The San Francisco call., 1896-04-26
Directors of the Peoples Home
Savings Bank Exon.
Grated.
THEIR INTENTIONS HONEST.
Henry Highton'S Plea for Justice to
the Characters of the
Accused.


a. L. Jenkins and Charles Montgomery
have been officially cleared of any Grim
inality in the failure and frauds of tn,
Peoples Home Bank.
The indictment against the three di
rectors was for embeZZiement in having
returned the Swanberg and Westpnal not,
to its owners. The testimony in the Nc
Donald case showed that the note wa.
given in return for a letter of credit on tn,
Pacific Bank, and when the Pacific Bank
failed the letter became useless and tn,
note was returned. On this Showing
Mcdonald was acquitted and the charge.
against the others were dismissed. Henry
E. Highton, their attorney, wanted thai
fact announced from the bench, however
and he addressed the court to that effec
yesterday morning, saying.
On May IL, 1894, in connection with R. H
Mcdonald Jr., who has been recently tried an6
acquitted, Hiram t. Graves, Charles Mont
gomery and A. l.. jenkins were indicted by 8
Grand Jury of this City and County for alleged
embezzlement OF securities from the Peoples
Home Savings Bank.
Mr. Graves was pioneer of this State, where
his father had died, honored and respected, al
very great age. He was himself advanced in
life, and had held for many years positions OF
trust and eSponSibility, in none of which had
he ever proved unfaithful or fallen below the
standard of the highest efficiency and integ.
rity. In the Society of California Pioneers, in
the Fraternity OF Free and Accepted Masons,
in the Episcopal church, in social life, and
among the most solid business men he had
earned and won a reputation which made him
an example to young men and an honor TO the
community.
Mr.. Montgomery was man of mature years,
who had been largely engaged in business en-
terprises, and, though at one time pecuniarily
involved, had then received such general COM
mendation, sympathy and aid as alone would
have attested his high standing and character
and must have almost reconciled him to his
losses and tenn porary EN- barrassment. He had
not only professed but practieed Christianity,
in such philanthropic directions that, among
the poor, the suffering. even the criminals
whom he had relieved, his very name was held
in reverence, and among all classes OF our cit.
izens he was regarded with the deepest re.
spect.
OF these two gentlemen, Messrs. Graves and
Montgomery, l have spoken from personal
knowledge, which was also the common prop
erty of the public. have less to say in regard
% Mr. jenkins, not as implying that he was
less worthy of esteem. but because he had been
less conspicuous and his walk in life had been
more strictly limited to private business. He
was, however, unquestionably, so far as l am
informed, young man OF good family, of edu-
cation and OF intelligence, of excellent cRpac-
ity and OF conceded probity.
These three gentlemen, whose connection
with the Peoples Home Savings Bank had
been ass umed at the solicitation OF friends and
had extended over few weeks only, were in
honesty, done under the direction of lawyers of
nigh standing and character, and which, with
out such advice, would have been obviously
just and right.
In March, 1898, year or thereabouts before
Messrs. Graves, Montgomery and Jenkins had
become directors, and Mr.. Graves secretary of
the Peoples Home Savings, Bank, that institu-
ton and the Pacific Bank were in financial
difficulty. The connection between those cor
porations is well understood. C. o. SWanberg
was a director OF one and friend TO both. In
order hn nf ha
pies Home Savings Bank he guaranteed the
payment OF Henry w. WestphaPs note for S40-
OOO. with interest at 2 per centper annum, and
put up securities which made the guarantee
and the note itself absolutely safe. On the
part OF MeSsrS. SWanberg and Westphal this
transaction was purely an accommodation.
On the strength OF the note, the guarantee and
the securities, the Pacific Bank issued its cir
cular letter of credit for three years upon the
Union Bank of London Qimited) in favor OF
Mr. Swenberg, who proceeded to Sweden sue
cesSfuIly negotiated for the face value of the
letter and was about to return to this State,
with the $4,000 for the Peoples Home Saw
Ings Bank, when the Pacific Bank failed and
Its credit was destroyed.
The plan for the benefit of the depositors and
the stockholders of the Peoples Home Savings
Bank was thus frustra ted, and it follows as a
matter of course, that it became the right OF
Mr.. Westphal to have his note cancelled and of
Mr; Swanberg to have his guarantee annulled
and his securities returned. This was done in
the manner already stated, and the letter of
credit was surrendered to the Pacific Bank.
which 1ntermediately had paid to the People,s 5
Home savings Bank the interest upon the
note.
Of what testimony there was before the
Grand Jury, on which the Indictment was
founded, have, necessarily, no knowledge or
information. and do not seek to convey any
lmputatlon upon the members of that BODY
and decidedly, none on the learned District
Attorney, who has faithfully and jnteIligap tly
performed his official duty But / believe I
have stated the facts, exactly as they were
and 1t thus appears that Messrs Graves, Mont
gomery ana jenkins were accused of embezzle-
ment, when, as directors of the Peoples Home
Savings Bank, they had simply failed to en-
bezzle the property of Mr.. Swanberg But the
mlschlet, the rank injustice, the fragrant out
rage On these defendants did not stop with the
Indictment itself.
The period was one of great excitement and
In the midst OF many just complaints against
the management of the two corporations there
was no discrimination between the Innocent
and the guilty. Their codefendant has heen
acquitted on this Charge, but while / consider
II my duty thus 10 refer to him, he has not
been my client and his defense was early separ-
ated from the defense OF those represented bv
Mr. Jordan, by Mr.. Richardson and by myself.
IN no Way, positively or negatively had
Messrs Graves, Montgomery and jenkins yio-
lated or omitted any official DUTY None of
them had gained one dollar by his connection
with the oank beyond the trif1ing salary re-
celyed by Mr.. Graves for a few weeks for his
faithful work as secretary. Nevertheless dev
after day, week after week, they were cauter
lzed IN the press, and firmly though thev were
upheld by their numerous friends thew were
made objects OF popular clamor and wounded
In their tenderest and deepest feelings Civil
actions voluminous and searching were com
menced in which they were impleaded. charged
with fraud and their property rights inner
lied and for many weeks, at their own expense
they were compelled to stand in court, amids 7
indignant deposltors and stockholders beset
by turbulent and antagonistic cliques, while
they firmly and unwaveringly held to their
resolution, to be used by no man or combine-
tlon OF men, and to resign their offices in such
manner as to protect equally all who were
interested in the assets of the Peoples Home
Savings Bank, and TO exclude the possible
chance OF just or reasonable complaint against
themselves. On no facts, for no reason after
accepting and briefly holding unwelcome no.
sltions, and in those positions living up to the
most Quixotic conceptions of their obligations.
they were compelled to drain the dregs of in
justice and of ingrotitude.
Now, after two years they are free, and their
yindication, legal and moral, is complete.
Public justice, as applied to them, has slowly
found It's equilibrium. But though their
wounds may be healed, the scars remain and
they are forced TO realize that even in our
country, there are times when years and char
acter are an insufficient protection against
temporary passion, yindictiveness and sensa-
Llonailsm, and that now, as in the days of
solomon, the enigmas of Providence are inso-
luble by human intellect.
Judge Bahrs announced that he GER
talnly would pronounce public vindica-
ton, and he proceeded to do So He re.