The San Francisco Call. Newspaper, November 5, 1898, Page 1

SAN FRANCISCO, SATURDAY, NOVEMBER 5, 1898. This Paper not | to be taken from R hc Librarys ta” PRICE FIVE CENTS. VOLUME LXXXIV.—NO. 158. BANKERS REBELLED AGAINST . ‘ HART’S PERSISTENT BLACKMAIL Vitriolic Excoriation of Sherman as the Man Who Ruined the Bamks. The Los Angeles Manipulator Weighted Down the Tottering Institutions With Worthless Bonds. NICHT The Attorney-General Drove the| ppeer wines McDonalds to the Point | S of Desperation. PROMPT SERVICE. UNREPEATED MESSAGES neviup =t Anever on TOUS WD TUBRCAN, OB I AN CASE TVRAE T G Av 15 4T AR NTED a4 Sl STHIN LT O APTLR SERO1AG THE AR GE. Tras 13 sn UNREPEATED MESSAGE, avo 10 otimiato 97, RGUEST O THE SEVGER UNOER T CONBITIONS AmED ABcvE., X JOMN W. MACKAY. President ¢ W C VAR HORNE, Vice-Presdent. - e e ——— CHAS. R 1. W STORRO! Received at San Fran G3. 29 X. X ] 82 Paid nice: 8:45 .P.M'. Conspirators Began to Desert the Standard | Los Angeles.Cal..Feb.. 5,53, . of the Pacific Bankers as the R..H. ¥c_Donald, Jr ~End Approached. Pacific’ Bank, San Francisco. ; L leave_tomorrow_Monday night for Kansas City cincinnati and New Yor¥ (i Métters;herelproeressing _rapidly our way, So far as we all can $ee of the York and not only in New dishonesty | mailed | father, and then, in a crooked manipu. | scheming lation of the Pacific Bank's books, o Considering the inters In the strange history of disaster and | enough to say something untrue. Your crime that marked the -existence of the FRANK. loving brother, THE APPALLING. RECORD OF THE Hart can be of no use nor harm (in this matter and you better not give Pacific and People’s’ banks there are | McDonalds, but of the men surround- save himself. 5 th few facts of more importance than |ing them and urging them-on to finan- ests involved the letter is perhaps one those published in The Call this - | clal uction. New projects, crazy % AN - id it = 2 1% gEsthe st cOlT (hlngded TR Dy ioha JOHN BROWN COLONY. ing. The record proceeds to within |in their origin, crooked in their de- him that accommodation” if you can aveid 1t. He will never repay it. of -rascality that the public of San| rn the pext letter that Frank V. Me- fwo months of the final crash in which | velopment and disastrous in thelr con- s g : h Francisco has read In many a day. The | ponald wrote, he reviewed a great deal the Lankc ‘went down. The conspira- | clusions were being floated. Treach- Tell him it 1s public.talk and 1t will not do for us to be mixed up 'in ce Sli R more i’fi;‘t‘“i’\‘,‘m’éfi"’{é°;‘né3$u$?§:f"‘§; tors who had thrived on the dishonesty | &Y against Captain Jim McDonald 2 i , . y 4 c 3 My Dear Brother—I enclose state- | ivhich he was cashier, In the foregoin and the Bility of jthe McDonalds | W8 belng plenncd. More money was it.We have accommodated .him enough and you can:safely refuse him; ment from Eastland. that explains It | jotcer' he denounced M. H. Sheeman ” 3 3 ordered frc e Pacific Ban s ; X £ R 3 5 T ] were beginning to desert. They knew | 20-"(he private use of the slies ary : Basis telegraphed you, § and accrued * | most Bitterly. In the etter that will better than the deluded bankers the |Donald. The letter Is exceptiona 2 interest. cy wanted my guarantee |follow he attacked A. F. Johns, D. M. 3 i 0 L ptionally in Frank, as cashier and father’s as witness, but | Tomblin and D. S. Dorn, For a year trué condition of r;he msmlx;unns and | teresting and is as follows: ke 3 I thought best to keepx ta&hesr c;lfl for these men had been befuddling him _ hey knew that affairs eould not con- | N. Y., March 15, 1893 e e T reasons you can appreciate. So I sug-. | with the affairs of the John = Brown | . March 15, 1593. - = = E tinue much longer as they were. A. F.| My Dear Brother: I have beep wait- T L e P EONZE TRUE/COMBERITON, gested, as they wished the seal of the | Colony and the schemes of the city of ng, hoping, praying for sale se o rr z 2 3 Johns, saw an oppertunity to condi-| In€ hop o Srayiue foriAnies it mpon N \m“_‘: 5 'T:mu‘lfl‘o"-‘" S CONNECTIONS. REACH” * e erer Mo G e o | Madera. He expresses a feat that A. s tion himeelf better with the enemies| alize. If we had only begun & year | Savanvan plokees ToRin, S s " Sacumnro | wsimads: agreed to. 1 have written the Chem- | F. Johns was then plotting against him £ C: a 0 ied earlier here we mi, 'hn'nnwgbe doin, | Shigmy - v PRT Pobipince i o o= Wb ical a letter asking them to send you |and his interests and inténded to go of the McDonalds and he proceeded to 3 g a 5 awo wremmsiare pars, inr *eEeno/ the Phoenix bonds they hold, telling- | over to the enemy. Frank wrote as fol- good business. We think, however, we now have matters in shape to go ahead, especially with the California Raisin and Fruit Growers’ Assocla- tion in stock-bond sales. 1l see them we thought we had sold them, but that it was necessary to provide for interest paymeuts in New York and bonds would need to go to San Francisco for suitable indorsement. pick a quarrel. Dorn and Tomblin lows: were becoming ffactious and Hart was becoming more insistent in his demands D1RECT CONNECTION AT NEW YORK AND CANSO WITH THE CoMMERCIA S L Casu g NEW YORK, April 21, 18%. 1 l;.lly D%ar Brotli:er: tFor nearl‘y a )l';nr ave been trying to get a clear idea of the Madera tangle, but neither You w A g | dea | de a guara You will need to get from Dorn of | PT}?;‘ o ‘;‘ e et '}“SEE:"“T :,he ! i\jififiuflg;‘l'i?uv:'ilYIUQTx'r‘r}x‘eml\;}Le Eecie » some other reputable attorney a briet .?é’e“m“é’éflé‘f-‘é‘ihé“%’.’n"gi’;"fi’.ii‘ie{-’?fi S 'acific Bank no more sign: le- oo e g e " .Statement concerning trust deed; tha Mitrastive for the Tmvestor whishesid | There are few documents in the corresp ondence of the Pacific Bank conspirators that are o more general interest than | “ft'ic In legal shape, and ete, and, as | poape. and as the time is o s ment than that involved in the relation- ship between W. H. H. Hart and the McDonalds. Hart was then Attorney General of the State and had bled the MecDonalds to such a point that they could stand the torture no longer. Hart in exch#nge for the money he attractive for the investor whichever ¢ it gees, and provides reas compensation and protection bank for its guarantee. While I was_in California Edmin ster & Co, and Eastland kept on work- ing on these questions and did, I think, good work. You will also notice I have perfected arrangements for the Alaska D. S. drew the deed he can give this. Also an attorney’s opinion will be needed on the powers of the bank to guarantee the bond. The vonds being our property and we getting the money for same and there being no third par- ty concerned, I see no reason why we cannot -guarantee them just the same ige ourselves to redeem a that which is given above. When Frank McDonald sent this telegram to his brother, W. H. H. Hart was then' a debtor to the Pacific Bank to the amount of many thousands of doilars. He was Attorney General of the State, and was criminally in collusion with the thieving bankers. The exactions of the Attorney General for money became so fre- quent that Frank urged his brother not to pay. They had Hart, they thought, in a position where he could not very well antagonize them, for a while at least. He wanted money, and Frank very clearly indicates In his telegram that Hart's demand for money was nothing more or less than blackmall. As the history of the ruined bank proceeds it will be shown what Hart gave In return.-for the money received. into others’ hands it is necessary to know just what we are doing, or we may commit some serious blunder. By a clear idea I do not mean any con- fused, garbled, eral statement, such as I have hitherto been favored with. After much difficulty and by put- ting together one thing and another I understand the position to be as fol- onable to the received gave the cloak of his official sent by Frank from Los Angeles it is Coal Company’'s stock in a way that here. Both tricky on Raisin question as ‘we time certificate or any other time obli- lows, but I may be all wrong, and if so rotects us. I have sent you the con- position with which to cover 'the"dis- | - fract for Keeping amons sour wapers |Tel. On March 16 Frank sent the fol- | sent the following dispatch to his mints. Onder these circumstasices I S8len for cmbieR e rebelved the I should be right at once and honest -acts of the bankers. In Feb. | and other contracts for the bank We |lowing telegram to Johns: brother, R. H. McDonald Jr.: B s ettt SO AR Fal e g S S TR R RN clearly in detail. - ruary, 1893, however, Frank McDonald | ofic: Ziaia vaativo-to tha sioninh | - A. T hne Onperch 1, 188, D e = FRANIC | arRe totent he costd al & bass |- when the Brows aik Hald ags believed that the debt that they owed | bonds, and any day we hope to report | Trlbune Bunamg: Your telegramgid | g i FL McDonald Jr, Pacilc Dank Telegraphing on the same matter, | §iod o Ohlcino fricons cod wiimi | coperape Brown and B 5.0, Fou to Hart for his criminal support had | the sdle of them. Now that we have dlnreslgecum and ‘I decline to diseiiss Somewnat discespectiuny that he has | Frank dispatched the following to his forty days’ option. He stated no price, subsequently invested $40,000 in the re- 7 a .| our guarantees in shape I shall run it. etter deal directly with my agreed for sale of entire raisin issue | brother: no “certainty, noth! * organization of the bank at Madera, beén paid and uritil ‘they needed the| up to New Haven and Hartford and brother if you think he has the sole | a&reed {or, sale, of entire ralsin faue N % 3 ‘him parties here were working on the | -and you bought the $110,000 OR&pmian d)flhonesvi ‘nm](-xal ndgaxn l(hey rlebelle-l ?:;Lnnaggr?c‘:«ce‘h.‘r‘ ’..“.i‘;"“.;‘rfin‘;““;‘,‘;“’?g power to act F. V. MeDC .aLws. p,amc’my ignoring l(hls nge'r and R H McDan(;fiKjru‘f'n?ém’Z' Balm“ e nnld > ‘;ouldmm;ltl.' tie ‘kt em up see&md mon‘sase’t‘xx paying $10,000 cash against his demands. n a telegram > el i n the same day Frank McDonald| confusing all our pians and agree- : s 4 such a long time. - was in- and reserv, .00 for _the Peo- some money. On t Y s . fan Francisco: Johns and Fitch both definite uncertainty. He e wouid gle‘s Home first martfiao% and you clearly stated and understocd that the McDonalds were paying Hart for his That fellow Fitch Jr. is only a blow- hard, and you want to look out for him.’ ‘We havé refused to_send. him any more money, and now he fs turn- and have to be watehed very care- fully. Their present plan dangerous and impracticable, and they offer only 80 cents for new 6 per cent bonds. We ‘write about the offer, but he never did, S0 you can' judge for yourself how much there was to his so-called sale. The loss we make on these- Phoenix ave since spent some for devel- opment. In other words, the invest- ment there is, first, original outlay for advances, §75,000; second, Chapman's second mort, dishonest services. They therefore had ing to you again. Be very care! v : ! y £ Y SATRL SEhRE boio bonds you'can charge to the Phoenix e, $110,000; third - service and-to resist what they deemed | form of contract he asks for is ab- % - FRANK. know what .to charge the loss on the $40,000—total, ,000. " We had to ‘as- 2 ¢ 2 b - rd and impossible, ‘and you only Southern Pacific bonds. If the Mo- sume deposits of Madera Bank to be extorfion. . As.tbe history of the bank te vour time considering them. On the same day, in a discussion of | hawk expenses were not so high I added to this figure. But since the Ma- proceeds The Call will show how com-| And you better not encourage him, the same subject, Frank also sent the | Should think it best to charge it to_the dera Bank stock s a separate asset 3L s e oy i S T Rates Pt e L g B following telegram to Dick: Mohawk stock account on_the Idea | it need not be considered in this state- ples y “Geners @ It will confuse us all. Our ex- b 7% 3 3 that we had sold the bonds to get ment, and therefore the net amount is the command of the bankers when nce with him is not satisfactory. Better wire Johns to return me Rai- money to develop that with, or per- about $225,000. Now the question is," financial rugn faced them. e is after is to make a living out sin trust agreement. It should never haps better yet, charge it to stock ac- is this correct, and I wish You ane . 3 of it regardless of resuits. Father left have Been given to him. It is not count of Los Angeles Electric Rail- Bellerman will try and answer this Among all the quarrels of the éon- | | night for Hot Sprin, North - trust deed, but trust agreenient, and way, since on this account chiefly all without mixing up with it a_whole spirators there were few that were Carolina, to be gone one or two wee a our private matter, and that cogy was our losses have been made and we lot of other ifs and ands and buts. pep ey A A Tnlsr, for confidential use of you and Pacific. have five thousand shares full paid Again, how does the $10,000 item re- more serfous than that between Frank | run_down, and he wishes you would ‘We really did not wish him to know latitude of stock, allowing qui chansy g fl te a serve from the $110,000 Chapman sec- McDonald and. M. H. Sherman. Frank | send $1600 to the Commerce for his exactly its contents. ng. Your loving brother. ; = . 3 S ond mortgage to settle with the Peo- ir: one of lh‘-! le published to-day | gredit. l‘;ER““‘_,'l‘:‘f""”dg‘:{‘éd“m o ke fi Two days later Dick recelved another ERAN ;;]e's ‘°§00k°,““1' Torpase appeay = places yipon the. shoulders of Sherman | ing about California Raisin and Fruit telegram from Frank, who indicated |« TH L, 81 I8 R already charg: the complete responsibility of the ruin| Growers' Association, bore its . good the progress of the conspiracy as he THE ELECTRIC ROAD HAS AL. i getfigcfil};p?ggt'fifl ‘;’thetger’t;%‘;' in- of the Pacific Bank. The young banker | Irult, He came in to-day and bought S jinderstood it. His dispatch was as| MOST RUINED US, AND SHER- crease the present indebtedness to the Tefers bitterly 1o the fact that through | and we have several others that have Qc . P) / 7 ’ > e :{‘;i;ng el Stronblntth Bt b MAN IS A FOOL.” f,?;“{‘,fl; Aoy Sps Suis fa A0 the agenc: Sherman the Pacific| Promised to purc A7 T Ho: claitas. yoitanc: Jalnis made o In fact, I wish to have Hill's crowd, . I hope we can make It has not infrequently been said that if possible, pay us back now the | Bank had accepted $381,000 in prmu-‘ il : g tract with 'him for new 6 t y gement with Captain on his per_cen B e e sl g Capta bonds, which we must issue and de- | When thieves fall out honest men moneys we have advanced Hughes and cally, worthless bonds. Sherman was| money, for it is discouraging to: be e i A LI RN their dues. M. H. Sherman ang troy| Martin and step in our place, and then bitterly 'deriounced for Pacific Bank into this deal. published to-day will also show desperate measures to which bankers resorted as the end drew ne trapping the The letters the | the | trying to get in money and then have him draw it out. We must settle with the institutions here before we think of settling among ourselves. ing to sell father's real tate on Sac- ramento street and S13 Sutter street, and try to sell the remaining bank real .. Let Miss Grant look after these FRANK STANDS UP THE SOUTHERN PACIFIC. On April 10, 1893, Frank wrote to Dick, telling him of his treachery to V. McDonald quarreled in New York. The result of that quarrel so far as there was any public interest in it is the admission of Frank V. MecDonald that M. H. Sherman and the Los Ange- les Electric Railroad were the agents Wwe do not care what happens. Now the question is, What is our plan to work out of these investments? As I understand fit, it is as follows: First— We segregated the property into two pieces, one of 4000 acres, on which col- ony claims had been sold, including the Madera town lots. Second—The other . Instead of attempting to récover them- by = Y i i " | things that offshoot of the Southern Pacific | through which ruin was brought to the selves Frank McDonald and his broth 1 think in writing to father you better = Company, the Pacific Improvement | Pacific and People's banks. In a letter| DieCgOf Some W0 acres we formed into plunged deeper into wild speculation again mention the fact that it would Company. Frank needed money bad- | Written on April 21, 1893, Frank V. Mc- [ ers’ Association, of which we own the Their crazy financial fancies had fuli | D¢ desirable for him to sell those “r A L ly; he knew that he had the Pacific | Donald characterizes M. H. Sherman as| stock, and which ought to be worth o swing and new and heavy I fncurred The es were voung bankers knew that houses and Electric stocks, even at a and T shall do the same. Tell him s the time we need coin to meet n obligations. Hoping you Tos: and took a desperate chance. Improvement Company by the thro:t The young schemer also told his brother a liar and a fool and the one person above all others who is responsible for the wreck of the bank. During all the good share of our 000 debt, if not - all of it. Certainly, if our scheme of selling either the present coupon stock bonds or if the new scheme of issuing they .werc being . more - careful are nob EiliE Wy 4 0 ay under the strain, Hn how he had failed to get any monej | Silly negotiations of the conspirators in watched By the official examiners and | as I am, and that success may crown out of his father. The young man mrote | New York to negotiate the electric road | 15y Sorai8ht Fmeal e T your effort 1 bonds, Frank McDonald was. never| this jand alone. recourse was hi fication of he$ooks. In this that did not belong to them. New Ventures in which vast sums of money Wwere sunk escaped and such specula- to' a deliberate falsi- | way | seme of the old and disastrous schemes were made responsible for heavy losses I am as ever, your loving brother FRAN The foregoing letter was written nine weeks before the Pacific and the Peo- )] banks crumbled. When the epistle s penned, Frank McDonald and his brother Dick were playing their double parts of fools and knaves. The Cali- as follows: NEW YORK, April 10, 1893 My Dear Brother: I have been after father to send you his stocks to sell but thus far without success; but ne to-day turns over this little dab of fifty shares of California Electric Light to be sold for his account and he says to send on his two hundred blind to the fact that these bonds were never worth more than fifty cents on the dollar. In other words he charges that M. H. Sherman had already cost the Pacific Bank more than $580,000. It is pertinent to remember that not only the patrons of the Pacific Bank but tha If Tomblin had not thrown away $12,- 000 of Elisnor property 1 got from Baird and had not foolishly —bought that fraudulent Madera Bank stock from ‘Woodward of Fresno we should be in some $17,000 more than he has blun- dered away from us. While I have no doubt Johns is doing the best he can for us, vet I feel he has made some tions as the John Brown colony were | fornia Raisin and Fruit Growers' Asso- i thirteen thousand poor depositors of debited with great - sums never re- | clation to which reference was made ) & Shaorse them” and 1ot you scil thum | the People's Home Savings Baak are| plan £Or the future with the Hill peo- ceived. In this way the thieving bank- | was a-scheme concocted by A. F. Johns U b o t00. 1 hope to-morrow to have an- |interested in this letter. The epistle fs| B 209 % TPERC 08,08 %nd 1'% ers were enabled to plan and execute | to further his own ends and feather his other check from the Pacific Improve- as follows: have a good place for his son and also new robberies under the mask of old | ©Wn nest. e McDonalds were in- . ment Company An_paymen! or_an- t a good slice of the stock. uhis is bt d t. The McDonald: i C t £ April 21, 1898, gel f the stock. shis i 7 badk specriations: | veigled into it, and when the banks “"_f ‘4_ other batch of their bonds. They My Dear Brother: - T.Nave writan ts the reason he is so anxious for Hill E practically agreed to take them all bo- you several times to-day. but I only to get us paid off and get <closed u THE McDONALDS REBELLED AT HART'S EXAC T{ONS. failed the colonists of the John Brown | Colony began to discuss legal proceed- ings to Tecover land that they insisted had been stoien from them in the or- fore this, but they are so hard “E and are obliged to redeem so many bonds they have guaranteed to teke back, that they ask for more time and are ay accrued interest wish to add a line about Sherman’s saying 1 got away with any. electric bonds. It is a lie, and the records of the number of the bonds and where with us, so_that he can turn in.an work with the new crowd. The things for us now to consider carefully are whether: we -want any special work done by Johns before he joins the In ail the correspondence of the | ganization of the California Ralsin and even willing to 1 = ‘managers, manipulators and wreckers | Fruit Growers’ Assoclation. from the first of the month for our | $ech 1S Will show It while on the con- | OO Srowd. I think we ought to waiting. 1 hope, however, they wWill | bonds to which he refers are those f | keep friendly with him for many rea- of the Pacific and Peopl s banks there is no more important decument than a | In all the wild ventures of the Me- Donalds there was nothing ma surd or more dishonest than the organ- 2 ab- come to time to-morrow. Our placin; them with the Commerce, Park an sued in partial compensation for the losses made by the bank in taking sons, ang ieeinohregfion‘ why we annot. Your loving brother, 3 FRANK. telegram which Frank MecDonald sent Chemical and then stirring them up electrics at par and in my bei @, s | ' 0! . 2 5 to R H. McDonald Jr. on February 5, | lzation of the All“}“; SoEl Semnen e ~ t with our own brokers and finally ‘my obliged to neglect so many things for To-morrow morning The Call will 1892: It has been hinted that W. H. H. | The McDonalds placed . H. Eastland wz threat to place them in the hands of the electric' 10ad that subsequently |.onclude the presentation of tha let- Hart, who was then Attorney General | at the headdng‘thh:“?;:;crrl%, Lm;m‘mmg 7 the aucugncer.tA%grfi Mul&e% a(nd les xl'esulte‘ddln lo;ses to the bank and that | "¢ Frank V. McDonald, and record of the State, ha teglecte ; him :to overdraw v ousands o them go down to need be (we of carried under my name as trustee. . . 2 e State, had reglected his duties course buying them in to protect our- The bank got every bond and they | the secret history of the ruin of the in connection with the McDonald in- stitution and the Bapk Commissioners. The Call is enabled to state positively dollars on the bank, and not satisfed with that guaranteed thousands of dol- lars of his coal company’s stock that was not worth a cent. The character selves), and thus have a public quota- tion that would be disastrous to all their business of sales and borrowing. took the place of the trustee account, I even putting into it bonds that ought to have been mine, but I considered my first duty to the bank. Pacific _and People’s banks as that young financier helped to make(it. In the concluding letters of Frank is the this morning that W. H. vas hi ould not stand, so they F crimi i Gonusion o1 thanret Me. | of this coal company may be very are buying them in as fast as_(hey AL BB IR R L S T "?‘“"fi%"’w":&'éficfi“%'}'éfl’ &‘"’3‘25.’{ Donalds and was demanding I and | clearly understood when it is said that can. The auction matter was the last | off may eventually earn something for |Of $600. pe financial accommodation for e os 804 | 5 existed only in the brains of those Gesperate remedy, and If it falled | .the bank if ever the unfortunate con- |to close the existence of the two,insti- o commodation for his silence | 0 °F\" /0" L oanized it. There was no would have broken my own markct | dition that the eleciric road has | tutions. and for his refusal to force the man- 1 in Alaska, and the company had and made us lose greatly more on plunged us into will enable me to give _ agers of the wrecked bank to stop their | €031 in ity than that giv theirs. Of course you understand while my attention to the development of Teachers in Séssion. robbery. of the depositors. The first | PO Other reality than that given to it the sale was made through Crane, an them. But whatever we may make 7 ting of San Francisco school proof of Hart's collusion was given in | OF PAPCr- acquaintance of Eastland, and ono of | fram them will be & mere bagatelle |, o cners was held yesterday in the audi- Hatolioming z THE McDONALDS FEAR A CON- e o d sl T ntooin il aaki causing us with 1000 in Bonds | sorlum of the Girls" High School, the ob- 1.OS NG i od as wor es: us in our safe. ects e " R 3L Mch SPIRACY BY FITCH AND e aEencley e e Omy | - Sherman is a fool on this subjéct. | piace betore the department the coming Ban- Eruncis to-morrow JOHNS. Sronably Bastiand got one-hait of ons | He does not seo that that road has |session of the Callfornia Teachers Asso. Monday) 1 ity “ 0 o 0 ear! ruind us as he has engineert ciation a ani sa, $ N s City, Cin per cent the better price. I am alraid. | Rear fUrce Yo B8 o0 00 Pl cents | inciusive. and secondly, to listen to a lec- cinvati and progreesing Matters here apidl Shortly after this letter was written the 8. P. people do not love us very much_ for forcing them to buy. would be dear. God only knows what it will yet cost us to get out of the tu deufvasrted fbydl’{xes;l‘:l:r\':&t David Starr anfors ni o I eae v, ‘hilds of tl?e California fis we all can se ; use nor harm in Frank McDonald sent a telegram to his though they have made us lose Sl thing In all its complications. President C. W. C! : s & : bad faith in not protet. B e § Al you better not give him that accom- . | brother in this city and to A. F. Ju;’ms “ U 99| 000 by their 1 have not a single bond in my name | Teachers’ ‘Association spoke in a gener: n If 2 vo He ¢ - ing their securities as they said tley f the proceeds of in features of its com ?J(%“x ;y e T e e i | in (CHicago. s These telogTame giye the SHERMAN HAS ALMOST R INED Us' would do when we bought them. Your e bt thenyn bo'faa."fii'g:"‘% L e particular AR talk, and it will not do for s o pe | Arst sign of a quarrel between Johns| ;oo oo pefore the fallure of the banks Frank McDonald wrote a letter in | loving brother, FRANK. me ¥ have more than put back out of | the coming of President G. Staniey Hall mixed up In it. We have accommo. |and the McDonalds. Johns was. then which he placed on the shoulders of M. H. Sherman the responsibility of the | THE CONSPIRATORS HABITUALLY | my salary and out of what pa allowed | of Clarke University, who is the foremost dated him enough and you can safely refuse him. FRANK. ORGANIZING NEW AND DISAS- TROUS SPECULATIONS. | ‘hicago with Thomas Fitch Jr.. both ;l;gclng g;o flée( the California Raisin and Fruit Growers’ Association to thzir own best advantage. After working upon the McDonalds for years, Johns ruin of the two institutions. ‘While the banks had been led into many disas- trous speculations, none had been more disastrous than the Los Angeles Elec- tric Railroad Into which the bankers had been inveigled by M. H. Sherman. In April, 1893, Sherman and Frank quarreled and in that quarrel the two con- spirators revealed the secrets that are now of such public moment. The = FALSIFIED THE BANK RECORDS. - Frank's thievery, deliberate and con- sclenceless, was never better lllustn‘tgd : than in the letter he wrote on April 13, dends in money that I have snent for the Pacific and People’s ‘Home. This ° you can snow him at any time, and Ke dare not deny the truth of it. But ¥ 've him on the sub- ect is as good as thrown away. You Jeet of child stugg. Ir conclusion Profes- sor Childs invited the whole department to the next session of the California Teachers’ Association at Santa Rosa. The address of President Jordan on “The Duty of the Scholar to the Community’ aw that the time had come where he : uty When Frank V.. McDonald again | o v body else more imile given above is an excerpt from McDonald's letter of bitter accusation |1893. In this document the dishonest|. better keep this letter, as In case of |full of thought and was appreciated g:x‘gglem;ka:gos% ;‘;n;;eue}d th; quar- namnn Moses H. Sherman. s % e ? “{son seeks first to save his dllhopgt - my death might be dishonorable |greatly by the many teachers present. wrote to his brother the letter was \