The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-11-26
The Attorney General Promised
Corrupt Protection to the
SChellerS.
How q High Public Official DiShOnored
His Office to Aid the WreCkerS Of
the Two Institutions.

In the history of the Pacific Bank
and the Peoples Home Savings Bank
there is no more prominent figure than
that of w. H. II. Hart, who was Attor-
neY General Of this State during the
years that the Pacific Bank and the
savings institution, its feeder were be-
ing robbed by the real estate and the
railroad spectators who had sur
rounded the McDonalds and were lead
ing them to financial ruin. Moses H.
Sherman and his associate schemerS
boosted that they had corrupted Hart,
and that he was ready to do whatever
they commanded. Harris duty was to
watch the interests of the depOsitors
and creditors of the bank, and when
danger threatened call a halt to ill-ad-
vised speculation and certainly to the
deliberate robbery that the conspira-
tors had planned.
In all the wild speculations and dis
honest manipulations of the McDonalds
Hart held the key to the situation. He
was thoroughly informed of the condi-
ton Of affairs in the Pacific Bank long
before the Bank Commissioners ad-
vised him Of the impending disaster to
these institutions. Years before the
banks were involved to such a degree
that it was out of the question to re-
store their solvency and sound condi-
ton Hart placed himself under obliga-
ton to the McDOnalds by becoming
borrower for a heavy amount. While
he thus placed himself under obligation
he saw and accepted the opportunity to
use his own financial debts TO advan-
tage. He pressed his position of advan-
tage up to the very point where the
-McDOnalds rebelled
He borrowed from the Pacific Bank
tens of thousands of dollars and for a
short time he was on the pay roll Of
the Peoples Bank. Every one con-
hected with both Institutions recog-
nized perfectly Harris motive He had
the McDOnalds in a position where he
wanted them and he used their bank
TO increase his private purse. When
the Bank Commissioners, in the latter
part of 1891 saw that some desperate
remedy was necessary to relieve the
McDOnaldS from d desperate situation
Hart was notified Of the true condition
of affairs Letter after letter was writ
ten to urge him 10 take immediate and
most necessary steps 10 place the Pa
ci4ic Bank and its feeder back upon a
solid financial basis. Hart ignored
every suggestion of the Bank Commits
sioners and arrogated to himself the ar
bitrary right to do what he pleased and
when he pleased in reference to the
affairs of the Mcdonald banks.
When the Bank Commissioners
showed him that a crash was inn
minent Hart declined TO take action.
He was getting large sums of money
from the Pacific Bank when he needed |
it and he did nothing to prevent the
final collapse of the institution. Even
when the Bank Commissioners sent
their warnings Attorney General Hart |
was in consultation with the McDon-
aids, advising them what to do and
what to be left undone in the crisis
that was upon them He had schemes
Of his own to float and he had found an
avenue Of wealth better than a gold
mine. He not only ignored the warning
of the Bank Commissioners, but par
alyzed the actions of his department of
the State government He was bleed
ing a willing dupe and he intended to
continue the process until the end.
Many a thousand dollars he received
from the bank, and even the McDon-
aids themselves realized that he would
never pay back the money he had re-
ceived.
In order to receive this money he
found it necessary to be dishonesty in
collision with the Mcdonald bankers.
He knew that the Pacific Bank, and
through it the Peoples Home Savings
Bank were insolVent. He was not only
acquainted with this fact through his
association with the McDonalds, but
from the official warnings of the Bank
Commissioners. When it was utterly
out of the question for him to delay ac-
ton any further he took the step that
other authorities had begged him to
take a year before. He did SO reluc-
family and with even worse grace than
that displayed by the McDonaldS in
closing the doors of their banks.
HARRIS FIRST MEETING WITH THE
Mc00NATOS