The San Francisco call., 1895-12-18
The California Safe Deposit and
Trust Company Returns
Fire.
FULLY QUALIFIED AS A BANK.
Articles of Incorporation Empower
the Company to Conduct
Banking Business.

In reply to the statement made few
days ago by Attorney 7. c. Spelling to the
depositors of the Peoples Home Savings
Bank, in which he proceeds to show that
the California Safe Deposit and Trust
Company is not banking institution and
therefore not qualified to carry on the
business of a bank, Attorneys Gunnison,
Booth and Bartnett, acting in the interest
of the California Safe Deposit ana Trust
Company, have prepared their formal an
swer as follows:
SAN FRANCISCO, CAL, Dec. 16, 1895.
To the Board of Directors of the Peoples Home
SduiRqS Bank and TO George Stone, President, and
IN John F. Shechan SecretGru-GENTLEMEN The
California Safe Deposit and Trust Company has
requested u.s. as its attorneys. TO answer the
communication of T. c. Spelling addressed TO
you gentlemen bearing the date December IL,
1895.
The first proposition submitted by Mr.. Spell
ling is the legal right of the Board OF Directors
of the Peoples Home Savings Bank TO deposit
its funds with the California Safe Deposit and
Trust Company, or to keep its funds OF deposit
with said corporation Mr.. Spelling maintains
that the California Safe Deposit and Trust
Company has no existence as a banking cor
pora ion, and in support OF this he ayers that
the California Safe Deposit and Trust Company
was organized since the act approved April g,
1891" which is an act entitled IAN act au-
thorizing certain corporations TO act as ex-
ecutor and in other capacities, and TO provide
for and regulate the administration of trusts
by such corporations"
He then argues that the company was incOr-
porated under this act trust company. He
states that cit was incorporated April II,
1892" Mr.. Spelling is in error in making this
statement. The act of April 3, 1891, was en-
acted at the suggestion of the trust company,
which company was incorporated on the 24th
day of April 1882 The articles of incorpora-
ton were subsequently amended on the 9Th
day OF May, 1887, and again on the IL tn day
of September, 1890. No amendments have
been made since the adoption OF the act of
April g, 1891. That act conferred certain
powers on corporations already organized, as
is evident from section 1 thereof, which pro-
vides that ''any incorporation which has been
shall be incorporated under the general in
corporation laws OF this State authorized by
its articles OF incorporation to act as executor,
administrator, guardian, assignee, receiver,
depository or trustee, and having q paid-up
cabital of not less than S25O,0OO, of which
100000 shall have actually been paid i'll in
cash. may be appointed 10 act in such capacity
il like manner as Individuals
To support the contention that the Califor-
MIA Safe Deposit and Trust Company is bank
ing corporation, we submit copy of the GER
titicate of the Bank Commissioners of the
State of California granting a license to aid
corporation to transact q banking business,
subject to the laws OF this State for the period
OF one year from the date hereof which GER
tifcate bears date July l, 1895:
BOARD OF BANK COMMISSIONERS
STATE OF CALIFORNIA
RnoW Al Men by These Presents: That the Cali
fOrnla Safe Deposit ana 1ruSo company has paid
its pro rata assessment, according 10 section 16
of "a act creating Board of Bank Commissioners
and prescribing their duties and powers" ap-
proved March 80 1878. and the acts ameEdatory
thereof.
Now therefore, a license is hereby granted unto
the said corporation to transact banking bus-
ness, subject to the laws of this State, and the
period of one year from the date hereof.
hands, the City Of San Francisco this 1st day of
July, A. D. 1895.
BIS J; b; FELLER, T corr,,..,ono
II. W. MAGEE,
Attest: c. II. DUNsMooR, Secretary.
Secondly-The California Safe Deposit and
Trust Company has complied with all proyi-
sious of the laws OF California in respect to its
capital. The corporation furthermore has
fully complied with the provisions of section
321 of the Civil Code of the State of Califor-
mia, referred to by Mr.. Spelling.
We annex hereto and make part hereof
the notice posted in the Office of the California
Safe Deposit and Trust Company, showing the
names of the directors of the corporation and
the number of shares of stock held by each di-
rector, pursuant to the provisions OF said
section.
Again, the articles of incorporation empower
the company to transact a banking business.
Among the purposes for which said CORPORA
tion was formed are the following:
To receive and hold on deposit or in trust es-
tates, both real and personal, of individuals, COM
muate and loan the funds and savings OF its stock
holders depositors and others, and to preserve and
safely invest. loan and collect the same for their
benefit. Also, to inveS, or loan moneys
deposited held aforesaid. paying agreed rate
TecoVery re- thereof And ine in General 70 aao no
and per any and all acts and things pertaining
that may be connected with the purposes and
objects above specified, or that may be necessary,
convenient or useful to the main purposes OF this
corporation.
These powers are certainly sufficiently broad
to include it within the definition OF bank,
which is defined to be IAN institution gener-
ally incorporated, authorized to receive de-
posits OF money, to lend money, and to issue
promisSory notes, usually known by the name
OF bank notes, or to perform some one or more
OF hese functions
See Boone on the Law OF Banking section
2, and the authorities there cited (Bouviers
law dictionary, American and English Encyc-
lopedia of Law, volume 2. section 99).
1t will thus be readily seen that the Califor-
MIA Safe Deposit and Trust Company is clearly
authorized to do a banking business. Al
though it was incorporated prior to the pass
age OF the act OF April o, 1891, it complied
with the provisions Of that act by depositing
with the State Treasurer the security required
by that act, and on the 30th day of April
1891, received a certificate of authority from
the Bank Commissioners, authorizing it to &C
cept trusts and receive deposits of trust funds,
The following is a copy of said certificate OF
authority:
CERTIFICATE OF AUTHORITY.
OFFICE OF THE !
BOARD OF BANK COMMISSIONERS
SAN Francisco, Cal, April 80. 1891. }
We, the undersigned Board of Rank Commits
that the Calfornia safe Deposit and Trust Com
pany, OF saa Francisco, California. corporation
duly organized under the general incorporation
laws OF this state, has deposited with the reasurer
of state securities amounting 10 rle sum OF two
hundred thousand Is OO0000) dollars.
That said deposit Is made for the benefit of the
creditors OF the said California Safe Deposit and
Trust Company under and by virtue of the pro-
visions Of an act of the Legislature of the State of
California entitled "An act authorizing certain
corporations to act as executor and in other
capacities and to provide for and regulate the
administration OF trusts by such corporations"
approved April 6. 1891: and that said securities
are now held by said Treasurer in his official
capacity forthe uses and purposes aforesaid.
4 nd ~e further certify that by virtue of the act
aforesaid, the California Safe Deposit and Trust
Company, of San Francisco California is hereby
authorized 10 accept trusts and to receive deposits
of trust funds.
In witness whereof we have hereunto set our
hands at the city OF San Francisco, the day and
year first above written.
a. GERBERDING,
w. II. KNIGHT
&. II. DUSIMooR,
Bank Commissioners.