The herald., 1893-08-06
City Bank Depositors Propose
to Protect Themselves.
Receiver Brodtbeck and His Assist
ants to Be Promptly Ousted.
Attorney J. +. jonas Files > Complaint
ON the Part Of Dspositors Against
the Btoekholdsrs-Proees
Ing to Get an Assignee.

n0ioore was uiou Win the county CLERK
This 10 the outguowth Of the recent &C
ton Of the depositors In regard to th'
condition Of the banks affairs "a has al'
ready been fully detailed in the HERALD
Mr.. ]. T. Jones and Mr.. N. T. Allen
the attorneys for the plaintiffs, have
been hard at work for the past two day.
drawing up the complaint and completed
it only in time for fling last evening.
The complaint 10 Of some bulk en-
bodying 2SS pages Of type-writtsn and
printed matter. There are 96 causes ol
action named In the document. They
comprise the accounts OF q correspond
ing number of the depositors who have
combined in order to bring the present
action. But five PLAINTIFF, however, are
mentioned, they being Il. w. Grannis,
N. Chronis, 0. Pooley, B. Gordan and l.
L. Lohman.
These are the gentlemen who were
selected by the depositors at the meet
ing held in Mr.. ]. 7. Jones's Office last
week, as q committee to enter suit
against the various stockholders OF the
City bank for the purpose Of recovering
from them their proportion OF the insti-
tution's indebtedness for which they are
held accountable by the statute. The
other 80 depositors assigned their &C.
counts'to this committee OF five in order
to expedite matters in bringing the suit.
The depositors with the largest
amounts to their credit are ]. E. How.
aid OF East Los Angeles, 10000, N.
Chronis, $7O6l, Mr.. Nsvill, $2400. Mr..
Burks, $500, and Mrs. Macleod,
$1700.
Ten peraons are made parties to the
defense. They are W. T. and A. d.
Childress, DR.. s. Msnsfeld, ]. ]. Sohsl-
lart, Johanna Schallert, r. G. Lunt,
Poindexter Dunn, M. 8. Tyler, James
r. Fitzwilliam and E. e. Crandail.
There are 1000 shares of stock in the
bank, but only 500 shares are repre-
sented in the present action. They are
proportioned "a follows: the Child
reases, $50, DR.. Mansfield, 100; Mr..
Schallert, ITO, Mrs. Schallelt, 25, Mr..
Tyler, 81, Mr.. Fitzwilliams, 20, and
Crandall, Lunt and Dunn, 10 each.
The above stockholders represent but
slightly over half of the total liabilities
of the stock. They are the continuous
holders, that is, those who have held
stock for longer than one year. The
books of the bank have been examined,
and upon the reports made by the ex-
aminers the indebtedness to the deposit
ors mentioned in the complaint was
contracted while the defendants owned
stock in the City bank, and they are
therefore liable for their share OF such
indebtedness.
The part of the remaining 444 shares
OF stock in the banks indebtedness can
not be determined until after expert
accountants have examined the books OF
the bank. A large majority OF the hold
efs OF this latter part OF the stock have
acquired it within the past few months,
and it has thus become complicated,
and impossible to determine its part of
the debt until q carefully-prepared re-
port shall have been made.
When to these 444 shares will be
assigned the correct proportion OF the
debt, q second suit will be brought
against the remaining stockholders.
A rough estimate of the proportion OF
each defendant in the present suit places
it at 1915 per 10 shares. The ten parties
to the defense would be liable in the
following amounts: The Childresses,
SIG, ,S75; Mr. Schallert, $7425; DR.. Mans
field, $3.50; Mrs. schallert, $l6S7 90;
Mr.. Tyler. 81 All. 80; Ntzwilliam, 1880;
Messrs. Dunn, Crandall and Lunt, $675
each.
If the depositors gain their present
suit the money they receive on the basis
of 100 cents on the dollar will be $780,
$50, which is but 81 per cent of the s64,-
900, the total amount represented in the
suit. The remaining 43 per cent being
the amount to be recovered in the
second suit to be filed against the hold
ers OF the 444 shares when their proper
ton OF the indebtedness shall have been
determined.
It is understood that Mr.. Crandall
claims that he has transferred his stock
to Mr.. Childreas, but according to the
report of the examiners to the plain
tiffs'sttorneys, the transfer does not
show upon the books, and consequently
he is still q stockholder 30 far as 10
known.
The fling of the present suit is only
the beginning of the affair. and 1t seems
highly probable that Receiver Otto
Brodtbeck, Mr.. F. W. Burnett, his at
torney, and all of the other assistants
and advisers Mr.. Brodtbeck may have,
will be relieved very promptly from
their present soft berths.
Tomorrow five Of the creditors OF the
City bank, and who are in no way con-
nected with the suit fled yesterday,
will appear before the superior court
with q petition to declare the bank in
solvent and to place it in the hands OF
an an assignee, on the grounds OF the
failure to resume business within 40
days from the time of its suspension.
The court will probably then give the
defendants 10 days in which to answer.
At the end OF that time, If sufficient rea-
son has not been given for not declaring
the bank insolvent, the court will APP
point time in about 30 days when the
depositors are to meet and select an
assignee.
AS is we'll known, the depositors, at
least those identified with the present
movement, are opposed to the retention
of Mr.. Brodtbeck, and his appointment
as assignee is scarcely anticipated.
Both Mr.. Jones and Mr.. Allen have
worked night and day in preparing the
above action, and their efforts are COM
mendable in the extreme. They have
display ed great ability as well as tenac-
ity in the present case.
Mr.. Allen was seen at his reeidence
last evening by HERALD reporter and
asked for some expression in regard
to the retention of receiver
at the institution. "a re-
ceiveyship," eaid Mr.. Allen,
sis always desirable in q case where an
insolvent corporation desires to con-
A. hok