Until 1938, when he was driven to cover by a rolling barrage of lawsuits attacking his sharpshooting financial technique, Herbert Fleishhacker was the Pacific Coast's second biggest banker (No. 1 A. P. Giannini). Since October 1938 he has been out of Anglo California National Bank, and a bankruptcy receiver has been collecting his assets to pay off his creditors (whose 76 claims originally totaled $18,881,653). Last week, with unsecured claims reduced to about $3,000,000, Anglo California slapped a $160,000 suit on Fleishhacker's onetime lawyer, famed Hearst Counsel (until 1937) John Francis Neylan.
This was Anglo California's final repudiation of its builder and onetime head. Fiery, spellbinding Mr. Neylan twice defended Herbert Fleishhacker and the bank in stockholders' suits, twice lost. Result: among the Fleishhacker bankruptcy liabilities a judgment of $686,191 for selling some oil lands too cheaply, another of $662,837 for pocketing emoluments from a loan made by his bank.
Solemnly alleging that Neylan was representing only Herbert Fleishhacker, was working not for but against the interest of the bank, Anglo California demanded back $85,000 paid him from bank funds on Fleishhacker's orders. While it was about it, Anglo California tossed in another item of $75,000 still due on a note which Mr. Neylan has refused to pay because he thinks he has that much more fee coming.
Having repudiated even Herbert Fleishhacker's lawyer, Anglo California also gave up its last connection with the name of Fleishhacker. Herbert's solid, solemn brother Mortimer, who resigned as president and board chairman last year, last week retired from the bank's directorate. The name of Fleishhacker appeared no longer to be a banking asset.