The San Francisco Call. Newspaper, February 3, 1899, Page 1

VOLUME LXXXV—=NO. 65. SAN FRANCISCO, FRIDAY, FEBRUARY PRICE FIVE CENT FAILURE OF THE UNION SAVINGS IS A HOPELESS ONE Some Peculiar Methods of the San Jose Bankers. A Deposit Was Concern Was Taken After the Known by Its Officers to Be Bankrupt. SAN JOSE, Feb. Union Savings Bank are cha inal carelessness. deposits after they knew the Late Monday afternoon $ dered a deposit of $240, whic . when the news of e bank, the f 1t these lack verification. 0000000000000 O000000O0O00OD00 N JOSE ional character are being | circulated around town in relation | ) the peculiar relations existing | between the defunct Union Sav. of this city and E. B. How- | tive fruit shipper, who | i of being responsible for the | the institution. Th"‘ rumors are in such shape that they cannot be verified to- | night, but enough is susceptible of proot to show that the affairs of the in- stitution are in & deplorable condition, much worse than has been even inti- | mated | It is not believed by those in a posi- | that it will ever be able - business. Neither Howard bank officials will make any | al statement bitter recriminations are ged in. Howard has placed | f in the hands of his attorneys, engaged in preparing a state- and liabilities. They any statement until the -d up by figures. The he cther hand, declar g until the Stat rers have completed n of the books of the | ward says the bank has| The bankers say Howard | majority w offici cern. H tined him. ned them he manner in which the business of the bank has been conducted has long en a subject of c cism on the part local bankers and the news of its col- | pse was no surprise to them. It has| en known for more than a year that | e end was not far off, and surprise d that the catastrophe could een averted as long as it was. | Commissioners Markley and | ett held a long consultation \\'ith“ the directors of the institution this af- ternoon, during which all the securities in a cursory manner of liquidating the conference Mr. Bar- Francis Mr. ind to pursue his but will go to T g, taking with apers of the bank, which examined by experts and a re- rlort on their value, with the finding of —The officials of the wrecked They are directly accused of accepting Chrissman Bros., grocers, at 499 East St. James street, ten- but while the doors of the institution was still open, a de- Y s made for the return of the money, but it was re- : 1e bank was not giving up anything. It is said that other deposits were made Tuesday morning before those 1g the money were aware of the true condition of t that its doors were open being taken by hem as sufficient evidence that everything was all right, | The commissioners take a gloomy view of the outcome of | CO000VWO0DO0000000000C0000000000000000 rged with worse than crim- bank was insolvent. a membeér of the firm of h was accepted. On the fol- the failure was announced, CCC0CO000C000000000000000000000000 Feb. 2—Rumors of a‘ihe commission, will probably be ready | for the public to-morrow afternoon or Saturday morning. At the conference between the com- missioners and the bank directors President H. Ward Wright announced that he was ready to deed his property to the bank for the benefit of the cred- itors whenever called upon, and al- though the full board of directors were present, with the exception of Vice President W. H. Wright, who is in the East, no other proposition of a similar nature was volced. J. R. Ryland of this city was ap- pointed by the commission to take charge of the bank property, but fur- ther than this no official announce- ment of the proceedings was made. were inclined to the failure, however, as was evidenced by their manner. Mr. Markley. when pressed for an opinion as to the meth- ods pursued by the bank's officials. ad- mitted that they were not exactly in conformity with practices in vogue in conservatively managed concerns that nake a business of ha.dling other peo- ple’s money. “Of course,” he said, employed might not be considered ex- actly regular by the old-fashioned, hard-shelled bankers. More chances were taken in making loans and per- haps not as much care was exercised | in approving the securities as would ordinarily be deemed necessary.” Asked if Howard's indebtedness would not exceed $250,000, Mr. Markley PR il R D P PSP is regarded as a farce among th salaried body, whose duty is to p seems to have only a vague idea o heard of except when a bank fai of little use as protectors of the pu the utter inadequacy of the comm PEE bbb bbbt R RSP 0CC0000 00000000000000000 “the methods | In this connection it may be said that the State Bank Commission bers may be, and probably are, men of the highest integrity, they are amination of the books of the Union Savings Bank was made by it in December last and everything was certified to as being all right. At that time the officials of the bank were straining every nerve to keep the institution from going under, in the vain hope that something might happen to save it from the inevitable. farcical examination of the books of the banks was made less than two months ago. gn became known to-day that the credit of the defunct bank with East- ern financial institutions, as well as with local bankers, had long been at a very low ebb. In fact, drafts is- sued by the Union Savings Bank on Chicago, New York and other cities in the East have, in numerous instances during the past few months, been re- turned upaid. A short time ago a draft for $1200, issued by the Union Savings Bank and drawn on a New York bank, was returned protested and ‘was finally paid by the local institution only after a peremptory demand for the money had been made. Among the victims of the lack of confidence in the Union Savings Bank entertained by Eastern bankers are Floyd McFarland and Orlando Stevens, the bicycle cracks. They recently purchased a draft for $500, which they sent to JTowa. The draft was returned indorsed “No funds.” Another instance of the peculiar | methods practiced by the managers of the institution is given in their man- ner of paying depositors. Instead of paying cash, the depositor who de- sired to withdraw his funds from the institution was given a draft on San Francisco. Other local banks would not cash these drafts, and the depositor was obliged to ~o or send to the city for his money. In this way the Union Savings Bank retained the use of the money from three to five days after.the check had been presented. Fully a year ago the bank was in such straits for money that drastic means were adopted’ to replenish its exhausted coffers. Debtors against whom the bank held mortgages as se- curity for loans were offered astound- 2000000000000006660 ing inducements to induce themAto liquidate. It was no uncommon thing said: “It looks very much as though | for the bank to accept 50 per cent of it would.” | the face value of the mortgage in full Mr. Markley further stated that|gettlement thereof. One McCarthy was probably two or three assessments | given a release of a mortgage for $1400 would be levied on the stock-|on the payment of $750 in cash, and this | holders. In this conncetion = it|is but one of numerous similar trans- may be said that the State Bank |actions. In 1891 the bank loaned $46,000 Commission is regarded as a farce|on the LagunaSeca Ranch, and on July | among the bankers of this city. This |16 the mortgage was foreclosed. The ©9060000000000000 DEPOSITOR ATTEMPTS SUICIDE LOS ANGELES, Feb. 2.—This afternoon a Frenchman giving the name of Pierre Pontou walked into -the police station and asked to be locked up. He stated that he was in a desper- ate state of mind because all his money was lost in the failure of the Union Savings Bank at San Jose. He exhibited a passbook showing that he had $1430 on de- posit there. He remained a while and was then allowed to depart to see an attorney. After leaving the police sta- tion, however, Pontou evidently changed his mind, for he went to a drug store and got a four-ounce bottle of chloral, the contents of which he drank. He was found on the sidewalk on Third street and taken to the Receiving Hos- * ® L2 L4 @ @ & L4 @ @ © @ @ & @ ® @ R4 & L4 ® © @ & @ @ & ® @ @ pital. His condition is serious. & POPPPOP09PPIPPVVIOPIOPVIOPIOCSGIGEISIOISGESIGOS k4 protect the depositors in State banks, | of the mortgage with costs and inter- seems to have only a vague idea of its | ests, aggregating $62,000. A proposi- responsibilities. It is seldom heard of, | tion was then made to Thomas Fisher except when a bank fails, and while | and wife, the signers of the mortgage, | the individual members may be, and | that if they would pay $12,000 in cash probably are, men of the highest in- ] and execute & new mortgage for $40,000 tegrity, they are of little use as protect- | the judgment would be canceled. ors of “he public pocket. offer was accepted, the money paid and As an illustration of the utter inade- | the new mortgage executed. A transfer quacy of the commission, to use a mild | of this mortgage from the Union Sav- ‘l term, an examination of the books ot | ings Bank to the Wells-Fargo Bank of the Union Savings Bank was made by | San Francisco was filed for record in | B R RN RN RN NN RRRRERS ] [} | 8 | = 8 = &8 8 HRLRLARRRRRRRRABARRRRARLEBRIRIINRIRRIERER it in December last, and -everyliing was certified to as being ‘“‘all right.” | At that time the officials of the bank were straining every nerve to keep the institution from going u.der, in the vain hope that something might hap- | pen to save it from the inevitable. If the commissioners had made any sort of an examination they could not have | avoided discovering the absolute rot- | tenness of the concern, and would have | been in duty bound to order the closing of its doors. But they either did not examine the books or they shut their eyes to the true state of affairs and allowed the public to continue placing its money in the hands of men who were, to say the least, irresponsible and incompetent. | B. D. Murphy, a member of the State | Bank Commission, is taking no part in | the investigation of the affairs of the broken bank, because H. Ward Wright, | the president of the institution, is his | son-in-law, and it is but fair to add that Mr. Murphy was not a member of the commission when the former Fully a year ago the bank was in such straits for money that drastic means were adopted to replenish its exhausted coffers. Debt- ors against whom the bank held mortgages as security for loans were offered astounding inducements to induce them to liquidate. ] &8 <3 =8 :he County Reeorder’s office tmé morn- ng. 2 The story of this transaction was freely circulated about town to-day, to- gether with rumors of similar doings on the part of the bank officials, and did much to destroy the little confidence that remained among those who hoped that the bank would eventually pull through. There was also filed In the County Recorder’s office to-day a transfer of a mortgage executed by Louis Griepen- stroh and wife for $2500 in favor of the Union Savings Bank, to the Union Trust Company of San Francisco. The document is dated December 26, 1895. Mrs. Will H. Wright, who filed a deed to the bank building a few hours before the suspension of the institution, claims that the deed was given for a loan of $60,000 and was made in good faith. She denies the report, however, that she has received $35,000 or any other sum in part payment. To-day an agree- ment wasfiled for record by the terms of which Mrs. Wright agrees to deed the property back to the bank on the payment of the $60,000 before June 15, 1900. Mrs. Wright is the wife of the vice president and one of the principal stockholders in the bank., who is at present in the East. The deeding of the bank premises to her has been the cause of g great deal of unfavorable comment, which no amount of explain- ing seems able to satisfy. Before her marriage to Mr. Wright, Mrs. Wright, who suddenly blossoms out as a capi- talist, was employed as a bookkeeper, and if she had any property the fact ‘was not known. Now her brother-in-law, F. V. ‘Wright, comes forward with the state- P R R R e bankers of this city. This high- rotect the depositors in State banks, f its responsibilities. It is seldom 1s, and while the individual mem- blic pocket. As an illustration of ission, to use a mild term, an ex- AL L e b R R R R R R aing JIT] A MOR P Mo SESSION - INIING REPARETH, FOR THE RNING AN SIS high salaried body, whose duty is to|bank secured judgment for the amount | The | STARVING, { FREELING { ALLALONE ® The Most Woeful Tale of Help- @ less Misery That Has Come From the Klondike This Year. SEATTLE, Feb. 2—“The most horrible case of helpless misery that has come to light this win- ter,” said Dr. W. H. Yemans. agent of the Empire Transpor- tation Company at Dawson, who arrived here this evening on the steamer Dirigo, “occurred to a man on Galena Creek. Two men built a cabin on this creek and were planning to come out on the ice two months ago. One of them, James Gill, a man of 25, felt weak in the limbs and de- termined to stay. He had plenty of provisions, and his partner, before leaving, cut him plenty of wood. 5 “Soon after Gill grew weaker, and for several dax lay in his sleeping bag without fire or meals. When heé roused himself he found his hands and feet frosted—frozen, he thought they were. He crawled into the bag again to wait for help. He would hold a candle under a tin cup, in which he had scraped frost from the walls. When it was thawed he mixed a little flour and sugar together in the water. That was all the food he had for many a weary day of waiting. “Over a bunk was a calendar. and on this he checked off the days, then the weeks. On Sat- urday, December 27, he checked oft the thirtieth day of his help- less confinement, and he knew that death was near. He could keep warm no longer, the numb- ness o cold had gradually crepnt up to his chest, his scurvied, swollen gums reached down over his teeth, and his teeth were loose enough to drop out. “On the date last checked off a party of three hunters acci- dentally stumbled on the cabin and thought it \.as empty. A light showed Gill's wasted and speechless form.” Very careful nursing brought Gill back to consciousness. The ‘next day the hunters took him to. their own cabin, five miles away. to stay until he could be sent to the Dawson Hospital. He is in the hcspital by this time—or dead.” ment that she is worth at least $150.000, and that she has been in possession of this sum for twenty years or there- abouts. He says she has accumulated this fortune principally in the fruit packing business, in which she has been jointly interested with her hus- band, who, in addition to being a bank- er, is president of the San Jose Fruit Packing Company, but beyond stating that she inherited some property from her father he fails to state where she got her original capital. As Mrs. Wright's father was not a man of means, her capital must have been lim- ited, which goes to show that she is a remarkably good business woman. The consensus of opinion in this com- munity among those who are in a posi- tion to know whereof they speak is that the Union Savinrs Bank has been played for a good thing by the Wrights, but whether this opinion will be sus- tained bv a thorough investigation of the affairs of the wrecked institution remains to be seen. It is known, how- ever, that when the bank was incorpo- rated about ten years a~o the Wright brothers were accounted poor. Will Wright“is now said to be a wealthy man. F. V. Wright has no cause to fear for the comforts and a few of the luxuries of life, and H. Ward Wright has a fine residence in this city, which is valued at $35,000, as well as other property. The bank started ‘with a small capital Continued on Fourth Page. \ TREATETH - THE INNER, MAN (ano BIRD) OUTS ARE H Supporters of the Mexican a Soft Place to Break CALL HEADQUARTERS, SACRA-| MENTO, Feb. 2.—There is despair in the corral of the touts. Confidence has. vanished and the bluffing is feeble. | Worse than all for the peace of mind | .among the touts is the obvious fact that the sinews of war are scarce. Herrin | is good in the matter of peddling tick- ets for a railroad ride, but the tickets are not good for board and lodging. On the quiet there is a deal of com- plaint concerning the stinginess of the “Colonel.” To-night again the Grant forces are elated. They are not boasting of any gains on the balloting to-morrow, but they are rejoicing over the assurance | that Burns cannot get the much-de-j sired caucus. Every string that the) “Colonel” had up his sleeve has been | pulled. The delegations came here| from various counties of the State and | worked with might und main to con- | ‘| vince the members of the Legisiature from their respective localities tkat the | g001 of the county and the existenc2 of the Republican party in California de- manded that the Republicans should | subscribe to Dar Burns’ caucus scheme, | but the work was gupporters of Gt talked among tl the firm conclu: t California and the Republican party manded that they shc end all overtures for & dn caucus. : It is coming to lght now =5 I transpire that Burns. had his : singly as well as in groups to D.. caucus soliciting. For instance, semblyman Raub, a well-known Granu man, was talking with Mr. Holden of Wheatland. One topic and another claimed the attention of the talkers for a while, but finally Holden introduced the subject of the deadlock. He re- marked to Mr. Raub that the people of Wheatland were not satisfied with the | Assemblyman’s course in supporting | Grant and desired that he should| change his base and give his vote to Burns. The voters of Wheatland may be able when they read this to ascer- tain if Holden was auathorized by them to come here and instruct Raub to vote for Burns. Martin Kelly and Phil Crimmins have | returned from San Francisco. The| touts claim that they went there to look out for patronage to reward the faithful. It is suspected in the San Francisco delegatio::" of the Assembly that the two bosse’ have received an inkling of some imnending change in the Senatorial conteit. To-day a well- known supporter of #3urns and one who | votes for the “Colcgiel” on every bal- lot, gave it as his d§liberate judgment, | formed from his kndwledge of the situ- | ation, that Dan cou'd not win out. He| is not the only vofer in the Colonel’s | camp who has reached a similar con-} clusion. To-night all the signs point to a dis- solution of the Burnps forces. The point is discussed whether the olonel” can now name the next United States Sen- | ator. FEarly in the session when the | impression existed that Burns had a| sort of a mortgage on the State patron- | age and was in position to shape theI ARRIVETH 4T THE CAPYTOL o> | such employe; provided UNGRY AND IN DESPAIR The “Colonel’'s” Sack Remains Too Tightly Closed to Suit. NO SIGN OF STRENGTH IS SHOWN Now Realize the Hopeless- ness of Their Cause and Begin to Look for Land When the Comes. legislation of the session, he could have influenced many members of the Leg- islat@re who were then supporting other aspirants for the United States Senate, but his influence has been on the decline ever since. He is not in po- sition now to promote or defeat legisla- tion. Should he manifest the slightest disposition to interfere in the business of the session by attempting to defeat proposed measures the other members supporting Grant, Barnes and Bulla st his twenty-five and measure in which they were interested. The Burns men in the slature are too sensible to provoke uch conflict. As to the patronage, the inference has been given out that the friends of the “‘organization” would be recognized at the proper time. The Governor of the State has determined that the patronage shall not be used to promote the election of any candi- date for the United States Senate. Quiet reigns to-night in all the camps. The word has been passed out to the touts that Dan will parade his reserved forces next Monday. In the Grant camp it is sald that .a message ame from railroad headquarters in ew York to Herrin in San Francisco that the ‘“Colonel” must produce some evidence of strength this week or re- 3 &1 tm to raflroad support. MEN'TU, reb. ceeding was had in the Senate this after- noon. Senator Braunhart's bill came up on second reading. It provides that whenever any employve while in the em- ploy of any contractor in any mill, fac- tory, shipyard, found other place where fixed machinery is used, shall dur- ing working ‘hours and while in the per- formance of his duty as such employe receive any injury or be in anywise inca- pacitated eason of any injury received during rking hours and while in the performance of his duties as such em- ploye (provided the injury is not the result of the contributory negligence of the per- son injured) it shall be the duty.of the employer of said person to procure for him all surgical and medical attendance necessary or requisite from the time of such injury and so long thereafter as the same may be necessary, without cost to , however, the lia- bility of such emplover shall not extend over a period of three months from the time of such accident to such employe. The portion of the bill above which is in parenthesis was an amendment offered by Senator Bulla. Senator Morehouse first proposed an amendment which ex- empted the employer from any provisions of the act if the injured man or any fel- low-employe of his was to blame for the injury. The passage of this amendment would have virtually killed the bill, as a man is seldom injured in any factory or shop un- less either he or his fellow-employe is neili:enl or careless. Morehouse's amendment was voted down and the Bulla amendment prevailed. ‘The bill was then advanced to third read- ing and eral other ‘asures were con- sidered. Then the action on the Braun- hart bill w: reconsidered, and it was again placed back on the second reading file. Just why this action was taken np Senator had any explanation to make other than to say _that there was an error in the bill. No Senator could point out the error, and even if there was one it could have been adjusted on the third reading' of the bill.