The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1908-02-01
MisappropriatiOn and Overdraft
Also Laid at Door of De-
posed Banker
Civil Action Is Brought by One
Group of the Investors
Against Others
Brother of Church Worker Also
Included in Sweeping
Allegations


OAKLAND, Jan. SID. Edward
Collins, church worker, trustee Of
charity funds and deposed president
Of the California bank, with his
brother, John D. Collins, has been
accused of embezzlernent and mis-
appropriation of bank funds, OF over
drawing his personal account and of
lending money to companies of which
he was stock holder without proper
securities, in a suit to recover $780,
5ez filed today by group of East
Oakland depositors and stock holders
of the bank against John w Phillips,
J. B. Richardson, Benjamin Smith and
James P. Taylor. directors of the bank
at the time IT closed its doors.
Collins name was not included
among the direct defendants in the
suit, because he has no property which
could be levied upon in event an action
against him were successful The pro-
ceeding 10 recover the money is purely
a civil suit against persons alleged to
be legally responsible for the maIad-
ministration OF the banks affairs, al
though they may have had no part
in questionable transactions. The
plaintiffs in the action are S S. Aus
tin. J. Y Miller, James Moir, JAMES
Rutherford. Kate Keay and John Orch
ison-
SUE TO RECOVER FUNDS
Austin claimed to have 1851 on de-
posit in the bank. J. Y. Miller is the
owner OF 20 shares Of capital stock.
raiued at $1,000, and 8fcfr.-~ ~4zutFierforti
and the others are owners Of 10 shares /
each. They sued to recover their va
rious investments for themselves. and
also for the balance of the $246.5s2 to
be divided pro rata among the cred
itors OF the concern
The moneys charged as embezzled
and misappropriated were said to have
been used between October /, 1906, and
November % Of last year. Loans ag-
gregating $4,000 were said to have
been made to d. Edward Collins Octo-
Der 1. 1906, without proper security,
and prior to the banks closing its doors
he was said to have overdrawn his
checking account by sI1,IOI on five
dates between January 6. 1907, and Au-
gust Ie of the same year, the COM
plant alleged that the firm Of William
Collins Sons. composed of D. Edward /
Collins and his brother. John p. Col /
lins, borrowed 100000 without proper I
security. The same partnership was
said to have overdrawn its account at
the California bank by s7I.34L The /
firm of william Collins & Sons was the I
owner Of the Ventura bank, and during
the investigation Of the California
banks affairs this loan was said to /
have been directly the cause of the
failure.
SAY COLLINS EMBEZZLED
Collins was said to own 1000 shares, /
valued at $4,000. in the Northwestern /
construction company, and this con-
cern overdrew its account at the Cali I
fornia bank by s7,14s, it was alleged /
Loans. practically without security, |
totaIing $4,000. were made to this /
company June 7, 1907, according to the
complaint. and Collins was charge1
with embezzling this amount It was
said that so shares OF the Ventura
associates and 5000 shares in the Cen
trail brick company, an alleged in
solvent concern, were giyen as security
for the $4,000. That the banking firm
Of william Collins & Sons had long
been insolvent also was set forth in
the complaint.
The plaintiffs asked TO have the court
order a return of the amounts they had
Invested and deposited. and the inter
ests Of such other stock holders as
cared to join were included in a para
graph toward the close. The court was
also petitioned to divide among cred
itors the remainder OF the s264.59e
after satisfying the claims Of the plain
tins in the suit. The document was
prepared by Attorney Lloyd Robbins Of
san Francisco.
James P. Edon, who was recently
appointed receiver OF the bank by Su-
perIor Judge Harris. said today:
STATEMENT
4 know nothing Of this suit. though
may be drawn into it later These
amounts and transactions seem to be
correct so far as 1 can learn at pres
ent. will say, however. that from
the extent Of my Investigations / am
not yet able TO say. that there has been
committed, but ! won't
say that ] am sure I VIII not discover
that there has been embezzlement.
"A peculiar feature OF this suit lies
on Page 2, Bottom Column b