The San Francisco call., 1909-11-20
RESENTS SKETCH
OF HIMSELF BY
BANK'SCOUNSEL
Rudolph SpreckeIs Loses Tenn
per in Court and Takes Case
From Attorneys Hands
Angered by Picture Of HypOthe-
ticaI Loan in Which His Own
Name Is Used

Rudolph Spreckels. flushing angrily
when he was casually mentioned yes
terdsv morning during argument in
Judge Murasky's court. forgot his self
restraint took the conduct of affairs
suddenly out OF the hands of his at
torney and retorted bitterly to the op-
posing lawyer who had made use OF
his name in pointing an argument.
The matters under discussion were
the demurrer and motion to strike out
portions of the complaint in the suit
brought by Rudolph and Gus Spreckels
in an attempt to have the Union trust
company removed as trustee of the
S250O. 600 bond issue of the Oceanic
steamship company.
Rudolph Spreckels. seated close be-
side his attorney, Matt 1. Sullivan, list
ened serenely and approvingly to the
latter's attacks upon his brother. John
D. Spreckels, who was accused of serv-
ing two masters and being q party TO
a conspiracy to defraud, but his atti-
tpde changed instantly when his own
name was mentioned.
Sullivan had just made the charge
that John D. Spreckels was serving ad.
connection with the J. d. Spreckels &
Bros. Co. the Oceanic steamship COM
pany and the Union trust company.
one can not faithfully serve two
masters whose interests are adverse.
declared sullivan, and here are three
masters. The president Of a company
las no right to deal in the liabilities
of that company to his own profit. and
here we find notes executed by John D.
Spreckels. as president OF the Oceanic
steamship company. 10 the J. d. Spreck-
els & Bros. co. Such notes are void"
An UNWELCoME SKETCH
Sidney NJ. Ehrman. representing the
Union trust company. was quick to
challenge Sullivan's logic. He started
TO sketch a case in which Rudolph
Spreckels. as president of the First ma
tional bank or the First federal trust
company. might make q loan to another
company in which he was interested.
The directness of the shot was instant
y apparent. sullivan mildly objected
that Ehrman was going out of the
record, but Rudolph Spreckels was not
content TO leave the rejoinder to him.
He whirled toward Ehrman and inter
rupted the latter.
you are making statements Of fact
which are not the truth, he asserted
with a show Of heat.
I'm merely pointing an argument"
answered Ehrmsn. smiling at the in
terjection, and then he turned to the
court and continued: But suppose we
use another name If Mr.. Spreckels OBJ
5ects 20 his. Suppose we say Mr.. He'll
man"
I'm willing to assume that Mr.. He'll
man would do this. but not Mr.. Rudolph
spreckels." responded Sullivan. while
his client subsided.
10 ., 40, Il
motion 10 strike out parts OF the com
plants were concluded and submitted
for decision. Sullivan. arguing for the
plaintiffs, occupied the floor during
most OF the morning. but the discus
sion Of points at issue was general
rather than formal. and both Ehrman
and W. l. Brobeck, attorney for the
Oceanic steamship company, took ac-
tive parts in the argument.
Sullivan struggled to show that the
complaint contained allegations suffl-
cient to establish cause of action, but
he was met at every turn by the de-
msnds OF the attorneys for the various
defendants that he point out a single
allegation of any acts committed by
the trustee or any other defendant
which were not in strict conformity
with the powers legally conferred by
the trust deed.
CHALLENGES SHOWING
Ehrman declared that there was not
an allegation Of fact in the entire COM
plant and defied Sullivan to show a
single specification of acts performed
that would even tend to substantiate
the allegations of conspiracy. More
over. he affirmed that while the charges
were insufficient even in themselves
they fell absolutely before the provi-
sion Of the trust deed which the plain
tins were attempting to smother in
order to prevent the court from actually
knowing what rights. powers and
duties were vested in the trustee
The essence Of Sullivan's argument
was based on the contention that John
-. Spreckels, as president o. the J. D.
Spreckels & Bros. company. was an
fagonistic TO the interests OF the
Oceanic steamship company. of which
he is also president and director and
that further complications resulted
from the fact that he is also a director
OF the Union trust company.
Sullivan could not deny the right eX-
listing under the trust agreement for
the majority Of bond holders TO waive
the payment Of interest by the Oceanic
steamship company on its bonds. but
insisted that if such waivers continued
the value OF the bonds would be forced
down far below their actual worth. so
that no one would invest in them. That
he declared, was the purpose of the
alleged conspiracy, amounting to a spe-
cihc charge Of fraud. the intention Of
the defendants being TO depreciate the
value of the bonds and then acquire
them at nominal prices.
The bonds held by the minority are
now worth about $1,000. 900. but il
these waivers continue for two or three
years they won't be worth 500, ,O0O."
declared Sullivan.
And yet you allege in your COM