831. Consolidated Bank (Los Angeles, CA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 6, 1908
Location
Los Angeles, California (34.052, -118.244)

Metadata

Model
gpt-5-mini
Short Digest
4bbff2e9

Response Measures

None

Description

The Consolidated Bank was closed by the state bank commissioners in early June 1908 for insolvency and later placed in receivership (Evan Lewis). No explicit contemporaneous depositor 'run' (mass withdrawals due to rumor) is described; the closure and receivership resulted from impaired capital, loans to the banker/promoter W. H. Carlson, and alleged embezzlement. The bank remained in receivership and paid dividends during liquidation (20% dividends in 1909 and 1910), i.e., permanent closure rather than reopening.

Events (4)
1. June 6, 1908 Receivership
Newspaper Excerpt
With but $400 in cash to meet $40,000 in deposits, is the condition of the Consolidated bank, according to the reports of temporary receiver Lewis, who took charge yesterday, W W. Carlson ... is missing. / Judge W. P. James yesterday, restraining them from disposing of any property of the bank. This order was issued after the bank commissioners ... had filed a complaint alleging the insolvency of the Consolidated bank and the danger to its assets if involuntary liquidation was not begun. (June 6 and June 17, 1908 articles).
Source
newspapers
2. June 6, 1908 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State bank commissioners found capital seriously impaired, only small cash on hand, large loans to president W. H. Carlson and refusal to allow examiners to inspect books; insolvency suspected.
Newspaper Excerpt
The bank was closed because Bank Commissioners Vawter and Sherer found that the capital stock, $25,000, had been seriously impaired and that Special Bank Examiner Wilson had been refused permission to examine the books.
Source
newspapers
3. July 17, 1909 Other
Newspaper Excerpt
The report of Evan Lewis, receiver of the Consolidated bank ... was approved by the court yesterday, and the receiver was instructed to declare the first dividend of 20 per cent to depositors of the defunct institution.
Source
newspapers
4. July 27, 1910 Other
Newspaper Excerpt
The third report of the receiver of the Consolidated Bank of Los Angeles has been approved by Judge Adams. It shows $13,000 in coin on hand and another dividend of 20 per cent has been ordered paid.
Source
newspapers

Newspaper Articles (20)
1. June 6, 1908 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, June 6, 1908

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May Go to Courts. It is reported this afternoon that preparations are being made which will possibly result in the action of the court in attacking the 'legality of the whole action of the republican national committee in connection with convention contests. This will result from tabling the protests against the seating of Hitchcock in the committee. The members of the committee said the courts have ruled many times that the actions of the committee couldn't be reviewed and that the allies had better give up. Bank Hard Hit. Los Angeles, June 6.-With but $400 in cash to meet $40,000 in deposits, is the condition of the Consolidated bank, according to the reports of temporary receiver Lewis, who took charge yesterday, W W. Carlson. who was practically the entire board of directors, is missing. Friends scout the idea that he has skipped and say he will return to settle affairs.

2. June 6, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, June 6, 1908

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CARLSON TO BE HOME MONDAY, IS MESSAGE PRESIDENT OF CONSOLIDATED BANK IS IN EAST Friends of Absent Man Say He Has Ample Resources-Commissioners Will Await His Return Until Willitm H. Carlson, president of the Consolidated bank, returns to the city Monday the status of the bank will probably not change. The bank is in charge of Evan Lewis, acting for the state bank commission, and nothing will be done by the examiners until Monday, when Mr. Carlson will be here to consult with them. Carlson sent a telegram to his son, W. H. Carlson, yesterday from Chicago saying he was on his way home and would reach here Monday. The bank was closed because Bank Commissioners Vawter and Sherer found that the capital stock, $25,000. had been seriously impaired and that Special Bank Examiner Wilson had been refused permission to examine the books. The Consolidated cleared until two weeks ago through the Central National bank. It was a small. bank and its business was chiefly in financing the real estate enterprises which Carlson also controlled. He controlled the bank absolutely. Mr. Lewis said yesterday the commissioners had taken charge of the assets of the bank and listed them and deposited them in a safe, but that nothing further had been done. He said the business of the bank was being conducted as usual. During the day there were a number who paid installments on real estate for which the bank was the receiver. Friends Have Confidence Carlson's friends declared yesterday that his resources were ample and that he would arrange a settlement on his return to the city. As there is no statement of the condition of the bank available and the commissioners are not ready to make one there is no certainty as to what will be required to make a settlement. It is reported that the deposits did not exceed $50,000. Carlson was formerly mayor of San Diego, but came here a number of years ago and promoted several real estate enterprises. His friends believe he will be able to promptly straighten out affairs.

3. June 14, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, June 14, 1908

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CARLSON LAND INVESTORS TAKE STEPS, FOR RECEIVER Forty Men and Women Interested in Redondo Villa Tract Organize to Begin Action Against Absent Banker At a meeting last night of about forty men and women, investors in the Redondo Villa tract scheme, promoted by William H. Carlson, presient of the suspended Consolidated bank, it was decided to bring an action in the superior court for the appointment of a receiver. This action was determined upon when George H. Peck of San Pedro, the original owner of 604 acres of the tract, threatened to foreclose his "vendor's" lien on each of the 3400 lots. The meeting was held in the law offices of Rittenhouse & Neighbors, Chamber of Commerce building, who will act as attorneys for the investors in the scheme. As soon as the meeting was called to order an organization was effected. Charles Wallace was elected president, and Mrs. Y. M. Andrews secretary and treasurer. A committee of three was appointed by the president to devise some means by which the investors may be able to get their money back. Many different methode of dealing with the problem were suggested. Some of those present went so far as to suggest that the officers of the Los Angeles Security company, the concern through which Carlson operated at Redondo, should be arrested. Finally the matter was left in the hands of the committee of three and the officers who were elected. They conferred with George H. Peck who insisted that the only way was to have a receiver appointed. When Mr. Peck intimated that if this were not done he would foreclose on the property this action was agreed to, and B. D. Snow, 940 Maple avenue, consented to act as complainant in the suit, which will be brought at once. It is expected another meeting at which some 200 of the investors will be present, will be held Wednesday night at the same place. Further action will be taken at this meeting. It is reported the missing bank president will return to the city Monday and aid in the effort to straighten out his tangled financial affairs.

4. June 17, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, June 17, 1908

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CARLSON OFFERS A SETTLEMENT TO PAY DEPOSITORS WITHIN THIRTY DAYS COMMISSIONERS TO RECEIVE A SPECIFIC PROPOSAL Banker Meets with Commissioners and George H. Peck and Makes Arrangements-Discusses His Means According to his offer to the state bank commissioners, William H. Carlson, president of the Consolidated bank, is to pay off the depositors in that suspended institution within thirty days. The proposition was made at a meeting between Commissioners Vawter and Sherer at the office of Gage & Foley in the Mason Opera House building yesterday afternoon. Carlson also met George H. Peck and made arrangements with him in effect that the threatened receivership suit will be abandoned and he is to take care of all the Los Angeles Securities company's lot contracts. The bank proposition was made verbally to the bank commissioners, who said it would be satisfactory if made specific and in writing. This Carlson promises to do Thursday after he has had time to determine the exact manner in which he will do it. "Mr. Carlson offered to liquidate the bank's affairs," said Mr. Vawter last night, "within thirty days and said he would make a more definite proposal in two days. The commission can do nothing better than obtain a settlement which will provide for all the depositors and we will wait for his proposal." Mr. Carlson, keeping the promise in his telegraph message to Mr. Peck that he "would see him at San Pedro Tuesday," made a journey to that point yesterday morning. But he learned Mr. Peck had come to Los Angeles, and his trip was without result. He and his attorneys met Mr. Peck late in the afternoon and arrangements satisfactory to both, it is annóunced, were made. Settles Some Debts Carlson said yesterday that he had arranged for the payment of $3750 of the indebtedness of the bank yesterday. In addition he said there was over $5000 cash on hand and he was able to provide for the balance of the indebtedness, about $32,000, within thirty days. He said he would also devote his entire attention to clearing up the realty company's affairs. "This forced situation and its calumnies," said Mr. Carlson, "has already cost me $100,000. I might make outcry about that but I have been a good winner and I shall be a good loser. My resources amount to $400,000, and I would not murmur if that was reduced one-fourth in the settlement. I am not the only man who has been on thin ice, but I am game enough to stick to the helm and do everything that ought to be done." Carlson said he would not attend the meeting of the property owners called for the Burbank hall tonight. He said this was the promotion of a lawyer who was hunting a fee and that it was not to be regarded seriously. "We had a detective present at this meeting," said he, 'and we know just what it means."

5. June 18, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, June 18, 1908

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CARLSON BANK NOW IN COURT COMMISSIONERS ASK FOR INVOLUNTARY LIQUIDATION JUDGE JAMES ISSUES RESTRAINING ORDER Banker and Realty Promoter Has Promised Settlement Proposition Today-Contract Holders Hold Big Meeting William H. Carlson. president of the suspended Consolidated bank, all its directors and employes, are now bound by orders issued by Judge W. P. James yesterday, restraining them from disposing of any property of the bank. This order was issued after the bank commissioners through Attorney General Webb had filed a complaint alleging the insolvency of the Consolidated bank and the danger to its assets if involuntary liquidation was not begun. This means a receivership, although it is asserted the bank commissioners, who were represented by Deputy Attorney General George Beebe, took the step to safeguard assets that might not be under their control. The complaint filed alleges that the commissioners determined May 25, after an examination, that the bank was doing business in an unsafe manner. that there was a deficit in its reserve of $4106, that there was only $400 cash available and that it had loaned to Carlson $30,250. The commission further found the significant fact that it was not able to do business at a profit. Carlson visited his offices briefly yesterday, but spent most of the day elsewhere, part of the time at the office of Gage & Foley. across the street. It is understood that while Mr. Peck, original owner of the lands involved in Carlson's real estate deals, may not bring a suit for a receiver for the Los Angeles Securities company, such a suit will be brought by a contract holder this week. Promise for Today Carlson insists that if he is let alone he will be able to bring everything out all right. In view of this the bank commissioners will welcome his proposition today as promised by him if it carries out his verbal promise of Tuesday. However, there is no disposition to let him get control of the bank's affairs. Inquiries are beginning to come in Los Angeles friends of outside investors in Redondo Villa and other lots and it seems that they have been sold all over the country. Carlson boasts that the income from sales reached $586 a day and that if let alone it would have solved the problem of the company easily. Contract-holders are now reading their contracts carefully and think they can see new meaning between the lines. Here Is the Contract Here is a sample contract, held by a man living near the Atlantic coast: 25 PER CENT GUARANTEED INCREASE. CONTRACT. LOS ANGELES, Cal., 1907. four of sum the Received of dollars ($4.00), as a deposit to secure the purchase of the following described lots of the "Redondo Villa Tract B." Lot numbered - of block numbered - according to the official map, made by Rexford & Henderson, and filed in the county recorder's office of Los Angeles county, on page 10 of book 11 of Maps, subject to the following conditions: The said deposit is accepted only as rent on said property for the period of one month from date, and the benefits of this contract are conditioned on the further sum of four dollars being paid as monthly rent to be paid on the 22d day of each month hereafter for twenty-one months, with exact punctuality. as time is the essence of this agreement, then and in consideration of having paid said rent for said period, upon payment of two dollars, a warranty deed is to be furnished to the above named party, conveying a perfect title to the above described property. free and clear of all encumbrances, on May 22, 1909, or we will refund all money paid together with 6 per cent per annum interest added. All deeds are to contain a clause prohibiting the establishment of saloons to sell spirituous liquors on said property, and also prohibiting the erection of shanties thereon. and that all buildings erected on said property must be neat, modern and attractive, the plans of which must first be approved by the city building inspector of Los Angeles, in order to assure the erection of only attractive homes thereon. All deeds to said property will contain a clause prohibiting the erection of any building to be used for manufacturing or purpose, as it is

6. July 28, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, July 28, 1908

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PECK FILES SUIT AGAINST CARLSON OWNER OF REDONDO LAND TIRES. OF DELAY Depositor in Consolidated Bank Writes Pitiful Letter to Assistant Prose= cutor-Loses All Her Money The Los Angeles Securities company and William H. Carlson are defendants in a second suit filed in the superior court yesterday by George H. Peck, who seeks to recover possession of a tract of eighty acres at Redondo, which has been held by the defendants under contract. The first suit filed by Peck was to recover 300 acres. The amounts involved in both suits will aggregate $150,000. The land in question has been subdivided by Carlson. Some time ago Peck and other original owners sought to form a trusteeship, but owing to a disagreement upon conditions, failed to do so. Yesterday, about the time the second suit was filed, Carlson deposited the deeds which had been demanded of him with the Title Guarantee and Trust company. He stated he is confident that the trust agreement will be signed and that matters will be satisfactorily arranged. In regard to the affairs of the Consolidated bank he said he expected they would be settled within the next thirty days and stated that 30 per cent of the depositors had turned their accounts over to him. Guy W. Eddy, assistant city prosecutor, yesterday received a pitiful letter from a depositor in the Consolidated bank. The letter follows: " come to you for information concerning the condition of the Consolidated Bank of Los Angeles. I have been here in Oakland for ten weeks visiting friends and asking advice about the best way to invest the little I had deposited in the Los Angeles bank. I intended to return to Los Angeles and so got the First National bank here a week ago to send for some of my money with which to defray my expenses, and when I called at the bank here last Thursday they told me the awful news. "I am a cripple and unable to support myself. I have no relatives or anyone on earth on whom I have a claim and if I lose this last resource, the gifts of my sympathetic friends for over a year, since an almost fatal accident occurred to me, and which I have carefully hoarded to help make a start, I shall lose my mind or raise my voice in warning to the people of this country against the business methods of California, which has become the robber state of the union. "Mr. Eddy, please let me know the worst. I have no one else I could write to for information and no one here can give'me any. I have written to the Consolidated bank and to the receiver, but have had no reply and am almost crazed with fear and horror of what the future has in store for me. I cannot go down there because I have no money. I have not one dollar between me and poverty today. Please, sir, let me know something of what I may expect from those who have so heartlessly defrauded and bertayed public confidence. "MARGARET GORMAN, "Oakland, July 25."

7. September 4, 1908 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, September 4, 1908

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PRESIDENT AGAIN ARRESTED LOS ANGELES, Sept. 3.-William H. Carlson of the suspended Consolidated bank of Los Angeles was arrested for the third time in connection with the affairs of the bank tonight. Three additional charges are placed against him by the district attorney-two of falsifying the books of the institution and one of embezzlement. He gave bail in the sum of $5,000. making a total of $27,000, and is ordered by Justice Stephens to appear on Saturday and furnish additional bail.

8. December 13, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, December 13, 1908

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CARLSON MAKES ANOTHER OFFER SAYS SURETY COMPANY WILL FURNISH BOND BANK COMMISSIONERS PREFER ACTUAL CASH Depositors Chafe at Law's Delay-San Francisco Woman Finds Herself in Pitiable State of Destitution A proposition has been made to the bank commissioners by W. H. Carlson, having for its object the settlement of depositors' claims against the Consolidated bank at some time in the future. These claims, according to Carlson, aggregate about $27,000. Carlson's proposition is made the subject of a letter, copies of which have been sent to depositors. One of these was taken to the district attorney's office yesterday by Miss Alice Gorman, whose case is a pitiable one. According to the letter, Carlson has arranged to furnish a bond with a surety company for $20,000, the bond to be placed in a recently organized bank and held as a guarantee that depositors will receive their money at some stated time in the future. The plan was submitted to the bank commissioners for approval, but without success, the commissioners, it is said, preferring that the actual cash be placed in the defunct bank's tills. This is the stand taken by George Beebe, who, as deputy attorney general, began proceedings some time ago to have the bank placed in the hands of a receiver. With this bond the $7500 cash and other assets now held by the Consolidated, Carlson claims he can pay off all depositors at 100 cents on the dollar. According to Evan Lewis, who was placed in charge of the bank by the commissioners, the amount due depositors is $49,000. The difference of about $22,000, it is said, can be explained by the fact that Carlson has secured deposit books from a large number of persons who placed funds in the bank, giving in return neatly engraved promissory notes, and when an examination of the books was made it is said these accounts were swept aside by Carlson as not to be considered in the liabilities. Early Hearing Expected Hearing in the suit for the appointment of a receiver for the bank will, it is expected, begin December 26 in the superior court and until this matter is decided depositors will be compelled to wait for their funds. A number of continuances have been secured in this action, for the purpose, as it is claimed by persons interested, of giving Carlson an opportunity to make good the shortage. At present, as it was stated yesterday by a person familiary with the bank's affairs, depositors cannot hope for more than 25 cents on the dollar, and if 35 cents on each dollar deposited is paid out it will be surprising. The action of the bank commissioners in refusing Carlson's latest proposition, it was said yesterday, has been used by the banker and promoter to satisfy the minds of complaining depositors and throw the responsibility for present conditions upon the commissioners and Evan Lewis, who is charged by Carlson with being at the bottom of the whole trouble. Few of the depositors can understand the necessity for delay in the court proceedings for the appointment of a receiver and the settling up of the affairs of the Consolidated bank. Already wrathful over what they believe is premeditated procrastination, they have become further disgruntled, it is claimed, over the action of the bank commissioners in turning down Carlson's proffer. Miss Alice Gorman, to whom, as a depositor, one of Carlson's leters was sent, complained to the district attoroney yesterday that she could see no reason why the proposition should not be accepted. Gave Carlson Last Cent Miss Gorman said she came to Los Angeles from San Francisco about three weeks before the bank was closed. Just before leaving San Francisco she sustained a severe injury to her ankle, which was struck by a falling sign. She withdrew a suit for damages against the owner of the sign when her attorney told her the man had a family and was without means, borrowed $300 and came here to seek employment. She deposited $100 of the money in the Consolidated bank and gave Carlson $200 to keep until called for. This sum, she says, was also deposited to her credit by Carl-

9. January 13, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, January 13, 1909

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WANT CARLSON'S PLAN ADOPTED DEPOSITORS FAVOR SCHEME TO FURNISH BOND COMMITTEE CHOSEN TO WAIT ON JUDGE JAMES Resolution Passed Approving Propo= sition of United States Surety Co., Creditors Being Anxious to Avoid Receivership When the proceedings instituted by Attorney General Webb for the appointment of a receiver for the Consolidated bank are resumed in Judge James' department of the superior court at 10 o'clock today, a committee selected from a majority of the depositors of the bank will be on hand with a resolution adopted last night. It indorses the plan advanced by attorneys representing W. H. Carlson for the furnishing of a bond by the United Surety company to pay depositors in full, with interest to date of payment. Fully fifty depositors were present in rooms 422-423 Bullard block last night in response to the call issued by H. H. Appel, Carlson's attorney. Carlson was present, but took little part in the proceedings. Several times he started to make remarks, but he was either interrupted or there was an undisguised effort to disregard anything he said. Attorney Appel explained the purpose of the meeting. The plan, he said, if approved by the court, would mean that depositors would receive their money in sixty days or less, while if a receiver was appointed and affairs remained in their present chaotic condition, it might mean a payment of not more than 20 to 25 cents on the dollar. Adopted Unanimously The following resolution was adopted: "Resolved, by a majority of the depositors of the Consolidated bank of Los Angeles, in public meeting assembled, that we hereby indorse and approve of the plan of the United States Surety company to pay off depositors in full, 100 cents on the dollar, plus interest to date of payment, and we most urgently recommend the same be approved by the board of bank commissioners, attorney general of California and the superior court of Los Angeles county, under such orders of the court as may effectually secure to us said payment." This resolution was adopted by the unanimous vote of those present, and was signed by Otto Roye, named by the depositors to act in the capacity of chairman. A committee, consisting of John F. Bergman, John Jarku, Mrs. M. A. McDonald, Mrs. C. FitzJames, and Dr. Henry v. Berghall, was appointed to present the resolution to Judge James today, and to watch and report on the court proceedings in the receivership matter. Carlson Before Justice The preliminary examination of W. H. Carlson, continued from December 8, was resumed before Justice Selph yesterday, occupying two hours. It was then continued until 2 o'clock today, no afternoon session of court being held, owing to the illness of the justice. The examination dealt with the charge of embezzlement of $4500 from the Consolidated bank April 9, 1908, and only one witness was called. This was Miss Lida McKittrick, vice president and cashier of the bank. Her testimony was for the purpose of establishing the fact that Carlson was president and director of the bank. This was done, and just before the noon hour a point was raised by Carlson's attorneys which is expected to involve much argument. Attorney Appel contended that the court was acting without jurisdiction, claiming the petition for a change of name of the bank should have been filed in the county in which it was originally incorporated. The Consolidated bank was incorporated in Sacramento county as the Probate bank. Thence it was transferred to San Francisco, where it was kown as the Manhattan Savings bank, and when Carlson purchased the charter he removed the institution to Los Angeles, naming it the Consolidated bank. The prosecution, meeting the contention of Carlson's counsel, says the point raised will have no effect, as the code provides for the filing of a petition for change of name in any county where the property is held. Deputy District Attorney Ford has been added to the prosecution, to aid Deputies Blair and Horton.

10. January 27, 1909 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, January 27, 1909

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MUST GIVE CASH BOND IN ORDER TO REOPEN BANK President of Consolidated-Los Angeles Faces Much Trouble LOS ANGELES, Jan. 26.-Judge James today refused to allow the dismissal of the receivership proceedings against the Consolidated bank unless William H. Carlson, the president, should deposit with the court $48,500 in cash to secure the depositors and other creditors of the bank under the management of a new board of directors whom Carlson had proposed to have chosen by the bonding company, which offered to give a bond for the payment of all depositors in full. Judge James fixed February 16, as the date when the money to secure the depositors must be brought into court.

11. January 27, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, January 27, 1909

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CARLSON MUST BRING MONEY TO THE COURT Offer to Furnish Bond Rejected, and Judge Tells Banker That Only Cash for Depositors Will Satisfy W. H. Carlson's offer to furnish a bond to secure payment of Consolidated bank depositors was refused by Judge James of the superior court yesterday. Only the placing of about $49,000 by Carlson in the court's hands will meet the approval of Judge James and result in a modification of the restraining order of June 17, last year, which prevents the bank's officials from transacting any of its business. Judge James said he could find no authorization in law to permit the giving bond of a surety company as proposed, and therefore such a bond would be void and the depositors would have no protection. "When the bank comes in here with the money to pay the depositors off, and this money is placed in the keeping of the court I'll modify the injunction," he said. To give Carlson time to do this, Judge James continued the matter until February 16. Attorneys representing the attorney general and the bank commissioners said there was no disposition on their part to push matters and that they wanted to give the banker every possible chance to satisfy the depositors' demands. To appoint a receiver at this time, they admitted, would mean that the depositors would receive only about 25 cents on the dollar. Carlson Changes Attorneys Carlson was represented yesterday by Attorney Solomon, who, the banker said, will act for him in future proceedings. Henry T. Gage, H. H. Appel and W. I. Foley have thrown up Carlson's case for pecuniary reasons, it was said. When the criminal action against Carlson is called in Justice Selph's court today these attorneys will not be on hand to carry on the vigorous fight they had made thus far in his behalf. This will, of course, necessitate a long delay, as it will be necessary for Carlson's new counsel to familiarize themselves with what has transpired. That the banker's financial condition is not good was also made known in another way yesterday when it was

12. February 26, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, February 26, 1909

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CARLSON FAILS TO GET MONEY FUNDS NOT BEING PRODUCED, TRIAL IS RESUMED FORMER BANKER ACTS AS HIS OWN ATTORNEY Examination of Woman Who Acted as Cashier of Defunct Institution Leads to Indignant Protestations W. H. Carlson, banker and promoter, failed to male good his promise to bring into the superior court enough money to pay all depositors of the Consolidated bank yesterday, and the hearing on the petition of Attorney General Webb for the appointment of a receiver for the bank, which Judge James notified both sides several days ago must proceed if the money was not forthcoming, was begun. Carlson made no explanation of his failure to produce the $48,500 necessary to pay off claims on the bank, but it was understood he returned from San Francisco Wednesday night after a fruitless effort to secure funds. Carlson himself acted as attorney for the bank yesterday, being assisted by M. G. Solomon, an attorney. His questions while cross-examining witnesses indicated his belief that he was the victim of enemies, who, through personal spite or for merecnary reasons, were seeking to ruin him. Miss Lida McKittrick, who said she was cashier, bookkeeper, vice president, secretary and director of the Consolidated bank, was the first witness yesterday. Following the closing of the bank in July of last year, Miss McKittrick said, she was employed by the bank commission to do work in connection with the investigation of the bank's affairs. Notes by Mrs. Carlson Part of the assets, she said, consisted of notes aggregating nearly $35,000. TWO of these notes, totaling $8800, were signed by Mrs. Carlson and were unsecured. Others were made on account of money loaned to the Los Angeles Securities company, Redondo & Hermosa Railroad company, the Carlson Investment company and the Royal Hotel company, all of which are Carlson companies. In response to the questions of George Beebe, deputy attorney general, Miss McKittrick said she knew little or nothing in regard to Carlson's promotion schemes, the loans referred to having been made before she was employed as cashier. "Did you not do considerable scratching on the boks of the bank at the request of Bank Commissioner Sherer?" asked Carlson, as he began his crossexamination. Miss McKittrick became indignant, and two bright spots reddened her cheeks. "Indeed I did not," she replied with asperity. "Now, your honor," said Carlson, "I want to protest against Evan Lewis nodding to the witness, indicating how she shall answer my questions." Charge Angrily Denied Evan Lewis, custodian of the bank, who was seated near Mr. Beebe, and to whose work Carlson attributes many of his troubles, arose and angrily denied the banker's accusation. Miss McKittrick said that while the Los Angeles Securities company was among the largest borrowers from the bank, it was also the largest depositor. and that the business of the bank never was interfered with by the company's officers. W. S. Vawter, a bank commissioner, was the second and last witness. When the bank was closed, he said, assets were deposited with the Broadway Bank and Trust company. Carlson tried to draw on these assets, but the bank was instructed not to honor his checks. "We were trying as much as possible to build up the funds to the credit of the Consolidated bank," said the witness. Numerous depositors in the Carlson bank were in the court room yesterday and listened intently to the proceedings. The hearing was continued until March 8.

13. March 30, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, March 30, 1909

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# Alleges Offer by Banker "A certain banker this morning," continued Carlson, "has made the offer to pay off depositors. The only reluctance he had was, owing to the fear of the club held over him by other bankers. But his offer is made in good faith and it means the saving of the Consolidated bank from wreck." At this point George Beebe, deputy attorney general, protested strongly against any further continuance of the receivership proceedings. "I am not going to continue the matter," said Judge James. "All that Mr. Carlson's talk amounts to is that the report of the referees is not in his favor and he objects. I will not appoint a receiver until Wednesday morning. If any proposition is to be made it can be made in the meantime, and I will hear it in chambers at 3:30 o'clock tomorrow." The affidavit referred to by Carlson, in which the assets he offers are stated to be worth $56,950, is signed by A. Malin Dufour, A. E. Golden and George B. McLaughlin.

14. April 2, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, April 2, 1909

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News of the Courts CONSOLIDATED IS IN WOMAN SUES AGENT; HANDS OF RECEIVER CASE IS CONTINUED Judge Orders Broadway Location Va= Gave Real Estate Man Money to Purcated and Cheaper Quarters Sechase Half Section Near Barstow, cured-Carlson Has Plan to but Alleges It Was Not Pay Depositors Bought Evan Lewis, who was appointed reThe preliminary hearing of James v. ceiver of the Consolidated bank TuesBlack, a real estate man, charged with day by Judge James of fhe superior btaining $720 from Mrs. Laura Powell court, took charge of that institution false pretenses, was begun before yesterday, after having given bond for ustice Ling yesterday and continued $15,000. intil Tuesday to await the presence of W. H. Carlson, president of the bank, he treasurer of San Bernardino counfailed to appear in court yesterday, whose testimony, it is said, is necalthough he telegraphed that he would ssary before proceeding further. be present with a proposition by which Mrs. Powell says she gave Black a depositors would be paid in full. It number of small sums of money, aggreis believed creditors of the bank will rating $720, with which to purchase get their first money within two weeks, chool lands in San Bernardino county. this action depending on the reports Later, she says, Black took up the made by Mr. Lewis to the court. mall notes given to her at the time he The receiver has been directed by received the money, and made a note Judge James to vacate the building on or the full amount, the transaction Broadway and rent cheaper quarters. hen appearing as a loan. The money, Deposits on the bank's books aggreaccording to Black, was paid into the gate about $47,000, but It is understood reasury of San Bernardino county, but depositors will receive only about 15 Assistant District Attorney McComas, cents on the dollar in the first dividend. vho is prosecuting the case, says an this to

15. April 28, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, April 28, 1909

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# CARLSON CALLS # MANY WITNESSES BANKER TO SUMMON ENTIRE GRAND JURY WEEKS TO PROVE TESTIMONY OF HIS CLERK FALSE Promoter Accused of Embezzlement Will Have a Great Array When Case Is Resumed in Justice Court W. H. Carlson's statement several days ago that he had only just begun his defense in the case in which he is charged with embezzling $127.65 from the Consolidated bank will be borne out when his preliminary examination is resumed in Justice Stephens' court today. Carlson will practically fill the chairs reserved for spectators with witnesses. Former Governor Gage will be on hand in response to a summons. Attorneys W. I. Foley and H. H. Appel, who, with Mr. Gage, acted as the ex-banker's counsel following his arrest last fall, will also be on hand. Two San Francisco bankers have received notices that their presence and testimony are absolutely necessary. But the greatest surprise is expected when the nineteen men who constituted the last regular grand jury file into the little justice court, in response to summons served upon each of them at Carlson's instigation yesterday. Carlson's purpose, it is understood, is twofold; first, to impeach the testimony of Miss Lida McKittrick, his former cashier and one of the principal witnesses for the prosecution, and second, to discover, if possible, the manner in which Frank Blair, deputy district attorney, procured the check which is the basis for the complaint filed against him, and to which Evan Lewis, formerly custodian and now receiver of the Consolidated bank, has affixed his name as complaining witness.

16. July 17, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, July 17, 1909

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CARLSON BANK DIVIDEND APPROVED BY THE COURT Receiver Lewis Is Ordered to Bring Suit Against Individuals Whose Notes Are in His Hands The report of Evan Lewis, receiver of the Consolidated bank, which was filed with Judge James of the superior court last week, was approved by the court yesterday, and the receiver was instructed to declare the first dividend of 20 per cent to depositors of the defunct institution. This payment is expected to be made some time next week. Mr. Lewis was also ordered to institute suit against individuals and concerns whose notes he holds as receiver, among them W. H. Carlson, who, as president of the bank, borrowed large sums of money, giving as security stock in various companies he had promoted. Mr. Lewis expresses the belief that the only security for these loans on which he may be able to realize is Carlson's Redondo railway, and as to other notes he says he is doubtful if anything can be recovered. The cash in the receiver's hands amounts to $9,295.80, or $27.72 more than enough to pay the depositors one-fifth of the money entrusted to the bank's keeping. The liabilities are $46,340.43.

17. November 2, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, November 2, 1909

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CARLSON ORDERED TO PAY TO FRIVOLOUS DEMURRER Judge Invoked Little Used Rule in Connection with Suit Against Carlson Concern The rule of the superior court providing for the overruling of a demurrer when it is found to be frivolous and for the payment of $10 to the plaintiff by the person filing such a demurrer was invoked by Judge Bordwell yesterday in the suit of Evan Lewis, receiver of the Consolidated bank, against the Los Angeles Securities company, one of W. H. Carlson's promoting concerns. Receiver Lewis' suit was for $2800 on a mortgage signed by the Securities company, Carlson acting for himself, interposing a demurrer, which the court ruled was frivolous and ordered Carlson to pay Lewis $10 before filing an answer to the complaint.

18. December 10, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, December 10, 1909

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JUDGMENT AGAINST CARSLON RENDERED RECEIVER FOR BANK WINS FROM INVESTMENT CO. Financial Methods of Promoter Shown by the Manner in Which He Handled Funds of Two Concerns The financial methods of W. H. Carlson in the double role of president of the Consolidated bank and holding a similar position with the Carlson Investment company were shown in Judge Hutton's department of the superior court yesterday in the suit of Evan Lewis, receiver of the bank, against the investment company for $2,573.87, overdrawn from the bank's funds. Judge Hutton gave judgment against the investment company for the full amount. The money was withdrawn from the bank in May and June, 1908, the cashier of the institution testifying she had received instructions from Carlson, as president of the bank, to honor all checks signed by the investment company, although that company had a balance of only $52.14. The checks aggregated the amount sued for.

19. January 19, 1910 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, January 19, 1910

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MAY DECLARE DIVIDEND FOR CARLSON CREDITORS Receiver Lewis Files Suits Against the Former Consolidated Bank President's Subsidiary Concerns Two suits through which it is hoped to obtain money to go toward partic a second dividend to depositors of the Consolidated bank, were riled in the superior court yesterday by Evan Lewis, receiver of the bank. The amounts sued for are $3,416.96 from the Carlson Investment company, of which W. H. Carlson is president, and $3,967.58 from the Los Angeles Securities company, with Carlson as general manager. It is claimed by Receiver Lewis the money sought to be recovered represented overdrafts made by the Carlson concerns and paid by the cashier of the bank on instructions of Carlson as president.

20. July 27, 1910 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, July 27, 1910

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COURT APPROVES REPORT The third report of the receiver of the Consolidated Bank of Los Angeles has been approved by Judge Adams. It shows $13,000 in coin on hand and another dividend of 20 per cent has been ordered paid.