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The Sorry Showing Made by Manager Leonard. UNWISE LAND SPECULATIONS Stocks Swallowed Some Money. Threats of Criminal Prosecution by Treasurer Kington. Special to THE MORNING CALL SAN JOSE, May 11.-The unanticipated suspension the Bank of continues of Santa Clara County to be the chief in this city and conversation The accounts victuity. topic of of the bank are said to be in considerable confusion, and until these are experted definite knowledge of its condition cannot be obtained. It appears from Mr. Leonard's petition in insolvency that his total liabilities amount to $191,577, of which was money borrowed $135,000 from about the suspended bank. His assets, consisting chiefly of real estate and mining stocks, he values at $145,000, but their total liens and to be value brances after is estimated deducting only incum- about net $18,000. It is supposed that Mr. Leonard assumed Mr. Hayward's shortage of $29,000. which amount is included in his (Leonard's) liabilities. Matters are further complicated by the fact that the town of Santa Clara has about $20,000 of public money locked up in the suspended bank. In case this is not forthcoming Town Treasurer Kington intimates that he may bring a criminal officials, as the money was in the nature of a against the bank trust public fund. suit What has become of all the missing money is a mystery. Part of it doubtless was swallowed up in stock speculation, as Mr. Leonard virtually admits in his petition. In the opinion of well-posted real estate men Mr. Leonard lost heavily during the short-lived San Jose "boom" of is that be invested large known 1887. sums in It property on the Alameda, a sudden fortune the to make rapid through hoping advance of land values. The soon dropped out of the same property would not much and the bottom bring boom, as to-day as Mr. Leonard paid years ago. one tract known as Ridge," In for "Prime six be is said to have invested $75,000 for a half interest which is now considered to be worth not over $48,000. On account of these and similar unfortunate supposed. judging from that tions have it is specula- facts recently come to light, that has been in financial most Leonard of the difficulties Mr. time since the ill-fated boom of 1887, and that in the vain attempt to save himself from financial ruin he has kept on borrowing money from the bank and plunging deeper and deeper into the mire, until the crash came. A careful and accurate man, whose opinion on such subjects carries weight, admitted to THE CALL correspondent that this disastrous bank failure showed pretty conclusively that one of two things was true: Commissioners by some of deceived Either the Bank manipulation have the been acpapers of the of the counts their examinations and officers bank, of or else the bank were lacking in thoroughness. may that Mr. petition be mentioned Leonard's It in insolvency states that the unloans made to him as far back as commenced secured December by the bank 14, 1891, seventeen months ago, at which date there is a loan of $18,000 borrowed money, security "none." Bank Commissioner Knight was expected down to-day, but did not arrive. Meanwhile nothing has been unraveling the commissioners done toward snarl or until can the be take action. Nicholas was retained as den, by who the yesterday attor- Bowney bank, decided to-day to withbe found that the some his other clients draw, of because of conflict interests with those of the bank. S.F. Lieb was chosen to take his place. It is reported to-night on reliable authorthree more certificates of $25,000, issued by Mr. Ity aggregating that deposit Hayon the money had been not pass s through the and ward, lar which which did regu- paid, channels of the bank, have been Meanwhile the unchanged. Most ation unearthed. remains general of situ- the are still confident of money in full, and depositors their passbooks receiving and certificates are being handed in to assist the bank officials in as known there is no out. So far straightening matters danger of other firms or banks being seriously involved through
