The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-11-26

be in San Francisco by May %, unless
necessity requires me there before;
| II you get anything that 1t would De
well for me to know, please ADVISE me
freely. Yours truly, ~,
321 Clark Street, Chicago, H.
| Care Manning.
Hart continued his relations with the
McDonalds long after both banks had
| failed. He had drawn tremendous
sum of money out of the Pacific Bank
| and was seeking to obtain sum from
the Peoples Home Savings Bank. The
Call has already shown that the con-
spirators who destroyed the banks
were split UP in contending factions
| after the failure. While little cliqueS
were fighting against each other. all
combined Of necessity against the Nc
| Donalds, who were looked upon as a
common enemy. Sherman ultimately
won the victory, but early in 1894, as
already published in The Call, he was
very far from a triumph, as far as the
Peoples Home Savings Bank was
concerned. In January of that year he
wrote his hysterical letter in which ne
explained his fears of a Grand jury IN
dictment and the confiscation of the
property which rightfuly belonged to
the Peoples Bank. In that very month
Attorney General Hart also wrote
very important letter. 1t will be re-
membered that every possible effort
was being made at that time to re-
habilitate the Peoples Bank and re-
open it's doors. Among the worst pos
sible securities then in the possession or
the bank were the bonds of the Phoenix
Railroad Company that Sherman had
f1oated and then fOiSted on the Oank
through the corrupt assistance or John
E. Farnum There were 166 Of these
bonds in the bank, representing Sl66,00O
that John E. Farnum had accepted as
security for a loan of $4,000. The
bonds without the personal guarantee
of Sherman, were practically worthless.
The entire road that had given Sher-
man an opportunity to float these Sc
curitieS did not cost $50, 000
Hart, however. wrote the following
letter in which he valued the Phoenix
Railroad bonds at par:
State of California, Attorney Cen
erals Office.
SAN FRANCISCO. Jan. "a, 1894.
d. s. Dorm Esq:mD,ear sir a,o.+ 4 thet
Peoples Home Savings Bank is SOL
vent and that in coming TO this con-
from all Arizona sureties other than
Phoenix City Railway bonds. which
value at par. If you, can exchange
do so and / will include new sureties
in my report. which will help your
showing. Yours truly,
Attorney General.
The foregoing letter shows conclu-
sively that Hart was not only willing to
accept poor securities at their par value
but was ready to assist in making the
dishonest showing of the Peoples Bank
as good as possible. Hart continued his
manipulation in the affairs of the Peo-
pies Bank until the end. After
the collapse came however, he could
not operate with impunity as the public
already knew of his official der alic-
lions. The Call proves this morning in
Harris own handwriting what before
the public only suspected, that the At
torney General of this State was crini-
nally in collision with the conspirators
of the Pacific Bank. Tomorrow morn
ing The Call will take up the secret cor
respondence of another of the great
bank wreckers and show by his own
authority to what extent he helped to
ruin the institutions.