The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-07-20
SCOOP SHOVEL
FINANCING WAS
SYSTEM ADOPTED
Affairs of Union State and State
Savings Banks Present Diff
cult Task to Straighten
Farmers and Businessmen in
the Interior Among the
LuckIeSs Stock Holders

LuckIess Stock Holders
It would be shown that the misunder-
standing was caused by a clerical error.
Clarence Grange denied yesterday
that he was Hays hacker, as had been
reported. Grange was emphatic in re-
nouncing Hays and all his works and
pomps.
Connection of Grange
In contradiction OF Oranges en-
phatic proteststions. one of the prom
snent officers of the banks said that
Grange was the real owner Of Hays
stock. He said that il had been given
rs security on a note to Grange and
that while the books of the banks
showed it 10 be in the name Of Hays.
in reality it was controlled and held
by Grange. and that in the event of
the stock holders being called upon
10 make good a liability the burden
would fall on Grange and not on Hays.
But all the dealings with the bank
(which Grange would admit was the
$4,000 transaction whereby the West
ern National bank, in which Grange is
not interested. secured the stock OF
the National Bank Of the Pacific. on
which Hays and his coterie had one
4ime held an option. The Hays option,
Il was learned yesterday. was suspend
ed by a very dainty hiament Hays,
c. 7. Hasshagen and T. A. Bechtel put
mp only 81 a share TO protect their in
vestment when they bought the stock
from the California safe deposit and
trust company. There We're 1874 shares
In the deal and the promised price was
SIS a share. The hnanciers could not
meet the difference between 81 and
$50 per share and Grange stepped in
and took the stock. A loan of $4,000
had been made to the Hays crowd by
The Western National, and that stands
on the books Of the company
Unfortunate Stock Holders
IN the minute book yesterday were
stock holders in the State savings and
commercial bank, responsible bust-
nessmen of Sacramento and farmers of
Davis. YolO county, who, as stock hold
ers, win have to bear their part in
meeting the banks obligations TO its
AEDOHlAOENs lMESt SLOCh AOtutiS anu
the amount Of capital stock they sub
scribed and paid up are:
D. A. Lindley.. grocer. Sacramento. 81. 600
J. Z. Clark Sacramento. ........ 400
Read Herbert. Sacramento. -.s.. 500
J.. J. Ellsworth, Davis. ..-....... 1000
W. J. DOUgherty, Davis. ....-.. 500
n Silvia, Davis INSTRUMENTATION. 500
NJ +. Hausler, Davis. ....-- 300
Edward C. Harrison. attorney for
Mrs. Adeline Hasshagen, said last even
ing that he had not decided, nor could
he speak on. what might be done to
recover the $4,000 or more which the
IIasshagen family is reported to have
sunk in Hays financial adventures.
Harrison said that, so far as he knew,
Grange was not behind Hays.
Suit Filed in April
Out Of the fog of finance which sur
rounds the wrecked bank there has
lOomed the memory Of a, suit brought
in April last by the minority stock
holders Of the State savings and COM
mercial bank against c. T. Hasshagen,
#. A Bechtel. W. c. Hays and F. "
Kington. The suit involved the trans
actions by which the control of the
Union state bank was secured, aud
charged the defendants with fraud.
conspiracy and concealment of assets.
The difficulties were settled out Of
court by the powers Of the bank, and
the case never reached trial Previous
10 the bringing Of that action. March
9, John Tiedemann. a local capitalist
brought an action charging that Hass-
hagen and Hays went to his house at
dead OF night to sell him 81 1000 worth
OF stock in the Union state bank
Tiedemann charged that willful fraud
and misrepresentation were used on
that occasion This suit was dismissed
4
But Tiedemann was not content with
one suit. In March. he also filed an
other action against the Union state
bank and the Bank of Elmhurst, charg-
ing unlawful retention OF $1,000 and a
note. This action was likewise dis
missed
The plaintiffs in the action brought
by the minority stock holders in March
were W 5. Miller, owning 929 shares Of
stock in the State savings and CONNER
cial; 9. w. Emmons, $50 shares; E. H
Merrill, 50 shares; J. C. Currier, 325
shares; J. p. Forbes. $50 shares: II. T.
Harper, 50 shares, and c. A Woodruff.
Hays Marital Record
". c. Hays. the ousted cashier of the
oefunct State savings and commercial
and the Union state banks. has had
marital as well as financial troubles
the superior court in an action brought
by his wife, Carrie A. Hays, for di-
vOce. Mrs. Hays testified, and was not
contradicted. that her husband had "a
terrible temper" that he beat her. Sc
verely blacked her eyes and bruised her
about the body.
". X Hays. stepfather, and Mrs. w
X. Hays, mother of the husband. took
the stand in their daughter in laws
behalf and substantiated her story.
Hays did not appear. At that time
Hays was a businessman without a
name as a banker. He was ordered to
pay 500 month alimony TO his wife.
She was awarded the custody of the
two children.
Hays, according to report. has been
married three times. His first wife
was the sister of Carrie Havs. the
woman who divorced the future banker
in 1902 Hays divorced his first wife to
wed her younger sister. Later she di-
vorced him and then Hays married a
Miss Streeter, his present wife