The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-11-25
THE WRECKERS IN THE
RUINS OF The BANK
Remarkable Letters Written by Frank Mcdonald After the
Pacific Bank Went Down to Destruction and
DisgraCefu[ Bankruptcy.
Sherman Sought to Protect Dishonesty His Valuable Interests in the
Pacific as He Did in the Peoples Home Agents and Allies
Of the Arch-CMspirators in Command

sixty-six bonds Of $1,000 each against
! the protests of the cashier and presi-
dent of the bank, and it is the same
Farnum that is now working to re
lease NJ. H. Sherman from the guar
antee on these bonds and otherwise to
get out his obligations and papers
from this bank, and only recently said
M. H. Sherman has tried in a dishon-
! orable way to get the release of this
| $166,000 and to get the officers of the
| institution to stipulate that he should
| be released from his guarantee and be
paid $4,000 in cash and be allowed
$4,000 for his attorney, Baggett, and
have sundry other papers turned over
| to him, in return for which he would
draw out from this fight and stop OPP
posing us and permit that the bank be
liquidated under the directors and Bank
| Commissioners as it should be, he
| (Sherman) being practically the person
who is making the most trouble and
| opposition.
And it is matter we'll known to any
one who has given the subject any at
| tention that Farnum and Sherman are
working together in all matters, and
that this same Sherman was until re-
Gently a director in the Pacific Bank
and has now turned around and Is at
| lacking his fellow-directors, hoping
that he may be thereby released from
! his obligations and may otherwise
profit from the liquidation of the banks.
1T must, therefore, be very clear
that said Farnum is entirely an i'm
proper person for the responsible posi-
! ton that he is now filling. Again, the
Attorney Baggett first appeared in con-
nection with the Pacific Bank as attor
ney for DR.. Cogswell, a shareholder of
! ten shares, and on those occasions he
attacked the Attorney General and his
! position, the bank directors and their
| position, of which NJ. H. Sherman was
one. Soon after we find Baggett ap-
pearing as attorney for Sherman and
then assisting the Attorney General and
now he is supposed to represent the
Bank Commissioners, and, in other
words, he is simply a turncoat shifting
around to see where there is most for
Baggett.
I'VE also find that they have chosen
| in their employ a Mrs. Graham as
stenographer, who is the daughter of
Mrs. Croker who is associated with
Edminster & Co. of New York City,
which firm is now bringing a fraudu-
| lent suit against the Pacific Bank and
trying to rob it of over $4,000 of it's as
| sets, and we know that between the
daughter AMI mother the most intimate
relationships exist, and that the mother
and daughter have been working
| against the directors and in favor Of
said Farnum and Sherman, and we
therefore say that she is not a proper
person for this position.
Now, again, we understand that H.
I. Wiley. as receiver, by authority of
| the Bank Commissioners, did make
demand on the First National Bank of
this city for certain bills receivable
that were turned over to it's president
for collection, to be paid on account of
the Indebtedness of the Pacific Bank
as per agreement with said Pacific
Bank to the said National Bank of
Commerce of New York. These notes
have always been held in the Pacific
Bank as the separate property of the
said National Bank of Commerce and
were ordered by said National Bank of
Commerce, were delivered to the presi-
dent of the First National Bank of this
city, and we understand that said H. 1.
Wiley has notified the makers of these
notes not to pay the same to the First
| National Bank of this city. This is
a monstrous mistake of judgment, for
the National Bank of Commerce of
New York holds other large and valu-
able securities on the same indebted
ness, and if it elected, could sell those
securities in open market and slaughter
the same, there being at present no
sale and no market for these securities,
and thereby the Bank of Commerce
could come back against the Pacific
Bank for a deficiency judgment which
would involve loss to the Pacific Bank
of at least $100 000
And the only reason the Bank of
Commerce has not made such sales
heretofore has been for the kindly feel
ing toward the Pacific Bank and the
hope that it might be able to arrange
with it's creditors and reopen it's doors
Therefore, this act of Receiver Wiley
and the Bank Commissioners is enough
to disqualify them from thus admins
tering upon the affairs of the Pacific
Bank, irrespective of others that might
be cited, and it should not be forgotten
that said Farnum and Wiley, Mrs. Ora
ham and Bank Commissioner Knight
who is the father-in-laW of Farnum.
are practically under the control of Nj.
H. Sherman, and this Sherman is the
one who has wrecked the Pacific Bank.
Therefore, we submit that for the Pa
cific Bank to be wound up under these
persons would be a great injustice to
the creditors and the stockholders. -
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THE CHOSEN