The San Francisco call., 1898-02-12

| ploy legal instruments of an obligatory | character for fraudulent and deceitIul
 purposes, 1t is sound reason, as well as | pure justice, to leave him bound who nas
 bound himself. It will never do for the l courts to hold that the officers of a panh, i by the connivance of a third party, car,
 give to it the semblance of solidity and l security, and, when it's insolvency IS ois- l closed, that the third party can escape | the consequences of his fraudulent act. l Undoubtedly, the transaction in question 1 originated with the officers of the bank, | but to it the defendant became wiling | party. It would require more creuuiIty | than possess to believe that the deIenu- | ant, when his brother, who was the DOOR | keeper of the bank, came to nm Wlth | the proposition of it's vice-presldent, Ill l its every suggestion and essence decep- | tive and fraudulent. did not know us l true character and purpose.
 In discussing the motive that inspired
 the defendant in making the note ln question Judge Ross said it was noth- | ing more than to enable the bank off1- cers ito make a deceptive and there | fore fraudulent showing of assets Judgment in the case was given TOT the plaintiff.
 In order that MT Gibbon might make
 any explanation of the matter that ne
 desired a visit was paid to MT. Glbbon
 at his office.
 'I would like you to give me the his tory of your connection with the affalrs
 of the City Bank" began the correspond
 ent of The Call.
 If you have any interest in connection
 with my connection with the City Bank
 you will probably get an answer to any question you may ask
 II would like to ask you more particu-
 larly with reference to certain agree
 ment made with the two Childresses,
 bearing on a note for $50OO, which l un-
 derstand was turned in as part of the
 capital stock of the City Bank when IL
 was organized.
 You have not given any reason show
 ing that you have a right to make these
 inquiries. l know nothing of any note
 that was turned in as part of the capital stock of the City Bank when 1t was or
 At this point MT Gibbon was handed
 the copy of the agreement referred to
 previously and was asked if he recog-
 nized it. After scanning it he answered:
 Yes, I know this agreement
 You entered into that?
 ''Yes. But l am not going to permit you to interview me on this matter. If you have any intelligent right or reason happy to give you the information you
 That agreement is said to be in effect a fraud upon the stockholders, possibly, and a fraud upon the depositors of that bank.
 If you desire to publish any such statement as that, and upon the authority of any one. who stated 1t to you, you Will find that the authority is not reliable.
 You say that the note referred to in that agreement was was Ttv not made part of the
 II am. mot going to answer that ques- tion until you show me some right to make this inquiry. 1 say know of no note that I had anything to do with that certainly none that l had anything to do with was made part of the capital stock, not to my knowledge, Now, ] think I can simplify this matter. MT. Childress is in San Francisco. He was there the last time we heard of him. He can be reached by your correspondent there, if there is any reason to ask him any question. There are number of gentlemen in town who knew everything there was to know about that transaction. 1 because in one way or another they had ing concealed or to conceal about 1t. Simply as a matter of what is due to | myself I don't propose, unless you can show some intelligent reason for making this inquiry, to answer any question | whatever to you at this time. If you can show me that you have any respecta- ble or sensible reason in the world for | wanting to know about that transaction | or any other with which I am concerned, 1 shall take pleasure in answering you fully public morals; would you answer on that ground?'
 Not unless you show some relation to good public morals"
 Let me aSk you one question Tn re1er- | ence to this agreement. What is the | of the underlined clause winch | reads as follows: With permission to the said parties of the first part to use the | said note for certain purposes, which the said parties Of the first part desire to ac- ?"
 were to make of that note, and, so far | as I know, what use they did make of | that note, was perfectly legitimate, and | 1t can be shown 1t was, so far as I am aware, entirely legitimate and entirely honest. I will end this matter right here. If any person of responsibility or stand Ing desires to make any charge against | me, I shall answer that charge just as any person who has any right to know about that note applies for information it, I shall answer that applica- ton as quickly as l know how. ] shall what you allege has been said in refer ence to it. When these statements are made public by any individual, then 1t will be time for me to say anything in answer. It will be said quickly and very much to the point. I feel that this in- luiry has been suggested by the people attorney for the League for Better City people for whom I have such an infinite contempt that I feel 1t would be personally undignified for me to hat those people might seek to bring up against me, supported by their state nents."
 MT. Gibbon was informed that he was mistaken as to the people who had made the statements to the effect that he secret agreement between him and he Childresses was in effect a fraud this. he still declined 0 make any explanation of the secret agreement and of the mysterious clause contained therein.
 When the City Bank failed, the Gib- oon note for s5000, with a number of other securities, was turned over to George H. Stewart, in trust for the ureties on the bonds of the City Treas lrer and of the County Treasurer. The proceeds of these securities were to be applied to the payment of the special deposits that had been made with the City Bank by the two officials men, toned Three days after the bank went nto the hands of the receiver, A. D. Jhildress made a trust deed to Otto 3rodtbeck of lot in this city, The rust deed provided that the s5000 note hould be paid out of the proceeds of his lot.
 Major Bonebrake, as president of the JOS Angeles National Bank, was inter- 'sted in the payment of the Gibbon lote for s5000. He states that the note las either been fully paid or would