The San Francisco call., 1909-10-24
PRATHER ANDADAMS
ASKED FOR ACCOUNT
Receiver of Union National Bank
Files Suit to Discover Use
of Funds
Defendants Charged With En-
pIoying Money of Others for
Their Personal Profit

Suit in equity was filed Yesterday in
the United states circuit court by II. y.
Morris. receiver Of the Union national
bank of Oakland. and the National bank
association against Thomas Prather.
former president OF the bank. Edison F.
Adams and John Charles Adams. for
meFly directors OF the institution. 70
ascertain the use they made of the
banks money while they were its Off
GERS. The allegations are similar 10
those made a month ago against the
same defendants. charging on informa-
zion and belief. the use OF the bank :
money by Prather and the Adams
brothers for their own accommoda ton
and profit without paving the proper
interest 10 the bank. between January,
1909. and November i. 1906. 1t is fur
ther alleged that when the defendants
reached the limit OF personal trans
actions they used corporations and in
dividuals as their agents to borrow
money for them from the Union
national
LOANS WITHOUT INTEREST
According to the bin. Edison Adams
had withdrawn for himself on January
5. 1908. an aggregate OF s1S4.71S-22.
John Charles Adams had obtained 500
, >
Il is not alleged that these amounts
were not paid back but it is charged
that the bank received no interest on
the amounts and that the Withdrawals
We're illegal and unauthorized.
Prather is charged with overdrafts
and notes on March 4. 1905. amounting
10 S66,Si5-6S. and further withdrawal
Of $4,000 through the medium OF per-
sons and corpora tions acting at his
inst fE4TfDr ar r1n- 5-1rf 2 n
for his own profit John Adams was
given on an overdraft S92 1885 on his
personal note for $4,000, making a
total Of sI02.942-55.
LARGE PROFITS MADE
Under the patronage Of Prather cor
poration known as the California
bridge and construction company Sc
cured from the Golfers OF the bank
June 8. 1904. sI7S.9f3.30. This was ad-
vanced as a loan TO provide the com
pany with funds TO do work in San
SSs-7s2-95 was advanced for the same
purpose Tt is alleged that .Prather
was the first man in the corporation
and that when the work was finished
sieo,oee profit was made The money
borrowed from the bank was returned
without interest, while the spoils were
divided by Prather aAd his associates.
llF Uu4lAAuE IL Aultn lAE RSl1tk Was
located was owned by Mrs Hannah
Adams. mother of Edison and John
Adams At her death her sons. then
officers Of the bank were executors of
her VIII as well as its benedciarfes
Repairs were made on the building
amounting 10 $4,000. This was paid
by the bank under the authorization of
Thomas PratheF as president and the
Adams brothers as directors Other in
stances OF the free use of the banks
money for personal profit are cited.
TIE court is then asked 10 have the
defendants explain their actions while
in control OF the bank
INQUIRY As TO PROFITS
Prather is asked how much he made
from the banks funds and what good
If any. the bank derived from his
financing. The court is requested to
ascertain II the bridge company deiiv-
cred bonds Of the republic Of San Sal
vador- given in payment for work to
the Union national bank of Oakland:
what profits Prather derived from this
deal; what the Adams brothers added
TO their personal profits from the sums
withdrawn: when they withdrew the
money and how il was invested how
did the bank profit, and why were bank
funds used 10 defray the expenses of
repairing the building belonging TO the
Adams estate2
The compliments expect by the time
the answers have been made TO be pre-
pared TO go on with the action against
Prather and the Adams brothers