The San Francisco Call. Newspaper, November 22, 1898, Page 1

The Call the Librar}_ * ‘e e " VOLUME LXXXIV.— PRACTICAL ULTIMATUM | PRESENTED T0O SPAIN CASH QFFER MADE FOR ThE PHILIPPINES Twenty Millions for a Treaty Cession. THEIR FINAL PROPOSITION SIGNIFICANT REMARKS-® UT- TERED BY JUDGE DAY. Americans Preferred Not to Resums Hostilities—Arbitration Re- jectcd as Being Entirely TUnnecessary. PARIS, Nov. 21.—The United States Peace Commissioners have undoubted- ly made their final proposition here. When the conference opened this afternoon Judge Day, addressing Senor Montero Rios and his colleagues of the Spanish Commission, protracted negotiations and reaffirmed the desire of the American Commis- | purpose of the United States to main- | merchandise. SAN FRANCISCO, TUESDAY, NOVEMBER 22, 1898. ! recurred to the | tional and individual, since the out- break of the last Cuban insurrection. Should she refuse she would also lose, probably, as further indemnity for the | expense of conquest, one of the Caro- |lnes, which she may now sell; and| other cable privileges within Spanish jurisdiction might be taken by the United States without any return to Spain for them. This evening the Spaniards, doubt- less, do not know whether they will ac- cept or reject the American terms. They are telegraphing the substance of | the American memorandum to Madrid | and they expect a reply at Wednes- day’s meeting. Possibly they may conclude that be- cause one money offer is made another and larger offer may follow pressure upon the American Commissioners. But if this be their expectation it will not be realized. The American | t s, submitted almost at the close of the eight weeks of patient hearing and painstaking argument, are a practical | ultimatum. Saevs vl |WHAT OCCURRED AT THE JOINT CONFERENCE [Substance of the Final Terms Sub- mitted to the Spanish Com- missioners. PARIS, Nov. 21.—The Spanish and American Peace Commissions met in joint session at 2 o’clock this afternoon. The Americans declared they must have the entire Philippine archipelago and for a treaty cession of the islands the Americans tendered to Spain $20,- 000,000. it was further declared that it is the The Americans also refused to arbi- trate article 3 of the peace protocol, bearing upon the future disposition and control of the Philippine Islands. | The meeting was then adjourned until ‘Wednesday. The memorandum of the American Commission embodying the above propositions is long and, was not read in full. The vital portions, however, were communicated verbally to the| | Spanish Commissioners in practically | these terms: The fact was cited that the proposal presented by the American Commis- | | sioners on behalf of the Government | for the cession of the Philippine Isl- | ands to the United States having been | | rejected by the Spanish Commissioners | and the counter proposal of the latter for the withdrawal of the Americans | from the islands and the payment of an indemnity by the United States to Spain having been rejected by the | Americans, the latter deeming it es- | sential that the present negotiations, already greatly protracted, should be brought to an early definite conclusion, now begged to present a new proposi- tion embodying the concession, which, for the sake of -eace, their Government would, under the circumstances, be willing to tender. The Government of the United States is unable to modify the proposal here- tofore made for the cession of the entire archipelago of the Philippines, but the | American Commissioners are author- | ized to offer to Spain, in case the ces- sion should be agreed to, the sum of the terms fixed with the treaty of peace. the United States to maintain in the commerce, the American Commission- ers are prepared to insert in the treaty | now in contemplation a stipulation to | the effect that, for a term of years, | Spanish ships and merchandise shall be | admitted into Philippine ports on the |same terms as American ships and $20,000,000, to be paid in accordance with “ It being the intended policy of | Philippines an open door to the world’s | | CONCEDE THE G in the form in which these demands have been provisionally agreed to. In this event it will be possible for the joint commission to ‘continue its ses- sions and proceed to the consideration and adjustment of” other matters, in- cluding those which, as subsidiary and incidental to the principal provisions, should form part of the treaty of peace.” pe It was at this juncture that the Americans notified the Spaniards that they desired to treat of the religious freedom of -the Carolines, as agreed to twelve years ago; also of the release of political prisoners now held by Spain in connection with the insurrections in Cuba and the Philippine Islands; also of the taking over of the islands of Ku- safe, or Ualan, In the Carolines, for a telegraphic and naval station; also of cable station rights at other points in Spain’s jurisdiction; also of the renewal of certain treaties previously in force between the United States and Spain, and which may have lapsed or been vitiated by wal ENERO™ITY OF THE UNITED STATES English Press Express Gratification Over the Proposed ‘‘Open Door” Policy. LONDON, Nov. 22.—The morning pa- pers concede the generosity of the offe: of the United States Peace Com- m ioners, and exprezs the opinion that Spain would be foolish tc refect them. They express universal gratifica- tion at the announcement of an “‘open door” policy in the Philippines. Daily Mail cal’~ ihe offer of $20,- 000,000 as {indemnity, *“a surprising act of generosity.” The navers generally take it for o+ nted that the ‘“onen door” will be adopted in the West Indles also. The Daily News says: The United States have now become an Asiatic power, and Lord Salisbury clearly had reason to predict that the expansion of | the United States woul. give Great Britain a valuable ally in China seas. REPORTED RESIGNATION | OF COMMISSIONER RIOS | It Causes Sensational Articles to Be Published in the Washington Newspapers. WASHINGTON, Nov. 21.—In conse- | WER.DAY CUSHMANKDAVIS ‘W2 P.FRY "WHITELAW REID GEOR.GRAY . JOHN BASSETTMOORE AMERICAN PEACE COMMISSION, WITH SECRETARY MOORE IN ATTENDANCE, IN SESSION AT PARIS. s gloners to reach an amicable con- clusion. Then, handing the American presen- tation to the interpreter, Judge Day concluded his remarks by saying that | the Americans, preferring not to‘break | the armistice or to resume hostilities, had determined to present another and final propositicn which he hoped would Jead to 2 speedy and amicable adjust- ment. That portion of the presentation set- ting forth the new proposal that the United States must have pos- gession of the entire Philippine archi- pelago, with a tender- of $20,000,000 for a treaty cession of the islands, was then read.’ Without betraying their mental attitude the Spanish Commis- sioners suggested an adjournment un til Wednesday. The new proposition, with its collat- erals, was embodied toward the end of the American memorandum, which flll ed thirty typewritten sheets. Only this part was read in the joint session, the memorandum then being delivered to the Spaniards for translation by their own staff. Spain’s proposition to invoke the of- fices of a third power to construe the words ‘“‘control, disposition and govern- ment of the Philippines” was rejected by the American’ commissioners on the ground that the diction of the third ar- ticle of the protocol, dealing with the Philippines, is so broad and clear as to afford no- justification for arbitration as between the parties to the agree: ment. An analysis of the American memo- randum shows thatjall other sugges- tions and considerations hinge upon treaty cessions at the amount named by the United States and with- in two weeks. In the event of cession, Spain may enjoy for a term of twelve yeats rights of commerce in the Phil- ippines equal to those of the United - States. the islands by conquest Spain may not enjoy such rights. Should Spain refuse cession she would remain liable for indemnity claims, na- 1f the United States acquire | door” to the world’s commerce. On the terms namedethe United States proposes mutual relinquishment of all claims for indemnity, national or per- sonal, subsequent to the outbreak of | the last Cuban insurrection. November 28 is fixed as the date on which the United States Commission desires a definite response to to-day’s propositions and all other’ subjects in i issue here. It was also declared that the United States desire a treaty on the religious freedom of the Caroline Islands, as agreed upon between the United States and Spain in 1886; also the acquisition of one of the Caroline Islands for an American naval station and of cable- landing rights at other places in Span- jurisdiction, and the revival of cer- | tain Spanish-American treaties here- tofore in. force. tain in the Philippine Islands an “open | The American Commissioners are also authorized and are prepared to in- United States a provision for the mu- indemnity, national and individual, of every kind, of the United States against Spain, and of Spain against the United States that may have arisen since the beginning of the late Cuban insurrec- tion and prior to the conclusion of the treaty of peace. Next followed the terms nearest ap- proaching to a formal ultimatum to Spain: “The United States Commissioners express the hope that they may recelve from the Spanish Commissioners on or before Monday, the 28th inst., definite and final acceptance of the proposals made as to the Philippines in connec- tion also with the demands as to Cuba, Porto Rico and the other Spanish islands of the West Indies and Guam, tual relinquishment of all claims for | | Senor Rios, president of the Paris con- sert in the treaty in connection with | the cession of térritory by Spain to the | | Washington papers were to-night filled quence of the report from Paris that ference, had withdrawn and that this indicated a rupture of negotiations, the with all kinds of warlike matter, but there is no occasion for these alarm- ing reports of a probable renewal of hostilities. The Call correspondent was informed by a member of the Cabinet to-night that Senor Rios’ res'gnation, if it took place, did not indicate the discontinu- ance of negotiations for peace and that Spain would appoint his successor on the conference commission. It is surmised that Senor Rios’ resig- nation may have been tendered because he foresees disagreemient and, owing to the condition of affairs in Spain at this time, did not wish to be held even in part responsible for her humiliation which, in his opinion, is bound to fol- low her relinquishment of sovereignty over the Philippines. SPAIN WILL This commission, this evening. QoCCOO0T00 CONCEDE ALL THE DEMANDS OF THE UNITED STATES EW YORK, Nov. 21.—The Herald’s Washington corrcspondenl sends the following? with Spain will not be resumed. Spain’s Peace Commissioners reluctantly, and probably with formal protests, will sign the treaty of peace within less than a fortnight, embody= ing in full all the demands made by the United States. dent McKinley and his official advisers, based upon the logic of the situation ae well as upon official dispatches recelved by Secretary Hay from Judge Day, chairman of the American ©20000000000NC 00000000000000000000C00000000000000000000 The aonspirators who ruined the Pa- cific Bank and the People’s Home Sav- ings Bank and their confidential ad- visors who assisted them in the de- struction of the institutions were good and prolific letter writers. In its ex- pose of the wrecking of the banks The Call has produced many sensational letters, but it will discuss this morn- ing an epistle perhaps more sensa- tional than the others. The Call has shown over the signature of Dr. R. H. McDonald and in the handwriting of his sons that the McDonald family, while they contralled the McDonald banks, were thieves. Moses H. Sher- man has proved to the people of this city over his own signature that he is @ corrupter of public officials, a briber of City Councils and the debaser of Bank Commissioners. The Call has also in its possession a letter in which Meses H. Sherman is accused of having paid four thousand dollars to J. Alva Watt of this city for e appointment of Jobhn F. Sheehan 2s the receiver of thé People’s Home Sav- ings Bank. The letter in which this sensational accusation was made par- ticularizes every detail of the alleged transaction even to the time and place when it is charged the money was paid. The history of the events which led up to this dlleged crooked deal between the Los Angeles manipulator and the attorney are of grave moment. Sher- man has already shown himself not only of being capable of such a trans- action, but, according to his own as- sertion and boasts, of having been party to similar deals. There is absolute proof that when the People’s Home Savings Bank failed Moses H. Sherman was deeply involved financially in the bank. Mixed in the affalrs of the institution were very valuable interests of his own. During his manipulation of the Pacific Bank and the People’s Home Savings Bank he had given some valuable properties as security for heavy loans made to him. He had placed upon the bonds of his worthless Phoenix investments his own indorsement which made him per- sonally responsible for the repayment of the money he had obtained. meant to Mr. Sherman an aggregate loss of a sum of money of at least $200,- 000, and he plotted with every enersy he possessed to control the liquidation of the People’s Home Savings Bank. There 1s absolutely no question that Sherman determined to dictate every incident in the final close of these banks. He had been the principal fac- tor in ruining both banks, and he was so deeply interested financially that he intended to lose no trick in winding up the institutions which he had ruined. To do this he had to control the At- torney General, the Bank Commission- ers, the receiver and the board of di- rectors of the defunct institutions. His one great purpose was to nullify the effect of every good security he had given and to release himself from the heavy financial obligations under vhich he had placed himself to the People's Home Savings Bank during th~ vears that he had induced the manager and directors of the bank to loan him such tremendous sums of money. After the People’s Home Savings Bank failed Sherman found that it was not as easy as he expected to control the action.of the directors. He has al- ready shown in one of his letters, writ- ten as late as January 10, 1894, that he was very far from the accomplishment of his dishonest purpose. His frantic letter in which he declared his fear that he coyld no¢ control the directors of the People's Bank has already been published. His dread that the Grand Jury would indict him and that the di- rectors of the People’'s Bank would Is the Confident Belief of President McKinley and His Advisers, Based on Official Dispatches. War © This is the con?'dent belief of Presi- © compel him to pay his just obligations drove him practically crazy. No better evidence than his own let- ter is needed to prove that at that time, only three months before the appoint- ment of a receiver, he was still schem- ing in desperation to protect himself from the consequerices of his own con- spiracy. The People’s Home'Savings Bank had passed through a series of exciting events since the failure of the institution. There was still some hope that the bank might be reopened upon an honest, sound financial basis. Con- ference after conference was held and the Attorney General and the Bank Commissioners determined to make a ‘| more ‘thorough Investigation than had already been Instituted. There were many reasons for this action. In the first place the J.ttorney General was still favorably disposed toward the Mec- Donalds, who still had some hope of PRICE FIVE CENTS. the Institution. man was fighting to keep his clutch upon the defunct institution and he still had tremendous influence with the Bank Commissioners. It was natural to suppose that he would take one of two courses that were open to him. He could first attempt if he chose to reopen the bank and thus conceal his enormous indebtedness to the institu- tion. If the bank were reopened through the efforts of the Bank Com- missioners and the Attorney General Sherman’s victory would be won with- out any unnecessary expense or public scandal. A second course was still open to Sherman if it became inevitable that the People’s Home Savings Bank must go into liquidation. If this con- tingency arose, and it seemed highly probable, Sherman intended to control the liquidation and thus protect him- self from the repayment of the enor. mous sum of money that he had bor- rowed or of the sacrifice of the valuable securities that he had pledged. It was thus palpable that Sherman had tremendous jnterests to protect and an Imperative reason to demand the control and manipulation of the bank. In the letter that The Call has In its possession the statement is made that Sherman explained his predicament and announced his intention to control the receiver and his attorney if a re- ceiver had to be appointed. When At- torney General Hart and the Bank Commissioners decided to make a more thorough investigation of the affairs of the People’s Home Savings Bank to determine whether or not the institu- tion could be reopened upon a sound and solvent basis they looked around for a disinterested and capable person to make the necessary investigation of the affairs of the bank. This person was General Warfleld, who had had considerable experience in banking affairs and was then lessee of the Baldwin Hotel. When the Bank Commissioners came to their conclusion great excitement prevalled in the public mind over the affairs of the bank. Squabble after squabble had taken place and many a transaction that would not bear scrutiny had intensified the public’s feeling against every one connected with the bank. When War- field agreed to accept the duty of mak- ing an investigation of the affairs of the bank he deemed it necessary to pro- vide himself -with a bodyguard. The incident occasioned considerable inter- est at the time. After Warfield had concluded his investigation of the as- sets of the People's Home Savipngs Bank the Bank Commissioners and At- torney General Hart determined to force the institution into liquidation. This meant, as already indicated, the appointment of a permanent receiver. The days of the existence of the bank were over. The only duty that re- mained was to wind up its affairs and pay its depositors and creditors what- ever amount of moéney the assets could bring. As already described, Moses H. Sherman was determined to control the liquidation of this bank. He did not care who was appointed receiver as long as the receiver would accept the dictatfon of Sherman,and protect Sher- man in his dishonest scheme to evade the payment of his just obligations to the bank. Sherman wished particularly to control the actions of the attorney who would act for the receiver. The wily schemer of Los Augeles be- lieved that he could not conirol War- “ield, who was mewporar y acting, and was the can te of W. H. H. Hart for the permanent rece:vership. Sherman did not care who the receiver was with the exception that it was not ‘Warfield. This in outline was the con- dition of affairs up to the time of the incidents that are described in every detail in the letter which is now in the possession of The Call. The writer of this letter declares that in the latter part of April, 1894, J. Alva ‘Watt came to him, understanding that he had at that time considerable in- fluence in the affairs of the People’s Home Savings Bank, and asked him to use his influence so that Watt could se- cure the appointment as attorney to the receiver. Aftef some discussion of the matter the writer declares that he gave Watt distinctly to understand that if he were appointed attorney he must guarantee tg_protect the varied interests of Mose§ H. Sherman in the People’s Home Savings Bank. The let- ter continues, asserting that Watt gave the necessary promise, and the writer of the letter then conferred with Sher- man. The result of this conferencs, so the letter reads. was that Watt and the writer again met and Watt was as- sured that if he could name a service- Q| retaining control of the baglk, Sher-]eble man as recetver that man would JAMES ALVA WATT ACCUSED OF ACCEPTING A BRIBE | FROM MOSES H. SHERMAN Sensational Developments in the Scandalous History of the People’s Home Savings Bank. Alleged Crime Committed to Secure the Appointment of J. F. Sheehan as Receiver of be chosen and Watt would be made his attorney. This arrangement seemed perfectly satisfactory at the time, but apparently was unsatisfactory a few hours later. The writer of the letter declares that ‘Watt came to him and told him in con- sternation that in order to secure the appointment of his man as recelver it would be necessary for him to obtain $5000, with which to “fix” the Judge. Having received Watt's startling announcement, the writer of the letter, which is now in the possession of The Call, declares that he held another conference with Moses H. Sherman, who, after the mgntal.and physical tor. ture which accompanied every demand made upon him for money, agreed to give $4000 and no more. Sherman, as already described by The Call in its expose, invariably insisted on striking a bargain even if it were a bargain to bribe.. The startling letter in which these seripus allegations are made next asserts that late that evening, on the last day of April, 1894, in a room at the Baldwin Hotel, J. Alva Watt was in. troduced to Moses H. Sherman, and the writer of the letter left the room. Shortly afterward it is alleged Watt left Sherman’s apartments and the writer of the letter returned. Sherman, it is alleged, then told him that he had paid the money to Watt for the pur- pose indicated by the attorney and with the payment of $4000 in green- backs another deal had been consum- mated. He declared subsequently that ‘Watt afterward demanded $2000 for his own services. In conjunction with this most extraordinary affair the testimony of several people is of very great im- portance. Thé® records of the court show that a few hours after the alleged transac- tion took place between Moses H. Sher- man and J. Alva Watt, in a room at the Baldwin Hotel, John F. Sheehan was appointed permanent receiver of the People’s Home Savings Bank. The alleged deal between Sherman and the attorney, it is claimed, was not con- cluded until after midnight on April 30, 1894. The following morning when the complaint of the Attorney General was called for hearing in court the an- nouncement was made that Sheehan had been appointed. This announce- ment came as a bombshell to Attorney General Hart and General Warfield. It had been understood that General Warfield was to be appointed the re- ceiver. Shortly after he and Hart en- tered thg courtroom Hart, so Warfield claims, approached the Judge's seat and engaged him in a whispered con- versation. In a few moments Hart re- turned and motioned Warfield to go outside of the courtroom for a few mo- ments. Hart then told Warfield that John F. Sheehan and not Warfield had been ap- pointed receiver,and that some crooked work was done. Soon after the appoint- ment of John F. Sheehan as recejver of the People's Home Savings Bank James Alva Watt ‘was appointed at- torney for the receiver at a salary of $500 a month. THE JUDGE AND THE RECEIVER Hebbard Tells How Sheehan Was Appointed to the Place. Judge Hebbard was Judge of Depart- ment No. 4 of the Superior Court when the complaint for the appointment of a receiver for the People's Home Sav- ings Bank came up. It was assigned to him and he appointed the receiver. His story of the events of the appointment is as follows: “Some days before the question of a receiver was brought before me I met Colonel Kowalsky on the street and he asked me whom I was going to ap- point as referee in the People’s Home Savings Bank. I said I had not con- sidered the matter and then he asked me to name General Warfield, as in case Warfield was appointed he would get the attorneyship. I made no defi- nite reply and nothing more was said. A day or so after General Hart came into my coyrt with’an order appointing a receiver which he wished me to fill out and’sign. He said he would like to have Genergl Warfield appointed, but I told him the receiver was a man whom I was in a way responsible for and I wanted to put in a man I knew. I told him General Sheechan had done excellent service in the Emeric-Alvara- do case and I knew him to be & com-