The San Francisco Call. Newspaper, November 9, 1898, Page 4

THE SAN FRANCISCO CALL, WEDNESDA “SHERMAN HAS PLACED Dr. R. H. McDonald Writes More| About the Shrewd Los An- geles Manipulator. Pathos, Still Characterizes the Aged Banker’s Epistles. ast leading the: . Dick McDonald & disgra k roundly to the banks e was nc and clung the a dollar left ir in condemnatory terms revie wisdom of his sons in entering futo wildeat 2nd unprofitab! tions. Th writer dwelt hile h that M ible other mar of D. S. D ney p be ex were written not yet tr of the Grand Ju S. Dorn Flavored With Extreme Bitterness, | THE AGED FINANCIER DENOUNCES ¥yet pro: otect him from that tribu DR, McDONALD REFUSES TO! PLED! HIS PRIVATE FORTUNE. few There dertul coll of the Paci letters in all the won- tion of the corrs fic Bank and the McDonalds that are more general publ a pathetic interest than that of Novem- ber 30, 1852, In this letter Dr. McDon- ald writes two emphatic instructions to his sons to burn the epistle after he has read it. In one place he counsels Rich- ard to read ihe l¢ ondence. | :r twice over care- | fully and then burn it, and in another | he reiter: the -epistle to the f ald had just receiy son telling him solution of the s the infunction to consign ar Dr. MeDon- ed letter from his f Pacifi 3ank and the ) the approaching dis- | destruction of the Peopie’s Bank. and | begging hi to return and mortgage his property for the benefit of the de- positors. Dr. McDonald had given his solemn ~ron:se to the Bank Commis- sioners that he would do this. He had left this city with that prom- ise on his lips. He had made it twi and had deluded the Bank Commission- era as to the time when he would re- turn and keep his promise. When his son begged him to fulfil his word, the old man replied that “if the bank must go down fo vant of my money it will not receive one dollar of my pri- vate fortune.” tive refusal to o which he was pres then gave a piteous propt downfall of the upon his children with h The letter t the institution of nd his family, and uel lash struck follow: Sunday NI, Nov. 30, 1892, My D 1: 1 went to at i1 a. m i'enjo: in regard ¥ a mort private for th the bank, for thé securit and satisfaction of som. dllow me, my son, T shall never do anything of the kind, and if the bank must go down for want of such actfon it must go. I will not submit mysclf to any such ge of my ecurity of of others parties. Now say to you that property ank. he then turned | Having made this posi- | them again. | sad this over burn it up, hands. er | | [ ! THE MEN WHO RUINED ‘ THE BANK | ry of the frauds and | the Pacific Bank can be was given by Dr. R. H. Me- | n a letter on December 5, 1862. | n in this epistle character- | ome of the men | the measures that Bank. The aged | ned the Pacific financier who was striving to save his own private fortune from the wreck s to e upon his bank ex- the men that attached them- to Dick McDonald and were | and the Pacific Bank » destruction. letter which will follow Dr. d bitterly denounced W. H. and as an utterly useless speciai | detectiy day .m , a dangerous man who some | ght use his power and informa- | of blackmail. In the | of the old doctor W. Jen- 1 is one of the biggest liars to be 1d anywhere and absolutely unfit for #ny trust. George Mitchell is with- out wisdom, judgment or experience. o confidence can be placed in Sher- and the whole crowd are harpies ng upen the bank. Dr. McDonald ly knew these men. For years h: ad been intimate association with them a by right of knowledge and the privilege of authority knew them better perhaps than any one else could knov At the same time Dr. McDonald d nounced his son Richard for his unw, and unfortunate secret undertakings ost the bank many fortunes | fast tainting its reputation. paid his respects to'the manip- ors and their manipulation Dr. Mc- Donald, with the wisdom of the fox, s son that nothing must be | rom the old man a scrap | of paper that might make his property | the crash at the old his judg- | parasites as he was V in seeing the end of the Pacific Bank and protecting his private for- tune. s i sting and important in a that had NEW YORK, Dec. 5, 1892. v Dear Son Richard: You havi on sent Mr. d here, for what special purpo: have thus far been unable to learn. He pops down here without notice as if sent as a_special detective. I don't see how he is to be of much use in the negotfations goiny on or any that is to €ome up. I confess J am suspicious of him, and fear he will turn out a dangerous man in the end. You seem to have med all our doings and bank vate affairs to him as I think you should not have done. He is evidentily a bright, smart fellow, who seems to do much of his talking in a whisper, and 1 have always been suspicious of such. turn upon us and do us great g or extort large blackmail. ou are and have been sending such as he, Jenningson, sitcheil and n from place to place, whom I ve done far more harm than and we know they have done ¢ in more than one instance. You to have a policy way—a cunning 2 of doing things that 1 know any- thing about, and nearly always proves a boomerang that hits the party on the head that attempts to manage business in such a way, and will be likely to prove injurious to us in the business now in hand. » That Jenningson, he does not know much, but I believe him to be one of the biggest liars you will find any- where, and always looked upon him as an unfit man for the trusts in his hands. But all these situations you took 1In your own. hands, keeping verything from others until in the 1d. And there is Mitchell. I have a nion of his lbl]l(§ for outside : and as for Tomblin, there is in discussing his wisdom and Qur experience with him that matter, Now turns Bastland. What he can or ¢ill do here remains to be seen. 1 hope will turn out better than I at lge working llke a present time expect. Sherman . _but I have little confidence in Now about Jenningson. Please ot money and fin; success out of it bevond the cock mfi} bull stories he tells you and others and seems to make you believe them. While here he was utterly useléss for any good, and laid around doing noth- ing and not trying to do anything. I think him 4 cunning, low down, unre- liable Jew, that will be likely to prove highly injurious in the end. ~ How you ever fell in with and placed your con- fidence with such a man I cannot teil, How much there is in this detective, Mr. Eastland, I cannot yet say, but U3 IN THE JAWS OF THE LION” Crodld Rz ) LA > i —t — A 2>, 2 Z « € Ao TR, L7 T o 7 e Tz, Lo WE HAVE PLACED OUR HEADS IN THE LIONS' JAWS. There is in the secret correspondence of the Pacific Bank no more dramatic presentation of the true causes that resulted in the ruin of the institution tuan is given in a létter —ritten by Dr. R. H. McDonald. cier declares that M. H. Sherman deliberately set a trap to man said, had led the McDonalds iato the very jaws of t tor of Los Angeles would be responsible for the disaster. fact that if they went down Sherman would have to gd" of craft with which Sherman entered Into his scheme-and e D A In his®letter’the old: . 72:,?% T / | R &R Seats: $75,000 same - cer. < | fificates 1ssued to Sherman, same rate | 6f Interest, payable in four years. 2{<~ | 'There seems an indispensable heces- | sity to procure this money for the brotection and safety of the Los An- v Eeles Electric bonds, and if not paid | SUits will be commenced by adverse - [ @%Mo% > I catgh the Pacific Bank and succeeded. he Mo, and if- destruction foHowed the craftv manipula- dewn “With thém. The writer did not know the resource arried it to a-successful congluston. ' . knaw when my God opens up the mys- fory to mae that [ shall be satistied and praise him. Here 1 wiil close this lptter, After reading burn it up in your | owi presence, Affectionately your father. R H, MeDONALD. PROTECTING THE LOS ANGELES RAILWAY BONDS. ember 16, 1892, Dr. McDonald explained to his son. Richard the part he had played In the creation of the Caltfornias Ralsin and . Fruit Growers' Assoclation, which absorbed hundreds of neres of the John Brown colony. The old man wrote as follows: others here deem- T aee “Frank, Johns and x od it hest that we ssue certificates of ~o the Pacific Bank, payable in two and i vears, to whieh I have consented hftor the ‘apparent necessity of doing N0 ana’ signed these certificates as President of the Pacific Bank. These certificates are’as follows, and for which certain securities are given Which are decmed good and reliable, the barticulurs of which will be explained Po 'you by Jrank when he arrives at home, Wh 1 hope, will be soon: ey A $30,00 gold hearing _ certifica Poaring 65per cent, 10.0. T. Dyer, pa. Jarties that would ruin all prospects of {!n' sale of these bonds ang of the en- tire road. All hands’ have been hard at work all these weeks and months, and seem near the consummation of a sale and it must not fall through for a little money to put and keep it in a salable condition. Mr. Dyer has been of immense advantage in carrying forward this sale. It was certainly a great. great, great blunder to have al- Jowed him to have gotten into us for such a large amount and his affairs | entwined and mixed with ours as it has been, but we are in for it and the | question is how to get out and save | something of our mgney and what we can of our family from moral turpitude and ruin as well. | The foregoing letter indicates what | flattery, sycophancy and craftiness | | ) ? A | were worth to M. H. Sherman. Another guarantee of $75,000 was certainly worth some concession. SANCTITY AND SHREWD BUSINESS FORESIGHT STRANGELY AS- SOCIATED. The elder McDonald could pose with quite as much hypocrisy. as his sons. The following letter needs no comment; it speaks for itself: NEW YORK, Dec. 29, 18 A o My Dear Sons Richard and Frank: would rather give up every dollar I had on this earth and pay off all my debts and stand before the world as I have always tried to do, an honorable and honest man, than to live in this finan- cial condition for years longer. This utting my name on future notes I Rope will by some raeans be stopped. In the case of disaster it would be hard for all hands. It sri,uuxd‘et‘af stopped by all means. ectionately youpl'p father, R. H. McDONALD. «QUR HEADS ARE IN: THE LION'S JAWS." On January 14; 1893, Dr. McDonald penned a letter that will be remem- bered as long as the story of the wreck of the Pacific Bank. After two years of fraud and failure, conspiracy and theft the McDonald family realized that the wreck Of théir fortunes and their names was due to M. H. Sher- nan. When this realization came to the banker the old man- wrote, “Our heads are in the lion’s jaws and “we In this epistie the agen finan- Sherman, the old man eongratulates: his son.on -the fear he will put a ring if not the entire 1§ doubt his sit here to and 1 do should in ¥o f ur pies are enough < to profiuce a panic with ,ank, and just here iet say that 1 fear some of your priv and unwise speculations are bearin, pretty heavily upon the bank, viz.. th Californian, all of which has bee down upon your head by the mis able flunkfes tha Zot _into business. Then that in themse almost an; s let vestments a lesson sufficient to yo u it has not been so. Now com letter h, push, or all N other 'business stand such_drains upon them as we have had. This morning I went to the Chemical Bank and got an extension there on the $200,000 for another four months at 6 per cent, Wwith the privi- | Jege of paying on the note at any time. 1 h: o indorse this note personally, something I dislike to do. It would be unfortunate for ail if any failure should come, as in_that case I would be personally involved and my prop- erty tied, and you cannot fail to see the importance of as much freedom for me as possible under such circum- stances. After you have read this letfer, de- stroy it at once. _Affectionately your father, R. H. McDONALD. THE OLD MAN GREW BITTER| OVER THE TREACHERY OF | EMPLOYES On December 11, 1882, the elderly Me- Donald wrote to Richard telling him very calmly that if he were not very careful he would break thé Pacific Bank. This is the first warning that any of the conspirators cared to give each other that the end was apprnach-{ ing. The old man suggested that if | what his son knew ahout A. F. Jchns | was true they sooner they got rid of | that gentleman the better. Some rather | caustic advice concerning the divorced wife of Dick, Clara Belle, was given, and the old gentleman closéd wishing his son a merry Christmas, and to con- sume the letter in the flames before his own eves. Dick overlooked this in- junction in the rush of holiday busi- hess and the epistle is as follows: NEW YORK, Dec, 11, 1592 My Dear Son Richard: I have spent considerable time this afternoon in trying to read your letter of the 1ith - | inst. ?n which you criticize Mr. Johns, | all of which T hope tyou will explain fully to Frank, and if he is what you think he s _he should be gotten rid of at once. This misfortune with us it seems that we cannot secure clerks, any of them of such ability as can be trusted with our business. That Ma- dara bank and our vineyard there troubles me. I think it dangerous. It will prove a hole into which a great deal of our money will go and be lost if great care is not taken. That Ce- dar River coal mine must have atten- tion or there will be great waste there. If in fact you are not careful the Pa- cific Bank will be bursted, and that will be the end. Sister Josephine writes me a letter just to say that she understood that Clara Belle was living with her father in Carson City, Nevada. 1 cannot be- Jieve it, but it may be so, and if she is there 100k out for her for she will come upon you in one way or another, and if you meet her again there will be a revival of the old scandal, damaging to you. My boy. you have not seen the Jast of that designing, wicked woman vet. And she is so much smarter in her schemes than what you are that You are at a great disadvantage. If You were to appear to have less anxi- ety to get your child the sooner you will get it If you can get it at all. ~ At one time she cared very little for the child, but now as her last hope of re- spectability to lean upon she will prob- ably hold on to it with great tenacity, and if she can seil it to you she will |- In his old age he saw the work of hls! | another loan of $1000. | his flattery and craft obtained $100,000. | begged Dick to remember that after steal it from you again if 15 _possible. You will be followed up and deviied by thbat woman as long a§ you remain as you are. 1f you weuld get married; to some good woman it. would be the end of-all your troubles. After read- ing this lefter over it may be well to give it to Frank to read and then con- sume it in .the flames in your own sight. : Wishing you ‘a merry Christmas, T am affectionately .vour father, K. H. Mc OXNALD SHERMAN'S CRAFT WON ONE HUNDRED THOUSAND. DOL- | LARS MORE | On December 13, 1892, .the old man, bowed down by the weight of worry, penned a letter touching sadness. He | reminded his sons that they were re-| sponsible for the wrecking of the bank, an institution that had been his vride and which he hoped would preserve a fortune and bring honer to his sons. | sieh a thing life crumbling into worsge than nothing, and he cried to God to explain to him| this mystery of misery. He reminded | his sons how he had fought Sherman | with all the determination at his com-, mand when the Los Angeles conspira~ tor came to him -again to demand The old man wanted them to let the road go and suffer the loss a€ it stood. His sons overruled him and Sherman in As if this were not encugh the old man they had lost $40,000 ifv the John Brown colony he wanted to draw out and| charge the loss to experience, but they would not listen to the advice and went] deeper into the scheme until they stood to lose $300,000, with absolutely no pros- pect of saving themselves. Dr. McDon= ald’s letter is as follows: ASTOR HOUSE, N. Y., Dec. 13; 1892, My Dear Son Richard: It does seem if anything can be relied upon that there will soon be an end to these de- lays and we will get-some money, but that bad, bad, bad. bad Los Angeles: road bullding is indeed a severe blow to us, and how much we will lose by it, is_not yet easy to estimate. You will remember whern Marble and Sherman came to me at Paso Robles Springs and pressed me to loan $100,000 to help the road I refused and was stubborn and determined .to let the road then-and theré go into the hands of a receiver, and we take our chances with others as to the outcome, byt you and Frank went on over my head and did the very '.hlngr I had determined 1 would not do. If we had stopped there we would have J’rohnbly ost from $25,000 to’ $50,600, and now we will not get out of it in a loss of two or three times that amount. ‘When we were into the John Brown - colony for about $40.900 I stopped and let it go, make what loss we' must and get out of it.. You and.Frank lift- ed right over my head and made a’ 300,000 debt of it all told, and if we clear up with a loss of $100.000 I will feel well satisfied. ~“And other mat-, ters have gone much the same way. Most of them planned and the obliga- tions made in secret: Had the facts been known it is not likely ‘that they would have occurred. But-we are into this unfortunate dilemma . now, and there is no use for us to complain or rowl of sweet milk spoiled and lost, he question is how to get out of them if'such a thing be possible. The failure of the Pacific Bank will be a terrible blow to me in my old age. It has always been my pride and | intended as the monument over my- grave and'a rich inheritince to my children as an honorable’ mention to them and by the people of them. But we know not what a day may 'bring forth, It’is sald riches-t for them- selves wings-and fly away, very often, - the truth of which we are .verlfyln;"' While these financial matters are | deed troublesome, they are mere mat- ters of money, and I never did care much about money in my life for the sake of having money merely, and v B Iwm be crushed.” S!wdm:‘an hh:f; selr; a therefore T could lose it without any |steel trap for.them and they taken great Stress of imind on my part, after | the bait, but Sherman had fallen into T have done my humble best to.save it. | the same trap and the old man assured I_often ask myself in humiliation | his sons that the Los Angeles schemer and_prayer why has this humiliation and distress beén left for me to pass through after I have passed the three score and ten milestone. I know it must be for some good purpose, and I will bear it as well as I can, for I them. . The letter is a most remarkable one and-is.as follows: NORFOLK, Va. My Dear Son Richard: Jan. 14, 1833 Your: letter | must fight with them or go down with | of the G5th inst. before me in which you speak of accepting the $400.000 for our Los Angeles bonds and t 1T of opinion between that subjéct. In ar cannot consent to -t! opinion on so important = matter as the one involved. $3ir i Frank hs matter a great ‘deal of thought and ‘attention and. his opinion on the subject should be duly considered and appreciated, I thin ‘We have our heads in the lion's jaws just ngw. Let.us.be very careful. thoughtful and considerate in’geftin it-out or we will certainly:be crushe by the animal. W you s; about Sherman I fully believe and appreciate, but-don't forget that he is in_the pen with us and is a full partner that not be ignored at the present time. And we.mu common effort and common battle to- gether or all is°lost and we must go down together. And it will nat do to offend or kick him just now as our business: matters stand. We wikt only the more injure ourselves in doing so, in all prébability. This whole- matter from the start was a steel trap set to catch the Pacific Bank in. We have taken the bait and the trap was sprung and we are fast in it. -Rbe question is how to get out alive and:if so with as little injury as possible. If we can get back on a solid business ba: tor a . loss of one-half of all my business In- and one- fic Bank sonal property out- 1 feel quife well satisfied, taking into account thelosses by the John Brown colony, Cedar Riv- er Coal Company and other losses upon us and likely soon to come,upon us. The question_now is ¢ we may save ourselves from utter ruin and dis- graceful bankruptey. e whole g these matters are now in hands of and under the control of you ,and Frank and they will go up in safe; down in Tuin out of y | you are much more Succéss than what 1 am, | Frank are to live a zood 3 | all probability, with Your reputation stalle. At most I bave but a very fe months or vears to live an ambitions have subsided ex good pame, which 1 a b 10 pressrve,.nst so muc) for my chitiren and my tionately your father - R. H. McDONALD. The Call will conclude to-morrow ret history of the ruin of t 0 banks. This phase will be finished in the pre: tation of the last letters that Dr. R. H. McDon- ald wrote to his son Richard before the ing ofsthe Fanks. When these have been published The Call will begin a remarkab ital in which | Moses H. Sherman d D. S. Dorn and | the manipulators of the Los Ange road will play their part. SHE WAS TOO GAY. - 1 Walter N. Parrish A-swers His Wife’s Complaint for Divorce. | On October 22 Mrs. M. Parrish filed with | the County Clerk a divorce complaint in which she asked that the bonds of matri- | mony “existing between Walter N. Par- rish and herself be annulled. In' suppo of this she alleged extremest cruelt: profanity, intoxication, destruction of bric-a-brac and treatment so repulsive as to cause her the loss of twenty pounds in weight from mental anguish. Yesterday Walter N. Parrish filed a de- tailed and explicit denial of the allega- tions set forth by his wife, except for the smashing of the bric-a-brac, which, he | says, was his own, and was demolished in a fit of passion when his wife squght the company of cigarette smoking women. He further denies that he has caused her mental anguish sufficient to reduce her weight, “‘eXcept when remonstrating with her for her light and giddy .conduct, and her overwhelming desire -to go upon the streets and to rush to- daneing parties.” He claims not to have been seen -eoming out of a saloon intoxicated, or having ever accused his Wifé 6f unchasfify, He allegés against wife thi le residing at Milt Valley in'® n&"‘;fl;’hé avenue, “and spent most of her time at theaters, on the streets, at Hyde-street beach, at the park and at numerous dance halls | in the company of men other- than her husband.”_ In consideration of all this the defend- ant asks that the plaintiff be net granted a decree of divorce. —_———— Lurline Salt Water Baths, Bush and Larkin sts. Swimming, Russian, hot 2nd cold tub baths. Saltwater direct fromocean. —_—— AN UNGRATEFUL SCAMP. George Graham Arrested for Stealing From a Lady Who Befriend- ed Him. George Graham, a laborer, was accom- modated by Mrs. Langley, 513 Stevenson street, with room and board till he could find employment. He repald her kihdness by stealing her purse containing $44, her gold watch, £0ld pin and a suit of clothes belonging to another roomer. The police were notified and early yves- terday merning Graham was arrested by Policeman Say and booked at the ity Prison on a charge of grand larceny. He was wearing the clof and the gold watch possession. The purse found in" Peter Smith's saloon, T ard street, where Graham had 'left it. he had. stelen Men's Diseases Men's Diseases ~ Men's Dissases e | Men's Diseases L= "1 Men's Diseases P $EAsES ARE ' USUALLY brought on by vice, dissipation or some form of abuse. Some men sin in secret, vthers sin opanly. No matter how the sin:ts oomm ted, no matter how the abuse is done, ho m: ter'the form of abuse, the victim must sacdly pay the penalty. .It is a serious affalr. man can hope to be a truly vigorous, manl man if he is suffering vasting, linger- ing. declining disorder. No man can be-ought but' a thing it he is suffering from exhaustini debilitating dreams. _Another form of disorder, or disability, comes from prématurity. This rematurity is the first sign of the weak and You mbst stop it. One of the last- for this form of disarder is the Ku Huds ancholia, falling sensations, burning sensations. y2n can bs had enjy from the "nd‘s‘n‘ My i van cures lost vitality, evil dreams,. mel- diaziness, Weak, Hudyan is for man. Hud ou take Hudyan vou b oo tainly_and speedily cured. Your weakness will Ro. Your pinabliitles will disappear. . Your sleep refreshing. Consult the Hudson doctors free, or write for Fyoma NEW CIRCULARS. A A i HUDSON MEDICAL INSTITUTE. 30-DAY. CURE &S %es, it s e 30-DAY CURE =2 ctors. It ONE HUNDRED THOUSAND MORE FOR SHERMAN, n_one of the létters of Dr. R. H. McDonald is the story of another of the .. .schemes of M. H. Sherman. In this letter the ‘old ‘man rebukes his sons _for having.glven Shérman one hundred thousand dollars more to #ssjst the .. Los Angeles electric railway road after the road had brought the Pacific Bank to the verge of bankruptcy. This letter shows what a tremendous influence Sherman exercised over Frank McDonald, and leaves no possible question of the fact that Sherman was using the bank simply to float his own personal private proiects. 30'DAY CURE sufter from . the firs secondary or tertiary 'you can be form of Blood Potson cured by our 30-day. cure. -Consult our Doctors for nothing. . ITE, EUDSON MEDICAL - INSTI Stockton, Market and Ellis Sts.