The San Francisco call., 1908-10-21
'DARG|E MAY FIGURE
IN BANK SCANDAL
Evidence in Suit Promises to
Reveal Relations With
''0iIy Bill

Conjectures as to the initial scope of
the suit filed in the United States cir
cult court by Attorney Charles 5.
Wheeler in behalf of Mary j. Huff,
Theresa Calvert and T.. ID. Block, COM
plainants, against Thomas Prather, Ed
son T. Adams and John Charles Adams,
and the Union national bank of Oak
land, defendants, were cleared yester-
day when the papers in the action were
put on public record. In the suit it is
asked that the defendants be brought
into court to explain certain deals made
by the three ex-officials of the bank
who are named. The complainants in
the action are minor stockholders in
the bank. Of the defendants Thomas
Prather was president of the defendant
bank and Edison f. Adams and John
Charles Adams, brothers, and also
brothers in law of Prather, were di-
rectors. After the Pfather- Adams
regime at the bank the property passed
into the hands of j. Dalzell Brown and
Walter j. Bartnett, whose peculiar
financial methods nearly w4ecked 1t.
DARGIE'S NOTE FOUND
When Prather and his associates are
on the stand in the federal court ex-
planning their banking methods it is
possible that the mysterious relations
between William E.. Dargie. publisher
of the Oakland Tribune. the trans
bay organ of the local grafters, and
Thomas Prather will be exposed. Dargie
is known to have had two queer ex-
periences with Prather and the Union
national bank of Oakland. When the
reha abilitaters OF the bank were
sraightening out its affairs after the
Brown Bartnett confusion Dargie's
note for $500 was found among the
questionable assets Of the bank. The
note was unsecured. When George
Reeth, one of the directors at the time,
was asked about the paper he made an
evasive answer. Dargie did not make
an evasive answer---he simply declared
that he would evade payment. He de-
clared that the note was in connection
with business matter between him
self and Pratl1er and that Prather
would have to meet the obligation.
SUES FOR THE "JOB.
Later Dargie and Prather had more
trouble. Dargie began a suit against
Prather In the superior court of Ala
media county on April 20, 1908, to re-
cover 25 $1,000 bonds of the Merced
river electric company, or $4,000 in
cash. That sum was alleged by Dar-
gle to be due him in part payment for
a $4,000 job he turned in Washing
ton In behalf of the Yosemite Valley
railroad. Part payment was $4,000
with VI 1Oscnllte talIey railroad
bonds. Eight days later the Dargie-
Prather suit was withdrawn by the
editor. Now the scandal that smol-
dered at that time may burst into flame
There are 2S interrogations which At
torney Wheeler, on behalf OF his cli-
ents, would put to Prather Edison f.
Adams and John Charles Adams. Those
questions concern directly the manage
ment of the bank and are provoked by
allegations made in the complaint
BIG SUMS BORROWED
1t IS charged that Prather and the
two Adams brothers controlled the af-
fairs OF the bank and used much of the
proceeds to their own profit in the pe-
r1od between January 6, 1900, and No
vember IL, 1906. At one time, 1t is al
leged, the three had borrowed the ag-
gregate of $2S0,720.82 from the bank.
1t is alleged that $163,943.30 was loaned
TO the California bridge and construc-
ton company. corporation. without
credit This loan was paid by $3.50 900
worth OF bonds issued by the republic
OF san Salvador. Prather is said to
have shared in the excess of bonds over
the loan. Warren B. English is named
IN the suit as having acted as a dummy
70 secure from the bank a loan of S44,-
coo wanted by the Burrel construction
company. This loan was not repaid.
1T is declared, and the loss is blamed to