manner, and
with military glare referred HIM TO the
bookkeeper if he wanted to know some
thing from the records.
A lively tilt between the opposing coun-
sci arose over the striking out of Attor-
ney Bartlett's amended complaint. Ex-
Judge Carpenter, in very dramatic man.
ner, declared that the plaintiffs were vast
ing time, beating about the bush, and that
they had no case "Let them prove the
conspiracies which they have charged"
shouted the ex-Judge, 81 defy them to
prove it," Judge Seawell took the matter
under advisement.
In reply to Carpenters questions on
cross-examination Sheehan denied that
be had anything to do with the ousting of
Director Merrill. Davidson had told Shee-
han before the election that he wanted to
get Merrill out of the board because he
didn't understand business. In tie vari-
Gus disbursements he had made and which
the plaintiffs charged as being extrava-
CANT, Sheehan declared that he mad done
WI O
interests. He denied absolutely that he
had engaged in any conspiracy or collu-
sion.
Sheehan's professed intention of hand
ling the affairs of the bank economically
was somewhat shaken by Bartnetts re-
direct examination. When the Bank
Commissioners intended to cut down
Sheehans salary the General represented
to them that his services were worth fully
500 month, but he denied that he had
appeared before the board 10 resist re-
auction, as asked for by petition of de-
positors.
W. E. Palmer, clerk in the Peoples
Home Savings Bank, was put on the
stand. He was questioned in reference to
certain disbursements to attorneys out of
the City. This money had been charged
on the books to James Alva Watt.
In regard to Sheehans attention to the
business of the bank, Palmer said the
general was at the bank every day from
about to 4 80 O'Clock, and he thought
the general attended to the bank 8 business
almost exclusively.
At the opening of the afternoon session
Judge Seawen announced that he was not
yet ready TO decide upon the adm issibility
of Attorney Bartnett's amended com
plant. The court announced that he
would decide the matter before this morn
ing's session. Clerk Palmer was asked a
aft
that he had not engaged in or heard of
any conspiracy for ousting Merrill, or for
any other purpose, he was allowed to de-
part.
Theodore L. Hardee, a stenographer
who had been in the employ of Attorney
| Watt at various times, was next sworn.
Watt had transferred stock to the stem
ographer at various times. He had never
purchased any stock. At present Hardee
is down as the owner of nearly 1000 shares
of stock of which he never had posses sion
except long enough to indorse it to Attor-
ney Watt
The stock in Hardees name amounted
to several hundred thousand dollars. At
tornev Fiournoy had notified him to pay
some 1892, 900 last winter, but the stem
ographer had ''asked for a little delay"
When asked by Attorney Bartnett whether
| he had property sufficient TO meet such
obligations, Hardee said if he had any
property he would like to have some one
show it to him. Hardee's recollection of
how he had received the stock was very
hazy. He had always signed proxies for
Mr.. Watt when requested to do so.
James Alva Watt, formerly attorney
for the bank, was placed on the stand. He
testified tnat he had received $500 a month
from about June, 1884, to January, 1896
He never had any exact understanding
with Sheehan as to his compensation.
| When he first applied to Sheehan for
money he admitted to the general that
the latter had no right to pay him without
an order of the court.
Then Watt had seen Judge Hebbard
and had an understanding with him in re-
gard to the matter. After that Sheehan
paid Watt his money.
Besides receiving $500 a month Watt
also received fees. In one rionth alone
December, 1894, he received two fees
aggregating $1,000. He didn't remein per
that Mr.. Sheehan had made any objection
to the payment of these fees. He thought
Sheehan relied upon him in the matter.
Other attorneys had been employed on
business of the bank. Watt didn't re-
M mber whether or not he had consulted
the directors about mploying them.
He denied that he had had an under
standing that his $500 a month included
all legal work. He had no recollection of
having stated to j, w. Coleman, T. S.
Williams and Attorney Bartnett that the
$500 included all legal services.
He denied that he had acted as attorney
for the stockholders in resisting and de-
tending suit brought by the California
Safe Deposit and Trust Company. He
had expressed his opinion that the suit
was being improperly brought.
When asked if he had said, in a news
paper interview, that the bringing of the
suit to compel the paying up of the un-
paid capital stock was legalized robbery,
Watt explained that he had expressed the
opinion to many persons that to compel
the bona-fide stockholders, who were very
few in number and who were as much the
victims of the McDonalds as the deposit
ors to pay up this stock, even though it
might be legally possible, would be
manifest injustice.
S. B. Hardenberg was put on the stand
to tell of transfer of stock made by him
to Hardee. The stock had been trans.
ferred to Hardenberg from NJ. H. Sher-
man. The details OF the transactions were
considerably confused in the witness
mind.
William H. Phelps, one of the defend
ants in the suit assembled the stand. His
answers were very defiant and often were