The San Francisco Call. Newspaper, November 23, 1898, Page 3

THE SAN FRANCISCO CALL, WEDNESDAY, NOVEMBER 23, 1898. PROFESSOR C. F. HOLDER'S PLOT TO RUIN | THE REPUTATION OF AL GERBERDING The Editor Schemed an Alliance Be- tween the McDonalds and the Railroad. tacked a Man's Honor to Control the Bank Commissioners, any men who surround- | 1a g the history of the People’s there were few - reputations by @ >rofessor C. F. ~cupied only the position or of the Californian Illustrated zine as far as the public had any judging. - Professor was not only the edi- , but he was one ted and one of the most of the McDonalds saction. took upon Ng an ight be att is city of Oak- 1 an elaborate McDonald might the Southern Pa. for political or r both. Profe Dick McDon; Governor of himself cism that in daily land. v of e the State, and with a hope of pleasing his | ambition to be ster the professor did everything in advance ihat ambition m his power ard realizati 1so knew that the n deadly dread of the x-Bank Commissioner | erding. Gerberding was alto- | too watchful to please the Mc- and his demand that the Pa- \d the People’s Home Sav- ank be placed in a solvent condi- gave birth to a plot to retire him sition as Bank Commission- As one of the conspirators in this | lot Professor Holder went to Los An- | geles to interview Governor Markham 1 to ask him if he would retire Ger- | g in January, 1893. Governor | , who was then the chief ex- State, declined to accede demands, and Holder sug- McDonald that they | t some scheme by which th ruin the reputation of Gerbers ding and, through attacks upon his character, deprive him of his office. Holdet “suggested ' In this scheme that | the influence of Dan Burns might be | obtai These facts are proved in of Professor Holder If. This man, who posed as the | rather than as a confederate of | could the handwriting himse the McDonalds, went farther than most | of the other conspirators in his efforts | to assist his master. His letters are of | exceptional interest. The Call also publishes this morning | some of the letters of O. T. Dyer, who was ma r of the defunct bank of Riversid: n these letters Dyer makes it ver r that there was a dishonest und g between W. H. H. Hart, | h then Attorney General, and Bank, the agreement be- ing made in the interest of the Pacific Bank. An o vis and R morni as a in thet PROFESSOR C. F. HOLDER IN A DU- Bl DOUBLE LIGHT. of the letters of E. A. Da- J. Davis is also given this illustrate how these men, f the McDonalds, operated Professor C. F. Holder is, therefore, another of the agents of the M- Donalds who is revealed in the se- cret history the Pacific Bank | in a dubious light. Professor guiding spirit of the Californian Illustr d Magazine, which cost the depositors of the People's Bank and the Pacific Bank something over $60,000. The publication was founded by Dick McDonald to gratify Holder was the his absurd egotism and to advance and if possible satisfy his political ambi- tion. Dick had an insatiable desire to be in the public mind. It was his weakness to pose when- ever and wherever he could, and the Californian Illustrated Magazine be- | came one of the instruments for this | posing. Professor Holder was chosen as the editor and practical manager of the concern. He had a score of women for his assistants and was supposed to present Dick in every possible position that appealed to the young banker’s vanity. Dick’s picture {lluminated the pages of the magazine whenever an op- portunity could be found to use it. Long articles signed by the young bank- er and written by impecunious literary hacks filled the pages of the paper. Pro- fesor Holder guided the destinies of this concern and enjoyed the admiration of a select coterie of literary enthusiasts. He was supposed to be acting solely in the capacity of an editor, but his du- as a matter of fact were far more plex and very much more question- able. Professor Holder used the Cali- fornian Illustrated Magazine to boom the localities and the schemes in which the Pacific Bank was interested either as an investor or a speculator. THE PROFESSOR UNDERTAKES TO SI- LENCE ADVERSE CRITICISM IN THE NEWSPAPERS. In fulfillment of his editorial duty Professor Holder undertook the task of silencing any adverse criticism that might have been threatened by the daily newspapers. Professor Holder volunteered to pave the way for a meeting between William H. Mills and the Huntingtons and Dick McDonald. This meeting the ingenuous and unso- phisticated professor declares would be a preliminary step for a combination between the McDonalds and the South- ern Pacific Company, in which the rail- road could be worked either politically or financially to the advantage of the McDonalds. Such letters as this reveal Professor Holder in a new light and perhaps may suggest a meaning for his enormous note for $135,600. The professor was quite as valuable in his | make | paper, efforts to help Dick secure control of the local School Department and use it as a lever with which to move the Gov. ernor’s chair. As an illustration of his influ e with certain daily newspa- pers of this city and of Oakland Pro- fe r Holder on August 16, 1893, wrote to his employer, R. H. McDonald Jr., as follows: My Dear Sir: I visited the evening papers—Post, Report and Bulletin— and each promised to say nothing. I will attend to the morning papers this 2. m., and bave a good notice, If any- thing. 1 telephoned to the Oakland Enquirer, and the editor regrets the publication. Wil take it back this p. m. In answer to my demand for his authority for the statement he sald it was & man who represented you and. Very truly yours, C. F. HOLDER. PLANNING A POLITICAL AND FINAN- CIAL ALLIANCE WITH THE RAILROAD, On September 5, 1892, Professor Hold- er wrote a very important letter in ref- erence to Collis P. Huntington, Willlam H. Mills and Southern Paclfic interests. The professor was emphatically of the opinion that it would be wise for Dick McDonald to secure the services of his friend, Sheldon, of Los Angeles, and him a figurehead for a weekly the publication of which Dick had then under consideration. Holder made this suggestion with a bellef that | Sheldon was closely in touch with the railroad officials, particularly W. H. Mills, and could be used as an instru- ment to bring about an alliance be- tween the McDonalds and the railroad | Professor Holder's letter is a shows the people. significant document and public how very learned men sometimes | have time enough to familiarize them- selves with the devious paths of diplo- macy. In opening this important letter Pro- ssor Holder was unlike a majority of the men who surrounded the McDon- alds. The learned man modestly re- guested.Dick to give him an extensfon of time on his note. The letter is as follows: Sept. 6, 1892. My Dear Sir: Will you kindly obilge me by extending the time of payment of my note for another thirty days? I want to have a talk with you about Sheldon. His wife called upon Mrs. Holder the other day, and I gained the impression that she is not partic- ularly anxious that he should go to Africa, and a note from Sheldon this a. m. tells me that if anything turns up in the meantime he will not go. In brief, I think he would accept some- thing at moderate terms If offered now or if he had a general idea when he would be needed. I think Sheldon would make a good figurehead for your weekly. His reputation, name, large acquaintance, etc., would all be valu- able, I should think, and he would, in my estimation, be of no little service to you in the way of aiding you In the preparation of articles, speeches, etc., Which you are too busy to devote your time to entirely. I think a proposi- tion of $50 a week on the weekly and $400 a year from the magazine for work he might do or extra work for you would get him for the first year, or probably $2500. I make this sugges- tion as 8. is walting and expecting to hear from Mr. Mills every day, and will undoubtedly accept if nothing else turns up. I learn from Mr. Milis that he has a high opinion of Sheldon, and it seems to me that the latter could be made valuable to arrange things between you and the railroad if found desirable. You, of course, understand my Interest in the African trip. It was to make the magazine in some way the official mouthpiece of Huntington's expedition (in America). In other words, the report and articles would be given to the American peo- ple through the magazine, for which we could obtain some equivalent, either political or financial. I have caution- ed Sheldon, if he goes, to have entire control of the writing up of the coun- try, and he will, of course, throw ft our way If he can. Very truly yours, C. F. HOLDER. HOLDER’'S UNDERHAND ATTACK ON EX- BANK COMMISSIONER A. GER- BERDING. Professor Holder wrote many let- ters, but most of them possessed only an incidental interest in connection with the Californian Illustrated Maga- zine. On December 30, 1892, Professor Holder indicated that as an agent of Dick McDonald he had entered the po- litical field and was suggesting schemes by which certain candidates for gub- ernatorial favor might be defeated. The genial professor earnestly urged Dick to secure the co-operation of that literary star, Dan Burns. LOS ANGELES, Dec. 30, 1892. My Dear Mr. McDonald: I met the Governor this morning by appointment and the result of his talk with Mark- ham was that the latter had already decided to continue the appointment of G— to the full term. He did the same with all, my case as trustee of the Normal School was an example, so we were met by something that can- not be overcome by anything except great pressure, which cannot be decid- ed upon until you are consulted. Dr. J..and myself had a conversation with Governor Sheldon this a. m. and the doctor goes north to-night and will re- port to you. Governor 8. thinks there is a chance if charges can be brought against G. and he will go in if there is any show. He, Governor Sheidon, is on good terms with Burns and other influential politiclans in San Francisco and my advice {8 that you have Governor 8hel- don go up Monday and make the fight against this fellow from every point with all the force he can bring to bear. 1 belleve something can be done. At least it is worth trying. If it can be shown to Markham that there is any- thing against G. in any way I think something can be done and I think 4t Z s MOLDER MAKES AN UNDERHAND ATTACK ON GERBERDING. During the later days of the Pacific Bank and the People’s Home Savings Bank, Bank Commissioner Al Gerberding was a thorn In the sides of the McDonalds. Gerberding insisted upon demanding from the McDonalds a better showing for their banks. The Commissioner could not be handled and every effort was made to paralyze his official actions. Profes- sor Holder went farther than most of Dick McDonald’s tools in his efforts to checkmate Gerberding and to prevent him from clogging the dishonest progress of the bank. Holder went to Los Angeles and attempted to secure from Governor Markham a promise that he would not appoint Gerberding for the full term as Bank Commissioner. Gov- ernor Markham declined to give this promise, and then Holder suggested to McDonald that an attack be made upon the character of Gerberding, that charges in some way be preferred against him and that he be dishonored. In this blackguard scheme Professor Holder suggested the propriety of securing the assistance of Dan Burns. Sheldon would be able to do something Donalds, and schemed to avoid an hon- | letter of general public interest. EXx- with Burns, anyway. Very truly yours, C. F. HOLDER. THE PROFESSOR ASSISTS HIS MASTER IN HIS AMBITION T0O BE GOVERNOR. Shortly before the election in No- vember, 1892, Holder wrote a letter to Dick McDonald severely criticizing the action of a woman who was then in the employ of the Californian Magazine. This woman, so Holder alleged, was telling Dick’s secrets in political mat- ters and flouting about the streets the interesting fact that he was to capture the School Department and use it as | an instrument in his guberna- torial campaign. The woman’s name 18 of no public interest, the letter being of importance only as an illustration of the relationship existing between Hold- er and McDonald. Excerpts from the epistle are as follows: My Dear Mr. McDonald; Would it not be a good plan to let this return to her work until after election. She has a long tongue, is ugly and at this time, when every point counts, might do some harm to your plan to secure control of the schools in the in- terest of the Governorship, etc. I write as I know she is prepared to talk and has already told one person, my in- formant, your plans for the capture of the schools, etc., and a lot more stuft that would make disagreeable reading it she should get hold of some black- malling sheet to publish it and during election times such papers are fairly easy to find. You can put her back untll election is over and then make & new deal. Some of your friends must leak or she would not get hold of these things. Sincerely yours, C. F. HOLDER. 0. T. DYER DENIED THAT THE BOOKS OF THE RIVERSIDE BANK HAD BEEN FALSIFIED. There are only a very few letters of importance or general public interest that were written either by O. T. Dyer, the manager of the Riverside Bank, or his sister, Miss E. C. Dyer, the cashier of the institution. While Dyer and his sister played a most important part in the history of the Pacific Bank, they wrote but very few letters that shed new light on the relations between the Pacific Bank and the People’'s Home Savings Bank. It has been demonstrated that the McDonalds and the Dyers understood thoroughly the wretched condition of their own banks. It has been shown that the Dyers had the McDonalds by the throat and made the very existence of the Pacific Bank a pledge for the continued life of the Riverside Bank. The Dyers were as fearful of the Bank Commissioners as were the Mc-; | took, form no new est investigation with McDonald. In both cases absolute reliance was placed upon the dishonest support and co- operation of W. H. H. Hart. Hart had placed himself practically in the power of the Pacific Bankers and in exchange for his services received financial ac- commodation whenever he needed it. Reference to this fact and to the un- denied interference of A. Gerberding in the affairs of the dishonest bankers is frequently made in the letters of O. T. Dyer. These references, however, while they are important in the establish- ment of the proof that The Call under- elements to the story. When it became evident in the middle part of 1892 that its collapse seemed inevitable, O. T. Dyer was sent to New York to assist the other con- spirators in the gigantic task of nego- tiating the worthless securities of the Riverside Bank. As a matter of course these securities were not negotiable, but Dyer remained in the East, while his sister, stationed in the bank at Riverside and possess- ing absolute control of the institution, continued to increase the enormous overdraft that was killing the Pacific Bank. Time and again R. H. McDonald Jr. wrote letters bitterly accusing the brother and sister of gross neglect, bad faith and dishonesty. Many of the let. ters written by the Dyers. were in an- swer to these accusations. These epis- tles possess no particular public inter- est. On August 16, 1892, O. T. Dyer wrote a bitter letter to Dick McDonald warning him to keep his spies and his agents away from Riverside or through his absurd policy he would precipitate the very thing the conspirators were seeking to avoid, a run on the Riverside Bank. “No ordinary fool,” declared Dyer, “has a million dollars to place. Leave our negotiations alone.” In another letter O. T. Dyer wrote scathingly to Dick McDonald, denouncing him for the insinuation that there were dis- honest entries in the books of the Riverside Bank. Dyer begged Dick to remember that Gerberding had been most scrupulous and exacting in his ex- amination and under those circum- stances it had been impossible to in- troduce any crooked entries, even if the managers of the bank wished to make any. “You know,” sald Dyer, “that Gerberding watched your father like a cat when he was at Riverside and San Diego.” DYER CONFESSES THE DISHONEST COL- LUSION OF ATTORNEY GENERAL HART. On October 6, 1892, Dyer did pen a cerpts from this epistle, which was ad- dressed to R. H. McDonald Jr., are as follows: “With some one pushing me at every turn I make here and a dyna- mite bomb in every letter the mail brings from there, and yet with all this you have the coolness to say in your last letter, received to-day, that I shall learn that I have you to deal with and no one else. As though I did not realize that fact as forcibly as any one could. No, sir; notwithstanding your insinua- tions as to my intentions you shall get your money, every dollar, unless by some act of your own you drive me to the wall, and the time shall yet come when you shall look me in the face and acknowledge that I have been honest with you. Your brother, in his anxiety to get matters in a different shape before that Jew Gerberding should visit Riverside again and en- tirely unbeknown to me, sat up one whole night, or until 3 in the morning, to draft out a letter and proposition to you, and when I came into the office the next day he handed me his rough draft of his proposition, saying he had spent nearly all night working on a proposi- tion, and that if I would accept right away so that he could get off by the first malil he could get through by Oc- tober 1, the date we had agreed with Hart to make a statement to him, and before Gerberding could get down there and raise another rumpus, as he would probably not go until Hart got his statement. “As to the proposition, it may be a late day to discuss it, and I will only say that it does strike me that an ordinary unbiased mind could only look on it as a proposition written in your interest, its provisions not only adding to but strengthening your present se- curity without costing you one dollar in money or additional lability. Its effect would be to sustain and build up the credit of our bank and stock, mak- ing it possible for us to raise money for you and making our stock and our in- dorsement good collateral for you, also relieving both you and us from the severe strain and blackmail we are came and then the Riverside went down in disgraceful bankruptcy THE SCHEMES OF E. A. DAVIS AND R. J. DAVIS OUTLINED. Among the many men who received favors, financial and otherwise, from the McDonalds in exchange for flat- tery and servility were E. A. Davis and R. J. Davis. R. J. Davis was the secretary of the Mohawk schemes into which Dick McDonald had been in- veigled and in which many thousands of dollars were lost. E. A. Davis was a clerk in the Pacific Mutual Life Insur- ance Company, and through his friend- ship with Frank McDonald secured many financial favors and the promise of more. The letters of these men are interesting, as they suggest several schemes in which the deluded bankers sank money. One wanted to be a Bank Commissioner and wrote that he would turn over to Dick McDonald every month his salary in payment of a note that was absolutely unsecured. The other suggested foolish plots and plans in reference to the Colton Marble Com- pany and the Mohdwk schemes, of which he was secretary. A little more than two months before the banks falled R. J. Davis suggested a wild financial project to Frank V. McDonald to buy out the Pacific Mu- tual Life Insurance Company and cons duct it in conjunction with the People’s Home Savings Bank and the Pacific Bank. Davis declared that no other man in the world was so well qualified as Frank McDonald to accomplish such a scheme and establish the strongest financial combination in the United States. It will only cost, Davis said, $125,000. But Frank did not bite at ths bait. He did, however, go to the Pa- cific Mutual Life Insurance Company a few weeks before the Pacific Bank failed and insure his life for $10,000. To the surprise of the manager, Mr. Beaver, McDonald insisted on paying the entire premium at once. This premium amounte! to $4600 in cash, and Mr. Beaver suggested that Frank McDonald might better leave the sum in his own bank, where it would draw interest. Frank replied carelessly, however, that he preferred to have the matter off his hands and would pay the premium in full. He knew then that the Pacific Bank was on the very edge of ruin and must soon go down with a crash. The money was paid and the depositors of the Paclfic Bank gave their deposit for another benefit for the McDonalds. The letters of E. A. Davis show that the young man was deeply enough in the confidence of Dick McDonald to suggest and plan at least one shady transaction in the sale of Pacific Bank stock. The Call will continue to-morrow morning the history of the confidential correspondence of the Pacific Bankers and will exploit other gigantic frauds to which reference has not yet been DORA WILSON GETS THE QUENTIN ESTATE Succeeds in Breaking the Rancher’s Will by Which She Was Dis- inherited. REDWOOD CITY, Nov. 22.—The large estate of James Quentin was to-day given into the possession of Mrs. Dora Wilson, formerly Dora Horn. Quentin dled in this county about two years ago, leaving an estate valued at about $125,000, of which $56,000 was money in bank, the balance consisting of a 1300-acre ranch known as the San Gregorio ranch, and a lot of per- sonal property. He left a will by which all of his property was disposed of. He claimed to have had no living relatives and willed his estate to friends and to the Protestant orphan asylums of San Francisco and Sacramento. Soon after the will was admitted to robate a contest was instituted by Dora Wilson, who claimed to be the daughter and helr of the deceased. She alleged as grounds of the contest undue influence and fraud on the part of certain of the legatees of the will. In the will Quentin expressly disinherited Mrs. Wilson and fafled to make any provision for her on the ground that she uad no claims upon him. Mrs. Wilson proved her claim to the property, and as a result gets the whole of it with the exception of $12.500, distributed to the asylums mentioned in the will, this probably being a compro- mise between Mrs. Wilson and the asy- lums. S e SUED BY HIS FATHER ON A LIBEL CHARGE Legal Action Brought Against a Burbank Man for $10,000 Damages. 1.0S ANGELES, Nov. 22—A curious suit was begun here to-day, entitled Fawkes vs. Fowkes., It is brought by Joseph Fawkes Sr. of Burband against Joseph Fawkes Jr., his son, to recover $10,000 for iibel. There has been a feud between father and son for years, and the father now alleges that the son caused the pub- lication of an article derogatory to his character. RAFAEL IGLESIAS VISITS AMERICA Costa Rica’s President at New York. TRAVELING FOR PLEASURE TRIP NOT CONNECTED WITH STATE AFFAIRS. He Intimates That Costa Rica May Prevent the Construction of the Isthmus Canal by Grace Syndicate. Special Dispatch to The Call. NEW YORK, Nov. 22.—Rafael Igle- sias, President of Costa Rica, arrived here to-day on the Atlas liner Altal from Port Limon and Kingston. With President Iglesias were Ricardo Igle- sias, his brother; Colonel Leonzo Bo- nila, aide-de-camp; Dr. Antonio Guis- tana and General John S. Cazament of the Costa Rican Railway. The party will stop at the Waldorf for a few days before proceeding to Washington. Shortly after the Altai left quarantine for her dock she was boarded by Col- onel Willlam Carter of the War Depart- ment, representing President McKin- ley, to welcome Prestdent Iglesias. President Iglesias said that he was traveling practically incognito and not on national business. He was opposed to display. He had simply come here for pleasure and for the benefit of his health. He expects to take a trip to England and France, and on his way home he will spend some months in the United States. The visit here of President Iglesias at the present time, when there is so much talk about building the canal across Nicaragua, is believed to have been brought about by the recent concession granted to the Grace syndicate, which goes into effect in October, 1899. When this concession was announced it was said that Costa Rica’s opposition could not in any way affect the new grant. President Iglesias, when spoken to about the proposed canal to-day, said Costa Rica had important rights, which it had reserved, and intimated that all would not be plain sailing for the new syndicate. Further he would not dis- cuss the matter. Dr. Ulloa, Consul General of Costa Rica, however, explained what was meant by Costa Rica’s rights. The Con- sul General until last May was Vice- President of the country, and he re- signed in favor of Don Dometrio Igle- sias, the President’s father, who is now acting for his son. Dr. Ulloa said that his country had equal rights with Nica- ragua along the San Juan River, an important waterway, which divided the two republics. The building of dams across the river for an interoceanic canal, it is said, will inundate considerable land in Costa Rica. Without the latter country’s sanction, it is asserted, the concession held by the Grace syndicate is virtually valueless. There is said to be a strong feeling in Costa Rica in favor of ailow- ing the United States, instead of a pri- vate corporation, to bulld the canal, and that country will do {its best to thwart the scheme planned by Nica- ragua. Dr. Ulloa said that the reason that Costa Rica has not joined the Republic of Central America, which was com- posed of San Salvador, Nicaragua and Honduras, was that the combination was looked upon as an experiment and not by any means as a stable compact. The revolt now in progress in San Sal- vador, he added, was a serfous one, and was the outcome of the union which went into effect November 1. TO COMBAT TEXAS FEVER. San Joaquin Valley Stockmen Favor a Quarantine Law. FRESNO, Nov. 22.—The stockralsers of Fresno and neighboring counties assem- bled here to-day to discuss the subject of Texas fever among the cattle of this sec- tion. Many valuable animals have been Jost during the last few weeks. Dalry animals driven along the roads over which infected animals have passed have taken the disease. The stockmen con- cluded to appoint a committee to frame a law to be presented to the next Legis- lature which shall provide for the quar- autine of all infected herds. Ee—les Leon y Castillo Injured. PARIS, Nov. 22.—Senor Leon y Castillo, the Spanish Embasador here, met a seri- ous carriage accident on Monday after- noon in the Champs Elysees. His vehicle Struck a kiosk, the horses ran away and Castillo_jumped out. He was hurt about the head and arms. night while you sleep. When you the of a strong man. subject to on account of the Commis- sioners, as they then could not object. So entirely independent of your broth- er’s proposition we can begin to see our way out at no great distant day if you continue to stand by us and Mr. Hart don’t go back on us. While Dyer was writing such letters as these his sister was increasing the overdraft and leading the Pacific Bank more deeply into the hole. Every de- mand of McDonald for money met with promises and nothing more. This con- dition of affairs continued until shortly before the collapse of the Pacific Bank It is a very valuable treatise on free to any address, should not delay. Call or address g 3 3 $ g § $ : $ $ 2 : 8 § : 3 § $ g ® o= ©0808060608046080806050080$0S090P0POH00S0S0S0SOB0$0604 AN ENGINEER CURED! Another of the Remarkable Victorics of Dr. Sanden’s Electric Belt. IT IS NATURE’S OWN REMEDY ! This wonderful belt fills the nerves and organs with electricity every freshed, wide awake and full of the joy of living, for your nerves are charged with the vim, the snap and “go” of life. rains and nervous spells cease, and you soon recover all the vigor Read the Book, ““Three Classes of Men.” point out & means by which you can become strong. or can be had on application to the office. 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