The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-11-05


loving brother, FRANK.
THE APPALLING RECORD OF THE
JOHN BROWN COLONY.
In the next letter that Frank v. Nc
Donald wrote, he reviewed a great deal
more pertinent history of the conspir-
acies that ruined the Institution of
which he was cashier. In the foregoing
letter he denounced NJ. H. Sherman
most bitterly. In the letter that will
follow he attacked A F. Johns. D. M.
Tomblin and d. S. Dorns For a year
these men had been befuddling him
with the affairs of the John Brown
Colony and the schemes of the city of
MADEIRA. He expresses fear that A.
f. Johns was then plotting against him
and his interests and intended to go
over to the enemy. Frank wrote as fol-
lows:
NEW YORK, April q, 1893.
My Dear Brother: For nearly a year
have been trying to get a clear idea
you nor Johns, nor Tomblin, nor Dorm
seem to have the whole matter in clear
shape, and as the time is now at
hand when the matters are to pass
into others hands it is necessary to
know just what we are doing or we
may commit some serious blunder. BY
clear idea do not mean any con-
such as / have hitherto been favored
with. After much difficulty and by put
ting together one thing and another
understand the position to be as fol-
lows, but may be all wrong, and If so
l should be right at once and
clearly in detail.
THE SITUATION.
When the Brown and Baird collapse
came we had in about $4,000 You
subsequently invested $40 600 In the re-
organization of the bank at MADEIRA.
and you bought the $4,000 Chapman
cr<ac fsrrr
and reserving $4,000 for the Peo-
pies Home first mortgage. and you
have since spent some $4,000 for devel-
ment there is, first, original outlay for
advances, SIS 900; second, Chapman's
second mortgage, @ sl10 600; third devel-
$4O,0O0-total, $265 900. We had to as.
sumo deposits of MADEIRA Bank to be
added to this figure. But since the Ma
dera Bank stock is a separate asset
ment, and therefore the net amount is
about 1925 900. Now the question is,
Is this correct, and I wish you and
Bellerman will try and answer this
without mixing up with it whole
lot of other ifs and ands and butts.
Again, how does the $40 900 item re-
serve from the $4,000 Chapman sec
ond mortgage to settle with the Peo-
pies for the first mortgage appear ON
your books? Is it already charged
to the colony debt, or when you pay
crease the present Indebtedness to the
colony? Nobody seems able to tell
me this.
In fact, I wish to have Hills crowd,
II possible, pay us back now the
moneys we have advanced Hughes and
Martin and step in our place, and then
we do not care what happens. Now
the question is, What is our plan to
work out of these investments? AS
understand 1t, 1t is as follows: First
We segregated the property into two
pieces.
ony claims had been sold, including the
MADEIRA town lots Second-The other
the California Raisin and Fruit Grow
ers' Association, of which we own the
stock, and which ought to be worth
ali o of it. Certainly f'OT if our e Scheme "a @ Of
selling either the present coupon stock
bonds or If the new scheme OF issuing
new straight bonds goes through, we
will get back our entire money out OF
this land alone.
If Tomblin had not thrown away $12,-
600 of Elisnor property l got from Baird
and had not foolishly bought that
fraudulent MADEIRA Bank stock from
Woodward of Fresno we should be in
some $1,000 more than he has blum
dered away from us. While l have no
doubt Johns is doing the best he can
for US, yet l feel he has made some
plan for the future with the Hill peo-
manager at a fine salary and is to
have good place for his son and also
get a good slice of the stock. ihis is
the reason he is so anxious for Hill
to get US paid off and get closed up
with us, so that he can turn in. and
work with the new crowd. The things
for us now to consider carefully are
whether we want any special work
done by Johns before he joins the
other crowd. 1 think we ought to
keep friendly with him for many rea-
sons. and i see no reason why we
cannot Your loving brother,
FRANK.
Tomorrow morning The Call viii
conclude the presentation of the let
ers of Frank ". Mcdonald, and record
he secret history of the ruin of the
Pacific and Peoples banks as that
'oung fnancier helped to make it. In
he concluding letters of Frank is the
etailed plan of the enormous robbery
f $500 900 with which Frank expected
o close the existence Of the two. insti-
utionS.