1.
May 19, 1906
The Salt Lake Tribune
Salt Lake City, UT
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RECOVERING VALUABLES Vault of California Safe Company Opened; Contents Saved. SAN FRANCISCO, May 18.-More than 1000 persons, each wearing an anxious and worried look, and impatient to examine papers and valuables deposited In the vault of the California Safe Deposit and Trust company, stood In line yesterday awaiting the opening of the vaults when the brick and debris had been cleared away. The contents of the boxes were found intact and most of the depositors left their valuables in the compartments The Anglo-Callfornla bank also opened its vaults and found books, papers, currency and coin in perfect condition At a meeting of the clearing-house committee yesterday it was decided that the commercial banks of this city will open for regular business next Wednesday. It 18 believed that the extended delay has insured the banks from any panic, that the confidence of depositors has been restored, and that the banks have had ample time to prepare for any run on them.
2.
May 23, 1906
East Oregonian : E.O
Pendleton, OR
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San Francisco, May 23.-This morning at 9 o'clock the commercial banks opened their doors for the transaction of regular business unhampered by clearing house restrictions. Gold in plenty filled the vaults and there is as much money in the banks today as ever in the history of San Francisco. The stability of the financial situation is such that there is not the slightest evidence of a money panic, every bank in the city now being in a position to meet all obligations without undue strain. While the official date for the formal opening of banks is next Monday, many savings institutions opened this morning. The Mutual Savings bank opened for unrestricted business with $20,000,000 in money and active securities in the vaults. The California Safe Deposit & Trust company opened at its old quarters at the corner of California and Montgomery streets. This bank is one of the first to have temporary quarters completed. The Humboldt bank opens tomorrow morning. About 30 per cent of the Humboldt's loans were in the burned district, and the bank announced it will return all its insurance money to borrowers for rebuilding purposes. With no more rush or excitement than usually attended the settling on a day before the fire, the Hibernian bank, the city's largest savings institution, thre wopen its doors at 9 this morning. Every look and every action of the hundreds in line before the doors opened betokened confidence. The line began to form at 6:45. At it extended down Jones street and then down Golden Gate as far as Market and back again towards Jones. Old women, young clerks. begrimed teamsters and pretty stenographers were there, all as cheerful as a crowd of theater-goers waiting their turns at the box office. A young fellow in working clothes stepped out of line to give his place to an aged woman in a shawl who tightly hugged to her breast her little yellow-covered book. Others followed suit, and soon the woman was far up the line. Many brought lunches and stools and prepared for a long wait. When the doors opened the first 10 persons were told off and allowed to enter. Two paying tellers had their money benches heaped with gold and quickly passed out the coin. Few withdrew their total deposits, and
3.
October 31, 1907
Daily Press
Newport News, VA
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BIG CALIFORNIA BANK HAS TO CLOSE DOORS Safe Deposit and Trust Company Could Not Stand Withdrawal of Large Sums of Money. (By Associated Press.) SAN FRANCISCO. Oct. 30.-The California Safe Deposit and Trust Company Bank closed its doors this afternoon. The company has been regarden as one of the strong financial insttutions of San Francisco. The bank was understood to be financial agent of the coast for the Western Pacific railway. now being built. The closing of the bank was caused by heavy withdrawals of de, posits during the past few days. The bank could not protect itself as did the members of the Clearing House Association and found it impossible to secure the cash to meet demands made upon it.
4.
October 31, 1907
Arizona Republican
Phoenix, AZ
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A CALIFORNIAN HOLIDAY. Sacramento, Oct. 30.-Governor Gillett this evening telegraphed from Eureka to Secretary Cooper that tomorrow will be declared a legal holiday by proclamation and that like proclamations will follow each day indefinitely until confidence, in case it be shaken by the failure of the California Safe Deposit and Trust company bank of San Francisco shall be restored. The proclamation will be formally issued in the morning before banking hours. In the proclamation the following reasons are given for its issuance: "Whereas, the unsettled financial conditions which prevail in many states of the union have extended to California: and "Whereas, it appears that balances due from the banks of eastern states are not being paid to banks in this state: and "Whereas, it further appears that this condition has resulted in a temporary lessening of the sources of supply of money to meet ordinary current payments due from California banks and that coupled thereto, there has arisen an extraordinary condition due to the withdrawal of deposits from such banks: and Whereas, it appears such withdrawal is not based on the financial weakness of our local banks but is induced through uneasiness caused by unsetileri financial conditions elsexacter and "Whereas, It appears that such e.n. ditions have already resulted in the temporary embarrassment of one of our largest financial institutions and unless restrained will the followed by the retirement from business of other banks and will most seriously affect the financial integrity of our state and entail enormous losses upon depositors in such banks: "Now, therefore, in order that our
5.
October 31, 1907
The Salt Lake Herald
Salt Lake City, UT
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SAN FRANCISCO BANK IS CLOSED California Safe Deposit & Trust Co. Not Affiliated With Clearing House. COMPELLED TO PAY CASH D. F. WALKER PRESIDENT OF THE INSTITUTION. Sacramento. Oct. 30.-At 5:40 p. m. Governor Gillett telegraphed from Eureka to Private Secretary Cooper that tomorrow will be declared a legal holiday by proelamation, and that like proclamations will follow each day indefinitely until confidence, in case It be shaken by the failure of the California Safe Deposit & Trust company bank of San Francisco, shall be restored. The proclamation will be formally issued in the morning before banking hours. San Francisco, Oct. 30.-The California Safe Deposit & Trust company bank closed its doors at 2:30 this afternoon. A notice posted on the door stating that owing to the fact that the bank was not a member of the Clearing House association and was unable to take advantage of clearing house certificates it would close for a few days. The California Safe Deposit & Trust company was regarded as one of the strong financial institutions of the city. Its manager is J. Dalzell Brown and the president is David F. Walker. The bank is understood to be the financial agent on the coast for the Western Pacific railway now being built. As soon as the notice was posted a curious crowd gathered in front of the bank building at the corner of California and Montgomery streets. The doors were closed, however, and no one was admitted. Heavy Withdrawals. The closing of the bank was caused by heavy withdrawals of deposits during the past few days. The bank could not protect itself as did the members of the Clearing House association and found it impossible to secure the cash to meet demands made upon it. It is the opinion of local bankers that the California Safe Deposit & Trust company is solvent and that the embarrassment is merely temporary The news of the closing of the bank was not made public until just before 3 o'clock. the closing hour, SO that none of the other banks were affected. The banks that are members of the Clearing House association are all using clearing house certificates and are paying out only small amounts of cash that are necessary to meet payrolls. The heads of these banks manifest no alarm over the situation. The notice on the door read as follows: "Not being a member of the San Francisco clearing house and not being able to obtain clearing house certificates or coin from the east, we deem It our duty to our depositors to suspend temporarily. "J. DALZELL BROWN. (Signed.) "Manager." The suspended bank was placed in a very peculiar position In Its relations with the other banks in this city and its suspension is attributed solely to that factnot to any embarrassment or drain upon Its resources. notwithstanding that there had been unusually heavy wtihdrawal of coin by depositors during the forenoon of today. Statement of an Official. One of the officials of the bank said: "Our bank is all right and this action is simply a step taken for the protection of our depositors. On account of our nonaffiliation with the Clearing House assoclation we have had to pay out cash on all demands because we were unable to secure the certificates utilized by the other banks. A distressing feature of this situation was that all of the other banks who drew on us were paid in coin while in our dealings with them we could get only certificates in return. We have ample money on hand to meet all reasonable demands and we are on firm basis financially. but of course we could not meet all of our demands If they were presented in a single day. I wish to emphasize that our closing has not been caused by any embarrassment but is simply for the protection of our depositors. We have communicated with the bank commissioner." June Financial Statement. The financial statement of the bank issued June 30 last shows Its assets and liabilities as follows: RESOURCES. $ 800,000.00 Real estate hores
6.
November 1, 1907
The San Francisco Call
San Francisco, CA
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FLURRY FAILS TO DISTURB TRADE WithOneException the Banks Are All Open California Safe Deposit Expects fo Resume Soon Financiers Say End of Stringency Is in Sight First Preference Given to Meet Wage Payrolls Every banking house in San Francisco, with the exception e of the suspended California safe deposit and trust company, transacted business as usual yesterday, despite the fact that Governor Cillettahed declared a legal billin day. Although the governor his announced another holiday for today, the banks will open at the usual time. The governor left Eureka last to more acnight hopes for this city, thoroughly where he quaint himself with the financial situation. The threatened disturbance failed to materialize, and, although there was a natural falling off in deposits, it was not of a size to command unusual attention. Business throughout the city was brisk Any Years that might have been entertained were dissipated when it was announced that the banks had decided to give preference in payments to those con cerns with large payrolls This will mean that the thousands of workmen in San Francisco will be paid as usual at the end of the week CONFIDENCE STRENGTHENED The situation yesterday was del cidedly encouraging Bankers in every quarter paid glowing tributes to the strong common sense of the San Francisco depositor. To strengthen the prevailing feeling of confidence it was stated last night that financial assistance from eastern money centers had been promised the California safe/deposit and trust company. Vice President J. Dalzell Brown announced chat the bank would re. open in a few days. Bank Commisrioner Garoutte began an investigation of the affairs of the concern and said he saw no cause for alarm. He said that the management had given the commission full assurance that the bank would resume shortly and that every depositor would be paid in full. Garoutte was assisted in the investigation by former Commissioner Duns moor. Quiet prevailed at the main office of the California safe deposit and trust company and at its four branches. The situation was so bright yesterday that neither the directors of the clearing house nor the state bankers' association held a meeting "There was no need for a meeting, explained Homer S. King, president of the clearing house UNDISTURBED BY FLURRY No appeal for additional holidays was made to the governor from San Fran*cisco, but the chief executive of the state believed that a prolongation of the holiday would strengthen the situation. Reports from every section of the state tril the same story of sound financial institutions undisturbed by the flurry. No banks took advantage of the holiday, but all opened their doors and transacted business as be. fore In San Francisco the conservative policy inaugurated early in the week was carried out Cash payments were made on small checks. Drafts and checks from other banks were taken Continued on Page 4, Column 1
7.
December 7, 1907
The San Francisco Call
San Francisco, CA
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BONDS AND COIN GONE Trust Officials Accused of Shipping Securities Out of California Pending a thorough investigation into the affairs of the estate of the late Ellen M. Colton, widow of the late David D. Colton, the superior court of Santa Cruz county yesterday issued an order suspending Walter J. Bartnett, vice president and general counsel for the California safe deposit and trust company, as special administrator of that part of the estate which is in litigation. The order was granted on a petition filed by the lawyers for Helen M. B. Sacher, granddaughter of Mrs. Colton, and a contestant of her will, making allegations against Bartnett of breach of trust and attempting to deceive the court. These lawyers are Barclay Henley, J. F. Riley, Benjamin K. Knight and Crittenden Thornton. According to the petition, Bartnett and J. Dalzell Brown are guilty of concealing their knowledge of the impending failure of the California safe. deposit and trust company for some months before the crash came. It is alleged that they failed to give notice to the attorneys for the contestant of the coming trouble. The petition also recites that, despite the fact that the court of Santa Cruz county in which the estate is being administered, had ordered that the securities constituting the assets of the estate should be safeguarded in the vaults of the safe deposit company, Bartnett and J. Dalzell Brown admitted to the bank commissioners that $75,000 in money had been burned in the fire and that $200,000 in stocks and bonds had been sent to New York for safe keeping. SAFETY OF ASSETS : The petition goes on to say that seven after the fire of 1906, and Brown testified oath Bartnett months before April under 18, the superior court of Santa Cruz at that time there was deposited county that in the vaults of the deposit company the entire amount of sets the estate, consisting of of approx- the asimately $325,000 in bonds and stock and $75,000 in cash or negotiable paper of various kinds. At that time the court ordered that the entire assets of the estate be placed on deposit with the California safe deposit and trust company and constituted that company the official depository for such stock and bonds and cash as might come into the hands of Bartnett as special administrator. The order forbade of any of such assets from state under any whatever. the the sending pretext Following his as to disof the funds of the position Bartnett testimony the estate, gave bonds of $20,000. with David J. Walker and J. Dalzell Brown acting as sureties. Since the suspension company so petition declares, are "each the of the trust these sureties, of them utterly insolvent." In continuing the charges the order of suspension asserts that "the said California safe deposit and insolvent and pany pay its is likewise trust unable com- to debts and that its officers are not in possession of the stock and bonds as aforesaid receipted for by it, its officers have and transported said stock and embezzled that and concealed, the bonds out of the which amounts to a sion California, of state conver- of and an embezzlement of them, its officers have accounts of and and abouts inconsistent that given the where- false of the said stock and bonds, and said Walter J. Bartnett lack. that ing in the is integrity as to make him an unfit person to act as special administrator of the estate." TEMPORARILY SUSPENDED In acting on this petition the court issued a perfunctory order enjoining to show cause pension Bartnett why his susshould not be made permanent and suspending him until further order of the court. The officers of the trust company appear and show ordered that to cause why are company should not be displaced and removed from its position as depository of the funds of the estate, and it is ordered to deliver to the or 3. receiver appointed by to a full to the court, court. accounting of all its actions in regard to the estate and its on the part of the Santa I This Cruz action affairs. court of county scores a strong point for the contestants in the long fight for the estate of Mrs. Colton. which Continued on Page 3. Column
8.
December 10, 1907
The Birmingham Age-Herald
Birmingham, AL
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BANK OFFICIALS ARE UNDER ARREST JUDGE DUNNE PLACES THEIR BONDS AT $75,000 EACH-PRESIDENT WALKER DECLARES HE IS CLEAR OF ALL WRONG DOING. San Francisco, December 9.-Attorney General U. S. Webb late this afternoon commenced proceedings in the superior court for the appointment of a receiver of the suspended California Safe Deposoit and Trust company, whose president, vice president and general manager are arrested for embezzlement. The stockholders as well as the officials and directors were made defendants in the suits filed by the attorney general. Superior Judge Coffey issued a temporary restraining order, preventing officials and directors from disposing of the bank's assets in any manner pending the hearing for the appointment of a receiver. This action by Attorney General Webb, the reduction by Judge Frank H. Dunne of the bail fixed on the warrant for J. Dalzell Brown, general manager of the suspended institution, from $200,000 to $75.000, and of W. J. Bartnett, vice president, from $200,000 to $75,000; a run on the safe deposit vaults of the closed bank caused by a rumor that the boxes had been looted, a meeting this afternoon of some of the stockholders, at which committees were appointed to demand the resignation of the directors, examine the assets and confer with the depositors, and a meeting of the depositors tonight, were the developments of the day in connection with the failure of the California Safe Deposit and Trust company. After futile attempts all afternoon to secure bondsmen, Brown was returned to the city prison tonight. Bartnett was more successful and was released this evening. President David F. Walker is under arrest at Santa Barbara, and will leave there tomorrow morning for this city in custody of detectives of the local police department.
9.
December 10, 1907
Bismarck Daily Tribune
Bismarck, ND
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Bunch of Trust Officers Jailed in Frisco for Crooked Work President of Concern Nabbed as He Was Skipping From State San Francisco, Cal., Dec. 9-James Brown, vice president and general manager of the California Safe Deposit and Trust company, has been joined in jail by W. J. Bartnett, director of the suspended bank. The two men are now prisoners at the city prison. At the same time President David F. Walker of the wrecked bank, is under arrest at Santa Barbara and will be brought back to San FrancisCO under guard. All three men are charged with embezzling stock and bonds of the Colton estate. A meeting of the depositors of the California Safe Deposit and Trust Co. will be held this evening. Attorney General U. S. Webb announced this morning that all stockholders of the defunct bank would be joined as defendants in the suit for the appointment of a receiver and that they will be held by the debts of the bank. Lost His All Santa Barbara, Cal., Dec. 9--At the police station, where President Walker was taken, he made the following statement: "I am innocent of any wrongdoing in this matter and came to Santa Barbara some days ago upon advice of physicians and attorneys because the affairs of the bank were wearing heavily upon me. "To show the confidence I had in the institution I will say that I continued to make private deposits up to two days before. the crash and I am left without a dollar, except what is now on deposit in the bank. I have $43,000 there and besides am a heavy stockholder in the institution. I will return to San Francisco, as soon as possible and may arrange to go tonight.
10.
December 12, 1907
The Butler Weekly Times
Butler, MO
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RISCO BANKERS IN JAIL President Walker and J. Dalzell Brown Still in Custody of California Authorities. MENEY TO CO-OPERATE WITH DEPOSITORS Next Grand Jury to Conduct a Full Investigation Into the Insolvent Trust Company's Affairs-Officials Are Charged With Making False Entries-Other Offenses Alleged. San Francisce, Dec, 10.-Walter J. Barnett a director of the insolvent California Safe Deposit and Trust company was released Monday on $75,000 bail but J. Dalzell Brown was unable to obtain bonds and spent another night in the city prison. David F. Walker, president of the suspended bank is still in custody at Santa Barbara. Pending the appointment of a receiver for the bank, the bank commissioners have named Attorney Charles S. Cushing to act as temporary custodian. The men responsible for the collapse of the California Safe Deposit and Trust company are not to be let off merely on charges of embezzlement. Assistant District Attorney Francis J. Heney, has agreed to cooperate with the directors and will conduct a full investigation into the bank's affairs when the next grand jury is impaneled. This will take place before the end of the month. The inquiry will include an investigation into the charges that officers of the bank made false entries which made it appear that $200,000 had been loaned to two New York banks when the money had never been forwarded; that the officers received deposits when they knew the institution to be insolvent, including the deposit of $253,000 from an Ogden bank and that the officials made loans in a manner calculated to deceive in lending nearly $500,000 for the purpose of the Carnegie Brick company, one of the institution's industrial companies. All of these constitute statutory offenses and if proved will not only involve the men already under arrest but others who co-operated with them. A long statement setting forth the assets and liabilities of the company was presented to the stockholders Monday. It showed the sum of $9,000,000 due to the depositors. A brief examination of the assets showed about $5,000,000 in property which is considered good. In addition to this there are loans and other assets which it was thought might bring in $2,000,000 more. This made a total of $7,000,000 of possible assets against liabilities amounting to $9,000,000. Other assets which have been carried on the books of the company as good were regarded as practically worthless. The local banking situation Monday gave no indication of having been affected in the slightest degree by the insolvency of the California Safe Deposit and Trust company. Business moved along in the normal way and all those desiring money for the conduct of business on normal lines found no difficulty in obtaining it. The list of stockholders of the bank is a long one and includes persons and corporations from Paris to Vladivostok. A number of small banks in the interior are hit by the failure, mostly as pledges for the stock in large and small amounts. Before the fire the stock was quoted at about $150. Since
11.
December 22, 1907
The Salt Lake Herald
Salt Lake City, UT
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GIVEN SEARCH WARRANT. Prosecuting Attorney Will Go Through Brown's Desk. San Francisco, Dec. 21.-Assistant District Attorney William Hoff Cook today obtained from Police Judge Cabanass a search warrant permitting him to search the private desk of 3. Dalzell Brown in the California Safe Deposit building for books, papers and correspondence bearing on the bank's failure. On Monday the grand jury will commence an investigation of the loans alleged to have been made by directors of the bank to themselves and corporations with which they are connected. Hugo D. Newhouse failed in an attempt today to get a receiver appointed by Judge Seawell for the California Safe Deposit & Trust company, which he sought in order to protect himself in a suit which he had joined the bank. The judge denied Newhouse's motion, and he decided against him in his suit to compel the specific performance of a lease which he claims to have had on the premises of the Fillmore street branch of the trust company.
12.
January 4, 1908
Los Angeles Herald
Los Angeles, CA
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BROWN ALLOWED TIME IN WHICH TO ENTER PLEA Disgraced Banker Must Answer to Grand Jury Indictments in Judge Dunne's Court on January 8 By Associated Press. SAN FRANCISCO, Jan. 3.-J. Dalzell Brown was today given until January 8 to plead to the indictment charging him with embezzlement in connection with the disappearance of the Colton estate securities from the California Safe Deposit and Trust company, of which he was formerly general manager. Judge Dunne made an order allowing Brown to visit the vaults of the insolvent bank today for the purpose of getting some private papers. Yesterday was dividend and interest day with the banks, and large sums of money, approximating $6,000,000, were paid over the counters of the savings and trust banks. The panicky feeling which existed some weeks ago has wholly disappeared and conditions in the various banks are practically normal. The savings banks alone paid out in excess of $2,500,000, or were prepared to do SO. It had been thought by some that savings depositors would wait until dividend day and make that an opportunity to draw considerable sums out of the banks. But this prediction failed of fulfillment. Nothing of an unexpected or unusual character occurred at any of the banks. The Union National bank of Oakland reopened its doors yesterday, after seven weeks of inoperation.
13.
January 10, 1908
The Montgomery Tribune
Montgomery City, MO
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# Faces Embezzlement Charge.
San Francisco, Cal.-James W. Treadwell, a director of the suspend-ed California Safe Deposit and Trust Co., who was indicted Monday by the grand jury charged with embezzlement, surrendered himself to the sheriff Tuesday evening and was taken to the county jail, being unable to furnish the necessary $50,000 cash bail or $100,000. As Wednesday is a holiday, Treadwell will be compelled to spend the day in jail.
14.
March 4, 1908
The San Francisco Call
San Francisco, CA
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AN ADMIRABLE PLAN EGISLATORS, national and state, are busy trying to devise and agree upon some plan which will prevent a recurrence of financial panics and safeguard the interests of bank depositors. L No one, of course, is more keenly interested in these efforts than bankers, because it is a well known fact that every bank failure works injury and loss to all other banks in the community. The remedial measure adopted by the San Francisco clearing house association gives promise of providing a more efficient safeguard than state laws have accomplished, at least SO far as the banking interests of this city are concerned. The plan, in brief, is to employ an examiner, who shall be authorized to examine at intervals each bank that enjoys clearing house privileges, whether a member of the association or not. Any bank refusing to submit to this examination will be denied clearing house privileges. The details have not been worked out, but the experience of other cities will be studied for guidance. In Chicago the system has been in successful operation for nearly two years. Pittsburg has recently adopted it, and it is under consideration at Los Angeles. The principle which is thus given recognition is that banks should keep watch upon each other for their mutual safety; that all the banks in the community are to an extent responsible for the integrity of each bank. It is not sufficient that a bank's officials shall be honest men, that they shall render occasional reports of the bank's condition, or even that a state or national examiner shall critically examine it from time to time. Banks have failed oftentimes under these conditions. But when the combined banking fraternity of the city is keeping constant vigilance through an officer employed for no other purpose, any sign of weakness or bad management or dishonesty is fairly certain of quick detection, and the difficulty may be lessened or removed before injury is inflicted upon the public. There is little doubt that if such a plan had been in vogue in San Francisco the suspension of the California safe deposit and trust company, if it had happened at all, would have come at a much earlier time, with greatly diminished possibilities of harm. What is more likely, the essential weakness of that institution might have been discerned and corrected, and its suspension altogether prevented. Furthermore, the growth of mushroom banks, which always appear in prosperous times, and which not infrequently are mere swindling schemes, would probably be severely checked in the limer light scrutiny of the clearing house.
15.
March 7, 1908
The San Francisco Call
San Francisco, CA
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CLEARING HOUSE NAMES EXAMINER A. Kains, Manager of the Cana= dian Bank of Commerce, Is Chosen for Office Duties Will Be to Watch Finan= cial Operations and Prevent Other Wrecks A. Kains, manager of the Candian Bank of Commerce, has accepted the position of bank examiner for the clearing house association, the offer being made by a unanimous vote of the organization. The appointment is in accord with the resolution adopted by the clearing house association at its last meeting. The failure of the California safe deposit and trust company, together with the facts which the suspension made public, decided the clearing house association on a course of action to safeguard both the banks and the public. It was then felt that the suspension or failure of a bank did not affect that particular institution alone, but worked to the detriment of the entire financial situation of the community. Kains was greatly surprised at the offer. He has been ill for several weeks and was not made aware of the action of the clearing house until the committee came into his office to offer him the position. Kains will take up his new duties as soon as he can make the necessary arrangements for leaving his present position.
16.
March 13, 1908
The San Francisco Call
San Francisco, CA
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DEPOSITORS TO SEE BOOKS Supreme Court Reverses Ruling of Judge Coffey for Receiver Under a ruling by the supreme court yesterday Superior Court Judge Coffey will have to permit an inspection of the California safe deposit and trust company's books by its depositors. In January, 1907, Julia Beltran deposited in the California safe deposit and trust company the sum of $448. which in January, 1908, she transferred to the Depositors' collection agency. February 14 of this year Charles C. Boynton, acting as the attorney of the agency, asked E. J. Le Breton, the receiver of the defunct banking institution. to let him examine the books of the bank. Le Breton refused and was sustained by Judge Coffey. The supreme court yesterday affirmed that the legal right of the Depositors' collection agency as a depositor in the California safe deposit and trust company to examine the books of the corporation was clear. "The court," it said, "being the custodian of the records of the corporation in the place of the officers of the corporation, has no more discretion to deny the privilege of inspection to a person possessing that right than had the officers of the corporation heretofore." The only speedy relief. the court added, lay in a writ of mandamus, which was ordered returnable Monday, March 16, at 10 o'clock a. m.
17.
June 23, 1908
Los Angeles Herald
Los Angeles, CA
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W. J. BARTNETT FOUND GUILTY JURY RECOMMENDS MERCY OF COURT JUDGE TO PRONOUNCE SENTENCE JUNE 30 Main Attempt of Defense Is to Place Blame on J. Dalzell Brown, Who Is Serving Sentence for Similar Crime By Associated Press. SAN FRANCISCO, June 22.-Walter J. Bartnett, former vice president of the suspended California Safe Deposit and Trust company and administrator of the estate of Mrs. Ellen M. Colton, this afternoon was found guilty of embezzling securities and bonds owned by the estate to the value of $31,700. The jury was out less than fifty minutes and reached a verdict on the first ballot. Bartnett was recommended to the mercy of the court and Judge Conley fixed 10 a. m. Tuesday, June 30, as the time for pronouncing sentence. The greater part of the day was occupied with the closing arguments of the prosecution and defense. Assistant District Attorney William Hoff Cook spoke for the people during the morning and was followed by Attorney Oscar Cooper for Bartnett. Attorney Seary made the principal argument in the afternoon and Mr. Cook closed. Mr. Cook quoted from the second count in the indictment, charging Bartnett with embezzlement as bailee, saying it had not been proved, as Bartnett himself did not steal the money. Cook pictured Bartnett as a coward who carried on his nefarious dealings behind J. Dalzell Brown and his own brother-in-law, James Treadwell. The main attempt of the attorneys for the defense was to place the blame on Brown, the convicted manager of the institution. Jury Out Short Time Judge Conley concluded his charge at 5 o'clock and the jury retired a few minutes later. They had been out but twenty minutes when they sent into court for the letters written by Bartnett to J. Dalzell Brown in New York. As some portions lof the letters were not admitted in evidence it was necessary to copy the extracts, and ten minutes were required to do the work. When the jurors received the required evidence deliberations were again resumed and it was but a short time later when they filed into court to render their verdict. Foreman William Crocker announced that the jury found Bartnett guilty on the first count in the indictment and not guilty on the second. He concluded with a plea for leniency. Bartnett received the verdict coolly, showing little emotion. The court room had been thronged all day and many spectators lingered to await the action of the jury. Judge Conley asked Assistant District Attorney Cook to agree to the deferring of sentence until such time as action should be taken in the other indictments pending against Bartnett. Mr. Cook replied that as assistant district attorney he had no intention of further prosecuting Bartnett, and unless he received instructions to the contrary from the district attorney the indictments would take the same course as those against J. Dalzell Brown. There is no intention of proceeding with any other charges against Brown. As Judge Conley is called away Friday to try a case out of town, he set Tuesday as the time for passing sentence. Bartnett, who has been out on $200,000 bail, was allowed to continue his liberty. The convicted financier left the court room in the company of one of his sureties.
18.
August 30, 1908
The San Francisco Call
San Francisco, CA
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J. DALZELL BROWN SCORES LE BRETON Issues Statement Questioning Ability and Integrity of the Receiver Charging that Receiver Le Breton has maliciously and unwarrantedly attacked him in the report of the condition of the California safe deposit and trust company just published, former Manager J. Dalzell Brown of the defunct institution has retaliated by issuing from his cell at the county jail a statement that questions both the ability and integrity of the man to whom the affairs of the bank have been intrusted. Brown's statement is chiefly interesting in that it contains portions laying bare details of bank affairs that have never before been made public. These portions relate principally to the mysterious "Trustee No. 5" account, which Le Breton says was used by Brown as a clearing house for all kinds of corrupt transactions and which Brown retorts was used principally by Bartnett. BARTNETTS BIG EXPENSE Among other things which Brown alleges that this account contained was the account of Bartnett for personal expenses at the Waldorf-Astoria in New York, an account of $200 a month paid by Bartnett and John Treadwell to a confidential agent in New York, the bill for a piece of statuary given by Bartnett as a personal present to a high railroad official in New York, and $3,500 paid to an engineer for services in connection with the survey of a $50,000,000 railroad which Bartnett contemplated building from New York to Washington and a new transcontinental railroad which he considered financing as a rival to the Western Pacific. Brown asserts that Le Breton has at all times attempted to belittle Brown's services to him and charges that "for some hidden reason" the receiver has sought to shield John and James Treadwell and Waiter J. Bartnett. In this connection he quotes a letter written by his attorney, Hiram W. Johnson, to Assistant District Attorney Cook May 2 of this year, in which Johnson asserted to Cook that Le Breton was prejudiced against his client and that Brown's efforts to clear up the tangled mess of bank affairs had been of the utmost assistance to Le Breton, DID NOT OWE BANK A DOLLAR Brown insists, also, that he told Le Breton of assets controlled by Bartnett which the latter had utterly failed to disclose and denies that the charges that he appropriated large sums from the "Trustee No. 5" account are true. On the contrary, he says that he did not owe the bank a dollar at the time of its failure, having borrowed $300,000 or more on his iwn security from other banks and Udividuals and put this amount into the California safe deposit and trust company. In response to Le Breton's statement that the securities turned over to him by Brown for liquidation purposes were not worth $100, the convicted banker says he will get $10,000 for them within 15 days if Le Breton will make over the title to him. "I am not seeking either charity or commiseration at the hands of Receiver Le Breton," says Brown. "I am far less culnable then his
19.
September 3, 1908
Los Angeles Herald
Los Angeles, CA
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TREADWELL NOT HELD BY JURY DELIBERATES SEVEN HOURS FOR VERDICT Accused Declared He Did Not Understand Question Put to Him When Examined by Grand Jury By Associated Press. SAN FRANCISCO, Sept. 2.-After being out seven hours the jury which tried James Treadwell for perjury in connection with the examination by the grand jury into the affairs of the suspended California Safe Deposit and Trust company, returned a verdict late this afternoon of acquittal. Treadwell, according to the charge in the indictment returned by the grand jury, testified in denial of the fact that he had hypothecated the bonds known as the Colton securities. It developed from the testimony of other witnesses that the securities were hypothecated by him, and he now claims that at the time that the question was propounded to him he did not understand it, and disclaimed that he made the answer which constituted the alleged perjury.
20.
February 10, 1909
The San Francisco Call
San Francisco, CA
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WRECKED BANK'S ASSETS INCREASED Jump in Western Pacific Stock Adds Nearly a Million to Holdings California Safe Deposit Concern Owned 42,500 Shares of Railroad's Paper Western Pacific common stock took a big jump yesterday both on the local and New York curbs. In the local stock and bond exchange two brokers bid it up to 26, while in the eastern market it touched 27, a rise of 9 points in a few days. This will be welcome news to the depositors of the California safe deposit and trust company, the defunct institution holding 42,500 shares of the common stock. Of this 25,000 shares is tied up by the holders of the Tesla coal mine bonds, who were to receive it in exchange for their paper, but, through the manipulations of J. Dalzell Brown, never received what was coming to them. Until the matter is settled by the courts this stock can not be sold. The 17,500 shares which can be sold by Receiver Le Breton was pledged by the Treadwells. Logan & Bryan, the eastern brokers, report that there is absolutely none of the common stock for sale either here or in New York, and though 27 has been shares than 18 bid have for recorded, no sales higher been which goes to show that the stock is very closely held. Brokers predict that this stock will touch $50 in a very short time. At the time Receiver Le Breton made his invoice of bank assets the common stock was valued at $5 a share, and as it has now advanced to $27, the assets have increased $924,000. Judah Boas and others, who bought up large quantities of the bank's accounts for as low as 12 cents on the dollar, will make good money on their investments. At one time deposits could not be sold at any price, whereas now they are worth from 35 to 50 cents on the dollar. The 5 per cent bonds of the Western Pacific have also been steadily advancing. Sidney L. Schwartz, a member ofthe stock and bond exchange, when interviewed by a Call representative said: "A little more than a year ago Western Pacific bonds were going a begging at 80, but the rapidity with which construction work has gone ahead in this state has caused a large number of both large and small investors to invest their money in these securities and they have now reached 961/2. The rumors that Harriman has obtained large holdings in the corporation have also tended to advance both the stocks and bonds."
21.
July 22, 1909
The San Francisco Call
San Francisco, CA
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REORGANIZERS OF BANK CONFIDENT Raphael Talks of Rehabilitation of California Safe Deposit and Trust Company Believes With Bartnett That Assets Will Yield Dollar for Dollar to Depositors [Special Dispatch to The Call] NEW YORK, July 21.-Walter J. Bartnett, who has been staying at the Hotel Wolcott for several months, left for San Francisco last Sunday, expecting to arrive in San Francisco Thursday evening, July 22. He will lay before the depositors' association of the California safe deposit and trust company full details of the plan of reorganization, an outline of which has been published in The Call. Julius Raphael, president of the depositors' association, will remain in New York for several weeks, or as long as necessary to consummate the reorganization plan. Raphael is at the Hotel Knickerbocker. Bartnett declares that a statement published in San Francisco quoting Cooper as saying, on his return from New York, that the relations between Raphael and himself are not entirely harmonious, is erroneous. Cooper and Bartnett are frequently in consultation in Raphael's apartments in the Knickerbocker hotel, and both are elated over the success of their efforts to reorganize the bank. PLAN TO PAY DOLLAR FOR DOLLAR When Bartnett left here he firmly believed that the depositors would agree to a plan of reorganization that would reimburse them dollar for dollar, the major portion in cash and the balance in certificates. Although both Raphael and Bartnett were willing enough to discuss the reorganization plan in general terms they firmly declined to name the financiers who are back of the reorganization. Raphael declared emphatically that E. R. Hawley was not connected with the Clear lake project, and also said that the estimate of $160,000 as the value of the interest that the California safe deposit and trust company has in the Clear lake project is mere guess work. At any rate, the interest of the bank in the Central Counties land company, acquired by the Clear lake land and irrigation company, is not included in the appraisement of assets of the closed bank, which appraisements total, in round numbers, $8,900,000, according to Raphael. RAPHAEL IS PLEASED "So you will see." said Raphael to The Call's correspondent today, "that the proceeds of a sale of the Central Counties land company to the Clear lake company will not be needed in order to place the reorganization on a basis that will repay dollar for dollar to the depositors." Raphael feels pleased over the fact that, whereas Receiver Le Breton estimated the assets at $2,600,000, they will be nearer nine millions: and referred to the fact that Receiver Le Breton would have sold the El Dorado lumber company for $670,000, whereas it is now appraised at $1,600,000. It was Raphael who held out hope to the depositors and urged them to hold on to their bank books. Le Breton's first estimate of the assets, said Raphael, was sufficient to pay only about 23 cents on the dollar: then he raised it to 26 cents and finally as high as 60 cents. When it became known to certain bankers that the receiver had raised his estimate so as to pay at least 50 per cent they quietly bought up the bank books of some 2,000 depositors, who sacrificed their claims for 15, 25 and 30 cents on the dollar. FINANCIERS HAVE FAITH The New York financiers who are back of the reorganization plan. said Raphael, have much faith in the future of the Western Pacific, which will, in effect, be part of the Goulds' trunk line reaching from Buffalo to San Francisco. They believe that its steady climb from $5 a share to about $30 augers well for its future advancement, and advance in price may swell the assets of the bank several millions more than the present appraisement of nine millions, made by representatives of the financiers who made careful examination of the various properties. James Treadwell is now in London negotiating with financiers for disposing of the Yukon property.
22.
August 15, 1909
The San Francisco Call
San Francisco, CA
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PLEADS TO DELAY BANK'S DIVIDEND Reorganization Committee of California Safe Deposit Ap= peals to Stock Holders Release From Liabilities Prom= ised to Those Who Sub= scribe to the Plan To strengthen its cause before the superior court is called upon to decide the question of distributing a 10 per cent dividend to the "depositors of the California safe deposit and trust'company the reorganization committee of the suspended bank has sent out a circular appealito the stock holders of the institution, asking them liberally to subscribe to the $1,000,000 capital required of the stock holders for the reorganization of the concern as a trust company. New York interests, as previously announced by W. J. Bartnett and Julius W. Raphael, stand ready to subscribe $1,000,000 to a $5,000,000 concern, on condition that the stock holders subscribe an equal amount. Monday E. J. Le Breton, receiver of the bank. will petition Judge Coffey to have declared a dividend of 10 per cent, distributing the $900,000 accumulated. This distribution, it is claimed, would put B. quietus on the plans of the reorganization committee. That committee, backed by certain of the depositors' associations and individual depositors, desires a postponement of the dividend until it may have further time in which to canvass its plan. PLEA FOR SUBSCRIPTIONS The circular letter to the stock holders asking for subscriptions is signed by the stock holders' committee, W. H. Chickering, Richard M. Hotaling and Julius A. Young, and Oscar Cooper, counsel. It is dated from the office of the committee, rooms 805-806 Kohl building, Montgomery and California streets. It states that the stock holders' committee has been at work for months to bring about a settlement of all litigation against stock holders, and that the subscriptions from stock holders now amount to about $600,000 out of the required $1,000,000. The point is made that many of the stock holders subscribed mainly with the idea of securing a release from their liabilities, and the committee now claims that owing to the prospects of outside assistance not only may that release be secured, but that value will be received for every dollar subsecribed. RELIES ON THE ASSETS It is stated that W. J. Bartnett, who was in the east co-operating with the stock holders' committee and the depositors' association, always relied on the value of the assets of the trust company to pay the depositors dollar for dollar. His estimate of values is placed on the aspect of industrial securities as stock in going concerns. The plan of the reorganization committee is outlined briefly in the circular. The new company would have an authorized capital of $5,000,000, of which $2,000,000 would be fully paid up at the time of organization. One million dollars will be subscribed by the eastern interests, the other $1,000,000 by the stock holders. The stock will be subscribed at par, $100 a share. "The stock holders and directors," the circular says, "who subscribe to the new capital in amounts deemed sufficient by the present stock holders' committee are to be released from all liability." The depositors, it is asserted, are to be paid dollar for dollar-25 per cent when the bank opens its doors; 50 per cent in five equal payments, secured by non interest bearing certificates of
23.
April 1, 1910
The San Francisco Call
San Francisco, CA
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BARTNETT'SBACKERS WIL! REOPEN BANK Former Official of Wrecked In= stitution Says Rehabilitation Plans Now Complete / Declares California Safe Deposit and Trust Company Will Have Big Capital [Special Dispatch to The Call] NEW YORK, March 31.-Walter J. Bartnett said to The Call's correspondent today: "The details of the financing of the reorganization of the California safe deposit and trust company were completed here today. Several meetings have been held by the interested bankers during the last 10 days. "Today an agreement was reached as to the essential details. The reorganized company will have an authorized capital of $5,000,000, of which $2,000,000 will now be paid up. Three million dollars will be held in the treasury to be issued later. when the business of the company justifies its issuance. "The syndicate that will take the new stock is headed by H. P. Wilson. Albert Rathbone of Joline, Larkin & Rathbone will leave for San Francisco April 7 to supervise the legal work of opening the bank. "Mr. Wilson and I expect to leave for San Francisco Monday, April 4. Mr. Wilson is coming out prepared to open the bank. "The reorganized trust company will open its doors with $3,000,000 in cash on its trays and will be in a position to meet all its liabilities as they mature. When I left California last April for New York it was with the determination to open the bank. I am glad that my mission has been successful." Wilson Coming West H. P. Wilson, known as the man behind the reorganization scheme of the California safe deposit and trust company, has made a. definite statement to the effect that he has concluded his financial arrangements in New York city and that he is really coming to San Francisco to open the bank. "Now he has made a definite promise," said one of the members of the stock holders' committee yesterday, "and he will have to make good." Frank J. Symmes, receiver of the wrecked institution, received a telegram from Wilson yesterday, which read in part as follows: "My financial arrangements all concluded today. Will leave for San Francisco within a week prepared to open bank on conditions previously outlined.
24.
May 9, 1910
The San Francisco Call
San Francisco, CA
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WRANGLE RENEWED OVER DEPOSIT CO. Reorganization Promoters Score Receiver Symmes for His Advertising Dividend A controversy has arisen between the forces under H. P. Wilson, the eastern financier interested in the reorganization of the California safe deposit and trust company, and Frank J. Symmes, receiver of the bank, who advertised Saturday that he would pay a dividend of 10 per cent to the stock holders of the defunct bank on or before June 1. Wilson's friends declare that Symmes advertised a dividend only because he wished to defeat the plans of those interested in reorganizing the bank and to prolong his receivership. Symmes states that the dividend was advertised simply because the proper time to announce it had arrived. POOH POOHS SYMMES' PLAN J. W. Raphael, president of the depositors' association and an advocate of Wilson's plan of reorganization as opposed to the continued receivership, said yesterday: "Literature explaining to the depositors the modified plan under which they will receive 40 per cent in cash and 25 per cent of their claims in preferred stock of a holding company owning all the industrials-65 per cent in all-was mailed to the depositors yesterday afternoon, and in view of the necessary details connected with the plan and the printing the literature could not be sent out sooner. "I believe the display advertising notice of the receiver, inserted in the papers, in which he stated he would pay a dividend of 10 per cent on or before June 1, was, to say the least, inopportune. It will result in creating confusion among the depositors as to the action to be taken by them. We believe that if the depositors should accept any dividend or check of the re: ceiver, and cash it, it would clash with the entire plan of reorganization and virtually end it. URGES REORGANIZATION PLAN "We therefore advise any depositor to whom a check is sent to return the same at once to the receiver. By doing so they will not lose their rights to the assets of the bank in any respect, and they will be assisting to a quicker reorganization by which they are to share in $2,000,000 that the receiver never can obtain for the benefit of the depositors. Wilson's plan brings to the depositors $2,000,000 in new money in addition to all the property of the bank, to which alone the receiver can look for the settlement of the claims of the depositors. "We certainly expected that the receiver in all fairness to the unsecured depositors would have waited at least 10 days, for answers to Wilson's offer to : come in, before spending money in a , ) display advertisement, the only purpose ) of which was to prevent the reorgan> ization of the bank and keep the receivership alive." ( Symmes states that he is simply act, : ing in accordance with the duties his ) position imposes.
25.
June 3, 1910
The San Francisco Call
San Francisco, CA
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LAWYERS TO ASK FOR $25,000 FEE $18,000 Suggested as Proper Sum to Be Paid to Le Breton Estate De Laveaga and Magee File Re= port on Defunct California Trust Company The report of J. V. de Laveaga and E. DeLos Magee, as attorneys for the late E. J. le Breton during the last 15 months of his receivership of the California safe deposit and trust company, together with an application to the court for compensation for themselves and for the services of Le Breton, was filed yesterday. The hearing of the petition was set for 2 o'clock, but Judge Seawell ordered a continuance to Tuesday, directing that notice should be given to depositors and others interested in the affairs of the bank. Attorney I. I. Brown and Julius Raphael, representing the rehabilitation committee that is endeavoring to reconstruct the bank, were . in court, ready to oppose the attorneys in their application if they thought the remuneration asked for was too large. De Laveaga and Magee in their petition not the "reasonbut request do specify court any to particular fix sum, able and proper compensation." They have informed Brown, however, that asks them to consider if what the they judge proper compensa- suggest tion they will ask that $18,000 be paid to the estate of Le Breton for his services and $25,000 for themselves. The period covered by the report is from January 1, 1909, to March 19, 1910, upon which date-Le Breton died. of their services, For the first 11 1/2 months up to December 31, 1908, Le Breton was allowed $15,000 and the attorneys $25,500, plus $2,500 for office expenses. The report filed yesterday covered almost 900 cona the acts tained diary typewritten showing pages daily and of the attorneys in connection with the affairs of the bank. The following towere in tals tervention furnished: filed 1908, Petitions upon in which inaction was taken in 1909, 105; petitions in intervention filed in 1909, 268; actions instituted by the receiver during the period of the report, 64; actions brought by the receiver prior to January 1, 1909, but prosecuted during the period of the report, 46; probate proceedings in which the bank was interested, 32. During the 15 months covered by the report the attorneys appeared in court separately 369 times and in company wtih one another 118 times.