Los Angeles herald., 1891-11-13
BAD FOR SAN DIEGO.
A BIG BANK FAILURE THERE YES
TERDAY.
The California National Bank Closes Its
Doors Yesterday-Cable Roads, Opera
Houses and Hotels Not Profitable in
the Baynclimate City.

What has been anticipated for some
ten days past in the commercial and
financial world of Southern California
came to pass yesterday.
The California National bank of San
Diego closed it's doors. At 10 am. yes
terday the following card appeared upon
the doors of the institution:
Owing to continued shrinkage OF de-
posts and our inability to promptly re-
lease on notes and accounts this bank
is temporarily closed. The bank COM
missioner has been sent for, and will
take charge on his arrival. In the
meantime no business can be transacted.
1t is believed beyond question that de-
positors will be paid in full.
This notice caused a sensation at San
Diego, although it was a elimination
long looked for by few who were
posted.
From a well-known citizen OF San
Diego, who was in the city yesterday,
some inside facts in relation to the fail
ure of the bank were obtained.
''The California National bank was
considered to be one of the strongest
financial institutions in this section of
the state. 1t had a paid-up capital of
$500, 900 and surplus of 100000. Its
deposits approximated 100000. ]. w.
Collins was president; ID. D. Dare, vice.
president; S. G. Havermale, second
vice-president, and G. E. O'Brien,
cashier.
elm my opinion the failure is caused
by speculation, investment in unfor-
tunate and non-paying ventures and an
endeavor to cover too much ground on
limited capital.
Gin the first place the bank had $780,
600 in brick yard it backed the cable
road. the new opera house, the Florence
hotel purchase, the Horton house pur-
chase, the Brewster hotel and numerous
other schemes.
"Of course all of these investments
were dependent upon the prosperity of
San Diego. The city has not prospered
aud as a consequence the institution
backing all of these various enterprises
has been forced to the wall.
''In my opinion this will be the last
straw that breaks the camel's back with
us. We have been holding up under
many discouragements, and piding our
selves on no bank failures. But now we
have one which will have the effect OF
paralyzing business in San Diego
The news of the suspension of the
California national bank was received in
this city about 10 80 yesterday morning
by number of local wholesale mer-
chants. As near as can be learned no
local firms will be losers as result.
Some fifteen or eighteen months ago
d. d. Dare, an officer OF the broken
bank, left for Europe. 1t was reported
at the time of his departure that he was
away in an endeavor to regain his lost
health.
Mr.. Collins, the president of the bank,
also conducts similar institution in
Cheyenne, Wyoming.
This is the largest bank failure that
has occurred in Southern California in
years.
CASH SENT.
Late last night, on what ought to be
good authority. the HERALD learned that
$4,000 in coin had been shipped by
one or two of the Los Angeles banks to
the crippled institution. The money
was sent through Wells, Fargo &
Co. it was said, and was
quietely shipped in we'll guarded Cal
some time late last evening.
The idea is that the managers Of the
weak San Diego bank were able to give
sufficient security to the Los Angeles
bankers, to justify this attempt to ride
out the storm. No banks in this city
had any amount at stake in the San
Diego institution.