1132. People's Bank (San Francisco, CA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 22, 1893
Location
San Francisco, California (37.780, -122.419)

Metadata

Model
gpt-5-mini
Short Digest
2dbdf1e8

Response Measures

None

Description

The articles describe legal proceedings, appointment of a receiver (John F. Sheehan), indictments, and references to the bank as defunct or having suspended. There is no clear description of a depositor run causing the suspension; instead the coverage centers on missing funds, alleged misconduct and receivership. Thus this is a suspension that resulted in permanent closure/receivership. Dates corrected/used are from the articles' publication dates and references (receivership/legal proceedings reported Aug 22, 1893 and extensive litigation through 1894).

Events (3)
1. August 22, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Allegations of missing funds, gross mismanagement, large questionable notes and misconduct by directors led to legal action and appointment of a receiver rather than a run-driven panic.
Newspaper Excerpt
Arguments on the application to set aside the order of the court appointing a receiver ... application of Farnum ... to have the bank wind up ... alleged indebtedness ... gross carelessness in management ... glaring $99,000 note ...
Source
newspapers
2. May 26, 1894 Receivership
Newspaper Excerpt
Attorneys Delmas and Shortridge before Judge Hebbard ... motion to modify the decree of injunction in People's Bank case ... discussion of receiver Sheehan and winding up affairs; suit brought by the people against the People's Bank et al.; demurrers filed on behalf of the bank directors. 'Receiver Sheehan' is referenced repeatedly in later articles as receiver of the People's Bank of that city. (May 26, 1894 article.)
Source
newspapers
3. February 13, 1895 Other
Newspaper Excerpt
Chapters in the Life of the Man Through Whom the Pacific and People's Banks Were Wrecked ... In the trial of R. H. McDonald, Jr., for perjury ... after the bank suspended, he had refused to leave town, stating that he had committed no crime. (Feb 13, 1895 article.)
Source
newspapers

Newspaper Articles (12)
1. August 22, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, August 22, 1893

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THE PEOPLE'S BANK. ReArguments scind on the the Receivership. application Application of to Joseph on the the order of the of court Home Winterburn Arguments appointing to set J. aside E. Farnum Bank receiver were the Judge from had been heard People's before Sanderson Savings postponed yesterday. concerned last week time having The case to allow the attorneys to prepare their been therein of the Yesterday when recently every one came up Farnum, only briefs, some further appointed. attorneys interested the rethe matter including E. Shaw and was present, attorneys. A. and other while by were and P. M. to stockholders C.N. ceiver, Fox, L. and his Hoeffler the represented petitioner Hart F. represent Dunne. M. A. with Dorn. Attorney- General State of California. of in by the case commenced allegations the directors and the terburn's the Dorn people opened application. the various He support endeavored of Win- made very reciting the bank indorsed the bank against that Farnum to have got the which are it was claimed the into cific acts to show trouble. alleged indebted directors to that of People's the one Pa- so Bank that was the the other. If the Bank. and interested in to protect bank were be in a position and stockholders in banks. point Bank was interests both they The should main of depositors claimed Home by Dorn but was was in a that the People's in difficulties at under all, skillful honest reality not canable of settling all its benefit said solvent and liabilities institution. and management leaving of depositors handsome counsel, and surplus stock- they "on for he holders. representations "And yet," bank' to affairs the court in expenses a mancertain to wind up the by law, with all ironical no was and ask ner not a 'counsel very provided modest fee to my _with friend an Judge Fox.' bow- went on to say that the there stockholders Dorn whatever appointment that of a of re- a acquiesced allegation in is this there any proceeding. mention The a ceiver; against nor such thing a took place repre- at fact protest was the only whole five stockholders. infinitesimal meeting of them but an of the bank. seating the capital appointed men banking proportion These among of surreptitiously really solvent insti- the a receiver for a Dorn, "as to tution. again," said He cannot conduct business for the by law duties the "Then, of a receiver. is compelled benefit whatever of parties loss to wind may interested. He concern up, So at the whole to the Proceedings. of 8 receiver be incidental costs the appointment The whole proceedshould be a were various authorities. to explain all quoted ings French avoided. unauthorized, bank case, notably and counsel well- the to known on this subject. therefore, to the the order first Objectione. were manifold. the In court had place show it cause was maintained to appoint that a receiver. been un- If jurisdiction company had remedy no officer of the trust there was a facts of known to all. sufficient, even case were had receiver. the appointment in the that an faithful the well the court to bis net jurisdiction, Secondly, of a the to complaint, granting necessi- the No any if such insolvency tate malfrasance was alleged on the part were of the to be directors. did not allow because of case, others nor the law And. of confiscated even parties. the property Hart the of wrongdoing Altorney-General offer. At this point few suggestions Dorn gave that he had a go away early what as he had to and way to him. by Attorney of the was been urged the nature Hart and said define Hart indorsed Dorn, that bank. then had had of proceeded the to same argument the Pacific Bank, savused It in that the it case was incorporated had special as a bank, and by had leges ings namely, governed therefore directors special while privi- laws. a and corporations was the the concern, the lien In such on stockholders all the assets manage of and control the business. the bank had franchise a franchise was granted in the Now. the State, which Therefore, in the case of nature by of a contract. on the part of any be officer taken the company and the misconduct proceedings must had no according in the present be as these court of jurisdiction steps to law, instance. can the court taken," "Be- can said Hart, "that there must be a appoint a the concern. or fore such receiver is, before the State disso- must the franchise be informed and the to withdraw lution Attorney-General has of occurred, must granted. Bank persons Commis- The the in- of missioners what are the proper In this way numermatters." quoting authorities in insisting support that the ous vestigate Attorney-General and concluded by argued. revoked. of his argument. E. order Shaw a receiver Attorney be A. He was appointing After the recited recess the original appointed complaint of the the director. against there had allegations replied. receiver under which show Mr. bank, that Farnum and pointed well been as endeav- out gross care- the oring to on their part. as of affairs. The misconduct in the management acceptance On of glaring $99,000 of C. F. of June 22, the bank the lessness most the night note for of vaults all was their 1893, of the Holder. defendants and certain acout of the of $97.000, The note bonds took of the value this note for $99,000. in cepted in lieu was taken of these at the Pacific Bank

2. May 26, 1894 The Morning Call San Francisco, CA
Article from The Morning Call, May 26, 1894

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NOT TO MEET Scope of Judge Hebbard's Injunction. DIRECTORS IN A QUANDARY Opposition Committee Named Depositors. FIVE RESIGNATIONS ARE Sheehan's Letter Results in the pointment of a Committee of Investigation. Attorneys Delmas and Shortridge before Judge Hebbard at 4 o'clock in afternoon with their promised motion modify the decree of injunction in People's Bank case. After some delay had occurred owing the non-arrival of Attorney-General Mr. Delmas explained the reason of motion. He spoke to a very audience, as besides the Judge and officers of the court the only intereste parties present were Attorneys W. Hutton, Shortridge and James Watt. Hart came in about an hour and made up the quintet. Mr. Delmas urged that It was entirel wrong that the People's Bank director should be placed in such an unfortunat position as they at present occupied. the one side were some ten thousand positors clamoring for their buried and demanding the immediate resign tion of the board of directors: on other side was the injuncion restrainin the directors from taking any sort of tion, thereby precluding them from formally resigning. It was urged that the directors were fectly willing to rise to the call of people and resign their offices. But to that it would be necessary to hold a ing for that purpose, and as each directo 01 eq pinom 11 ino peddent point his successor. Again. Mr. Delmas claimed that the rectors were not proper parties to the instituted by the Attorney-General in name of the people. It was purely statutory proceeding and concerned bank alone and its business, and ther was nothing which could possibly vent any director from throwing up office when he 80 pleased. On these grounds, therefore, Mr. Delma moved that the order 01 injunction nally granted against the People's disectors eq: MOTE 01 SE 08 9q hold a meeting for the purpose of formall resigning and of electing their successor A list of names of probable successors, of them exceptionally good and true, Delmas held in his hand, and it was there would be no opposition to the mod fication scheme SO modestly presented. Judge Hebbard asked for further pression of feeling upon the subject, Mr. Hutton rose to speak on behalf of large number of depositors. The motio of Mr. Delmas had his hearty indorsemen as he personally knew that the resignatio of the present board of directors was one wish ever present in the minds of long-suffering creditors. Both Attorney-General Hart and Alva Watt were called upon, and at Mr. Watt responded. He said he person ally had no objection to the directors allowed to resign, but as attorney for receiver he wished to offer an amendmen 90 placed Apoq 8 a! deposition equal sulted on this proposed step. He stood that some names of future director were being brought forward by other terested parties than Mr. Delmas, while he agreed that there must be change he thought that the depositor should be called together and asked to press their decided opinion upon questions-that of resignation and that succession. The Attorney-General was heard to that the affairs of the defunct bank shoul be wound UD as economically as possible He knew of some good men who SE been proposed successors to the

3. May 29, 1894 The Morning Call San Francisco, CA
Article from The Morning Call, May 29, 1894

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the Pacific Bank yesterday it was practically decided to declare a 5 per cent dividend. This subject will be further considered at a meeting called for next Thursday. The following note was addressed to Judge Hebbard yesterday: SAN FRANCISCO. May 28, 1894. Judge J. C. Hebbard, City-DEAR SIR: I desire to place before you a few facts regarding a petition relating to the People's Home Savings Bank bearing my name: First-I am a depositor of an amount SO small as to make it unprofitable for me to spend much time in running after it. Therefore I have attended none of the meetings of the depositors and know nothing of what was being done by them to secure payment. Second-The petition signed by me was presented by a personal friend, who claimed that it was for the best interest of all concerned. I am told that the petition will tend to delay action on your part in matters of vital importance to the depositors, and as I do not wish to be a party to any such proceeding I ask that you do only what seems right and best for all concerned. Knowing that you have all of the facts of the case before you and are best qualified to render justice to all, I am perfectly willing to leave my interests in your hands for settlement. 1 H. S. STEDMAN. am very trulv yours, The committee of seven decided at a meeting last night to report in front of the People's Home Savings Bank to-day to secure from visiting depositors signatures to be presented to Judge Hebbard. A call for a mass-meeting of depositors in Foresters' Hall to-night was issued. It was stated that the San Luis Obispo lands, about which so much has been said, might be leased at from 10 to 15 cents an acre. Dick McDonald appeared once more before Judge Murphy yesterday, accompanied by his colleagues in misfortune, Hiram T. Graves, Charles Montgomery and A. L. Jenkins. Dick having entered a plea of not guilty to the indictment in which he was alone concerned, Judge Murphy asked his attorneys, ex-Junge Darwin and E. J. Livernash, what time they wished in which to prepare for trial. No reply being made to this, and Assistant District Attorney Hosmer vouchsafing no remark, Judge Murphy was for peremptorily setting the case for trial on June 6. "We object to that date." hastily interposed Mr. Livernash. "We intend to move for a change of venue and we want time to prepare our motion." Eventually, both sides consenting, Judge Murphy set June 27 as the trial day. It then came to the turn of the four defendants to be arraigned on their joint indictment. However, as Attorney Henry E. Highton said he had demurrers to interpose to the indictment, the arraignment was continued until this morning. Arguments were heard before the Supreme Court yesterday upon the application for a writ of prohibition to restrain the appointment of a receiver in the People's Bank case. D. M. Delmas argued the application on behalf of the bank directors. He maintained that the court had no right to appoint General Sheehan as receiver before the facts contained in the allegations of the complaint were proved. In any case he failed to see where Attorney-General Hart came in, or what right be had to bring the present suit. "Perhaps," said Mr. Delmas. "Mr. Hart can tell us where some of these missing funds have gone to." In conclusion, Mr. Delmas urged that the appointment of John F. Sheeban as receiver be set aside and that the People's Bank directors be empowered to take charge of the bank's affairs. Attorney-General Hart and James Alva Watt replied, the former representing the plaintiff in the action, 1. e., the people, and the latter the receiver. Eventually the matter was ordered submitted. Yesterday afternoon Messrs. Delmas and Shortridge filed in the Superior Court demurrers to the suit brought by the people against the People's Bank et al. The demurrers were interposed on behalf of the People's Bank. R. H. McDonald Jr., George Schuliz and George P. Keeney. It was claimed that the court had no jurisdiction in the matter, and that there was a misjoinder of issues in the case.

4. June 9, 1894 The Morning Call San Francisco, CA
Article from The Morning Call, June 9, 1894

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of them should be taken up first. Eventually it was decided to proceed with the motion to modify the injunction, taking up the demurrer to the original suit en route. Henry E. Highton went through the form of reading the papers in the case. He read the demurrers of Hiram T. Graves, A. L. Jenkins and Charles Montgomery to the original complaint brought by the people, in which it was claimed that no cause of action lay therein. There was some objection made by Attorney-General Hart to the reading of Graves' affidavit in answer to the suit on the ground that it would be necessary for Mr. Highton to quote a number of letters that were at best only hearsay testimony. Mr. Highton, however, was permitted to proceed. The affidavits of both Graves and Jenkins showed that they were perfectly willing to resign their trusts as directors of the bank, since it was the will of the depositors, the real creditors of the bank, that they should do so. Montgomery, however, in his affidavit, showed that he did not participate in the decision reached by his brother directors. Montgomery had decided that while a criminal indictment hung over his head he would not resign from the board. Now Mr. Righton had to propose that the injunction be so modified as to permit those directors who wished to resign to do so. At the conclusion of Mr. Highton's opening remarks John H. Durst, representing Dr. Boushey, president of the bank, read an affidavit sworn to by his client that morning in which a correspondence was recited that had passed between himself and d. W. Hutton, chairman of a committee of depositors. In this Dr. Boushey described himself as notonly willing but anxious to resign on the distinct understanding that the other directors did the same. But in his affidavit Dr. Boushey very strongly objected to the retiring directors being permitted to select their own successors. It would not do, he thought, to permit a majority of the board to resign if such further permission were accorded them. And attention was called to the fact that Graves, Jenkins and Montgomery had denied the right of any one to dictate to them what persons they shail select as directors in their place. Before proceeding Attorney-General Hart expressed a desire to question Mr. Hutton concerning the number of depositors he was actually supposed to represent. Accordingly Mr. Hutton took the stand. "How many depositors do you represent?" "Fifteen hundred and thirty-six in all. Fifteen hundred and twelve signed the roll themselves." "What amount do they represent?" "Between $580,000 and $600,000." Mr. Hutton was then questioned upon his committee of seven and upon their correspondence with Dr. Boushey. The witness stated that Dr. Boushey had given his letter to the papers before it reached the committee, and so the committee had done the same with their reply. Durst asked the witness in what shape his authorizations were. Mr. Hutton at once produced them. Receiver Sheehan was in court, but had not with him his depositors' book. He said, however, that there were 10,000 depositors in all, representing $1,600,000 in deposits. "Mr. Hutton, can you state on behalf of the depositors you represent what their wishes are with regard to this injunction?" asked the Attorney-General. "Yes; their desire is that those directors who wish to resign should be permitted to do so." James Alva Watt, representing the receiver, said he understood there was another depositors' committee in court who were not legally represented. It was known that Mr. Hutton's committee stood outside the People's Bank all day and forced all comers to sign the roll. Now, this other committee represented $200,000 worth of deposite, and they wanted their say. They too wanted the directors to resign. "I agree," suddenly exclaimed Hart, jumping up. "Here's two committees of depositors and the directors themselves all wanting the same thing. Let'em resign. I for one am sorry they were ever elected. But let their successors be elected by the stockholders in some way satisfactory to all parties. That's all I have to say." Mr. Hutton was commencing to say that he knew nothing at all about any depositors' committee but that of which he was chairman when he was interrupted by the Judge, who said he would try no issues as between two rival committees of depositors. That was not the point at all. Mr. Highton then obtained permission to read two further affidavits of Graves and Jenkins, filed that morning, in which a way out of the difficulty was suggested. The affidavit set forth that the affiants had received no money from the bank, but a very small salary, that after a very brief

5. June 9, 1894 The Morning Call San Francisco, CA
Article from The Morning Call, June 9, 1894

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THE DEPOSITORS MEET. y Will Insist on Having Their Four Selected Directors. e depositors of the People's Bank another meeting last evening at 102 rell street, and spent two hours and If in talking over their grievances, considering the best methods of comto as speedy a solution of them as ible. The bank directors, Receiver han and others came in for a goodly e of condemnation in having, it was ned, acted contrary to the interests of depositors, ter the meeting was called to order, rney H. W. Hutton gave in detail just t had taken place in court during the and announced that everything had over until Monday. He said he was tily opposed to the delay, as while the were going by without any settlet being arrived at the money the bank was being eaten up eedless expense and mismanagement. hought that the depositors should be n a chance to manage the bank for selves as soon as possible. The exes he was sure could be reduced at t one-half, and that meant a great deal he people whose money was involved. depositors should insist upon the right ave their own representatives in ge of the bank. iomas W. McCarthy, one of the comee of seven appointed by the detors. reported that he had waited ) Chief Justice Beatty of the Supreme rt and requested that the writ of protion now pending in the court be aded upon the calendar and decided at arly date. Justice Beatty had assured that the matter would have a speedy ideration and a decision would be ard at in a short time. 16 most important matter of the evenwas then taken up. It was the considon of the letter of H. T. Graves and L. Jenkins, two of the objectionable etors of the bank. In this letter srs. Graves and Jenkins proposed that w board of directors be selected by ving them from a box in which was names of 250 responsible men on slips aper. The 250 names were to be sed by a committee chosen by the detors and stockholders. In case any of ix first selected would not serve the vings were to be kept up until a board lirectors was obtained. In case this was adopted Messrs. Graves and Jenwould agree to resign, response to this letter the committee even submitted a reply in which srs. Graves and Jenkins were assured their proposition was not satisfac. To adopt such a course, the reply ed, would only cause delay, and that the last thing wanted. The depositors already drafted a plan of settlement reby four new directors had been sed by the depositors and three had been en by the old board of directors. This was perfectly agreeable to the detors, and they saw no reason for changt. All that was needed was to get a d of directors that would handle the rs of the bank in an honest and econcal manner, and to select men to dle $1,600,000 by means of a lottery, such the proposed plan was, did not e the depositors at all favorably. The selected by the depositors had been ged to economical management and depositors could trust them. ttorney Hutton spoke at length upon importance of impressing upon the

6. June 12, 1894 The Morning Call San Francisco, CA
Article from The Morning Call, June 12, 1894

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HOW DIRECTORS WILL ACT. Charles Montgomery Thinks the Bank Will Be Saved. Charles Montgomery expressed himself last evening as highly satisfied with the turn that affairs had taken. He regards the Supreme Court decision as practically paving the way for a speedy adjustment of the present difficulties, as well as a general clearing up of many matters that have hitherto been shrouded in mystery. Speaking of the Grand Jury indictment, Mr. Montgomery said: "That is one of the greatest pieces of nonsense that was ever perpetrated. I had been in office precisely two weeks. During that time I had reduced the expenses of the bank $12,000 a month, had caused to be discharged a number of attorneys and employes, and yet two weeks later I was arrested. "Now, I'm coming to the point. I was indicted to prevent me from going after the very men who are responsible for the bank's present position. I went into that bank in the interest of 200 depositors who begged me to do 80, To tell what I found there would surprise you. It is enough to say that I took off my coat, went to work and did what I could to straighten matters out. "Dick McDonald was scared out of bis wits. He thought that some one was going to shoot him at any moment, and there were those who told him these things to serve their own ends. "Now, that being so, I will tell you what Intend to do. Graves and Jenkins are in with me. Graves had the honor of a ten days' membership in the board of directors before he was indicted, while Jenkins took office shortly before I aid. Five or six of the old board may resign. Well, their places will be filled and 1 will do my best to see that good men fill the vacancies. "I shall certainly not resign until everything is cleared up. I think that the bank has a future before it. I intend that we shall turo the assets into cash and pay. dividends as fast as we can. This done, you will find that with careful management we shall pay up dollar for dollar. The bank is solvent, I'm certain. "We shall seek to get fresh capital in SO as to open the doors of the bank. This will be done by the sale of stock and by the levying of assessments upon stockholders. There is 00 reason why in the future the People's Bank should not regain its lost position. It has the finest location in the city for a savings bank. "As for myself. I think I am a martyr to the depositors' interests. When all is over I'm going to take a hall and give lectures. And before I'm through 1 guarantee to show up a condition of affairs that this community never dreamed of." Mr. Montgomery expressed regret that General Sheehan shall have all his trouble for nothing, as by yesterday's decision the ex-receiver can claim DO salary, his appointment having been decided illegal and void.

7. September 21, 1894 The Herald Los Angeles, CA
Article from The Herald, September 21, 1894

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PERSONAL. Wm. N. Holway of Oakland is at the Hollenbeck. K. H. Krause of New York is stopping at the Nadeau. D. F. Baxter of Santa Barbara is at the Westminster. J. W. Jackson, a well-known San Diego citizen, is at the Nadeau. Mrs. Thomas Bakewell and son, of Riverside, are at the Westminster. Richard Attschul has returned from a visit of several months to Germany. Charles Ogden and bride of Omaha, Neb., are stopping at the Westminster. S. Nordlinger, the jeweler, has gone to New York for six weeks or two months. T. C. Barrett, wife and child, of Louisiana, are at the Westminster, on a visit to the coast. Col. J. H. Holmes, manager of the Hotel Green, was at the Westminster yesterday. James M. Sinclair, of Melbourne, Australia, is a recent arrival at the Hollenbeck. Col. Dan Freeman, president of the chamber of commerce, will leave today for New York. Ed Abramson of San Francisco is in town on a visit to his brother in S. Nordlinger's store. Fred Ingle, one of the extremely popular young men of San Diego, is visiting friends in Los Angeles. Mr. and Mrs. W. S. Tripp of San Diego are at the Hollenbeck, on their return from a visit to the east. A. D. Renfro of Renfro, Reeves & Co., has gone to Redlands on a business trip, and will be absent about a week. Mrs. E. A. de Wyles of Phœnix, Ariz., left last night for the City of Mexico, where she will make her future home. B. F. Karrick, of Pueblo, Coi., is at the Hollenbeck. He is one of the officers of the Crescent Coal company, of this city. W. B. Greenberg and his wife of San Francisco, are at the Hollenbeck. Mr. Greenberg is connected with Wells, Fargo & Co. Fred C. Morgan, of the Morgan Oyster company of San Francisco, the largest institution on the coast, is in the city on a brief visit. C. S. Hardy, the big wholesale butcher of San Diego, is at the Westminster. He is on his way home from a trip to Chicago. Captain Remington, well known among local sportsmen, has taken charge of the Seaside inn, at Long Beach, for J. Bixby. Mrs. H. F. Norcross, wife of the local manager of the San Diego chamber of commerce, returned yesterday from a six-weeks' visit to San Diego. W. S. Sparr of Jacksonville, Fla., arrived from the east yesterday on his way to Ventura, where he owns a fine property. He is stopping at the Nadeau. Mise C. Godfrey, Miss M. Locke and John Murray, members of the new Imperial troupe, arrived form the north yesterday and are stopping at the Nadeau. Mrs. John H. Fallow, of San Francisco, one of the partners in interest in the Pratt case now on trial, is at the Hollenbeck, arriving yesterday from the north. John F. Sheehan of San Francisco, receiver of the People's bank of that city, is at the Hollenbeck. He has just returned from a trip to Riverside, where he has been looking over securities held by the bank. E. A. Cudahy, vice-president and manager of the Cudahy Packing Co. of Omaha, Neb., is at the Hollenbeck. He arrived from the north last night. The gentleman is interested in the Cudahy Packing company of this city. Manager J. A. Brown of the Los Angeles international exposition left yesterday for San Francisco. Mr. Brown will spend a few days in the metropolis and will then go to Tacoma for the purpose of bringing here some of the best exhibits. Mrs. Blanche Talcott, wife of Dr. Talcott, will leave tomorrow with her two children for a visit to New York and Philadelphia. She will remain some time in the latter city, the guest of the grandfather of her children. The HERALD hopes that she will enjoy the trip and have a pleasant time with many old Los Angeles friends in the east, whom she contemplates visiting before her return.

8. December 24, 1894 The Morning News Savannah, GA
Article from The Morning News, December 24, 1894

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MILLION AND A HALF. That Was the Size of Claus Spreckels' Check. He Presents It to the Nevada Bank of San Francisco and It Is Cashed as an Every-Day Transactions, and Says the Bank Would Honor One for $3,000,000 More if He Drew One That Big. From the San Francisco Examiner. It is a nice thing to be a millionaire so many times that one can walk into a bank and check out a million and a half of dollars, and yet rest easy in the consciousness that the showy transaction can be repeated the next day, and the next day after that, without the bookkeeper remonstrating with a little notice to the effect that the account is over drawn. It sounds like Alladin's lamp. Doubtless there are several gentlemen in San Francisco who could do this if they rehearsed for the performance by consolidating their securities, but there are not many who make a habit of it. The average San Francisco paying teller would blink his eyes, make some inquiries in the back office, and even if all was pronounced regular he would stutter when he inquired, "Notes or gold, sir?" of the gentleman presenting a check for $1,500,000. Those were the figures on the check drawn by Claus Spreckels, the sugar king, on the Nevada bank last Friday, when clearing house transactions were swollen to considerably over high-water mark. Nobody questioned Mr. Spreckels' financial right to draw such a check or the bank's ability to cash it, but nevertheless it caused more of a flurry in banking and financial circles than has been experienced in several years. The Pacific and People's Bank collapses were not unexpected, and were mere ripples on the fact of the money ocean compared with the waves of talk the big check provoked. From all accounts Mr. Spreckels was walking down Montgomery street in a reflective mood Friday morning when he was struck with the Idea that he would like to have a little pocket money available in some other institution than the Nevada Bank. He climbed the steps, asked for a blank check, scratched in the date seven figures, the words "Bank of California" after Pay to," and then signed it as quietly as though he was putting his O. K. on a cigar bill. The portentious slip of paper was passed to Cashier Davidson as a matter of form, and the president was also notified. The latter official did not trouble himself to leave his office, but merely sent out word that it was all right, and Mr. Spreckels, being satisfied that his business would town. be attended to, resumed his walk down That is the way the story goes, and it may or may not be correct as to detail, but anyhow it is certain that the man who beat the sugar trust on its own fighting ground drew his check for a million and a half of money last Friday, and the sum was transferred from the Nevada Bank vaults to those of the Bank of California before the close of business. With this fact to' work on everybody in every bank in town began to speculate on the sort of a transaction that could involve such a mint of money and yet be kept a secret. Theories and rumors were thicker than fog. One young man evolved the explanation that Mr. Spreckels had been the hidden hand in the mysterious bull movement in the wheat market last summer. and that the check was intended to cover the cost of buying steadily on a falling movement. This was generally laughed at by those who wheat. knew the Spreckels' opinion of Another suggestion was that Mr. Spreckels was tired of business and intended to seek recreation in the United States Senate. This idea was scornfully repelled. Everybody claimed to know for a fact that John D. Spreckels and his brother Adolph had merely gone into politics for amusement and to see how the machine was worked in various branches of state and municipal government, and that no member of place. the family had any expensive desire for A transfer of accounts was considered the most likely theory. It was well remembered how the Anglo-California Bank disagreed with Mr. Spreckels once upon a time-not so many years ago-and the latter drew out his odd pennies by checking them into another bank. He had a lot of nice, new check books at the time. Instead of throwing them into the waste basket he bought a large, red rubber stamp, and every time he drew a check thereafter he took the stamp and printed "Nevada Bank" across that portion of the checks that read "Anglo-California Bank." This did not provoke a run on the bank that was turned down, but it stood in the nature of a red reproach as long as those check books lasted. The question of Friday's big check being a similar change in strong boxes was much debated, and the effect of such a transfer was discussed in like manner. It was this presentation of the case that induced Mr. Spreckels to say something about his big check, which, by the way, he did not consider anything extraordinary, last evening. He was engaged in an afterdinner game of checkers with his son, John, when called upon, and having a little the worst of the game was much more interested in the buttons on the board than in any matter involving a mere million and a half. John D., too, was deeply interested in the game. It is a way these millionaires have, this being interested in trifles, and the young man is a fair sample of his sire. "This is a small matter of private business," he said, "and it involves no business transaction that is of interest to San Franciscans-or any one else but myself, for that matter I have drawn many checks for amounts as large or larger

9. February 13, 1895 The Herald Los Angeles, CA
Article from The Herald, February 13, 1895

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The Ex-Banker Was Nursed Like a Babe STORY OF WIFE AND SISTER When Clara Belle Proved False Ambition Left Him Chapters in the Life of the Man Through Whom the Pacific and People's Banks Were Wrecked San Francisco, Feb. 12.--In the trial of R. H. McDonald, Jr., for perjury this morning, Mrs. McDonald, for the defense, recounted many instances of her husband's eccentricity. He fancied that the ceiling was about to fall upon him, but that he would be saved from death if his wife held his head. He only slept when she thus nursed him. When she urged him to go abroad, after the bank suspended, he had refused to leave town, stating that he had committed no crime. Mrs. N. S. Rickard, a sister of the defendant, told of Dick's over-education and of the development of his brain at the expense of his body. At a German university he had a quarrel and requested a friend to fight a duel for him. At this stage McDonald excitedly demanded that the witness be withdrawn. He had requested his sister not to make him ridiculous. He would prefer any punishment at the hands of the jury to suffering by the impugning of his manhood. His counsel refused to withdraw the witness, who testified that after Dick's trouble with Clara Belle he had said: "You don't know what it is to be ridiculed and deceived by the only woman you love. I have now nothing to live for." A juror accused Mrs. Rickard of secretly passing a folded paper to another juror. This was denied both by the witness and the juror in question.

10. February 24, 1895 The Morning Call San Francisco, CA
Article from The Morning Call, February 24, 1895

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LOCAL NEWS IN BRIEF. Sausalito is to have a fire department. Generally fair weather is expected to-day. Kowalsky was a winner at the racetrack ye terday. Look out for the usual westerly winds th afternoon. The Trustees of Berkeley propose to redue water rates 18 per cent. The number of deaths in the city for th week ending Saturday was 113. The Olympic baseball team defeated a Un versity team at Berkeley yesterday. A certified copy of the will of Eugene Kell has been filed in the Probate Court of this cit Receiver Sheehan and Attorney Watt of t1 People's Bank expect to be sued by the d positors. National Guardsmen expect to get their soon for services rendered during the stril last July. Over $1000 worth of the City of Sydney cargo of coffee was destroyed on the trip fro Acajutla. John O'Donnell, 17 years of age, was booke at the City Prison last night on three charge of burglary. Miss Ida B. Wells will lecture for the benef of the anti-lynching fund at Union-square Ha to-morrow evening. William Johnson and Huey Sorn, convicte of burglary, have been sentenced to four year imprisonment each. The yachting season of 1895 was opened la night by the Corinthian Yacht Club with banquet at the California Hotel. Count Karsecky and O. Wiasiemsky, Russia noblemen and officials of the Siberian Railwa arrived from the Orient yesterday. The usual meeting for young men only wi be held at the Association building, Mason an Ellis streets, this afternoon at 3 O clock. The Commercial Travelers' Association mad arrangements last night for its annual outin which takes place at Santa Cruz on June 29. Washington's birthday was observed by th Hebrews at the Geary-street temple, whe Rabbi Levy delivered an addresso: patriotisr The Supreme Court has decided that tl coyote bounty act does not create an appr priation to pay claims presented under its pr visions. Prominent society peopleattended a brillian concert and tea at Dr. McLean's residence ye terday afternoon for the benefit of the Sche musical fund. The Eastern demand for California eggs h been the cause of the shipment of several ca loads. It is the first season that such a thir has happened. Alexander Loughborough Jr. was yesterds held to answer before the Superior Court Judge Conlan on two charges of assault with deadly weapon. The engagement of Miss Hattie Bloom an Harry Lewis is announced. At home Sunda March 10. between 2 and 5 o'clock, 156 Par avenue, San Jose. Mrs. H. G. Tanner, whose husband is forema for Miller & Lux at Los Banos, Merced Count died from the effects of a surgical operation this city last Friday. The British ship Dunreggau, which was r ported on the 10th instant as having reache Astoria, is missing. She was blown out to se with the piiot on board. C. P. Huntington is said to be a large stocl holder in Barrios' new railroad, and a ne route between San Francisco and New York proposed by way of Guatemala. Street contractors have been doing bett work since the Superintendent of Streets cor pelled them to give notice in time to have a inspector on hand as they began operations. All the diamonds on the tray stolen from t] window of Moses J. Franklin's store, 215 Su ter street, on Tuesday night, have been reco ered with the exception of a bracelet and tv rings. Attorney J. L. Flaherty was locked up in padded cell in the Receiving Hospital yeste day morning, after a desperate struggle in ti corridors of the City Hall with Policems Maloney. Judges Low and Joachimsen yesterd granted a change of venue in the cases f violation of the dive ordinance before the and the cases were transferred to Judge Cam bell's court. Jack Prince, a professional bicyclist, wi ride thirty miles at the Haight-street ground this afternoon in competition with Colorad Sam, who will be allowed two horses to be ri den in relays. The Union League Club adopted resolution calling for the next national Republican co vention to meet in San Franciscoand delegat the president to appoint a committee of fiftee to arrange matters. Govérnor Sheakley of Alaska says that ti sealing business of that Territory is practical dead; that in a few years there will be more seals; that the poachers are waging war of extermination. William J. McClure, the Irish evangelist, 8 companied by John Moneypenny, evangeli from Toronto, Canada, has come to the city hold a series of revival meetings in Gosp Hall, 832 Howard street. Little Mildred (the baby actress) will have testimonial benefit tendered to her at Ca tornia Hall to-morrow evening. Little Mildr will appear as Eva, Little Irene as Topsy ai Walter Belasco as Uncle Tom. The Associated Creditors have asked t Mayor and Supervisors to postpone the chart election on the ground that no great expe diture of city funds should be allowed un the city's honest debts are paid. Fredrika Olsen has brought suit against tl Merchants' Ice and Cold Storage Company recover $25 000 damages for the death of h husband. He was killed by an explosion of t] boiler of the defendant corporation. The committee of fifteen has sent out a appeal to the churches, clubs and other orga izations of the city, as well as to private ind viduals, asking for financial aid in giving t) deserving unemployed something to do. Edward Kincaid was brought from Oaklar yesterday by Policeman Benjamin and lock up in the City Prison on the charge of embe

11. July 28, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, July 28, 1896

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securities to the amount of $1800 in my care, to meet any obligations that might arise. No draft was made upon me in the matter. "Corriveau returned, but soon after died, while I still held the securities. Edna Dean, who claimed to be his widow, demanded the securities of me, but I turned them over to the Public Administrator. She has been after me ever since and has tried to blackmail me and IS still trying. But I will not be blackmailed. That is all there is to it. "I never had any property of Corriveau's in my possession but this $1800 and that, as I say, I turned over to the Public Administrator. "This whole thing is an outrage and a shame. They seem to arrange to bring these things up when Swanberg is away. They charged him with running away in the Pacific Bank matter. I called him back by telegraph, greatly to his annoyance and expense. I will not do it again." Mr. Dorn, Mr. Westphal's attorney, who is sick in bed at the St. Nicholas, said briefly last night: "There is substantially nothing to this affair at all except an attempt at blackmail. Mr. Westphal's only offense is that he had dealings with a man who is dead. I knew Corriveau personally. 'He had had an experience with a broken bank and had refused to intrust his money to another. He put some of it in the Safe Deposit vaults and sent much more of it to Canada. When this money referred to here was returned to him a check was offered. "He refused it-he would have no checks. He insisted on money and money was given him. It was for the satisfaction of a mortgage. No receipt was taken. It is not the custom in such cases. I [know that there is nothing more in this case than an attempt at blackmail that failed." The facts connected with the Corriveau estate have been made public from time to time. Corriveau was supposed to be quite wealthy at the time of his death, in March, 1895. Edna Dean claimed to be his widow. Corriveau owned a building on Geary street, between Stockton and Grant avenue. at one time. This property he sold for $60,000, and of this amount he deposited $20,000 in the People's Bank. When that bank suspended payment Corriveau went to the paying-teller's desk, and at the point of the pistol collected the $20,000 standing there to his credit. After he died Edna Dean filed an application for letters of administration, which was denied, a will being found which named Catherine Corriveau as his wife, and made no mention of any other wife. It appeared that Corriveau had a daughter, Armine Boutin, who lives at St. Anselm, Lower Canada. Public Administrator Freese in course of time took charge of the estate, and citations were issued against Swanberg and Westphal. They were accused of making away with the money of the dead man, which is not to be found, but no information was gained concerning what had become of the money, the accusation being met with a denial. The daughter, Armine Boutin, employed counsel to hunt for traces of the money. C. O. Swanberg is supposed to have left the country. Edna Dean openly declared at the time of Corriveau's death that Westphal and Swanberg were given custody of Corriveau's $60,000 by him, that he might escape an insurance claim of $1600. She employed E. H. Wakeman as her attorney, who asserted that while not $1 could be found, Corriveau had died worth from $75,000 to $125,000.

12. November 14, 1898 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, November 14, 1898

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"BROWN AND HELLMAN DO NOT DARE LET ANYTHING HAPPEN TO OUR BANKS." astounding audacity letter of M. that H. The was shown in a on Sherman wrote to Frank V. McDonald day behe 1893, a month and a feeder, May the 21, Pacific Bank and its with a fore People's Bank, went down written the Frank McDonald had crash. Sherman telling him of the precari- and to of the institution ous for some road and his begging condition electric assistance. absorbed Phoenix Sherman's Mohawk ventures had to and money from the two banks East enough them. Sherman had traveled beruin the McDonalds into a to he was trying to lief he knew were not was approaching, had bonds tiable. The deceive that end which Sherman and negotiate Frank negofor his advice. banks for asked upon the McDonald advice he preyed two years, and the over back was most extraordinary. of San He sent that the other banks Pacideclared would not dare let the down, and could fic words threatened Sheror Bank with money. Mcthe that the ruin of the Francisco in Bank Pacific declared other go to be the in supply forced man Donalds would create a panic Brown and and that Hellman, up the State, local bankers would put McDonalds other rather than see the advice, funds under. Having given this for more go made another play The Sherman for his Phoenix venture. is as money letter is most interesting, and follows: ANGELES, May 21, 1893. LOS F. V.: It is such a time, busy My Dear rest, but toil, toil all the It and F. V. we that the worry life. has sometimes No do work seemed try, and oh, so annoyance hard. it seems constant just kill me, but when think would life was hard, then I going that my and of all you are knows of you Well, the good Lord have this through. I suppose we must San Frandiscipline. why. Then I think of cisco so much. F. V., those men, Brown, Hell- that and the others don't dare, man is the way it seems to me, let any- The thing happen to our banks. memory of the Bank of California their failure must be green in That failure brought down memory. others. If it should go abroad had this State that anything had in happened to the rich McDon- would alds think of what a panic it among depositors generally to and cause the other banks would have look out. V. And if you find I know you No, F. all about the situation, things; I know about the inside of the nothing only where I can help; must never ask in a hole. You banks are ever in time and Farnum and let us know brother-Farnum is on those very your friendly terms and with see many the other of San Mr. men-must men. go My idea is that of Francisco White would help. He and has get a pile help money idle Of I am course, told we must necessary. not do in season. unless absolutely tells this From what your brother much. I have me things are improving quite sure if he told me if never things felt to encourage me so or much these things were getting know what is better really best, in me better fact. for than Well, seeming I you can to mix tell to up do you. in in affairs Forgive as I may now have a seemed word as to the Phoenix this letter. levied Water And an Company. assessment We long But should ago, the have would not agree to it. much but Hine been growing so and so that city has to be put in in extensions now. has had absolutely necessary to a this is he has agreed to it, i. The e., inFinally assessment, $2000 each. due in nine terest $6000 on We the must bonds be comes prompt in If it, you it days. hurts so to have any will delay. pay in $2000. will then wire I will me does pay that the in you $2000 same. and Let's I will have into see it that agreed Hine B. that to be the. used $6000 to is pay paid interest, else, Sincerely, 1. e., P. H. pay S. coupons and for nothing M. H. eh. of M. H. Sherman to did core not The plots his boast of ability to end with Bank Commissioners and who rupt up" reputable citizens "stand fearful of the methods he to-morrow employwere Call will show adept, ed. The Sherman was also influencing an that assumed Mr. to be such, in of or through the assistance Pacific Legislatures his great ally, the Southern Company.