The San Francisco Call. Newspaper, December 10, 1901, Page 1

~ Yo T all, VOLUME XCL—NO 10. SAN FRANC CISCO, TUESDAY, DECEMBER 19, 1901. PRICE FIVE CENTS. SENATOR FRYE INTRODUCES A MEASURE TO AID THE AMERICAN MERCHANT MARINE FLIGHT OF CASHIER REVEALS HEAVY SHORTAGE IN FUNDS OF WHICH HE WAS THE CUSTODIAN Henry J. Fleishman Steais One Hundred Thousand Dollars From the Farmers’ and Merchants’ Bank of Los Angeles and Escapes Across the Mexican Line Before the Defalcation Is Discovered » ANGELES; Dec.- $.—Henry J! , for many years cash- the Farmers' Bank of- this city, has ared and with him went a nds, belleved to ap- least $100,000. The shortage vered this morning, shortly hour for beginning the Fleishman did not ap- jesk, and this, coupled with he had pleaded illness on d the suspicion of H. W. Hell- dent of the institution. An y begun, with at a shortage in the bank’s account was soon discovered currency H notified his brother I w. an of San Francisco, president of the Farmers’ and Merchants' Bank, who sent out a description of the miss- ing cashier with a request to the police officials of the country to apprehend him. Fleishman was last seen in Los Angeles about § o'clock Saturday morning. At our he sent word from the Call Club, where he bad bachelor apart- to. the bank, saying ‘that because ments, of iliness he would not be down. ' Noth- ing was thought of the incident at the | bank and business went on as usual on Saturday. When he failed to.appear at the usual time to-day, however, the in- vestigation of the bank’s cash account quickly uncovered the shortage. Employers Are Dumfounded. The officials of the Farmers' and Mer- chants’ Bank were as much surprised at the action of their cashier as was the | twenty-five years | general public. For Fleishman had been employed in the in- stitution, beginning at the bottom as a boy and by strict attention to duty, cou- | pied with a thorough understanding of the intricacies of the banking business, rising to the position of assistant cashier and finally to that of cashier, a position he has held for many years. The utmost confidence was always placed in his judg- ment and integrity. He was not known to be addicted to drink or speculation, though he was an ardent patron of all kinds of sports. His real estate holdings This property, besides a bond of $30,000 in a surety company, will, in the judg- nent of the bank officlais, compensate the institution for the cash taken. H. W. Hellman, vice president of the ¥armers' and Merchants! Bank, said, in king of Fleishman’s absence: surprised in discov- spe “We were greatly cring Fleishman’s flight and the shortage | We are utterly un- He is a his cash account. to account for his action. in able man of property and has always com- ded a good salary. If he were en- gaged in speculation of any kind we did | pot know it; nor was he a drinking man— | at least to any extent. No doubt he took a sk when he wanted it, bet drink never could have caused him to do this. We can account for his disappearance only woman in the case. We are not worrying over the money he has taken, however. The bank holds a bond and other col- eral sufficient to indemnify it for the stolen loss of the cash will not embarrass us in | h sh the least.” Hit by the Slump in Copper. There is a rumor, apparently well founded, that Fleishman has been specu- and Mer- | i remained away from busi- | in Los Angeles are estimated at $50,000. | on the supposition that there is a | 1t will not loge a doliar. The | { FUGITIVE BANK | WHO IS WANTED BY ] ANGELES POLI hard bit by the recent slump in that stock. John 8. Vallely, assistant secre- llary and manager of the California Club, where Fleishman had apartments, sald: “The officials of the bank telephoned to the club Saturday morning and asked | ‘How is Mr. Fleishman . this morning?. went to his room:and found it unoccu- |Pled. I telephoned this fact to Mr. Hell- | man immediately. From this - time on | there was a constant call for Fleishman. | Messengers came to the club during all hours Saturday and Sunday. I-suspected | Fleishman was a heavy loser in the re- cent-fall in copper stocks.” Fleishman married Miss_Virginia Har- | rell, whose father then resided in Visalia, | eleven years ago. The union proved an unhappy one and after a few years Mrs. Fleishman ~ sued for divorce, alleging | brutality and other charges, which at the | time caused a mild sensation in soctal and business circles. During all his | troubles, however, the bank stood by him loyally. After his wife obtained a di- | vorce Fleishman took up his abode at the California Club, where he has since | | tived. While it is believed by some of Fleish- man’s former associates and friends that | there is a woman in the case, up to the present no one has been found who can glve any information on that point. It is | not believed by the police that he went | | porthward, but those acquainted with him are of the opinion that he went south and that he was safe on Mexican soil be- | fore the disclosure of his flight and defal- cation. Of late there have been rumors that | the cashier was showing marked atten- tion to a vaudeville star who has recently | been touring this coast. Engages in Losing Ventures. 1 Fleishman was the financial backer of several enterprises in Los Angeles which | were commonly considered as financial | failures. The Velodrome bicycle track | { was financed by Flelshman and in this | venture he is believed to have sunk $20,- | 000. The Maxwell patent directory was another scheme in which the defaulter | was interested and in which he is said to have lost $25,000. These things may, in some measure, account for the shorlage‘ in the bank’s cash, which, it is not un- ! likely, has existed for some time. Not the slightest clew to Fleishman’s whereabouts has been obtained. The pos- sibility of suicide has been suggested, but those who know him best scout this idea. l | cashier had absconded they had taken '(ho precaution to send the news to San lating in Amalgamated Copper and was | |.received by the po! | Passed through this city on his way | Lower California, the avenues to civil- g 1 e - ‘matter of the cashier’s disappear- ance was not laid before the criminal au- thoritles. until late to-day. Chief Elton held a consultation in his office later with Sheriff Hammel and the captain of de- tectives. Whatever they decided upon | doing was not given out for publication. It has not been settled to a certainty when Fleishman was last seen in Los An- geles. Some clalm that he left here on Saturday morning; yet others declare they saw. him- as. late as 3:30 o'clock on the same afternoon. A theory has been ad- vanced that Fleishman departed on the overland limited, but as a matter of fact no one has been found yet who knows positively how the missing cashier made his exit. Before the bank people inform- | ed the local police department that their Francisco, and to several detective agen- cies in the East. NOT SEEN IN SAN DIEGO. Fleishman Probably Took the Land Route to Mexico. DIEGO, Dec. 9.—Word has been ice of this city that the Los Angeles authorities are inclined to the belief that fugitive Fleishman had SAN to Ensenada. It is a bellef in which local officers have no part, because Fleishman is known here, and, furthermore, once in izatlon are so few that they can be easily watched. No trace of him has been found here and inquiry at the Mex- ican line fails to show that any person of Fleishman's description has passed that way. The number of people at the Line who could be reached to-night was limited and all communicition with En- senada is shut off at night. P il TRUSTED FOR TWENTY YEARS. Bonker Hellman Tells of the Ingrat- itude of Fleishman. Captain Seymour was notified yesterday by E. 8. Heller, attorney for the Nevada bank, of Cashier Fleishman’s flight with $100,000 in currency or more belonging to the Farmers’ and Merchants’ Bank of Los Angeles. The following description of Fleishman was glven: Weight, 160 pounds; height, five feet eight and a half or nine inches; dark complexion, hair thin on top of head, good teeth, dark brown ‘mus- tache, prominent ears, straight nose, pleasant address, a stylish dresser and fond of the society of women. He is a member of the Mystic Shriners and may wear a button of the order. Captain Seymour at once telegraphed to all points, east, west, north and south, a full description of Fleishman and in- structions to arrest him. It 1s not be- lieved that he came in this direction, it being regarded as more probable that he departed for Mexico or the East by the train leaving Los Angeles on Saturday morning, between 9 and 10 o'clocK. 1. W. Hellman of the Nevada Natiopal Bank said regarding the cashier's flight: “It is a sad affair—not from a monetary standpoint, which, T am glad to say through The Call, is of small importance, The money loss, whatever it is, I can easily stand. It is the ingratitude that is the sad feature. Fleishman has been in my employ more than twenty vears, and worked himself up from office boy to the Continued on Page Two. ENCOURGES BUILDING BY b SUBGIDY National Defense and Postal Interests Are Considered. S AR Speed and Tonnage Among‘ the Requirements for a Bonus. - Any Vessel to Receive Government | Aid Must Be of Class Al, and One-Fourth of the Crew Must Be Americans. | WASHINGTON, Dec. 5.—Senator Frye | | to-day introduced the new ship subsidy It differs in form from the subsidy It is divided bill, bill of the past two sessions. into four titles and fifteen sections. sections under the title steamships” are devoted to amendments to the ocean mail act of 1881. The Post- ! master General is required to consider the The | “‘ocean mail | national défense and the maritime inter- | ests of the United States, as well as postal | interests in providing for the transporta- | tion of American mails. The present limit of ocean mail con- tracts, ten years, is increased to fifteen vears. The Frye bill provides seven dis- tinct classes with a rate of 36 to 20-knot steamers, increasing from 8000 to 10,000 tons the minimum size: $3 for 16-knot steamers, provided the size is increased from 5000, the present minimum tonnage, to 8000 tons. The proposed maximum mail rates per gross ton per hundred nautical miles are: Over 10000 tons, 20 knots, 2.7 cents; 19 knots, 2.5 cents. Over 5000 tons, 18 knots, 2.3 cents; 17 knots, 2.1 cents; 16 knots, 1.9 cents; 15 knots, 1.7 cents. Over 2000 tons, 14 knots, 1.5 cents. Rates for mail steamers to the West Indfes, Central America and Mexico can- not exceed 70 per cent of the maximum rates. The General Subsidy. The second title, *‘general subsidy,” con- tains the general subsidy for all vessels, steam or sail, which are not under mail contracts. This general subsidy is uni- form, 1 cent per gross ton per 100 nautical miles for not exceeding sixteen entries in one year. To promote the building of new ocean vessels an additional allowance of one- fourth of a cent per gross ton is made for five years. Any vessel to receive the general sub- sidy must carry mails, if required, and must train in seamanship or engineering | one American youth for each 1000 tons, the vessel to be at the service of the Government if required for defense. Any vessel to receive subsidy must be classed Al and at least one-fourth of the crew must be Americans. The bill provides an annual. bounty of $2 a ton for deep sea fishing vessels and of $1 a month for American citizens when engaged in deep sea fisheries, that a vessel shall receive only one form of subsidy and that a vessel which has re- ceived a subsidy shall not be sold to a foreigner except by consent of the Sec- retary of the Treasury. The bill does not provide American reg- istry to foreign_ ships owned by Ameri- cans. Provisions in Last Bill. The last subsidy bill provided 15 cents per gross ton for each 100 nautical miles, not exceeding 1500 miles sailed, and 1 cent per gross ton for each additional 100 miies sailed; vessels to carry from United States ports at least 50 per cent of their capacity. Steam vessels, suitable for car- rying the mails of over 2000 gross tons, were to have the following compensation in addition to the above rates: Twelve knots, five tenths of one cent per ton; fourteen knots, 1 cent per ton; fifteen knots, 11-10 cents per ton; sixtean knots \and over, 1 2-10 cents per gross tons. Ves- sels of over 4000 tons, seventeen knots, 1 4-10 cents per ton; eighteen knots, 1 6-10 cents per ton; ninetfen knots, 1 8-10 cents per ton. Vessels of over 10,000 tons, twen- ty knots, 2 cents per ton, twenty-one knots, 2 3-10 cents per ton. Foreign-built vessels admitted to American registry were entitled t6 50 per cent of the above rates. The total compensation paid out in any one year should not exceed $9,000,- 000, deductions to be made pro rata. Provision was made. for a certain num- ber of vessels to secure American registry. Contracts could be entered into for the building of vessels in the United States of class Al type to receive the subsidy. Provisions for use of vessels by the United States in case of war and that a portion of erews should be American were similar to the provisions of the new bill. S SUPPORT TEE FRYE BILL. Features in the New Measure Please Republican Statesmen. CALL BUREAU, 1406 G STREET, N. W., WASHINGTON, Dec. 9.—Members of the Senate and House interested in the American merchant marine are much pleased with the Frye ship subsidy bill. Friends of the bill assert that it meets 21l the objections made to former meas- ures providing subsidies and will get the votes of those Senators who favor legis- lation to advance American shipping, but who could not bring themselves to vote for former bills. It is admitted on all Continued on Page Two IMRS. STANFORD GIVES THIRTY MILLIONS TO TMAGNIFICENT UNIVERSITY AT PALO ALTO Legal'zes Bequests Heretofore Made and Makes the Ins itution at Pa'o Alto, Named After Her Deceased Son Leland, One of the Richest Seats of Learning in the United States and the World o - THE GOOD ANGEL OF LELAND STANFORD JR. UNIVERSITY, WHO HAS AFFIXED HER SIGNATURE TO GRANTS CONFIRMING ALL HER GIFTS, AGGREGATING $30,000,000, TO THE MAGNIFICENT l\ST!T[ TION OF LEARNING AT PALO ALTO. ACCEPT these grants and the trusts therein set forth by virtue of the authority in me vested as president of the board of trustees of the Stanford University, and also as a member of the board of trustees for my- self and on behalf of the other trustees, present and absent. I thank you, Mrs. Stanford, not merely on behalf of the board, which has gained naught but grave responsibility thereby, but on behalf of humanity.” With these words S. F. Leib, president of the board of trustees of the Leland Stanford Junior University. received yes- terday from Mrs. Jane L. Stanford docu- ments conveying to the university $30,000,- 000 worth of property, thereby making it one of the richest seats of learning in the United States, and adding another stone to the arch of fame which for years has been in course of erection in honor of the young man after whom the great uni- versity was named. There were but few present when the transaction took place, but the scene will live long in the memory of the witnesses. The wishes of her dead husband have gulded Mrs. Stanford in her every act since his death, and she knows that it was his aim to make the great institution, which he founded during his life and to which he gave the name of his only son, a monument which would stand forever. She bas carried out his wishes to the very letter and seeks no reward for her noble effor(® other than the knowledge that she has done as her husbanG would have done had he lived, and that the people of Cali- fornia, in fact, the world, are benefl- claries. Every Gift Is Legalized. The documents turned over to President Leib yesterday have legalized every gift or bequest made to the university by Mrs. Stanford. They consist of two deeds of grant and one deed of gift. One of the deeds of gift covers all of the real estate given to the university, including the uni- versity campus-of 9000 acres. The deed of gift covers the gifts of stocks and bonds heretofage given and certain securities s not included in former grants. The second deed of grant is a convey- ance of the magnificent Stanford resi- dence, at' the corner of Powell and Cali- fornia streets, to the trustees of Stanford University. It has long been the aim of Mrs. Stanford to place within the reach of the people of San Francisco the bene- fits of Stanford University. In order to do so she has given up her magnificent home. In the document conveying this plece of property to the university she stipulates that it shall be used for educa- tional purposes. She retains a life interest In the Stanford home, and upon her death it is to be made into an institution of learning. It is to be a department of the umiversity. As near as can be learned Mrs. Stanford intends that her beautiful home shall be a place where the faculty of Stanford shall deliv- er thelr lectures that San Franciscans may receive the benefit. The grants made yesterday are largely confirmatory and are made under the provisions of the Stanford University con- stitutional amendment passed by the !ast Legislature. By these grants she has con- veyed to the university for the benefit of the people of California about $18,000,000 in stocks and bonds and from $10,000,000 to $12,000,000 in real estaté, including the uni- versity buildings and equipment. Mrs. Stanford Rotains Control. This conveyance does not affect Mrs. Stanford's position in regard to the uni- versity. She still retains the absolute pow- er of management of the properties, and will do so during her lifetime. George F. Crothers, who drew up the constitutional amendment which thads these gifts possible and who knew at the time it was drawn up that Mrs. Stanford had this conveyance in contemplation, sald last night: “Notwithstanding the perfectly baseless criticism of Mrs. Stanford in her absence abroad last year, founded as it was upon a mere misunderstanding, Mrs. Stanford's loyalty to the university and to the peo- ple for whom it was founded is unalter- able.” All doubts concerning the provisions of former grants are now removed. These grants were necessary to render the con- stitution of full force and effect. The following is an extract from the deed of grant conveying the Stanford residenice on California street to the trus- tees of the university: Now, therefore, pursuant to the express au- thorization of the aforesald constitutional amendment whereby it Is provided that the board. of trustees of the Leland Stanford Junicr University, as such, or in the name of the in- stitution, or by other Inteiligible designation of the trustees or of the institution, may re= ceilve property, real or personal, and wherever situated, by gift, grant, devise or bequest, for the benefit of .(he institution, or of any depart- ment thereof, and such property, unless other- wise provided, shall be held by the trustees of the Leland Stariford Jurior University upon the trusts provided for in the grant founding the university, and amendments thereof, and srants, bequests and devises supplementary thereto; and also to confirm and render sald constitutional amendment of full force and ef~ fect so far as the power In me lies, and par- ticularly that clause thereof whereby it is pras vided that the trusts and estates created for the founding, endowment and maintenance of ths Leland Stanford Junfor University under and ia accordance with ““An act to advance learning, * approved March 9, 1385, by the endow- ment grant executed by Leland Stanford and Jane Lathrop Stanford on the 1ith day of No- vember, 1885, and recorded in Liber 33 of deeds at page 23, et seq. records of Santa Clars County, and by the amendments of such grant 2nd by gifts, grants, bequests and devises sup- plementary thereto and by confirmatory grants, are permitted, approved and confirmed, This is the largest gift ever made by any one person to any cause. The greas- est sum ever given by Andrew Carnegie, who is noted for his charitable deeds, was $19,000,000. Mrs. Stanford gave treble that amcunt yesterda: The three documents are dated Septem- ber 9, 1%1. They bear the signature, Continued on i’u‘o Two.