Los Angeles herald., 1892-02-26
NO BAIL GIVEN.
Collins, the San Diego Bank
er, Still in Custody.
Some More Details About the
Banks Failure.
Business Methods Which Have Very
Bad Look.
Poor People the Most Numerous Depos-
itors-Certificate of Deposit Is
sued to Collins-How Col
laterals Were Used.

United States Marshal Gard returned
from San Diego yesterday, where he ar
rested j. w. Collins, the president of
the defunct California National bank OF
that city.
Collins was taken before the United
States commissioner there and his bail
on the charge of embezzlement was fixed
at $4,000. Up to late hour last even
ing Collins was still in the custody of
the deputy marshal, being unable to
procure bail.
The charge of embezzlement was
brought against Collins as a result of the
Investigations Of Bank Examiner Cham
berlain and Receiver Pauley. The fail
ure of the bank has struck hard blow
to the people least able to stand it in
San Diego, nearly all of the working
people in that section having entrusted
their funds to the keeping of the Califor-
MIA National, being induced to do 80 by
the glittering premium in the way
OF good interest returns offered. Five
waiter girls at the Horton house lost all
their small savings, and newsboy who
had been saving his pennies for years
until he had amassed $107, are among
the losers. These are only quoted as
examples. In fact, the bulk of the de-
positors were among the poor, and the
policy of the bank in inaugurating s.
cent saving schemes seems to have been
to develop spirit of thrift among the
working classes. Another project started
by the bank was the worlds fair excur-
sion scheme, by which the public was
invited to subscribe $40 per month from
the present time until the opening of
the worlds fair, at which time the
money and interest thereon would be
applied to paying all of the expenses OF
the subscriber to Chicago and return.
Mr.. Collins came to Southern Cali
fornia from Cheyenne with about $4O,-
600 cash and plenty of letters of refer
ence and recommendation, and seems
degree of energy.
On the day OF the collapse of the bank
it Is alleged that between3 3 and O'Clock
foe bank received deposit of $27O0
from the chief of the San Diego fire de-
partment, the money being part of the
city fire department fund. 1t is also
claimed that $1,000 was deposited in the
bank between and O'Clock that eve
ming. One of the main features of the
banks method of doing busin ess was
the systematic issuance of certificates of
deposit by the cashier, payable to the
order OF President Collins. - A
These were sent out of the city and
negotiated, and ranged in amount from
$3.50 to $4,000. It is further claimed
that as result of the investi-
cation of the affairs of the bank that at
one time certificate of deposit for $780,
600 was issued by the bank when there
was only $4,000 actually on deposit.
: One of the methods pursued by the
bank. 80 it is alleged, and which can be
taken as manifesting disposition to
help those in misfortune to tide over
present, pressing distress was as follows:
If a man owed $1,000 on mortgage given
in good times, and when the time for
payment came he was embarrassed, he
would be told that by putting up $1,000
additional collateral his burden would
be carried for one or two years longer.
These securities were then handled,
often times at profit.
Bank Examiner Chamberlain found
that it was utterly impossible to segre-
gate large number of the accounts by
reason of the bad system of bookkeeping
employed in the bank. What is known
as the Collins-Dare account amounts in
round numbers to nearly 5000, 1000, and
it has been found impossible to segre-
gate other accounts. The amount owed
depositors is in the neighborhood of
100000, and it is claimed that out
standing claims will increase the liabili-
ties to over 81 100000. 1t is further as
serted that the receiver and bank ex-
aminer have found $550,000 accounted
for in loans and general disburse-
ments." When the bank closed it's
doors there were $15, 1000 on hand. Since
that time Receiver Pauley, by the tall
est kind of hustling, has been able to
collect sufficient money from outstand.
ing claims to increaee this amount to
$4,000. The county OF San Diego had
100000 and the city of San Diego $780,
600 on deposit at the time of the failure.
It is impossible to say at this time just
what amount, if any, the depositors of
the bank will receive.
President J. w. Collins of the smashed
bank was interviewed shortly after his
arrest and made the following state
ment:
SIT is absurd to think that l or any
other officersof the bank has misappro-
prldU6u duy VI lbS luuubs IL SUCH 4du
been the case we would have been locked
up long ago. have heard of the wild
rumors that have been set afoat since
the banks suspension, but they were so
absurd that 1 did not consider them
worth denial. have refrained from
making any statement, as l was salts
fed that the examiner and receiver
would make complete and thorough
investigation, and l was willing to abide
the result. The funds of the bank have
been used in the interest of and for the
benefit of San Diego. Struggling enter
prises have been tided over rough places
in the financial road and, with new ones,
have been placed on good footing. l,
with others, put all my means in the
bank, and not an officer has derived any
benefit-well, / might qualify that by
saying Mr.. Dare did build house, but
times were good then and money easy.
The shrinkage in deposits and business
is alone responsible for the banks sus-
pension. The cause of this | will now
state for the first time. During my last
absence from the city some one set
atioat the malignant rumor among the
eastern stockholders that Mr.. Dare had