The record-union., 1899-02-03
Owes tho Bankrupt Concern Fully Three
Hundred Thousand Dollars.
Allowed to Continually Overdraw
His Account, Without Giving
Any Securities-Will Require
an Assessment of at Least
Thirty Dollars a Share ON the
Banks Stock to Pay Depositors.

SAN JOSE, Feb. 2-Another assign
ment of mortgage by the Union Savings
Bank went on record this morning. 1t
is for $4,000. and is to Wells, Fargo
& Co.'s Bank of San Francisco. The
mortgage was executed by Thomas N.
Fisher and Ann Fisher, January Is.
1898, to the Union Savings Bank, and
assigned to Wells, Fargo & Co.'S Bank,
January %, 1885,
The mortgages which have been as
signed by the bank as now appearing
amount to considerably more than
100000. 1t is said, just how correctly
cannot now be verified, that all these
mortgages were included in the assets
of the bank when the statement was
furnished the Commissioners on Janu-
airy 1st last.
The matter of the Splitter mortgage
has not been explained as yet The
records in the County Recorders office
show that the mortgage was satisfied
and discharged last November, yet the
assigned mortgage is among those re-
corded this week.
One does not hear so much talk of
criminal proceedings to-day as yester-
day, but there is a feeling of great
dissatisfaction toward the management,
which is characterized as having been
reckless, if not actually criminal.
No statement of assets and liabilities
of the institution has been printed here
for a long while The day of the fall
ure none could be had from the bank
people, and when one was obtained it
came from the San Francisco head
quarters of the Bank Commissioners.
Henry Edwards name has been ap-
pearing in local papers in the card OF
the bank as Vice President of the in
stitution. He is a man of means, and
his friends are authority for the state
ment that he went out of the bank
months ago, and had some time since
warned the management not to use his
name The continued publication may
have been by oversight.
Stories come from sources which are
deemed perfectly reliable, which, If true.
show that the bank gave enormous
rates of discount to customers to in
duce them to take up their paper which
had not matured.
But the most startling development
so far to-day is the official statement
from the bank sources that E. B. How
ard, the fruit dealer, owes the bank
fully $500, 600 or more, and that prac-
tically the bank has no security. 1t is
charged that when Howard became a
customer he deposited security for
$40, 600. and was one of the best Gus
toners the bank had But he got to
overdrawing his account. He ran along
until he owed the bank $4,000. Strong
efforts were made to have him settle.
The bank refused him more money.
After much parley, 50 the bank
charges, he agreed to raise the money
and pay off the debt, if permitted to
withdraw the securities deposited there.
He was eventually permitted to do so,
but never paid or brought any securf-
ties. The banks attorney was put
after him. Howard did nothing. The
directors became aware of the situa.
ton. and continued and renewed efforts
were made to collect. Howard, how
ever, developed mast er of the situation.
He announced that If the bank pressed
him he would file a petition in insol-
vency. He continued to draw until the
100000 or more is due and practically
unsecured
Howard states that he has suffered
more at the hands of the bank than
the bank has by him. But he is shut
mouth on the whole proposition, and
refers all to his attorneys. His attor-
neys stated to an Associated Press re-
porter at noon that they, had no idea
yet of his assets and liabilities, and
were making no guesses They said
that so soon as it is ready an assign
ment will be made by Howard. Last
week Howard sent a lot of fruit out
by freight.
The Commissioners are in charge OF
the bank. but so far have no statement
to give out
1t is now conceded that if every
shareholder pays it will take $50
share or more to pay depositors.