The San Francisco call., 1897-04-28
Testimony in Regard to
the Peoples Home
Case.
The Whereabouts of Judge Heb
bard, Mr.. Sheehan and
Mr.. Watt.
Counsel for the State Did Not Want
Mr.. Watts Actions Inquired
Into.

in the Marriott libel case in Judge Dain-
gerfields court yesterday, and the court
room was crowded, showing that the in
terest of the people has been aroused in
this struggle for the freedom of the press
that Is going on.
In the morning session an effort was
made by Samuel M. Shortridge attorney
for the defendant, Editor Frederick Mar
riott of the News Letter, to show that
there was certain understanding between
Judge ]. c. B. Hebhard OF the Superior
Court and Attorney James Alva Watt and
John F. Sheehan in regard to the manage
ment OF the defunct Peoples Home Saw
ings Bank, said understanding having fo-
its purpose the keeping of Mr.. Sheehan in
his place as receiver for the bank, and in
cidentally the retention of Mr.. Watt as
attorney for the receiver.
In view of the courts rulings Mr..
Shortrdge found II expedient to Temporal
rily withdraw his first witness and to call
Attorney I. Carl Spelling, who, though a
particular friend of Judge Hebbard, Mr..
Sheehan and. Mr.. Watt, made some start
ling disclosures, which, Mr.. Shortridge e1-
planned, were foreshadcwed in his open
ing statement when he said tn at he would
prove that Judge ebband "stood in''
with the persons who helped to waste the
substance of the banks depositors, and
that to that extent Judge Hebbard was.
as the Newsletter said, the Creature"
and tool of designing men.
Mr.. Spelling testified that he was en-
ployed as an attorney TO bring a suit in
the name of Goldtree and others against
the Home Savings Bank, but that his
clients did not pay him anything for that
service. subsequently he was paid $500
by the directors OF the Peoples Home
Savings Bank, but he did not understand
that 1t was for bringing the Goldtree suit.
He was rather hazy in his ideas on that
point, but thought he gave the Peoples
Home Savings Bank managers some kind
of advice. He acted as counsel in their
litigation.
Mr.. Shortridge pressed the questions to
show that the Gold tree suit was instituted
at the desire OF Mr.. Sheehan and his
friends.
Mr. Shortridge-was it late at night when
you lied that Gold tree suit?
The wltness-l think 1t was about 9 O'Clock
at night.
You rode out in carriage from the Palace
Hotel to the City Hall after clock to file the
papers, did you not?
Yes.
Who rode out in the carriage with your
1 rode out with James Alva Watt and John
II. burst.
Did you find Judge Hebbard at the City
Hall?
Yes.
Where?
In his chambers.
Did Judge Hehbard sign an order that mig n t
appointing some one receiver for the bank in
the Goldiree suit?
Yes.
What did he do with the order?
l think he gave it to Mr.. burst. He might
have given it TO Mr.. Watt. l am notsur about
that.
Attorney Julius Kahn and Denuty Dis.
trict Attorney Hinkle attempted to ex-
plain how Judge Hebbard happened to
be at the City Hall at 9 O'Clock at night,
q handy thing for Mr.. Watt to have been
there.
Wasn't he clerk OF the court present?'
asked Mr.. Kahn.
II think not" replied Mr. Spelling. 81
don't remember seeing him there"
l. ID. Mccarthy, vIce-principai of the
Washington Grammar School, mem Der
OF the depositors' committee, gave an out
line of the efforts made TO secure the
money of the depositors and to keep 1t
from being wasted by litigation.
Mr.. Mccarthy said: I'VE obtained at
that B'nai Birth Hall meeting about 1900
signatures If depositors, aggregating be-
tween $500, 900 and $4o0,00o of the money
| deposited. The people giving those sig
! natures authorized us in writing 10 pro-
ceed In every way possible to advance The
interests of depositors, with the exception
of drawing money, which we did not at
tempt"
In reply to a question by Mr.. Short
ridge the witness said: THE first thing
the cOmm mittee tried to do was to get u
board of directors that would do some
thing for the benefit of the deDositors
We were particularly anxious to accom-
plish this, and had conversations with the
mem mbers of the old board. Five of them
said they were willing to resign, but said
that the injunction issued by Judge Heb.
bard prevented them from meeting for
any purpose. We called on Judge Heb
bard and he promised to modify the in
junction so as to allow the old board to
resign and to have the directors chosen by