gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
0c8a88261d7040ed
Response Measures
None
Description
Closure followed heavy withdrawals and the bank's nonmembership in the clearing house; later criminal charges and receivership followed.
Events (3)
1.October 30, 1907Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals driven by depositors' loss of confidence amid the bank's poor asset liquidity, large loans on illiquid stocks and later revelations of malfeasance.
Measures
Bank attempted to raise capital by assessment and sale of stock; communicated with bank commissioner.
Newspaper Excerpt
The closing of the bank was caused by heavy withdrawals of deposits during the past few days.
Source
newspapers
2.October 30, 1907Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended payments because it could not obtain clearing house certificates or sufficient coin to meet heavy same-day demands; nonaffiliation with clearing house exacerbated liquidity shortage.
Newspaper Excerpt
Not being a member of the San Francisco clearing house ... we deem it our duty ... to suspend temporarily.
Source
newspapers
3.December 9, 1907Receivership
Newspaper Excerpt
Attorney General U. S. Webb ... commenced proceedings in the superior court for the appointment of a receiver of the suspended California Safe Deposit and Trust company ... president, vice president and general manager are arrested for embezzlement.
Source
newspapers
Newspaper Articles (25)
1.May 19, 1906The Salt Lake TribuneSalt 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, 1906The Spokane PressSpokane, WA
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SAN FRANCISCO, May 23.This morning at 9 o'clock 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 and every bank in the city is now in a position to meet all obligations without undue strain. While the official date for the formal opening of saving banks is next Monday, many savings institutions opened this morning and mutual savings banks opened for unrestricted business with $20,000,000 in money and active securities in the vaults. The California Safe Deposit & Trust company opened in its old quarters, corner of California and Montgomery streets. This bank is the one to first have temporary quarters completed. The Humboldt bank opens tomorrow morning. About 30 percent of the Humboldt's loans were in the burned district and the bank announced it will return all insurance money to borrowers for rebuilding purposes. With no more rush or excitement than was usuual attending settling day before the fire the Hiberian bank, the city's largest saving inatitution, threw open its doors at 9 o'clock this morning. Every look and every action of hundreds in line before the doors opened betokened confidence. The line began to form at 6:45
3.May 23, 1906The Evening StatesmanWalla Walla, WA
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FRISCO BANKS ARE OPEN They Have an Abundance of Money on Hand SOME SAVINGS BANKS RESUME THERE WAS NO RUN ON ANY OF THE BANKS- GENERAL CONFIDENCE. SAN FRANCISCO, Cal., 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 lies in the fact that there is not the slightest evidence of a money panic, every bank in the city now being in a position to pay all obligations without undue strain. While the official date for the formal opening of the savings banks is next Monday, 1 many savings institutions opened this morning. The Mutual Savings bank opened for unrestricted business with $20,000,000 in money and active se( curities in its vaults. The California Safe Deposit and Trust Co., opened in its old quarters at the corner of California and Montgomery streets. 1 This bank is the first one to have its 1 temporary quarters completed. The 1 Humboldt bank opens tomorrow mornd ing. About 30 per cent of the Humboldt's loans were in the burned disF trict and the bank has announced that it will return all insurance money to I its borrowers for rebuilding purposes. Scene at Hibernia Bank. With no more rush or excitement than that usually attending settling S day before the fire, the Hibernia bank, e the city's largest savings institution, h threw open its doors at nine this morning. Every look and every action of the hundreds in line, before the doors opened, betokened confidence. F The line began to form at 6:45 and at 9 a. m. it extended down Jones street and then to Golden Gate as far as Market and back again towards Jones. s Old women, young clerks, begrimed a: teamsters and pretty stenographers fo were there, all as cheerful as a crowd " of theatre-goers waiting their turn at the box office. A young fellow in working clothes stepped out of line to give his place to an aged woman in a pa shawl, who tightly hugged to her pl breast her little yellow-covered book dr Others followed suit and soon the fo woman was far up the line. Many brought lunches and stools prepared for a long wait. When the doors were opened the first ten persons tolled off were allowed to enter. Two paying tellers, their money benches heaped with gold, quickly passed out coin. Few withdrew their total deposits. . A few large withdrawals were made, but mostly by persons who needed funds
4.October 31, 1907The Salt Lake HeraldSalt 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
5.December 7, 1907The San Francisco CallSan 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
6.December 9, 1907The Salt Lake HeraldSalt Lake City, UT
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SOME HOPE FOR THE DEPOSITORS Stocks and Bills Held by California Safe Deposit & Trust Company Have Value. San Francisco, Dec. 8.-Bank Commissioner Sherer, in a statement, said: "In my investigations of the affairs of the Safe Deposit & Trust company, I found they had loaned a great deal of money on stocks of their own companies. They seem to have very few bonds on which they have loaned money. I found in my investigations they had $875,000 of Western Pacific railroad stock. I have been advised that within three hours before they closed they accepted a deposit of $80,000 from a certain construction company, and that within half an hour before the closing they accepted a deposit of $2,500. "As far as I am able to figure out the bank's affairs, it has loaned $5,900,000 on stocks which have some value, but are not easily convertible at this time. What these stocks may eventually realize in cash I do not pretend to say. The bank has also about $5,000,000 of bills receivable, much of which has good collateral. Many of these bills will be realized at par. The bank has about $9,000,000 of savings and commercial deposits. Much Can Be Realized. "I cannot predict how much of its various stocks and bills receivable can be realized at par, but it seems to me that in the process of liquidation the bank can realize a good deal of money and that the depositors can get a substantial return. "There has been a great deal of talk about the securities held by the California Safe Deposit & Trust company. I found in my investigation that both Mr. Brown, the general manager, and Mr. Bartnett, one of the directors of the bank, have absolute confidence in all of their various securities. The trouble with their bank, however, is that the securities of which they think SO much have not enough cash convertibility to help them out of their present embarrassment." D. F. Walker Resigns. David F. Walker, president of the bank, has tendered his resignation. On behalf of Mr. Walker the statement is made that he knew nothing of the bank's condition and occupied a sort of honorary position. The depositors of the bank are for the most part professional men and laboring people. The bank was a depository of the Western Pacific railroad, which, it is said, had a balance in the bank of $250,000 when it closed. An Ogden institution is said to be a creditor for $250,000. Cause of the Trouble. Vast industrial enterprises were launched in the form of the Carnegie Brick & Pottery company, the Eldorado Lumber company and the Pacific Window Glass company. Enormous sums were expended on these enterprises, and to sustain them it became necessary to advance them large sums of money. The drain became heavier than the bank could stand. Then came a general slump in stocks throughout the country, and with it a steady run of depositors. The bank was not a member of the clearing house and found itself in a perilous position when the panic seized New York. The reserve was depleted. The clearing house was not disposed to assist the bank and it was forced to close its doors. Fruitless Effort. A desperate effort was made to save the bank from a receivership, and to that end the directors proposed to raise $900,000 by an assessment and the sale of stock, and an additional $700,000 was to be supplied by the directors individually Some of the directors have already placed their property in escrow in the Metropolitan Securities company, a holding corporation, but upon the advice of his attorneys David F. Walker declined to be a party to the plan. Walker has stated that he was shocked to discover the condition of the institution.
7.December 10, 1907The Birmingham Age-HeraldBirmingham, 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.
8.December 10, 1907The Morning AstorianAstoria, OR
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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.
California Safe Deposit and Trust Company Officials Accused of Looting Safe Deposit Vaults. (By Associated Press.) SAN FRANCISCO, Dec. -Attorney General U. S. Webb. late this afternoon commenced proceedings in the Superior Court for the appointment of a receiver for the suspended California Safe Deposit and Trust Company, whose president, vice-president and general manager are under arrest for embezzlement, in looting the safe deposit vault of securities of the Ellen Colton estate, and $450,000 of bonds. Stockholders, as well as officials and directors are made defendants in the suit filed by the attorney general. Superior Judge Coffey issued a temporary injunction restraining order, preventing the 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 the attorney general caused a reduction by Judge Dunne of the bail fixed on a warrant for J. Dalzell Brown, general manager of the suspended institution, from $200,000 to $75,000, and W. J. Bartnett. vice-president, from $200,000 to $75,000. A run is being made on the safe deposit vaults. A meeting of some of the stockholders was held this afternoon, at which committees were appointed to demand the resignation of the directors, examine assets and confer with depositors, A meeting of depositors tonight was one of the developments of the day in connection with the failure of the California Safe Deposit and Trust Company. After futile attempts this afternoon to secure bondsmen, Brown was returned to the City Prison tonight. Bartnett was more successful and was released this evening. President Walker is under arrest at Santa Barbara and will leave tomorrow for this city in custody of a detective of the local department. At a meeting tonight of the depositors of the California Safe Deposit and Trust Company it was decided to form an association to be called the Associated Depositors of California Safe Deposit and Trust Company. Chairman Julius Raphael favored rehabilitation of the bank with the appointment of a new board of directors to be selected from depositors and stockholders. Another meeting will be held tomorrow.
10.December 18, 1907Los Angeles HeraldLos Angeles, CA
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PATRONS OF RUINED BANK SAVE SOME OLIVER, FOREMAN OF GRAND JURY, PRESIDENT Depositors' Association Will Reorgan= ize Institution and Attempt to Recover at Least Part of Their Mcney By Associated Press. SAN FRANCISCO, Dec. 17.-B. P. Oliver, the newly elected president of the suspended California Safe Deposit and Trust company, who was foreman of the grand jury which investigated the municipal corruption in this city, today stated that as yet he had formulated no plans for the reorganization of the insolvent bank. "I was elected president by the board of directors against my protests," said he, "and I have had no time to consider plans or call a meeting of the new board for that purpose. "I am waiting to see what the committee representing the organization formed by the depositors wish to do. "My first and greatest purpose is to see that the depositors are protected and that whatever is done in the way or reorganization, it is the interest of the depositors that will be looked after first. "With a safe and conservative reorganization of the bank. careful management, the proper handling of the assets, coupled with patience on the part of the depositors, I think the latter will stand a good chance to get all or nearly all of their money. It is certain that if a receiver is appointed, they will get but little. To Aid Depositors "So far as the new board of directors is concerned, I do not think that any action will be taken until we learn what the depositors desire to do. "I have asked an attorney to appear in Judge Coffey's court on behalf of the new directors to oppose any action looking toward the appointment of a receiver and ask that the proceedings be postponed for one week until the depositors can agree among themselves just what they want done." According to a statement made today by one of the new directors of the bank, about $5,000,000 of the liabilities are savings deposits made by depositors who signed an agreement exempting the stockholders from all liabilities. This will prevent large numbers of depositors from recovering any part of their losses from stockholders of the insolvent institution. Assistant District Attorney Wm. Hoff Cook announced today that James Treadwell and R. D. Fry, directors of the wrecked California Safe Deposit and Trust company, will be the first witnesses before the grand jury which begins its investigations tomorrow. Webb Asks Receiver Attorney General Webb will support his petition for the appointment of a receiver for the company when the matter comes up for hearing before Judge Coffey. The law, he says, compels him to take this action so that it is impossible for him to fall in with the plans of the stockholders and depositors who/are trying to rehabilitate the institution. The attorney general believes the liability of the stockholders of the California Safe Deposit and Trust company will amount to about $300 a share. Several threatening letters have been received by J. Dalzell Brown since his incarceration.
11.January 4, 1908Los Angeles HeraldLos 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.
12.January 10, 1908The Montgomery TribuneMontgomery 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.
13.May 20, 1908Tonopah Daily BonanzaTonopah, NV
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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.
14.June 23, 1908Los Angeles HeraldLos 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.
15.August 30, 1908The San Francisco CallSan 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
16.September 3, 1908Los Angeles HeraldLos 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.
17.September 3, 1908The Salt Lake HeraldSalt Lake City, UT
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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.
18.February 10, 1909The San Francisco CallSan 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."
19.June 26, 1909The San Francisco CallSan Francisco, CA
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# DALZELL BROWN NOT PROMISED IMMUNITY
Pointedly Tells Treadwell's Attorney He Is a Convict and Has No Contract
Assistant District Attorney Cook Causes Storm Over the Dummy Account
"I am not testifying under any contract for immunity, Mr. Byington. I am still serving a sentence in the state prison. Furthermore, I never discussed immunity with any one connected with the district attorney's office." J. Dalzell Brown.
In a quiet tone J. Dalzell Brown, formerly manager of the defunct California safe deposit and trust company, and now serving a sentence at San Quentin for embezzlement, effectually disposed of an insinuation yesterday by Lewis Byington that he was giving testimony in accordance with the desires of the district attorney in the trial of James Treadwell, the director of the looted financial institution who is now on trial for the alleged embezzlement of more than $100,000 worth of the bank's securities.
Brown was the principal witness of the day, having been called back for cross examination. Byington, of counsel for the defense, endeavored to bring out a disorepancy between the testimony of Brown in the present trial and the evidence he rendered in the case against Walter J. Bartnett, another official of the institution, who was convicted of embezzlement.
# NO IMMUNITY CONTRACT
"You are testifying under a contract of immunity, are you not?" Byington suddenly asked, having made no progress in his attempts to prove conflicting testimony.
"I am not testifying under any contract for immunity, Mr. Byington. I am still serving a sentence in the state prison. Furthermore, I never discussed immunity with any one connected with the district attorney's office," answered the witness.
A great portion of the day was taken up by opposing counsel in legal arguments. Assistant District Attorney William Hoff Cook precipitated the first skirmish during the morning session, when he attempted to introduce in evidence a check for $10,000 drawn in favor of Treadwell on an alleged dummy account entitled "Trustee No. 5." The defense objected, and Cook stated that he intended to show that not only was the "Trustee Account No. 5" a mere dummy utilized by Brown, Bartnett, the two Treadwells and Bradford for the purpose of covering up other illegal transactions, but that September 19, 1906, the check for $10,000 was drawn for the purpose of giving Treadwell a fictitious credit. The prosecutor got before the jury the fact that he intended to prove the defendant had drawn a check for $59,269 in payment for the stock of the Farmers' and Merchants' bank of Colusa and of the Sacramento Valley bank, when his account only contained the sum of $2,000.
# CHECK NOT ADMISSIBLE
Judge Conley held that the check was not admissible in evidence.
H. N. Stoors, a clerk employed by E. J. Le Breton, receiver of the bank, was recalled to identify books and accounts, and George B. Klink, an expert accountant, occupied the stand for a short time, being called for the same purpose.
Cook evoked a storm of protest in the afternoon, when he endeavored to get before the jury evidence tending to show that Treadwell had committed other crimes in connection with his management of the bank. The attorneys for the defense contended that the instances referred to were too remote to have any bearing on the point at issue.
The court took the matter under advisement until Monday morning.
20.July 22, 1909The San Francisco CallSan Francisco, CA
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Ready to Pay Dividend The depositors of the California safe deposit and trust company will receive their first dividend, amounting to about 10 per cent, the first week of next month, according to an announcement made yesterday by Receiver E. J. Le Breton. The receiver will meet with Walter J. Bartnett this morning and learn the details of Bartnett's plan for the rehabilitation of the defunct institution, and if the plan is not considered feasible by Le Breton he will immediately petition the court for permission to pay a dividend of 10 per cent. "Only the unusual number of preferred claims has prevented the filing of this petition," said Le Breton yesterday afternoon. "I have had sufficient money on hand for several months with which I could have paid the dividend. but the preferred claims kept pouring in, and I was compelled to postpone action. There is sufficient money on hand to pay a larger dividend than 10 per cent, but I would not recommend 8. larger dividend until all preferred claims have been disposed of." Walter J. Bartnett, who has been in the east in an effort to interest easterners in his plan for the rehabilitation of the bank, is due in San Francisco this morning, and will unfold his plan to the receiver and his attorney upon his arrival. Upon the opinion of Le Breton will probably rest the decision of Superior Judge Seawall to allow the bank to reopen. Even should the plan meet with favor with Judge Seawall, it will have to have the approval of Superintendent of Banks Alden Anderson before it will be allowed to reopen. It is possible that Bartnett may stay over in Salt Lake City a day or so, in order to confer with David F. Walker, the president of the defunct bank, who has promised to assist in the rehabilitation to the extent of more than $100,000.
21.July 22, 1909The San Francisco CallSan 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.March 6, 1910The San Francisco CallSan Francisco, CA
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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.
23.March 20, 1910New-York TribuneNew York, NY
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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.
24.May 26, 1910The San Francisco CallSan Francisco, CA
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W. J. BARTNETT TO MEET FINANCIERS Former Officer of Wrecked Bank to Go East to Aid Re= habilitation Receiver Symmes Skeptical as to Reorganization of Defunct Trust Company Walter J. Bartnett, vice president of the wrecked California safe deposit and trust company, will leave this morning for New York, where, he says. he will assist the coterie of eastern financiers who stand ready to reopen the bank and who promise, if they should reopen it, to pay more to the depositors than the receiver can. Frank J. Symmes, receiver, was very skeptical yesterday about the reorganization of the bank. He is busily engaged in signing the 12,500 checks for the first dividend of 10 per cent. "I don't see how it is possible for the reorganization project to succeed," he said. "I have done all I can to help, but I have never had any confidence in the scheme." Members of the reorganization committee, both stock holders and depositors, are. of the opinion that Symmes is prejudiced. They say that he is misinformed as to the money that can be raised by the committee. "The receiver will pay a dividend of 10 cents on the first of June," said one of the committee yesterday. "This dividend will not hinder the reorganization plan in any way. It will just be 10 cents less that the reorganized bank will have to pay out. We offer 25 cents immediate cash; 15 cents cash in four yearly payments and 25 cents in preferred stock in the industrial company to be organized with the stocks and bonds of the defunct bank as assets. Will the receiver do that well?" Bartnett was given permission to leave the state by the district attorney.
25.June 3, 1910The San Francisco CallSan 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.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
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California Safe Deposit & Trust Company · UID 9673987891294
