The San Francisco call., 1896-02-29
SUING THE STOCKHOLDERS
Peoples Home Bank Directors
After the Unpaid Capt.
tai Stock.
The Suits Promise to Bring Out the
Vicious Schemes to Control
the Bank.

Every stockholder, good. bad and indif-
ferent, of the Peoples Home Savings Bank
| will be sued by the directors of the bank
for the unpaid capital stock. The five suits
| filed in the Superior Court Thursday were
merely beginning, for John Flournoy,
attorney for the directors, will enter about
$50 suits in all without delay.
1t is estimated by the directors that il
these suits are successful about SIS, 900 will
perhaps be added to the banks meager
and very uncertain assets. The attorney
believes that $75, 900 is the limit of the
amount that could be recovered from the
stockholders. There are many reasons
why SUCH comparatively trihing sum is
regarded as the best that may be done in
this struggle for dissipated capital Many
OF the stockholders are tigureheads who
| unde rtook the contempt role OF dummy
| fer DIR. Mcdonald and Others who wanted
to avoid meeting their just obligations.
| The capital stock OF the defunct bank
was 81 ,000, 600, and of this only one third
was paid in, 1856, ,666 66 outstanding 1t
was shown by the depositors that consid-
| erable OF this amount was available and
should be collected. The directors paid
little attention to the suggestion, having
| been more directly interested in protectin g
debtors of the bank; as, for instance, in
| the case of Sherman, who owes the Peo-
pies Home and Pacific banks nearly 81 ,OOO,-
| 900 on doubtful securities. Last July or
August four of the seven directors voted
| against calling in the unpaid capital. Fin
| ally the Bank missioners instructed
| the directors that it was their duty to call
| in this capital, and III September of last
| year the directors passed a resolution,
| under pressure; calling in the unpaid capi.
! tai stock. 1t was understood then that no
! suits should be brought before November
80. On this date the directors entered into
| long discussion upon the question of
! granting further tilue, with the result that
| no extension was deemed advisable
| The attorney was instructed to bring
| suits against the stockholders, but imme-
| diately number of other important mat
| ters came up, and so he was unable to sue
! for the unpaid stock sooner than Thus
day last when the first five suits were filed
! The transaction again brings to light
the vicious methods employed in the Peo-
ple's Home Bank by men supposed to have
had the interest of depositors at heart, but
| who really worked for their own selfish in
! terests. In hardly any other department
OF scheming in the management was the
| work so fruitful OF loss OF regulations
| Anyhow the stock was secretly transferred d
| to irresponsible persons, and 1t is now is
a sorry muddle. When the receiver wan
| appointed temporarily the people anxious
to retain control of the Peoples Home
had stock transferred from the McDona!ds
and some others who had some available
assets, and in this way 7. C, Ii ardee,
clerk in the Office of James Alva Watt, the
| then attorney for the institution, became
the owner of 1889 shares, Mrs. M. L. Will
son, McDonald's s confidential assistant, got
1450 shares, and so it went until the schem-
ers secured sufficient stock to retain con-
troll.
1t is now claimed by several stockhold-
ers that the stock was put in their names
without their knowledge. and consequent
ly they are not responsible. Others will
claim that they qualified merely to act as
directors after the bank had failed, and
were, therefore, never bona-fide stock.
holders. Many such defenses are ex-
pected by the banks attorney.
The following-named stockholders voted
at the meeting held January 13 last, and
cannot claim they were ignorant they
possessed the stock. There are several