The San Francisco call., 1899-02-11
PLANS OF THE DEPoSIToRS
AUTHORIZE THE ENGAGING OF
. AN ATTORNEY.
Charges of a Serious Nature Pre-
ferred Against the Officials
. of the Defunct
Concern.
Special Dispatch to The Call.

SAN JOSE, Feb. 1O.-The residence Of
II. Ward Wright, ex-president of the
Union Savings Bank, was attached to-
day by Sheriff Langford on writ OBJ
tanned in the Superior Court of Tulare
!: County by John Frueler, who seeks to
recover $4,000 with interest at per cent
= since December "a, 1898, on a promis-
sorry note. Wright is defendant in con-
junction with Antoine Friant and T. E.
Johnston, who also are directors Of the
Union Savings Bank.
This only tends to increase the en-
tanglement surrounding the banks af-
fairs, and depositors are beginning to
realize they must act promptly. 1t was
=. announced that Attorney General Fitz-
gerald would be here to-day and take
g. steps to force the bank into liauida-
: .tion, but he did not come. In this
:: event the present board of directors
:Would manage the bank affairs. AS
!. these same men caused it's ruin. the
: depositors are determined to prevent
!: them doing so if possible.
:: 1t has just leaked out that the Union
Savings Bank officials were accustomed
to making real estate agents pay q
: commission on loans. In one case a
prominent citizen wanted a loan of
= $500 in order TO purchase a piece OF
. property. The bank officials went to a
= real estate dealer through whom the
, purchase was being made and told him
his. customer could get the loan pro-
Nided he (the real estate mani gave
the bank a commission of 500 on. the
. sale. These transactions were frequent
and the sums went into the officials
*private pockets.
=, The depositors of the Union Savings
Bank held another meeting this morn
ing at Turn Verein Hall. There were
NEARLY 500 depositors present. repre-
:senting about $250,0O0 that went over
: the banks counters. The meeting was
Il a stormy one, and for time it looked
as though it would break UP without
accomplishing anything. committee
was finally empowered to employ an
attorney at an expense not to exceed
i" per cent of the amount recovered.
. Persons representing $150.000 in de-
posits signed this agreement.
The creditors of E. B. Howard & Co.
met in Druids' Hall to-day and decided
: to force Howard into insolvency to pro-
tect their claims. About sixty credi-
tors were present, representing claims
aggregating $45, 600. Howard will be
given until Monday to go into volun-
rary insolvency, and in case he does
not he will then be forced to.
One of the latest charges against the
officers of the wrecked bank is one
which seems likely to cause them seri-
Gus trouble. 1t is stated on unques-
tionable authority that when the bids
for the purchase of war bonds to be
issued by the United States Govern
ment were asked for by the Secretary
Of the Treasury there were many peo-
pie In this city and county who de-
sired to invest in the securities, and in
order to do so entrusted their money to
the Union Savings Bank to be so in
vested The bank was made, in effect,
their agent. But il appears that the
trust repOsed in the concern was vio-
lated. In the majority Of instances the
would-be investors are still whistling
for their bonds and where the money is
mo one knows but those who misdf-
rected the destinies Of the bank.
The manner in which the bank Off
cials managed to hold on to the money
placed in their hands for investment is
but a repetition of the peculiar methods
that have been in vogue in that insti-
tuition almost from the day of its incor-
poration. They were always ready with
an explanation when asked why the
bonds did not materialize, to the effect
that there had been delay in the print
ing and signing of the valuable slips
of paper in Washington. This pre-
tense was kept up until the last mo-
.rnent. and although a few Of the would
be purchasers managed by their per-
sistence to obtain an accounting before
the collapse the majority are out of
pOcket with apparently no prospect of
recovering bonds or money. One con-
.hding individual is said to have en-
trusted $4,000 to the bank for the pur-
chase of bonds and received in return
nothing but unfulilled promises Others
were caught for sums varying from
$50 up, but the exact amount which was
emptied into the Golfers Of the bank in
this manner cannot be ascertained at
this time, although it is said to be
large.