The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-11-12

The Call presents this morning crit
icism of the Los Angeles Electric road
deal in which the Pacific Bank and the
Peoples Home Savings Bank became
involved through the agency of Moses
H. Sherman This criticism is as
thorough and scathing as was that of
j. H Woodland, which was published
yesterday morning in The Call. The
critic whose expert opinion is pub
lished this morning was George M.
Mitchell, a confidential adviser Of the
McDonalds and a trusted employe OF
the Pacific Bank. After the McDon-
aids had been inveigled into the Los
Angeles Electric deal, Dick Mcdonald
sought to fortify himself in his posi-
ton or to discover some means through
which he could retire without loss from
the speculation. He delegated j. H.
Woodland and George NJ. Mitchell to
make the necessary investigations
Woodland was more thoroughly in
formed than Mitchell, but the latter
rendered a report that was extremely
valuable, particularly. in the light Of
subsequent events.
He showed in the first place, that
Sherman resisted every effort of ine
quiry and objected particularly to any
investigation that would reveal the con-
dition of his books. Mitchell discov-
cred at that time that the Los Angeles
manipulation was in collision with A.
F. Johns and closely allied with him
in every affair that might prove of mu-
tual advantage. When Mitchell sought
to obtain any information in reference
to the books he was quietly informed
by Sherman that A. F. Johns had al
ready obtained every fact that could
possibly be of any benefit to the Pa
cif1c Bank and its manager. When the
investigator found that it was out Of
the question for him to expect any CO.
operation on the part of Sherman he in
stituted an independent inquiry and
submitted his report to r. H. McDon-
aid Jr
This report should have led the de-
luded banker out of the speculation
Its only material result Was to cost
Mitchell his position with Mcdonald.
The young man earned for his labors
the i'll will of the McDonaldS and the
hatred of Sherman. He had the satis>
faction, however, of contributing to the
secret history of the Pacific Bank one
of it's most interesting chapters. He
sketched three pen pictures and gave
to the public a most interesting char
acter study of Moses H Sherman, ].
F. Crank and J. H. Woodland. This
criticism of Mitchell is of great value
to a thorough understanding of the
great Los Angeles Electric road deal
that led the Mcdonald banking insti-
tutions to destruction. While engaged
in his inquiry George NJ. Mitchell met
Charles Dunsmore, who was then a
member of the banking commission.
Mr.. Dunsmore was a close friend OF
M. H. Sherman. Through the agency
of Mr.. Sherman a brother-fn-law OF
Mr. Dunsmore was placed in the Los
Angeles bank.
The report of Mr.. Mitchell on the
attitude of Mr.. Dunsmore might there
fore have been expected. Mr.. Mitchell
reported to his employer that Duns-
more, who is now secretary of the bank
commission. was very fayorably dis
posed toward the McDonalds and was
very much pleased to know that they
had taken the awful burden of the
Riverside bank upon their backs. Dur
ing his investigation in the southern
part of the State Mr.. Mitchell also met
Colonel ]. H Woodland, whose name in
variably had a paralyZing effect on
Sherman. Woodard had already re,
ceiVed $1,000 from the Los Angeles Elec-
trio Road Company and was a that
time engaged in bounding Sherman foI
$1400 more. MitChelPs letters contrib
ute a very valuable element to the his
tory of the banks.
SHERMAN BALKED AT ANY INVEST.
lGATION OF HIS AFFAIRS.
George NJ Mitchell was as unsparing
in his criticism of Sherman as was
Colonel Woodland. Mitchell was an en-
ploye of the Pacific Bank, and in tbs
middle of 1892 was sent by r. Fl. Nc
Donald Jr. to the southern part of the
State to investigate the affairs of the
Riverside Bank and of the Los Angeles
Electric Railroad, At the very time
Mitchell was making his investigation
Woodland was compiling his sensational
report on the Los Angeles road, Thi.
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