The San Francisco call., 1899-10-28
SHAREHOLDERS
TRANSFER STOCK
Prospects Bad for Union
Bank Depositors.
Special Dispatch to The Call.

SAOSioi DfofelSh ~ Asic Oci'
SAN JOSE, Oct. 27.-The directors of
the insolvent Union Savings Bank levied
an assessment of $50 per share on the
bank stock this morning. It is made pay
able on Saturday, December 2, 1899, and
becomes delinquent on December g. On
the capital stock Of the bank this should
bring in $500 900, but not over one-half of
the stockholders are solvent, SO the as
sessment cannot be collected from them.
The full directorate was present at this
mornings meeting. President Rea and
Directors Dunlop, Simpson and Caldwell
favored the assessment. Opposing them
were Directors Callisch, Jones and Eaton,
who claimed the assessment was excess
stve and more than was needed to pay
depositors after assets had been realized
upon.
reading a long statement of what he
termed was rottenness on the part OF Di-
rectors Callisch, Jones and Eaton in the
management Of the bank. It was char
acteristic Rea document, IN which me
and pa" figured prominently, and he stat
ed his reason for making it was My
faultless father would never be satisfied
to have mis- son dishonor the name of Rea
| by placing money before duty in the per-
formance Of trust imposed by law"
The statement declared Directors Cal
lisch, Eaton and Jones had tried to block
every movement he had made for the
benefit OF the depositors; that they had
levied and had disposed of their property
and stock In order to escape the $50 as
sessment about to be levied. According
to him they had also conspired to obtain
control Of bank property by having the
bank buy in delinquent stock sold for as
sessment, but the depositors had frus-
trated this.
The trio of accused directors mildly OBJ
Jected to the report being received, but 1t
became a matter OF record. Jones stated
some of Rea's own acts. had not pleased
hN hnl iatra In
man ike him setting himself up as a
censor
A resolution levying the $50 assessment
then carried. Some routine business was
considered, after which the session ad-
journed.
A disclosure has been made that there
is an organized attempt on the part of
the stockholders to evade ali future la
bility and thus defraud depositors out of
thousands of dollars they are rightly en-
titled to. 1t all came about through the
carelessness of the stockholders attor-
ney, whose clerk in a thoughtless moment
this morning left letter behind him on
the floor Of the bank.
In the past few days nearly a score Of
the heaviest stockholders have been as
signing their stock to parties who have
reliable. The SO assessment per share
levied some time ago was paid in each in
stance and the cashier requested to trans
in each case. In the last three days be-
tween $1,000 and $4,000 has been paid in
this manner on the $40 assessment.
shoTy after 4k rTn the bank 9Rensd this
fee. counsel for the stockholders, entered
the institution and paid $4,000 on the $40
assessment charged against c.. H. Hop
kins of San Francisco. A demand was also
made that stock be transferred to D. w.
Sherman. After transacting the busi-
ness the following circular was found on
the floor:
San Jose. Oct rs. 1899.
c. H. Hopkins San Francisco, Cal.-Dear
Of some of the heaviest stockholders in the
Union Savings Bank, and would advise you to
do likewise.
The proposition on foot now is for them to
pay the SO per share assessment that has
been just levied and have the suit against
their stock over to some irresponsible party Of
course the president (neither will the secre-
books of the bank; so we have drawn up and
send you herewith some forms for the seller
and FOR the buyer TO sign, and these must
be served upon the president and the secretary.
On the 27th of this month next Friday, there
will be an assessment OF $50 per share upon
the stock of said bank and It is to try and
avoid suit on this that the transfers are being
made.
So now you must. If you will avail yourself
OF this. find who will take your
stock. Then. indorse the same over to him and
send inclosed papers after first carefully filling
in all blanks in the same. Then return papers
and stock to us, with cents revenue for every
papers returned tomorrow. as meeting takes
place Friday. We will find some one to serve
s. G. ToMPKINs.
There seems TO be no trouble in getting
persons to assume the liability of the
stockholders, even with a $50 assessment
hanging over It, for the following persons
are among those who have recently made
transfers: Cyrus Jones, A. Eaton, F. K.
Ledyard. L. Callisch, Mrs. S. L. Knox
Goodrich, Henry Sears, z. l. Kalfus, L.
Il: Sanderson, I. G.. Knowles, Emily c.
Woolley. Royal Cottle, Sally L Plummer.
A w. Price, B. r. Richards and c. ri
Hopkins. In the list are three directors
If these stockholdeCs can escape paying
the assessment 1t Will be a severe loss to
the depostors and 1t is doubtful If they
will ever get 25 cents on the dollar
Attorney S. G. Tompkins returned this
evening from a two weeks hunting trip
in Lassen County. He pronounced the
Hopkins letter a forgery. He said:
II never sent out any such circular.
never authorized any one to send 1t out
for me and know nothing about it what
ever. How 1t came to be on one Of nv
letterheads is a mystery. You will OBJ
serve that 1T is dated October %. ON
that day was In Lassen County. I shall
make 1T my business to find out who has
been taking such criminal liberty with
my name"
Fresno Man MieSinn