The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1905-04-11
Pacific Coast Savings So
ciety Files an Action to
Recover barge Sum From
Three Prominent Citizens
DEFENDANTS FORMER
MEMBERS OF BOARD
Wendell Easton, c. S. Bene-
dict and Harry Francis Are
Summoned to Court to Ac-
count for Fortune Loaned

Scandal has again risen from the
ruins of the Pacific Coast Savings So
ciety. A suit was filed yesterday by the
savings society in which 1t is alleged
that Wendell Easton, c. S. Benedict
and Harry Francis. former members
Of the board, took from the Golfers of
the wrecked financial institution the
sum OF 5000, 600 through the operation of
a shrewd conspiracy. The allegations
are of a nature that means the rekind-
ling of the battle signals and the re-
alignment Of the forces that met in
years past to war for the assets scat
tered by the crash. The suit was filed
by Attorneys Barclay Henley and H,
K. Ascher, with T. c. Van Ness and
Samuel Rosenheim. a director of the
defunct institution since the reorgani-
Zation, as counsel.
ROSENHEIMS STATEMENT
The action is one involving many
remarkable features said Mr.. Rosen-
helm last night, and If our allegations
are sustained throughout-and we
based them on what we believe to be
substantial proof-we will recover a
sum that will go a long way toward
liquidating the claims of stockholders
and depositors who lost their savings
when the institution foundered. It has
only been after years of struggle and
investigation that conditions that have
now come TO light were developed. It
is our contention that the stockholders
and depositors of the bank We're de-
frauded out of the large sum we de-
mand-$200, 000-by a carefully planned
conspiracy
the NnTnT1l2fnf If &c aIlaOad hot
Wendell Easton dominated in the con-
spiracy and gained the balance of pow
er in the board, through the willing CO.
operation Of Benedict and Francis. It
is further stated in the complaint that
Wendell Easton used clerks in his en-
ploy as dummies" by means of which
large sums of money were drawn from
the bank upon insufficient security.
Clerks in the employ of Mr.. Easton,
it is alleged, were given control of
pieces Of property upon which they
sought loans from the now defunct in
stitution. the loans asked being far in
excess Of the value of the property,
frequently many times in excess of the
value. AS Easton, Benedict and Fran
els held the balance OF power these ap-
plications for loans, accompanied by
false appraisemsnts, would be favor
ably passed upon, it is claimed, and
the loans made. But. it is alleged,
these loans never reached the pockets
OF the dummy" borrowers, but were
retained by the conspirators
MORE SERIOUS CHARGES.
1t is further charged in the complaint
that the defendants loaned various
sums Of money contrary TO law upon
personally, stocks and bonds of doubt
full value, and that subsequently
these securities were again hypothecat-
ed upon a false basis of valuation. 1t
is also set forth that evidence has been
found that money was loaned upon the
stocks Of several companies, including
the Gold Standard Mining and Milling
Company and the Santa Fe Springs
Land Company, in two of which COM
panies at least Benedict held a con-
trolling interest. Another allegation is
to the effect that sums of money were
loaned at different times to the dunn
mics" employed in the conspiracy upon
promissory notes without security of
any kind.
The complaint in itself makes a large
volume and each Of it's allegations, il
is stated, have been made only after
the most careful examination of the
books. Before the suit is ended an
other chapter, il seems now, will have
been written in the story of the Pa
cific Coast Savings Society not less in
teresting than the many that are now
within the public mind.
The suit was filed late yesterday aft
ernoon and will be assigned for hearing
this morning.