The San Francisco call., 1896-03-10

matter will affect any other bank in this
town.
H. w. Wright, the president OF the
Union Savings Bank, said: "Although
they have decided upon liquidation, every
body will be paid in full. and there is no
cause for alarm. There is no possibility
of anybody losing dollar
Mayor Paul P. Austin, manager of the
Security Savings Bank, said: II have no
doubt that the condition of the affairs of
the bank is such that it will result In no
loss to anybody and there is no reason for
depositors to worry. believe it to be only
a temporary disaster. The final outcome
will not result in loss to depositors,
the same probably applying to stockhold-
ers. The occasion which led up to this
step is purely within the bank itself,
purely an internal affair. There are no
banks in the State in better condition
to-day than the banks of Santa Clara
County,"
j. E. Auzerais, cashier of the Safe De.
posit Bank, on behalf of the president, de-
clared he was satisfied the depositors of
the Commercial Bank would be paid in
full. 1t will affect none of the other banks
in town, and things will quickly resume
their normal condition. The officers of
the other banks expressed themselves
with equal confidence regarding the alb
sence of any cause for alarm on the part of
the public of this city.
In an interview with CALL representa-.
tive, B. D. Murphy, the president of the
bank, said: GAS regards the important
action taken, it may be said simply that
after due deliberation the directors of the
bank deemed it advisable and for the best
interests of all parties concerned-stock-
holders and depositors. The best business
sense that could be brought to bear
upon the situation pointed to a sus-
pension in order to liquidate. A
number of large loans have been
made, for which the securities are
perfectly sound and good. The parties
owing the bank were unable to raise
money Immediately in response to a call
upon them. The demand of some deposi-
tors upon the bank in consequence could
not be met. Under these circumstances it
was deemed best to 60 into liquidation in
order to prevent sacrifice OF securities.
With time the depositors will be paid in
full and handsome balance will remain
for the stockholders.
'The Bank Commissioners are now on the
ground and will make thorough investi-
CATION of the affairs of the institution. As
soon as they complete their work the
statement will be given to the public. 1t
is unnecessary at this time, only in the
way of reassuring the deposltors and other
creditors, to emphasize the fact OF the SOL
vency of the bank. The statement of the
Commissioners will speak for itself and
there is no possible doubt that there
will be fully as favorable showing as
could be claimed even by the most SAN
guine official of the bank.
During the investigation by the Bank
Commissioners the Board of Directors
will meet and consult upon the situation
every day. After the report of the Com
missioners is furnished, q working COM
mittee will be appointed. The notes and
other securities will then be taken in
hand and realized upon as fast as business
prudence and care to avoid needless sacri-
flee will warrant. OF course so importa ant
a step was not taken by the directors with
out due deliheration and consideration of
every interest involved. A phase of the
situation which is fortunate for commercial
interests in San Jose is that our bank had
no possible connection with any other in
the city. 1t does not owe any other bank
in town anything. nor did any of them
owe us cent"
Bernard D. Murphy is one of the best
known public men in the State. Many
Democrats of California have long regarded
him as the ideal candidate for Governor,
but somehow he has always fallen
little short of a party nomination for that
high Office. He has been honored with
the office of Mayor of San Jose. State Sem
ator from Santa Clara County and often
the position of chairman OF the Democratic
State convention.
The Murphy family is one of the oldest
and richest in California. B. D. Murphy
is supposed to be worth very nearly mill
lion dollars, but recently he has felt the
need of ready cash. The Murphy ranch Of
5000 acres at Mountain View is said to be
worth $3.50 per acre.
The ability of the bank to pay depositors
and protect stockholders is not questioned
by men who are familiar with the resources
of the institution.