Clipped From Santa Cruz Sentinel

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 - and and furiously of landmarks. to express many...
and and furiously of landmarks. to express many kindness during uncle pallbearers. our flowers. ARNDT Fleishhackers Charged With Banking Fraud Stockholder Asks Total Of $l..r(0,000 In Damages I NovMB Tbonuu Hubert. 7. Kenneth of Call Shaw. of San NVvembci of Nunc both 7 of Call is. Santa 4 era h i t", native Tray-lor, of San 7. n(lc L'l. ianta r 7. Ittna K. both Simla J iMrt iaa 'nyl- i beta f Banta Juxtirp and Jose. San Franusto. Nov. 7 (0). Damagei t, taling S4.5O0.O(H were aski'il t idoy in .1 suit Hied in federal court lure chargintr Herbert and Mortimer Fleishhacker and oihns with fraud and conspiracy to violate th" national hanking act. The suit filed by Ernest H. Den-icke of Marin county, also named as defendant! the Anglo-California National hank. Mortimer Kleifh-hacker Jr., and George I Cochran Denicke said he brought the suit as a stockholder of the bank, because directors of the institution had refused to take appropriati action concerning credits allegedly extended illegally to the late George Shima, one-time potato king" and an alien Japanese. Sui! Said "Trumped t'p" Mortimer Fleishhacker. president of the hank since his brother, Herbert, resigned last October 27. termed the suit a "trumped up charge "This suit ll in connection with matters that originated 20 years ago." the bank president declared ' It is being used a! this time bacaUta of other tuH directed against Herbert Fleishhacker. The accusations are groundless, 'Hie complaint stated the credits ware extended to Shima after he reorganized his extensive San Joaquin valley enterprises "to defeat the purpose of the California alien law of 1920." This law was intended to prohibit alien Japanese fron owning agricultural lands. D'Miake claimed that in 19111 Bhima received credits through the Pacific Mutual Life Insurance company, of which Cochran was president, and from the Loa Angeles Trust and Saving! Bank. However, in September, 1919. those companies indicated they would he unable to Newberry Store Opens Tomorrow The modern J J Newberry store at the corner of Pacific and Walnut avenues opens tomorrow at 9 a. m , Company officials announced vester-day. Replacing the old Alta building, the new structure was built and ( quipped at a cost of approximately $70 000 extend further credit to the Jap- naaa. Affairs Readjusted When the alien law became effective in 1920. the complaint alleged. Shima readjusted his personal affairs with the intention of "defeating the purpose of the law." and acquired the capital stock of the Empire Navigation company Denicke charged that Shima. through the navigation company. purchased Kendo viiic island and i ased Bouldm island in the San Joaquin delta country The company. Denicke stated, "was merely a cash register for Shima " The complaint alleged that on January 1. 1920, Mortimer and Herbert Fleishhacker ui lawfully conspired in fraudulent use of funds of the Anglo-London hank in promoting Shima's enteprises and aiding the Japanese in violating the alien land law (The Angio-London hank was consolidated with the Anglo-California bank in 1932 ) Denic ke alleged (hat the defendants, in return for the loans, sought to gain for thentaeivei rebate, commissions and gratuities m violation of a federal law prohibiting hank officeri from accepting such com missions. Rev S M Tosh, presiding elder of the Free Methodist church hai Ixt'ii the guest f the pastor. Hev W C Simpson Ifev Tosh was accompanied by his wife A O Qoldatein was down from San Francisco over the Week-end, He is now in charge of the ice skating rink at Sutro's baths in San Francisco, near the Cliff House. i P

Clipped from
  1. Santa Cruz Sentinel,
  2. 08 Nov 1938, Tue,
  3. Page 5

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