The herald., 1893-09-09

outside the county treasury.
MR.. cHTLDREss IN THE CITY.
When Mr.. Childrese learned that the
bank affairs were being investigated, he
was contemplating q business trip to
Arizona. His attorneys advised him to
remain in the city and he did not leave
until he had notified the grand jury of
the Importance it was for him to 70.
He did 60 and returned abouttwo weeks
ago. Since that time he has been with
his family at the corner of Washington
and Toberman streets, in the Colonel
Eastman residence, into which he
moved after the destruction of his own
residence some months ago by fire.
HOW THE BANK CLOSED.
In view Of the proposed action of the
grand jury glance at the troubles OF
the City bank is apropos.
Until the financial crash two months
ago, there were only very few persons
who knew the insecure position
occupied by the bank. Bankers
generally had some inkling that
it was carrying too heavy a
load, but the extent OF the burden was
not generally known.
The bank was started several years
ago. and Mr.. A. D. Childress, its presi-
dent was the active and actual head of
the concern. He was q ready writer,
was always prominent in banking cir
cles. He delivered a number of papers
before the bankers association, of which
he is secretary, and was generally re-
garded as one OF the most enterprising
bankers in this city.
The fatal day came, however, when
he could not tide over the next day
without assistance from the clearing
: house. He asked for it and was prom
ised at night that he should have $25, 900
the next morning. When morning ar
rived, however, the clearing house de-
clined to give the aid, aud the bank
closed its doors, precipitating the run on
the banks Of the city, which seems now
like bad dream.
Receiver Brodtbeck took charge OF the
bank, and an investigation of its affairs
was begun, which, in the most favorable
light. made an extremely bad showing.
The legend, "Depositors, will be paid in
FULL" became travesty when the ac-
tusl condition Of the banks affairs was
known.
There was very little money in the
bank, and an inspection of it's assets re-
vealed that there was large line of
securities which were almost worthless.
Before the doors closed Mr.. Childress
and some of the directors resolved to
turn over some securities for the pro-
lection of the county funds, and they
put them in the hands of George H.
Stewart, cashier of the Bank of Amer
lea.
The struggle for these securities be-
tween the depositors and the bondsmen
for County Treasurer Shorb, still pend
ing, is matter Of such recent occur
renee that it is still fresh in the memory
OF the public.
Aside from the $4,000 worth of
securities, there appears to every little
left for the depositors. They have been
returned to Mr.. Stewart for him to rea-
Ike on them aslsoon az possible and the
county is thoroughly projected as far as
the $4,000 is concerned, both by the
securities given up by Mr.. Childress and
the be9dspep Of @o $o9nty treasurer.
The Tremendous shrinkage in the
assets os=the =bxus= s=FsEsxaeazthe methods
which had been pursued by it in its
bnsinessI OU 4
{ In addition to- placingput money on
questi9hsSls tsRtSs there were
many peculiar, transactions, in connec.
ton with side enterpfises by the Child
resses, in which money. was tied up, and
through which the embarrassment of
the banks affairs was made more pro-
nounced. M
While the bank is still in the hands
.of a receiver, Judge Shaw few weeks
ago granted a petition to declare
it insolvent, and this will eventually
involve the retirement OF the receiver
and the appointment of an assignee.
Numerous civil suits have been COM
menced in connection with the banks
affairs, which are now pending. One of
them has been the bringing of suit
against County Treasurer Shorb on his
official bond for the money of the county
which was on deposit at the time it
closed. Others are by depositors, and
at the present time the amount OF liti-
CATION over the matter has assumed for
midable proportions.
A PROSPECTIVE LIVELY TIME.
On Monday there will be lively time
before Judge Shaw in the superior court,
as the various suits against the City
bank and its shareholders will be pre-
sented.
Among the cases to be considered are
the suits of the depositors against the
shareholders and the suit in interven-
tion by the Arizona Construction COM
pany in regard to certain securities and
$l250 on special deposit of that organi.
cation, the details of which were out
lined by the HERALD at the time.
2 1t is also generally believed that Mr..
Brodtbeck, the receiver, and Mr.. Bur-
nett, his attorney. will step out of their
places in connection with the. settle.
ment of the affairs OF the defunct bank.
MR.. cHILDREss's STATEMENT.
Mr.. Childresa knew nothing of the in