The San Francisco Call. Newspaper, October 17, 1895, Page 14

14 THE SAN FRANCISCO CALL, THURSDAY, OCTOBER 17, 1895 ASKS THER REMOVAL A, J. CLuniE's CHARGES AGAINST THE BANK CoM- MISSIONERS, SENT TO THE GOVERNOR. THE BOARD'S NEGLIGENCE TO BE PROVED BY ITS OWN RECORDS. DECEIVED THE DEPOSITORS. s CLAIMED THEY DID IN OF THE BANK'S A. J. Clunie, as attorney for the deposi- s of the Merced Bank, has sent to Gov- or Budd a statement of the facts upon h he asks for the removal of the three Bank Commissioners, Kilburn, Magee and Fuller, for failure to report the insolvency of t bank to the Attorney-General. Mr. Clunie opens his statement by say- ing that he had several days ago placed before the Governor & complaint against the Bank Commissioners and demanded their removal under the section of the bank act which provides that if any Com- missioner shull have knowledge of the ir or unsafe condition of any bank lect to report the same to the General he shall, on conviction, hed by a fine or imprisonment or both, and his office be declared vacant by the Governor. As to the source of his information he “The greater part of the matter here sented is taken from the files and records of the Bank Commissioners, and, as against them, must constitute the high- est degree of evidence.’ Mr. Clunie goes on to say that the bank failed October 16, 1894, when it telegraphed issioners in San Francisco simply 1 suspended business. the same day Commissioner Kilburn, San Francisco, telegrahed to en Los Angeles, that the nded. and that he would [ who was in J. B. Fuller, t bank had susp attend, and wrote on the same day a letter to Mr. Fuller in which he said that he had sent Mr. Dunsmoor, the secretary of the board, to Merced. 3 Mr. Clunie then continues: Following the last letter Mr. Dunsmoor, the Commissioners’ secretary, went to Merced, and while there, and with his kuowledxe and con- sentand that of the Board of Bank Commis- sioners, the board of directors of the bank passed & resolution putting the bank into what they and the Bank Commissioners have been pleased to call voluntary liguidation. While there Mr. Dunsmoor forwarded to the office of the Bank Commissioners at San Francisco, directed to Mr. Kilburn, the following state: ment of the bank’s condition as taken from its books. The statement referred to by Mr. Clunie gave the f the value of the bank’s as- sets as $230,873 03, and liabilities the same. Mr. Clunie goes on to say that accompany- ing the report was a letter from Dunsmoor to Kilburn informing him that he was proceeding to verify it. But no verifica- tion of the report is shown on the records of the Bank Commissioners, and shortly after the failure, with the knowl- edge of the Commissioners, negotiations were opened on the bank’s part with an- other bank of Merced to afford some relief, and in this negotiation an appraise- ment of th ts, made by Milton Huff- man and E. T. Dixon, fixed them at 50 per cent of their face value, provided they were realized upon at once, and this fact was reported to the Commissioners. It isthen recited that on the 3d of No- vember, 1894, a letter was received by the Commissioners from J. W. Howell, cashier of the Merced Bank, containing the fol- lowing language: A part of the depositors of this bank held a meeting and appointed a delegate to make an examination into the condition of the bank, and we think from our knowledge of the prin’ cipal agitators that the idea is born of idle curiosity more than of an honest endeavor to give information concerning their interests. The condition of the bank, its assets and liabil- ities are familiar to you, and it is hardly neces- sary to state that it would be of no benefit to any one interested to have that knowledge common property of this vicinity: it would to those who did not know intimately the situa- tion create anxiety and apprehension, where there is now & large measure of confidence, thers weuld be distrust, and our labors in liguidation consequently increased. In making collections and to prevent defeat of our move- ments against persons owing the bank, we deem it highly important that every one in the community bé kept in the dark We write this matter to procure your views upon the rights of these depositors, as well as the propriety and advisability of making such disclosures. A letter from you,to be shown to these un- easy creditors, will allay their anxiety and re- move a cause of much annoyance. Mr. Clunie continues: In answer to the above cry of distresson the part of this bank, and in’ response to the re- quest therein made for a_decoy letter, over the signature o1 _sworn officers of the State, to lull 2nd deceive depositors, whose rights they were sworn to conserve and. protect, the Bsnk Com- missioners forwarded the following as of the date of November 8, 1894, The letter which 1s quoted says that the Commissioners believe that the bank will with judicious management pay the de- positors in full, and with it was inclosed a report on the condition of the bank dated October 15, 1894, Mr. Clunie goes on to say: The statement in the letter referred to was the one previously forwarded to the Commis- sloners by Dunsmoor and hereinbefore in- serted and showed assets valued at $230,873 03, sgainst linbilities to the same amount. The letter of the Bank Commissioners shown to the ?e]{osiwr: seems to have had the desired ef- ect. Mr. Clunie then says that no important movements are recorded by the Commis- sioners until April 5, 1895, when Commis- sioners Fuller ane Magee reported the bank’s assets as valued at $202,738, and liabilities the same amount, and sent this report with a note of transmission simply l\ray to the Attorney-General, and, dated 27,isa letter among the records of the commission signed by a committee of de- positors of the Merced Bank, which states that they were appointed to ascertain if there could be a receiver appointed. The letter which is quoted recites that they find that the bank is insolvent, with a lia- bility of $253,000, and but $81,000 of good assets: that since closing there has been a trading of accounts with a few favored per- sons that has been unfair and unjust to the other depositors, and that during the following six months would be the best time to settle the affairs of the bank. The letter concludes by asking that a receiver appointed, because the management of the bank was very unsatisfactory. A re- port accompanies the letter. Mr. Clunie continues: The report, in the above letter referred to, is that of Mr. R. Graicy, and will be here inserted in full. It is but fair to the Bank Commis- siobers to say that the same does not bear the file mark of their office until September 12, 1895. How much soouer they may have ac- tually seen it is & matter of surmise, but cer- tainly knowledge of it was conveyed to them by the foregoing letter as early as May 27. ‘Mr. Graicy’s report states that the cashier reported April 22, 1895, that the assets were $202,209 60 and the liabilities the same; that he (Mr. Graicy) after care- ful examination finds that the value of the assets is but $81,802 50 and_the liabili- ties $205,779 10; that the habilities, less the capital stock, is $157,779 10. Mr. Clunie then quotes the answer of the Commissioners in which they state that upder the act creating the board the Merced Bank cannot be put in the hands of a receiver, and that the Supreme Court has so deciaed in two cases recently, and goes on to say: The action of the board in sending this letter shows either a willful and deliberate attempt to mislead the depositors or such a desire on their part to shirk the duties of their oflice as amounts almost to criminal ne gligence. Mr. Clunie adds that amendments to the bank act were passed by the Legislature and approved by the Governor May 25, 1895, giving the Commissioners full power in the matter, and continues: It will thus be seen that at the date of the Commissioners’ letter to the creditors, to wit, March 28, 1895, the new act had been in effect two days, and that under it the commission had full power to afford the relief desired by taking the control of said bank from its direc- tors and throwing the same into liquidation, where it properly belonged. Mr. Clunie goes on to show that the Commissioners knew of these powers as is shown by a circular letter sent out by them April 9, 1895, and continues: Notwithstanding the amendment of this act greatly increasing the powers of the commis- sion as above stated by them, and under which they assumed such great responsibilities, ab- solutely no step was taken by the commistion for the relief of the depositors of Merced Bank | until about the 12th of September, 1895. * * * About the 1stof September, 1895, the credi- tors of the bank again awoke and this time determined to employ counsel to protect their interests and secure their rights. As a result of this a call was made upon the Bank Com- mission and a demand made that they proceed to afford some Telief to the depositors of the bank. On this demand two of the Commis- sioners, Magee and Kilburn, went to Merced and were there waited upon by the the bank and their representative the bank for a consideration of its affair this time an offer was made to prove the continuous insolyency and unsafe condition of the bank for years, and the fraud and negli- ce of its directors in_its management; but this attempt was shut off by a statement of the Commissioners that without any proof other than their own examination and the state- ments of the bank officials, they found the bank to be wholly insolvent and unsafe. Ther, then, instend oi taking the mction contem- plated by law, and reporting the condition of the bank to the Attorney-General, proceeded to arrange a compromise between the directors of the bank and its creditors with a view to re- organize its board of directors, giving three directors to the creditors and permitting three of the then directors, and the president of the bank, to retain their positions as such, and cousidering this arranged they left Merced and 100k no other steps whatever, and made no re- port of the condition of the bank as found by them to the Attorney-General. Subsequently, about the Dr. W. credito h of September, N. Sherman, a representative of the , and the un signed, as one of their <, called upon the Commissioners, met ilburn and Fuller and then and | lemanded of them that they report the seneral, and that proceedings as required by the bank act be taken against it. This they absolutely refused to do, but finally appointed Mr. Hastings, their agent, to go over the books and securities of the bank and Teport its condition to them ata meeting of the ission, to be hLeld at Merced, on October 5. This was all the concession that the | creditors were able to secure, and this was not granted without a great deal of demurring. The report of Mr. Hastings is quoted, showing that he found assets with a book | $151,736 17 and an estimated value | 9 95, and liabilities amounting to $134,032 01. Mr. Clunie continues: A meeting of the commission was held at Merced October 7, 1895, at which possession of | the bank was taken by the commission and | subsequently the insoivency and unsafe con- | dition of the bank reported for the first time to the Attorney. ral. At the time of this | meeting it was known to_the commission that | chArges against them had been mnde to you as Governor and were then under consideration by you. These are but a few of the facts showing the | actions of this commission in tbe matter. In- | numerable others could be cited to you, but no | doubt you have already become familiarized with the same in connection with your inves- | tigation of the matter. From what we have here shown we say that it conclusive pears that the members of the commission must have had knowledge of the insolvency and unsafe condition of the Merced Bank at that on said date it was their duty to have re- | ported such facts to the Attorne not having done so_they had selves amenable to the penalties of section 6 of the bank act. The Attorney-General has stated positively to me, and who will repeat it to vou, that up | 10 & few days prior to the 7th of October, 1895, | he had no information whatever of the insol- | vency or unsafe condition of the bank, and at that time the only report made to him wasa verbal statement of Mr. Kilburn. And that | the firse report in writing he had from the Commissioners of such facts was made from Merced on October 7, 1895. Mr. Clunie then goes into the law on the subject to show the liability of the Com- | missioners and the power of the Governor in the case to declare their offices vacant. DEUPREY IMPROVING. Friends Fear He Will Not Again Appear for Durrant—Confidence Workers and Shadowers. The condition of Attorney Eugene Deu- | prey was still more improved yesterday, | although it cannot be said he is making | | | | rapid progress toward recovery. General Dickinson has decided to pro- ceed with the trial Monday without the aid of Mr. Deuprey, if he remains indis- | posed at that time. | Durrant was considerably worked up | last evening when a report reached him | that confidence workers had been attempt- : ing to mulet the dents of the West End by soliciting cash subscriptions to assist | in defraying the expense of his trial. t seems as though every one was con- | spiring to injure myself or my family, and if it is not in one way, it’s another. " If we hadn’t a cent in the world we wouldn’t go | begging of the public.” Mrs. Durrant is also being annoyed from another quarter. For several days past a | woman has followed her whereyer she has | gone, keeping up a most persistent | shadowing. Mrs. Durrant has not been 2ble to learn who the woman is or for what | she is being followed. She has severai | times tried to turn and meet the woman, but each time her shadower has cleverly | disappeared. Mrs. Durrant is consider- | ably alarmed, as she is at aloss to know | the object of the woman'’s strange actions. Durrant has issued an edict that he will | See No more reporters. MRS. TERRY’S ESTATE. Complaint s Made That Its Sale This Morning Has Not Been Adver- tised Properly. At last the estate of Mrs. Sarah Althea | Terry is to be sold. The lJawbooks of the once famous lawyer and the jewelry and some of the personal effects of Mrs. Terry, now an inmate of the Stockton Insane | Asylum, are to be disposed of under the | bammer this morning. The matter of to- | day’s sale will be a surprise to many of the interested Fames, although they knew the | goods would be auctioned off at'some time. “‘The sale wasn’t advertised at all, as far as I can find,” said Thomas J. Ryan, a creditor of the estate, xesterdav. “The whole thing is wrong, and there is some reason for the peculiar method of doing ! business. Ever since Tom Williams has been the guardian of Mrs, Terry things have not been aboveboard.” Robert Ach, the attorney for Guardian Thomas H. Williams, said that three notices of the sale had been posted. The advertising of it had been left witb the auctioneer. ——————— Mayor Sutro Sued by a Contractor. Daniel O'Connor has applied to the Superior Court for a writ of mandate to compel Mayor Sutro to sign a warrant for construeting an e|ghr-inch iron-pipe sewer 200 feet long in Edith street. He wants $205 damages. ———————— THE health of most women and men isin the underwear they wear. Jaros Hygienic Under- ‘wear—'nough said. Morgan Bros., 229 Montgy'* St o To Recover for Lumber. The Brunette Sawmill Company of New Westminster, British Columbis, has filed a gomplaint egainst Kennedy & Inglis and their bondsmen in a suit to recover $12,000, alleged 10 be due for sales of lumber that the local firm made as agents of the sawmill company — e THE leading banks use and indorse Bank Stock paper. It wasinvented by a banker, and | last century, and it is only | tumely of ignorant dealers. | only the scene in “Ruddigore” where the | Femme Inconnue. | picture for a song, for 1 believe it i Lonr eflu will be preserved by its use. The ysell-Rollins Company, 22 Clay st., keep it. * JOHN A, STANTON'S FATE, THE ARTIST HAS FALLEN IN LOVE WITH A LADY OVER A CENTURY OLD. HOW HE CAME TO MEET HER. A RoMANCE THAT Is Nor IN ACCORDANCE WiITH THIS Prosaic AGe. John A. Stanton, the artist, took the part of a lady in distress yesterday morn- ing under circumstances which fairly made his blood boil with pity and indigna- tion. After he had rescued her the artist took the fair one home to his studio, and has done littleelse ever since but gaze admir- ingly upon her stately countenance. In fact he makes no secret of the fact that he is in love with what he declares is the most beautiful woman he ever saw in his life. In order that there may seem no im- cases are batred by the statute of limitations, but Judge Sanderson declares that the tickets are contracts and that the limitation statute does not apply. The cases will now go to trial. REPUBLICANS ORGANIZE. The Stalwarts of the Thirty-Fifth Pre- pare for *96. The Revublicans of the Thirty-fifth As- sembly District met at Stanford Hall last evening for the purpose of forming the Re- publican Assembly District Club of '96 for that district. L. A. Haywards, organizer for the Nine- teenth Senatorial District, was present, empowered by the Republican Executive Council to represent that body in the or- ganization of the club, as was also I. H. Thompson of the Republican County Com- mittee. The club was duly recognized as the offi- cial Republican club of the district, having an enrolled membership of upward of 2 The meeting was called to order by V. F. Northrup. L. A. Haywards was then introduced, and in giving ofticial recogni- tion to the club warmly congratulated them on the admirable work already ac-’ complished C. W. Kyle then spoke on “Genuine Republicanism.” He predicted a hard fight for 1896, but foresaw that victory would perch on the Republican banner. Thor- ough organization alone will produce the desired result. Mr. Thompson and others also spoke. The following is the executive committee of the district : V. F. Northrup, president; W. D. Kingsbury, vice-president; R. H. Stafford, secretary; C. L. 52 THE LADY WHO HAS WON JOHN A. B o A s 2 B AL 1 W o5 o i i Syt A STANTON’S HEART, [Sketched by a “Call’” artist.] | propriety in his conduct it must be ex- plained that the lady is old enough to be Mr. Stanton’s great-great-grandmother. She must have hved in F her picture Mr. Stanton rescued from the scorn and con- He says if pictures step from their frames could come true, if his unknown lady would appear in the flesh and deign to smile upon bim, ah! thenindeed he would lead her to the hyme- neal altar, and life would be worth living, all of which means that the ordinarily sane | and level-headed Stanton has fallen in love with a picture. How he came to do it he explained yesterday in looking tenderly at his find. ‘‘There is something hanuting about that face,” he said, adjusting the blind to get a better light. “It reminds me of La I don’t know how the picture came to this country, but it was in the collection of an old Frenchman in Portland, who fell into straitened circum- stances a few years ago and sent his pic- tures and other valuables to a commission man here. The man knew the value of the old Frenchman’s diamonds, but he was no judge of pictures, and he stuck them all”into a corner of his place, down in the cellar. They lay there four or five years and this morning I bappened to be down there and the man brought them out and showed them to me “Wouldn® you think that the beauty of that woman would strike a man with any pretensions to refinement at once? There were several of those fellows there and they jecred and jibed at her. ‘It's pretty old and all that sort of thing, but the painting don’t amount to much,’ one said, and another added, ‘I would break it up and use it firewood.” When I saw that girl’s beautiful, silent face, looking at me, hang it_all, T felt I could not leave her there. I suppose I showed too much en- thusiasm for a purchaser who wanted a bargain, but anyway they let me ha v able. There is no doubt about it being old, and any artist can see how well it is painted.” The picture which hasbecome Stanton’s love isa pastel somewhat aiter the style of a portrait by Greuze. The woman rep- resented is stately and beautiful, with a pale, transparent skin and dark, dreamy eyes. Her hair is powdered and she is dressed in the fashion of a woman of high rank during the early part of the last cen- tury. Her white satin dressis looped with earls, and the heavy blue mantle across ser shoulders is held together with a string of the same jewels, The frame of the picture is battered and tarnished, and the canvas nailed acrose the back is worm- eaten, sad to tell. Spots of mildew have also invaded the creamy whiteness of the lady’s neck. The date, which is partially effaced, is either 1718 or 1748. Thename of the artist begins ‘‘La —,” but the end is almost illegible. There is more than one French portrait painter, Stanton says, who might be fitted i:ito one or other of these dates—Lancret, for instance, who died in 743. *‘The picture is painted on parchment,” said Stanton, “and the pastel is over those colors. I have scratched off a corner to see how the work was done. At first I thought it might have been a photograph of some old master that had been colored in pastel, but the more I examined it the more [ became convinced that the work is genuine.” The artist added that he in- tended to send his *Unknown Lady” to the autumn exhibition, but that nothing would induce him to sell her. “She’s my fate,” he said, “even if she did live a cen- tury and a half ago.” A Dr. Robinson Victory. Judge Sanderson has overruled the demurrer interposed by the Southern Pacific Company in the Dr. Robinson stopover cases. The com- Ppany’s attorneys held that nearly 2500 of the ce early in the | Hedemark, treasurer; J. H. McKnight, D. F. Mulville, J. W. Murphy, M. M. Dodge, W.W. Macy, A. H. Teichert, L.'W. Grant, J. H. Rawe, B. Keily, P." Francis, E. H. Herrick, Dr. E. N. Torrello, H. Collin, Elgin M. Chab, Dr. J. H. Dawson, G. W. Debenham, W. R. Flumber, D. Depew, George Dean, A.' C. I. Newkirk, Litzins, F. L RAILROAD COMMISSION. It Will Ask to Have the Southern Pacific Injunction Dissolved on Monday Next. There will be a meeting of the Railroad Commission to-day, but according to Chairman La Rue it will be short and will simply consider what steps are to be taken to maintain the stand of the com- mission and enforce the rates fixed by it. It is understood that on Monday Attor- ney-General Fitzgerald will file a motion to set aside the special injunction in this case and that his answer to the complaint of the railroad company will be filed before November 4, when_the time for doing so expires. re of the peculiar features of this pro- ceeding is that this injunction, being special, was issued without notice to the Railroad mmission, which it will be claimed is in violation of rule 55 of the equity rules of the United States Supreme Court, by which this and all other inferior colll:rts are governed. This rule reads as follow: A special injunction shall be grantable only upon due notice to the other party by the court in term, or by ‘a Judge thereof, in vaca- tion after a hearing. In this case neither notice nor hearing was vouchsafed the Railroad Commission. SAMUEL J. STRAUS DEAD. A Prominent Citizen Passes Away From Paralysis. Samuel J. Straus aied at his late resi- dence, 2119 Bush street, yesterday morn- | ing. Two months ago he was taken down with a stroke of paralysis, and eventually succumbed to the disease. Mr. Straus was well known in San Fran- cisco, and had a large circle of friends. He was born in Germany sixty-four years ago, and came to California in 1852. rom 1880 10 1890 he was Chief Deputy License Col- lector, and for many years filled a quite prominent position in political and busl- ness circles. He was intimately asso- ciated with Chris, Julius and Ferdinand Reis in_business and real estate transac- tions. For the last five years Mr. Straus was in the employ of Mrs. Pheebe Hearst, and long before then had acted as advisor for the late Senator Hearst. During the squatters’ troubles in the Potrero in 1868 he fought the squatters on the ground and in the courts, and suc- ceeded in establishiug many titles to lmfiza t{nczs there, e leaves a widow, Mrs. M. H. Dreyfus, M man and Mrs. Straus. The funeral from his late home will take lace Friday morning. The body will be Interred in Home of Peace Cemetery. three daughters, rs. David Gluck- S. Meyer, and one son, L. C. SAVE alittle and get sick—wear Jaros Hygienic Underwear and keep well. It’s the underdress of protection. Morgan Bros., 229 Montgomery st.* — e Annual Mortuary Report. The annual report of the Board of Health shows that 6059 deaths occurred last year to June 1, against 6068 for the preceding year. Consumption leads the list with 1080 deaths. Other causes were: Typhoid fever 123, cancer 289, rheumatism 96, leprosy 3, aleoholism 28 cholera infantum 86. diphtheria 21, cerebral spinal meuinqu 39, homicides 18, suicides 110 and casualties 217. ————————— THE cold preventer & health-kecper. Jaros Hy- -gienic Underwear. Morgan Bros., 229 Montg’y* NEW TO-DAY—DRY GOODS. ENTHUSIASM FAIRLY BUBBLED All through the Big Store the past few days. than usual. 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As n in the Bazar, SP. .$8.00 GLASS ROSE BOWLS. All colors and designs, SPECIAL .50c 0w$s1.00 GLASS VIOLET BASKETS. Latest novelty, all designs, very pretty, SPECIAL 1O0c 030c Each {INCORPORATED] 937, 939, 941 Market Street, SAN FRANCISCO. STRTESMEN N ARGUMENT SENATOR THURSTON AND EX-SEN- ATOR DOLPH MEET IN THE CIRCUIT COURT. PITTED AcGAINST EacH OTHER IN IMPORTANT RAILROAD LiITI- GATION. Two men who are among the heavy- weight legal lights of the country met in the United States Circuit Court of Appeals yesterday and argued on the merts of the suit of the Farmers’ Loan and Trust Com- pany of New York against the receivers of the Union Pacific and Oregon Railway and Navigation Company. They were United States Senator John M. Thurston of Nebraska and_ex-United States Senator J. M. Dolph of Oregon, the latter appear- ing for the trust company and the former for the recéivers. Simon of Portland appearing with Mr. Dolph and Zera Snow with Mr. Thurston. from Mr. Dolph that the two cases be heard together had prevailed. ‘The question at issue is whether the joint receivers of the Union Pacific sys- tem, of which the Railway and Navigation Company is a part, or the separate re- ceiver of the latter corporation are re- sponsible for a large debt incurred during 1893, when aisastrous floods dam- aged the property of the navigation com- any to the extent of about $1,000,000. It 1s claimed that the separate receiver of the navigation company was appointed after the %ills now in litigation were incurred and that the Union Facific receivers are responsible for the outlay. 2 The order appointing the receiver of the railway and navigation company required that official to pay the claims, but this is declared unjust by the company, and the attorneys argued long and earnestly on the proposition. Mr. Thurston and. his colleague were quite assure that the claims shoulg not be met by the Union Pacific receivers, and brought strong arguments to bear in support of the contention. The bench was occupied by Judges Ross, Morrow and McKenna, who, aiter hearing the arguments through, took the case un- der advisement. e Concert at St. Dominic’s. A grand concert supplementary to St. Dom- ini¢’s Church festival will be given this even- ingat St. Dominic's Hall, Pineand Steiner streets. Sflva’s orchestra will render a pleas- ing selection of music. Those who will partic- ipate are Chiester [rwin, Ira B. Ladd, Miss Caro- lina Schindler, Richard I. Whelan, Miss Mar- garet Coleman, W. J. Hynes, Miss Coral Gil- bert, Dr. Eugene Bertram, Mrs, Minna McLane and J. C. Irwin. e ———— hhxos Hygienic Underwear is one underwear that is comfortable, absorbs moisture, keeps folks well. 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