The San Francisco call., 1898-11-22

The eonspirators who ruined the Pa cific Bank and the Peoples Home Saw ings Bank and their confidential ad- visors who assisted them in the de- struction of the institutions were good and prolific letter writers. In its ex- pose of the wrecking of the banks The Call has produced many sensational letters, but 1t will discuss this morn ing an epistle perhaps more sensa- tionaI than the others. The Call has shown over the signature of Dr. R ii. Mcdonald and in the handwriting or his sons that the Mcdonald family, while they controlled the Mcdonald banks, were thieves. Moses H. Sher- man has proved to the people of this city over his own signature that he IS g. corrupter of public officials, briber of City Councils and the debaser of Bank Commissioners.
 The Call has also in it's possession letter in which Moses H. Sherman Is accused of having paid four thousand dollars to J. Aiva Watt of this city for the appointment of John Sheehan as the receiver of the Peoples Home Saw ings Bank. The letter in which this
  tfcularizes every detail of the alleged transaction even to the time and place when 1t is charged the money was paid. The history of the events which led up to this alleged crooked deal between the Los Angeles manipulator and the attorney are of grave moment. Sher- man has already shown himself not only of being capable of such a trans fn sertion and boasts, of having been party to similar deals.
 There Is absolute proof that when the Peoples Home Savings Bank failed Moses H. Sherman was deeply involved financially in the bank. Mixed in the affairs of the institution were very valuable interests of his own. During his manipulation of the Pacific Bank and the Peoples Home Savings Bank he had given some valuable properties as security for heavy loans made to him. He had placed upon the bonds of his worthless Phoenix investments his own indorsement which made him per- sonally responsible for the repayment of the money he had obtained. This meant to MT. Sherman an aggregate loss of a sum of money of at least S200.-
 
 he possessed to control the liquidation of the Peoples Home Savings Bank.
 There Is absolutely no question that Sherman determined to dictate every incident in the final close of these banks. He had been the principal fac tor in running both banks, and he was so deeply interested financially that he intended to lose no trick in winding up inI hn TO do this he had to control the At torney General, the Bank Commission CTS. the receiver and the board of di- rectors of the defunct institutions. His one great purpose was to null1fy the effect of every good security ne hao given and to release himself from the heavy financial obligations under Whlch he had placed himself to the Peoples Home Savings Bank during the years that he had induced the manager and directors oe the bank to loan him such tremendous sums of money.
 After the Peoples Home SaVlngs Bank failed Sherman found that IL was not as easy as he expected 10 control the action of the directors. He mas al ready shown in one of his letters, Wrlt- ten as late as January lO, lS94, that ne was very far from the accomplishment of his dishonest purpose. His frantic letter in which he declared his fear that he could not control the directors of the Peoples Bank has already been nublished. His dread that the Grand Jury would indict him and that the di- rectors of the Peoples Bank would compel him to pay his just obligations drove him practically crazy.
 No better evidence than his own let ter is needed to prove that at that time, only three months before the appoint ment of a receiver, he was still schem- ing in desperation to protect himself from the consequences of his own con- spiracy. The Peoples Home Savings Bank had passed through series of exciting events since the failure of the institution. There was still some hope that the bank might be reopened upon an honest, sound financial basis. Con- ference after conference was held and the Attorney General and the Bank Commissioners determined to make more thorough investigation than had already been instituted. There were many reasons for this action. In the first place the J-ttorney General was still favorably disposed toward the Mo- Donalds, who still had some hope of retaining control of the bapk sher-