The San Francisco Call. Newspaper, May 5, 1897, Page 14

14 THE SAN FRANCISCO CALL, WEDNESDAY, MAY 5, HAN'S INANCIAL AVING The Manipulations of His Receivership Exposed at Last. NO PROTEST FROM JUDGE HEBBARD. Was a Passive Spectator of the Actions of His Servaant. PETITIONS OF DEPOSITORS UNHEEDED. Edward J. Livernssi Lets Out the Truth of the Insid: Gyrations of People’s Home Savings Baok. The skeleton at the feast has been un- covered at last, much to the discomfort of those that reveled at the pie counter of the People’s Home Savings Bank, and gorged on the assets of that insti Not the least of the worried is Judge J. C. B. Hebbard, who these days is devoting his attention, at the expense of the coun to an endeavor to convict Editor Marriott of the News Letter of libel, for daring to trespass upon the dig- nity that hedges a candidate for office by expressing an opinion that Hebbard was the “tool” of the men who looted the wrecked bank. The man who opened the coffin to let the ghoul see the light was Edward J. Livernash, now assistant managing editor niner. 1 rnash is an attor- nd at the time of the failure s bank was the legal adviser H. McDonald jr., one of the board ectors. On the witness-stand he rated a chapter in the inside affairs of the bank that has never been printed of the mauijulations of the man whom Jud ard inted as receiver to ret fin office, in spite of the pro- test of the deposilors and board of direc- tors. It was a story in financial juggling— possible only through the inaction of a 1 it was told there was among Judge Hebbard torneys that they refused to go ion until they private, In consequence, Livernash w appear again this afier- noon for this ordeal. Livernash’s story was not embellished. When the bank failed four of the board of directors—( e Schultz, George P. Keeney, R McDonalt and Jen- kins—ex sign, in o ssed their willingness to re- er that the depositors might select officers of their own chcice. McDonald, Schultz and Keeney prompt- ly placed the written resiznations in Livernash’s hands, while Attorney Henry E. Highton held asimilar document from Jenk “They were willing to resign whenever the time should arrive.” “Whnat doyou mean by that?” asked Attorney Shortridge. “W ienev; ze Hebbard should mod- ity his injunction so as to allow them to step out. Did they keep their wishes to resign a secret?”’ “On the contrary, they gave it the widest 1ub It was communicated, also, to the depositors’ committee.” Judze Hebbard was of course apprised of the wishes of the directors, but that officiel was deaf to all entreaty. “Do you know if Recciver Sheehan frustrated or opposed the wishes of the depositors?” “1 know he did,” added Livernash “Both he and Attorney James Alva Watt opposed every effort of tne depositors to get control of the bank.” McDonald, in order to infinence public opinion in the criminal actions pending sguinst him, subsequent to the failure of the Pacific Bank, decided to sever all con- nection with the savings bank. Mr. McDonald, in all, held about 700 shares of the stock of the People’s Home, #nd decided 10 turn this over to Livernash for the benefit of the stockholders. Of this stock 240 shares were in McDonala’s posses: which he prompily indorsed and turned over to his attorney. The re- r was divided between H. 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Ihey are going of mpidi therelore, do ok delay sending immedialely it you want one, éz STyres "REPRESENTATIVE - ley, Columbus Waterhouse, Dr. Jenning- son and Dr. Julius H. Boushey, and these lots McDonald transferred by bill of sale. The interest of his brother Frank, sbout 600 shares, the banker deeded to Liver- nash by virtue of a power of attorney | which he held. When the annual election of officers rolied around in January, 1895, Livernash made preparations to vote his stock ac- coraing to the wish of the depositors. Ten days before the election he called at the hunk, and duly presenting a block of | the McDonald stock, asked for a certificate | of reissue. | “Sneehan looked about when 1 made my request,” continued Livernash, “and after | some hesitation informed me there was | an attachment against the stock issued by one of McDonald’s creditors. ‘What's Some Side Lights in the Marriott Libel Case. : “Go on with the cross-examina- tion, “We don’t know how,’’ said Kahn, be- seechingly. “We must wait until we see Mr. Sheehan.” * Kahn continued in this vein. He was indignant and tearful by turns. A dozen times he rushed excitedly to Judge Heb- bard for advice, but the client seomed al- most as much disconcerted aa the lawyer. Judge Daingerfield decided to give them time to recover their scatiered senses, and Livernash’s cross-examination was post- poned. The morning session was devoted toa recital by T. H. McCarthy, chairman of the depositors’ committee, of Sheehan’s efforts to *‘hear’ the assets of the bank during bis receivership. JThis was of course but paving the way for the intro- duction by Attorney Shortridge of the resolutions adopted by the depositors in June, 1894, condemning Sheeban’s receiv- ershin and asking Judge Hebbard to remove him. The Protest of the Depositors of the People’s Home Savings Bank Against John F. Sheehan’s Misconduct as Receiver Which Judge Hebbard Allowed to Pass Unnoticed. WHEREAS, John F. Sheehan has been appointed receiver of the People’s Home Savings Bank ; and WHEREAS, The duties of said receiver are to act as the mere cus- todian of the bank’s property and to be impartial in all respects; and WHEREAS, The said Sheehan has caused publications to be made reflecting upon the honesty of this movement and also belittling the value of the bank’s property with the result that some of the depos- itors were thereby influenced to sell WHEREAS, The said Sheehan their books at a sacrifice ; and has caused communications to be issued requesting depositors to call at the bank for the purpose of sign- ing a roll, the object of which is his retention in charge of the bank’s property ; and WHEREAS, The said Sheehan has permitted the books of the bank to be used for this purpose and letters have been sent to the depositors, whose names and addresses could only have been obtained therefrom, and has been partisan in refusing to allow us, the depositors, the same privilege, and has denied us access the roll of depositors ; and WHEREAS, Our sole aim is to to the bank to obtain signatures to secure an honest and economical liquidation of the bank’s affairs ; and WHEREAS, The said Sheehan has used every effort to break up our organization, all with the object of retaining a position in the bank against the interests of the depositors; and WHEREAS, We believe him to be one of the causes of the cease- less delays to the reorganization of the present board of directors ; therefore, be it Resolved, That the said John F. himself unworthy of our confidence of the People’s Home Savings Bank Sheehan, by his acts, has proven and an unfit person to be receiver , and we therefore respectfully re- quest the Judge of the Superior Court, who appointed him, to imme- diately remove him from his position ; and, be it further Resolved, That a copy of this resolution be immediately delivered to J. C. B. Hebbard, Judge of the Superior Court of the City and County of San Francisco, State of California. 5 THE DEPOSITORS OF THE PEOPLE’S HOME SAVINGS BANK IN MASS- MEETING ASSEMBLED. thattoyou?’ I asked. ‘You know, Mr. Sheehan, that the attachment follows the stock.’” Sheehan told me to come back in a couple of hours.” When Livernash returned, he found a condition of affairs he had not antici- pated. Saeeban had communicated with | his attorney, J. A. Watt, and the latter | had at once caused an execution to be | jssued on Livernash’s stock. This of course tied the lawyer's hands. Similar tactics were adopted with the remainder of the stock kela by Livernash. Sheehan refused to recognize the bill-of-sale transactions. Watt instituted attach- ment proceedings against Frank Mec- Donald’s interest, and when election day rolled around he and Sheeban saw to it that a board of directors was elected of “That is the history,” said Livernash, “how the depositors failed to vote 1300 shares of stock at that meeting—enough to have given them control of the bank. But that was not all. Sheehan played game well. Mrs. Mattie Rickard, a sister-in-law of Dick McDonald, con- trolled 650 shares of the stock, and this she was about to transfer to Livernash for the benefit of the depositors, but Watt's ingenuity frustrated this. He paid Mrs. Rickard $500 for her stock the night beiore the election and it went to swell the Shee- han pool.” Livernash’s recital acted like a bomb 1n the Hebbard camp. Attorney Kahn im- diately made a piteous plea for time, was not ready 1o proceed with cre X- amination until he had consulted with Mr. Sheehan. “This is all new matter to us,” said Kahn, and the crowded courtroom smiled. ““‘We never knew of it before. Judge Heb- bard never heard this before, We want to bave a talk with Mr. Sheehan,” and Kahn began (oxgro':n hysterically. Judge Daingertield asked if the Sheehan- ‘Watt manipulations were going to be con- nected with Judee Hebbard. “Yes,” answered Attorney Shortridg “we are guing to connect him with bad n you prove that?’ again queriea the court. “That’s for the jury,” was the reply, lnnd turning to Kahn Attorney Shortridge McCarthy declared that Sheehdn had caused statements and interviews to be published undervaluing the bank’s assets. He recalled that a tract of 16,000 acres on the Carissa plains was declared by Shee- han 10 be not worth over $50,000. A capi- talist had offered, but a few days before, $120,000 for the same property. The land generally was worth from $8 to $10 per acre. Sheehan had also attempted to “*bear’” the price of the stock of the Los Angeles Electric Railway. “Your complaint was that these under- valuations tended to cause the depositors 1o sell their bankbooks ata big discount?”’ asked Attorney Shortridge. Kahn was strenuously opposed to Pike answering this pointed question, “Iv is asserted,” continued Mr. Short- ridge, “‘that he undervalued this property to the end that the depositors might come ifin and sell their baukbooks at a sacri- PR Judge Daingerfield could not see that such an action tended to reduce the funds of lgve blnk.l 5 **We simply wish to show,” contin Mr. Shortridge, “that Sheehan °;$E§fa’ out as best he could; that he was a bitter partisan; that he went through the as- sets of the bank like a Bashi-Bazouk, and we wish also to show that Judge Hebbard knew of it.” The fact that Sheehan had sent out cir- culars to the depositors for the purpose of securing signatures to a roll to retain him in office was & tender spot for the Heb- bard regime. The depositors’ committee then made an effort to interview tne de- positorsin their own behalf, with a view to having them sign another roll. The committee proposed to take seats inside the doors of the bank, but Sheel would not have it this way. In fact, Hebbard's side partner even weut so far as to invoke the aid of the police to prevent the members of the com- mittee from even standing on the side- walk at the entrance to the bank. Asin the Yair case, the police authorities seemed very anxious to distinguish them- selves in their efforts to piease the mon- eyed interests of a civil litigation. McCarthy then related another instance of Sheehan’s pyrotechnical finan lering. Sam K. Thornton was very anxious to be- 8 come a director of the bank. Sheehan allowed bim to vote 3100 shares of stock held by Dr. Jennings and paid for with a note for $107,000. The strange part of it was that thoy had previously obtained an injunction to prohibit any one else voting this block of stock, and it was afterward declared a fraudulent issue. Itserved its | purpose, howaver, at the time, and after Thornton’s election was canceled. Mc- Carthy then related numerous ruses of Sheehan to retain himsell in power. Attorney Kahn rather startled the court by declaring that it was only through the goodness of heart that Judge Hebbard allowed the depositors in the bank at all. The resolutions were then read, much to Hebbard’s chagrin. ge Daingertield thought that there was only a moral duty on Judge Hebbard’s part to comply with the request contained in them. A “That's all we have said in our libel added Attorney Snortridee. ““We have but declarea that Jjudge Hebbard was morally responsible in this matter. *‘But po-sibly when Judge Hebbard got these resolutions he did not believe them,” said Judge Daingerfield. “That's the excuse many other men have made,”’ was the reply. On cross-examination Kahn wanted to learn trom McCarthy if the Bank Com- missioners had not commented favorably upon Sheehan’s management of the bank. The answer was not to his liking. He even was for striking it from the record | when McCarthy told him that the “‘com- missioners never indorsed Sheehan's actions and bad told the committee that they had no jurisdiction over his doings, as they did not take charge of the bank | until alter he was removed.” Kahn then sought to introduce a report of the Catifornia Safe Deposit and Trust Company commendine Sheehan's doings. Attorney Shortridge declared thatif this course were to be pursued he would intro- duce about 1800 documents viewing the receiver through different spectacles. Emanuel 8. Straus was called to testify that he had signed a petition to retain Sheehan at the request of Secreiary Palmer of the bank. He understood at the time he was acting in the interests of the depositors. From George B. Conant, a member of the depositors’ commitiee, Attorney Short- ridge endeavored to draw the fact that ‘Watt had b2en paid $250 by the Kansas City Real Estate Association for an ex- tension of their indebtedness of some $35,000 to the bank. Kahn asked 1if this transaction was recorded in the bankbooks. +'Oh, no,” replied Attorney Shortridge, | “These things are never set down in books.” Judge Daingerfield desired to know if Judge Hebvard was to be connected with this transaction. Attorney Shortridge replied that he had been challenged to prove shoricomings on the part of Sheehan and Watt, and he ac- cepted the challenge. Judge Hebbard mignt not know of all these things. He might even be above reproach and yvet bs the unconscious tool of the men who were munipulating the bank. The record went to show that Sheehan and Watt were juggling the bank’s assets to tneir own 'interests, and Hebbard should have seen these things, though possibly he did not. At any rate, he was warned against and advised of Sheehan’s doings. Benjamin F. Lucy was then called, and Kahn declared he was willing to waive his hearing if he was to corroborate McCar- thy’s evidence. Judge Daingerfield inquired if Lucy was to tell anything new. ‘I do not know,” answered Attorney Shortridge. The court made an arbitrary ruling that Lucy could not be heard unless it was first ascertained if he had any new facts to relate, in spite of Mr. Shortridee’s pro- test, and the case went over until this morning. A PROPERTY DEAL. and Wife Arrested for ng Money by Frand. A.W. Mass and his wife, Sarah Mass, living on Dale place, were arrested last nizht on a warrant charging them with unlawfully obtaining money by false and fraudulent representations. The complaining witness is E. Cadenasso, 512 Montgomery street, who alleges that on March 8 Mass and his wife obtained $200 from him as part payment on the purchase of property at 1509 Steiner street, which they alleged belonged to them. Cadenasso afterward found that the prop- erty belonged to Mrs. Mary Finey.’ Attorney Ross, who represents Caden- asso, says that E. 8. Vonnelli, 319 Powell treet, and Henry Martin, Pacific and Davis' streets, were also victimized by Mass and his wife, the former to the ex- tent of $100 and the latter $200. In both cases, however, part of the money was re- turned. — e Hart in a Car Accident. Benjamin A. Bosqui has sued the Sutro Elec- tric Raliway Company for $12,250 damages, on acconnt of injuries to his left leg and side received in an accident op tho road at the in- tersection of Richmond and Commonwealth avenues, on the 9th of last month. Mr. Bos- qui has been a dental student and was about lo take his final examination, preparatory to graduating from the College of Dentistry of the University of California. His injuries pre- vent him {rom comp.eting his course, and he slleges this fact as special claim for compen- sation. He is not yet able to leave his bed. — e — ‘Wheére Rain Would Cause Damage. Slow progress is being made with the new roof of the.City Hall. The Larkin-street side of the building is entirely uncovered and a rain just now would cause great damage. The City Hall Commissioners are urging the con- tractors to utilize electric lights and work their men day and night in order to accelerate operations, but this suggestion has not yet beeu complied with. Et will take several months to complete the roof. "A HUNDRED CHURCHES Strong and Novel State- ment by Rev Dr. J. K. McLean. OTHERS SPEAK IN LIKE STRAIN. Bad Conditions Said to Retard Christian Growth in This State. COMMISSION TO BE APPOINTED TO0 PLACE CHURCHES. Flcw of Reason at the Congregational Club Meeting oni Banquet Last Evening. “There are 100 churches too many in the State of California, and if they should die off it would be the best thing for the kingdom of God.” That was the novel, and what at first sight would appear startling, statement made by Rev. Dr. J. K. McLean at the meeting of the Congregational Club held in the Third Congregational Church last evening. It seemed to strike the fancy of the ministers present, however, and the applause that followed represented several denominations. The circumstances which led up to the making of the statement tend in great measure to moderate the force of its ap- plication. The Ladies’ Aid Society of the Thira Congregational Church had prepared a sulptuous banquet in the dining hall, and ladies and gentlemen of several dif- ferent churches had been invited to par- ucipate. A large number responded, ana 1t was therefore thcught advisable to have a feast of reason as well asof more ma- terial things, Rev. W. W. Scudder, the nresiuemofu.hacmb, acted as chairman of the combined meeting and feast. The theme for discussion was ‘‘Inter- denominational Comity,” and various phases of the subject were assigned to different ministers. After the banquet, Rev. 8. M. Jefferson, LL.D., dean ot the Berkeley Bible Seminary, opened the dis- cussion, which was limited to ten minutes for each speaker, by treaiing of ‘Iis Grounds." His notion was that denominations should try to unite on fundamentals, He believed that they should be willing to differ on doctrinal points without any clashing. Rev. Dr. E. R. Dille, pastor of the Cen- tral Methodist Church, followed with a discussion of its scope. He asserted that $12,000,000 is annually wasted in this country on account of a lack of inter- denominational comity. “Take Healdsburg ~for instance,” he said. “‘There is a little city with a popu- lation of only about 2000 and yet it has eight churches. That is too many. “I believe a commission should be ap- pointed representing all the evangelical churches to arrange the placing of churches according 1o population. As to what churches should be placed in any one city let priority of establishment determine.” Rev. W. H. Loudon, D.D., of the Presby- terian Theological Semjnary, spoke on “Denominationalism Comity.” He be- lieved that the ministerial unions should have more meetings, because they culti- vate a spirit of fraternity and good-fellow- ship. Rev. J. R. Knodell, pastor of the Pil- grim Congregational Church, Oakland, took for his theme, *'Pioneer Movement: He believed that there is at present en- tirely too much talk about comity and too little done. The last chord in the great Christian harp of to-day he asserted to be that of inter-denominational comity and it should be found at once. Rev. T. G. Brownson of the California Baptist College came next with a briet address on “Present Infelicities.” His re- marks were broad and liberal in their spinit and showed the great difficulties encountered in the path leading to comity on the part of the churches. Then came Dr. McLean, who made the remark that heads this article, in sharp, decisive tones, and then proceeded to ex- plain his terse exordium. “What I mean,” he continued, there are at least that many sup churches, a condition ot affairs which tends to retard the power for good of the church taken asa unit. We are notdoing things in a business-like wag by overload- ing a small population with so many churches. “The banner of Cnrist should be higher than that of John Wesley or John Knox or John Robinson. Christianity first and church afterward. “The superfluous churches should be weeded out, so the others can grow, and I am in favor of such a commission as suggested by Dr. Dille. It could accom- plish much good.” A resolution was then adopted unani- mously, providing that steps be taken preparatory to the establisnment of & State commission, which shall have for its otject the placing of evangelical churches according to population. Rev. Dr. Rader was present, as well as many others of the local ministry, but contented himseif with simply listening to the ad- dresses and took no active part beyond welcoming the invited guests. ME. JEWETT'S OONDITION. When Last Heard From He Was Lying Unconscious in Chihuahna. There are no hopeful tidings from the bedside of Thomas M. Jewett, who has been clerk in the office of the United States Attorney for the past forty years. Dr. Rivas, his brother-in-law, received a letter Irom Chihuabus, Mexico, yesterday, dated April 30, sitating that Mr. Jewett had been seized with a paralytic stroke at place, and that he was lying uncon- scious. A telegram dated May 1 announced that the physicians in attendance had found that he was suffering from brain trouble, and that they saw no hope for his recovery. Mrs. Jewett, wife of the sick man, left the City as soon as she received the tele- gram, and was due to arrive at Chihuahua yesterday morning. Mr. Jewett had been ailing for a long time from overwork and too close confine- ment to the duties of bis office. Last fall he was taken with a paralytic siroke in the corridor of the Federal building i this City and temporarily lost the use of one of his legs. He was removed to his home in a hack, and with good nursing recovered, but it was deemed prudent that be should take a vacation, and he went to Chihuahua to spend a few months with his brother, who is a Judge at that place. NEW TO-DAY — DRY GOODS. PRINTED 100 MANY"| LACE DIMITIES —~——— AN D ORGANDIES! KTRAGRDINARY 0 RING! Commencing Wednesday, May 5, we will place on sale a special purchase of 15 CASES Choice PRINTED LACE DIMITIES and PRINTED ORGANDIES. PRICE 1 OC " PerYard The above Printed Fabrics will be exhibited in our show windows, and our customers are urged to take advantage of this special offering. Clrrnors ORPORAy, ez, 0 111, 113, 115, 117, 119, 121 POST STREET. A CHARGE OF PERJURY. Serious Accusation Against Banker Brush of Santa Rosa. A. L Fish Pressing a Case Before the Grand Jury — A Business Transaction. J. H. Brush, president of the Santa Rosa National Bank, must have told a long storv to the Grand Jury yesterday, and incidentally replied to many questions propounded by the cross-questioners. According to the facts brought to light Mr. Brush, on behalf of the water works at Santa Rosa, purchased some machinery from B. L. Fish of San Francisco. When the time came for settliug tha accounts of this business transaction differences arose, und Mr. Fish sued Brush for a sum less than $300. The case was heard by Justice Cooke, and some tall swearing must have been done, for when the case was pending Mr. Fish appeaied to the Grand Jury to have the defendant. indicted for perjury. The jury then heard Justice Cook, tue plaint ff 'and the defendant, but no action was taken. Subsequently the Justice ren- dered a decision in favor of the plaintiff, Mr, Fish, but the latter was not satisfied in winning the suit. He'insisted that the proceedings before the Grand Jury should be pressed. In commenting on the case to newspa- per men yesterday Justice Cook expressed doubt as to the veracity of the defendant in the case. The court did uot like the | style in which the Santa Rosa banker tes- titied, and frankly said that he did not believe the testimony to be true. R. M. Swain, formerly an attorney of San Francisco, but now » lawyer of Santa Rosa, represents Banker Brush as coun- sel. Mr. Swain advised his client before the latter went into the jury-room and after he came out. Mr. Fish was on hand yesterday, but was not in -the jury-room for any greas leneth of time. As the case has been ap- pealed from Justice Cook’s court to the Buperior Court the Grand Jury decided to suspend judgment in the case uniil the civil suj 1s disposed of. John Foley, clerk of Police Court 2, was NEW TO-DAY. Crre sl s With “TROPHY” baking is a pleasure, “Trophy” is a kit- chen treasure. True—but there are others—other kitchen treas- ures: Tillmann’s Spices and Flavoring Extracts. 133 Tillmann & Bendel, Mfra, Yo present with a great bundle of bonds, but atalate hour the jury notified him that he was excused unti' next Friday. e e To Be Deported. United States Court Commissioner Heacock heard evidence yesterday in tne case of Tsu Tse Me, a Chinese brought from Texas to be deported and on whose behalf a writ of habeas corpus had been secured. The Commissioner remanded him into custody and United States District Judge Morrow will pass upon the case this morning. ———— Sergeant Fitzgibbons' Life Insurance. Sarah Louis Moore and Eliza Jane White, daughters of the late Sergeant John M. Fitz- gibbons of the Police Department, have suea the Police Pension Commissioners for $1100, alleged to be due on account of life insurance of the decensed. — NEW TO-DAY! $2 t0 $25 ~—FOR— Electric Belts. We Guarantee our $25 Belt better than the Belt others are seiling for $40 to $50. 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