California Safe Deposit & Trust Company (San Francisco, CA)

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OPENING BANK VAULTS

Boxes Containing Valuables Were Found to be Intact. San Francisco, May 18.-Over 1,000 persons, each wearing an anxious and worried look, and impatient to examine papers and valuables deposited in the vaults of the California Safe Deposit & 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-Califor. nia 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 is 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.

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SAVED FROM FIRE

/ SAN FRANCISCO, May 18.-Over one thousand persons, each wearing an anxious and worried look, and impatient to examine papers and valuables deposited in the vaults of the California Safe Deposit & 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-California also opened its vaults, and found books, papers, currney and coin in perfect condition. At a meeting of the clearing house committee yesterday it was decided that the commercial bank of this city will open for regular business next Wednesday. It is 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 pepare for any run on them.

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'FRISCO BANK CLOSES

Suspension of California Safe Deposit and Trust Company. San Francisco, Oct. 30.-The California Safe Deposit and Trust Company bank closed its doors this afternoon. A notice was 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 and Trust Company has been regarded as one of the strong financial institutions of San Francisco. Its president is D. F. Walker and J. D. Brown is manager. The bank is understood to be the financial agent on the coast for the Western Pacific Railway now being built. The closing of the bank was caused by heavy withdrawals of deposits in the last few days. The bank could not protect itself as did the members of the Clearing House Association, and found it impossible to get the cash to meet demands made upon it. It is the opinion of local bankers that the California Safe Deposit and 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 was affected. The banks that are members of the Clearing House Association are all using clearing 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. Governor Gillette telegraphed from Eureka to-night that he would declare to-morrow a legal holiday by a formal proclamation, to be issued before banking hours Thursday forenoon, and that like proclamations would followe each day until confidence be restored.

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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.

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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

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SUSPENDED BANK ASKS FOR TIME (By Associated Press.) SAN FRANCISCO, Dec. 4.-A representative of the suspended California Safe Deposit and Trust company called upon the state bank commission today and requested more time in which to adjust the affairs of the company and resume business. The commission decided to wait until tomorrow to decide whether to grant the bank more time or place the matter in the hands of the attorney general.

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ARREST OF BANKERS FOLLOWS EXPOSURE IN SAN FRANCISCO DALZELL BROWN AND W. J. BARTNETT CHARGED WITH FELONY-EMBEZZLEMENT President of California Safe Deposit and Trust Company Resigns. Contestant for Colton Estate Swears to Warrants-Manager of Suspended Bank Held, in Default of $100,000 Bail-Director, Vice President of Western Pacific Railroad, Is Apprehended at His Suburban Villa

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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.

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SAN FRANCISCO, Dec. 9.-AttorneyGeneral U. S. Webb late today commeneed proceedings for the appointment of a receiver for the suspended California Safe Deposit & Trust Co., whose president, vice-president and general manager are under arrest for embezzlement. The stpckholders, officers and directors are made defendants in the suits filed by the Attorney-General. Judge Frank Dunne reduced the bail of J. Dalzell Brown, general manager of the suspended institution from $200,000 to $75,000. A similar action was taken in the case of W. J. Bartnett, the vicepresident. The report that the safety deposit boxes were looted caused a run on that department of the bank today. President Walker is under arrest at Santa Barbara and will be brought to this city tomorrow. Brown claims the bank is solvent and that reports of the condition of that institution are unfair. Bartnett secured bonds this evening, but Brown is still in jail. A mass meeting of the stockholders this afternoon decided to fight the appointment of a receiver, it being the impression the bank could be rehabilitated if time were granted. The resignation of the directors was demanded.

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will be allowed each depositor

San Francisco, Dec. 17.-A complete reorganization of the defunct California Safe Deposit and Trust company was effected yesterday. The directors and officers tendered their resignations and a new set was promptly elected. B. P. Oliver, foreman of the late grand jury, was chosen president, The new directors include David F. Walker. Washington, Dec. 17.-George T. Cutts, National bank examiner of New York, has been annointed permanent receiver of the failed 1 tional Bank of Commerce of Kansas City. Charlton, Mass., Dec. 17.-Perry S. Howe, principal of the Charlton school, has been appointed to take charge of the department of English and public speaking in the high schools of Auburn, N. V. Mr. Howe will begin his new work, Jan. 2. Halifax, N. S., Dec. 17.-It was announced today that the official inquiry into the wreck of the Canadian Pacific railroad steamer Mount Temple at La Have Iron Bound island recently will be opened either on Friday next or on the Monday following. The inquiry will be conducted by Judge Wallace and the nautical assessors. Santiago, Chile, Dec. 17.-The Chilean congress has reduced the import tax on all kinds of sugar by 50 per cent. The workmen in the Tarapaca nitrate fields have gone out on strike. The movement is a serious one, no less than 8000 men having quit work and business is paralyed. The situation at Iquique is critical. Warships and troops have been sent to the troubled districts. Thus far there has been no violence.

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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.

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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.

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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.

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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.

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BROWN AGAINST BARTNETT TESTIFIES BEFORE GRAND JURY IN EFFORT TO INDICT FELLOW OFFICIAL. (By Associated Press.) SAN FRANCISCO, May 19.--! Dalzell Brown, former general manager of the suspended California Safe Deposit and Trust Company, was brought over from San Quentin today to appear before the Grand Jury in connection with an effort to indict Walter J. Bartnett on a charge of perjury, growing out of his testimony regarding the affairs of the wrecked institution. Brown spent half an hour in the jury room. He wore a wig to conceal his shaven head. Dr. Allen Griffiths, brother-inlaw of Bartnett, and David Walker, former president of the defunct bank, were also witnesses. No indictments were returned.

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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

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VERDICT OF NOT GUILTY.

San Francisco Jury Was Merciful to James Treadwell.

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 & 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.

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DISINFECTANT USED IN BROKEN BANK No New Skeleton of Bad Financial Methods, Simply a Colony of Fleas An odor stronger than that caused by the financial methods of Brown and Bartnett emanated yesterday from the California safe deposit and trust company. It drove pedestrians with a sudden rush to the other side of California street. Some of the depositors of the institution, fearing that a new skeleton of the dubious past had been unearthed, called upon Receiver Le Breton for an explanation. It appears that Dr. Blue and his assistants had found a colony of fleas in the basement and had applied with liberal hand a disinfectant that never pretended to an alibi. Le Breton was not inclined to assume responsibility for the new calamity. "When I took charge here," he said, "I was made receiver of the bank. I have no jurisdiction over the live stock. That is up to the district attorney or the board of health."

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LAST LEASE OF LIFE IS GIVEN TO TRUST COMPANY SAN FRANCISCO, Nov. 22.-The rehabilitating committee of the California Safe Deposit and Trust company was given today a continuance of thirty days to complete the rehabilitation of the defunct bank. Judge Seawell stipulated that it would be the last delay the court would permit, and unless the bank were ready to be reopened at the end of the time stated, the depositors' assignments would be declared void and invalid. Receiver Le Breton of the bank asked that the motion of the committee be denied and an imediate dividend of 10 per cent declared. He said he has procured $900,000 with which to pay the dividend. Before the bank can be reopened by the rehabilitation committee the depositors must be paid 25 per cent of their total deposits.

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DELAY SECURED BY BANK REORGANIZERS Judge Seawell Defers Payment of the Receiver's Dividend to Depositors Snowbound Train Makes W.C. Peyton Late for Argument of the Case The payment of the receiver's dividend of 10 per cent to depositors of the California safe deposit and trust company was postponed from tomorrow to Wednesday by Judge Seawell yesterday. The reconstruction of the insolvent bank will tomorrow afternoon make a further showing why additional time should be granted them to carry out their reorganization project. They expected to be able to present their arguments yesterday, but W. C. Peyton, who has been in New York conferring with the financiers who are subscribing new capital for the bank, was snowbound on a westbound train. He is expected in San Francisco tonight. Attorney Van Duzer and Madame Sorbier, a depositor, both protested against any further time being allowed the rehabilitators and demanded that those depositors who were in need of the 10 per cent dividend be permitted to draw it from the receiver. In answer to their arguments Attorney Oscar Cooper informed them. that the $50,000 telegraphed to the Central trust company by H. P. Wilson, the New York capitalist, was available for the payment of a 10 per cent dividend to any depositors who have not given in their adherence to the rehabilitation scheme. It was announced that telegrams from New York were to the effect that the financiers with whom Peyton has been conferring had arranged everything preparatory to the placing of $1,300,000 in an eastern bank to be transferred to San Francisco for the benefit of the reconstructed bank. H. P. Wilson. who is contributing the greater part of the money, will himself leave New York for San Francisco at an early date-probably during this week. Attachment Set Aside SACRAMENTO, March 5.-An error in an affidavit forming the basis for a writ of attachment in the case of the P. O'Connell estate of San Francisco against David F. Walker et al., defendant, and Walter J. Bartnett,appellant, to recover $1,774 lost when the California safe deposit and trust company went under, today caused the third district court of appeals to reverse the order allowing the writ.

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EDWARD J. LE BRETON

EDWARD J. LE BRETON, receiver of the California Safe Deposit and Trust Company and widely known in financial and charitable circles, died in San Francisco from apoplexy yesterday.

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CALIFORNIA DEPOSITORS WILL BE PAID DIVIDENDS Judge Seawell Discharges Order Restraining Payment SAN FRANCISCO, May 8.-With the consent of the rehabilitation committee of the California Safe Deposit and Trust company, Judge Seawell today discharged the order restraining Receiver Frank J. Symmes from paying a 10 per cent dividend to the depositors of the- wrecked bank. At the suggestion of the court the receiver promised to pay the dividend on May 27 on which date the attorneys for the rehabilitators stated that they would be ready to reopen the bank with a payment to the depositors of 65 : cents on the dollar. It was announced in court that depositors representing $3,000,000 had consented to the rehabilitation plan, and that before May 27 it is hoped to secure the signatures of 75 per cent of the people who had funds in the bank.

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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.

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JUDGMENT AGAINST D

F. WALKER ESTATE A. C. Ellis, Jr., Receives $42,129.73 Under Decision of California Court. Special to The Tribung SAN FRANCISCO, Cal. Dec. 21.-Superior Judge Buck of Redwood City returned a judgment yesterday of $42,129.73 against the David Walker estate in favor of A. C. Ellis, Jr., of Salt Lake City. The claim was assigned to Ellis by Isaac Kohn of this city and the rendering of a decision in favor of its legality came as a severe blow to the heirs under the Walker will. who have heretofore harbored the belief that It would not be allowed. or at least would be cut down considerably The amount represents a portion of an unpaid judgment which Kohn received from the superior court of San Fran cisco some time ago. The suit was in connection with the failure of the California Safe Deposit & Trust company. of which the late David Walker was president. One-quarter of a million shares of stock of the Walker estate were sold yesterday by Special Administrator Walter Linforth being vended at public auction and bringing only $3600. There were 110 parcels of stock in local and foreign corporations, mostly those engaged in the mining business. The sale was made on the order of Judge Buck in order to raise funds for the administration of the estate. Although worth in the neighborhood of $1,000,000. the estate is without funds at the present moment.

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SURETY COMPANY IS

COMPELLED TO PAY

SAN FRANCISCO, Oct. 28. -The United States circuit court of apneals denied today the appeal of the National Surety company from the decision of a lower court, by which the company was ordered to pay the Western Pacific Railroad company $50.000, as the liability of a bond given by the surety company for J. Dalzell Brown, defaulting manager of the California Safe Deposit and Trust company.

Brown was secretary of the Western Pacific at the time of his connection with the bank. It was charged that he had deposited funds of the company in the bank when he knew the institution was insolvent. After the bank suspended payment the railroad company sued the surety company and obtained a verdict for the liability of the bond, which was affirmed today.