The San Francisco call., 1897-04-30
So JUDGE HEbbARD
DID R; ALLY KNOW
Mr.. Pike Informed the
Court of Mr.. Sheehan's
Strange Acts.
Frantic Efforts By Attorneys to
Keep Out Certain Impor.
tant Testimony.
But Considera be Truth Was Deliv.
cred to the Jurors in The
Marriott b,l Case.

|
on the part of lawyers for The prosecution
in the Marriott libel case yesterday to pre-
vent connecting Judge Hebbard with the
mismanagement of the Peoples Home
| Savings Bank, which hitherto they in
sisted ought to be proved before certain
testimony could be admitted.
At the opening of the case for the de-
fense Samuel NJ. Shortridge, counsel for
Editor Marriott of the News Letter, made
an opening statement in which he said
that he expected to justify the language
OF the article on which the charge of libel
was based. He said he ex xpected to prove
that certain men, notably John +.
! Sheehan and James Alva Watt and their
close associates. had made use OF Judge
| Hebbard to further their selfish ends He
then began to offer his proof in chronolo-
! gicGl order, but was harassed by obiec-
tions offered by Attorney Julius Kahn
and Deputy District Attorney Hinkle, who
insisted that he ought first to show that
Judge Hebbard had knowledge OF Mr..
! Sheehan's acts and of certain boasts made
| by Mr.. Watt.
Finally Mr.. Shortridge yielded to the
clamor OF counsel for the prosecution and
began TO introduce testimony having in
view the proof OF the matters demanded
! by Mr.. Kahn and Mr.. Hinkle. Yester-
days proceedings consisted of offers OF
this character OF testimony and voci erous
objections against it by the attorneys for
! The State. Notwithstanding their exer-
tions to keep out what they had before
| said should be first presented, a pretty
clear view of the truth was given to the
jury and TO the interested audience of
citizens who were present to hear the pro.
ceedinSs.
William E. Palmer testified that he
knew John f. Sheehan. James Alva Watt,
ex-Attorney- General W. II. H. Hart
Judge Hebbard and other persons con-
nected with the dispute over the settle
ment of the Peoples Home Savings Bank
affairs. Mr.. Palmer was ar employe of
the bank before the failure of that institu-
tion as manager OF the banking depart
ment and was continued in similar posi-
non by Receiver Sheehan.
Ex-Attorney- General w. 81. H. Hart
may have been paid some money by the
bank, Mr.. Palmer said. He could not say
yes or no to that question. He thought
the books would show-at least, they
ought to show.
1t was developed that after Mr.. Sheehan
was appointed receiver the head man in
the banks work was Mr.. Palmer. He re-
mem bered talking with Mr.. Mccarthy,
but did not remember that they discussed
the banks affairs. He did, however, talk
over the corporatlon's troubles with Mr..
| Pike and with Mr.. Williams.
At the time the bank closed its doors
there were about 1000 depositors in the
bank who had live accounts. IN the
course OF events 1900 depositors had
dropped out. Mr.. Palmer could not re-
member the names OF the stockholders at
the time OF the failure. He thought there
were about 200 STOCK hold on the books
when the bank closed its doors.
Mr.. ShOrtrIdge tried TO find out how
much money the bank had on hand when
John +. She chan was appointed receiver.
He wanted TO know about the cash book,
and learned that in banking the cashbook
is used as general ledger and that all
the transactions of the bank passed
through 1t. For instance, if The bank
bought piece of property for SIC, 900 and
sold it for $4,000 there would be loss OF
$1,000, which would appear in the cash
book in the profit and loss account. 1t
would be necessary to make that entry in
order to balance the cash account.
Mr.. Palmer thought it would be difficult
to fix the date on which Mr.. Sheehan
cea sed to be receiver. As he understood
Il Mr.. Sheehan was acting in a dual ca
pacily for some time, being both rece iver
and secretary.
Then as receiver be would converse
with himself as secretary, would he2
asked Mr.. Shortridge
To this Mr.. Kahn and Mr.. Hinkie OBJ
jected, and being sustained by the court
Mr.. Shortridge changed the form, thus:
"As receiver, Mr.. Sheehan did certain
things, you say, and then would he pass
on such acts as secretary OF the bank?"
Vociferous objections were again inter-
| posed by the attorneys for the prosecu-
tion, but the court thought that the de-
| fendant had right to go into the acts of
| the receiver agreeing with the attorney
| for the defense that it was material m at
cnnld he hat ba
while an officer OF the court, had abused
the courts confidence, but Mr.. Palmer
said he was not able to define the acts of
Mr.. Sheehan in this regard. He knew
that there was some understanding that
| Mr.. Sheehan was acting in dual CAPACITY
Tor awhile. He could not say definitely
| when the receivership actually ended. He
| promised to produce books to show the
| amount of money that came into the
hands of the receiver and also to show TO
| whom and for what it had been paid out,
Mr.. Shortridge asked the balliff to call
Thomas S. Williams Jr. as witness
Mr.. Hlnkle objected, saying that tnere
were already three witnesses in The air
who had been partially examined, and
he though: it was unfair to have so many
| irons in the fire.
Mr.. ShorLridge expressed hope that
the witnesses would come down out OF the
air, ard Judge Daingerfed said he would
decline to interfere with the course OF ex-
ANIMATION OF witnesses SO long as counsel
appeared to be acting in good faith. He
accordingly overruled the objection.
But Mr. Shortridse has succeeded in
exc uding General S eehan from the
courtroom as one of the witnesses in the
case, insisted Mr.. Hinkle, land his ex-
animation ought TO be closed in ord der
tDat ne could remain in court; his coun-
sei is OF importance to counsel for the
prosecution. he is neld here in attend
ance, but not allowed in the courtroom
Let him go home to his work. We
wlll call Tor him when we need him." said
Mr.. Shortridge.
so Mr.. Williams took the witness-stand
ana told OF meeting that he had with
Judge Hebbard in the Office of the Cali
fornia Safe Deposit and Trust Company.
He said that Judge Hebbard told the
gentlemen present that he was there In
his private capacity for the purpose of se-
curing harmony, and saying that he
wanted 10 do what ne could to save the
banks assets for the depositors.
Mr.. Shortridge attempted 10 draw out
facts 10 show that Judge Hebbard was
trying TO obtain board of directors that
would keep Mr.. Sheehsn' in as manager
of the bank, but the questions were ruled
out. 1t was finally developed that Mr.
| Williams was appointed on the board of
| directors and served for year. He was
| appointed as committee to 20 to the
southern part of the State for the pur-
pose OF investigating the securities of
the bank, and he found that Manager