The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-03-29
UNION BANK IN A
HOPELESS TANGLE
Legal Complications Are
Multiplying.
Special Dispatch to The Call.

SAN JOSE, March 2S.-The recent
court decision in regard to the board
of directors of the Union Savings Bank
has not Strengthened the legal en-
tanglement surrounding those officials.
Instead it has mixed matters, and I'M
til the legality of all directors has been
passed upon again there will be one
too many in the directorate. All this
trouble arises over Charles P. Braslan,
the representative of the Union Trust
Company of San Francisco, who claims
to be a regularly appointed director of
the Institution. He was elected to fill
a vacancy on the board just after the
failure. He refused to resign when the
rest of the board retired, but Judge
Lorigan appointed a full board of
seven. Braslan applied to the Supreme
Court for relief, but the case was be-
fore the court irregularly and was dis
missed. Now he proposes to go into
court again on the came question.
a meeting of the board of directors
was held to-day. Braslan was present,
and was recognized as a director by
President Rea and his name entered in
the minutes of the meeting as such.
He joined in all the discussions. This
complicates matters and the court
eight directors illegally hold office.
The directors adopted resolution that
they were ready to accept the banks
business for settlement. 1t is expected
the commissioners will be here to-n1or-
row to turn over the affairs of the bank
to the directors. Another meeting will
be held Thursday morning.
BraSlan is receiving considerable en-
enlargement in his efforts from Direc-
tors Callisch, Eaton and Jones. After
the meeting these four held a lengthy
conference. Should Braslan succeed in
seating himself in the directorate they
propose to form a combine and Gust the
manager and attorneys President Rea
and his clique employed. Jones son-in-
law, S. G. TompkinS, is slated for the
attOrneyship.
Directors Callisch, Jones and Eaton
are threatening to resign should the
Rea faction remain in control of the
bank, as they do not care to shoulder
the responsibility of a failure such an
administration might bring about.
Braslan says he. will bring suit in the
Superior Court to GUST Directors Rea.
Dunlop and Levy, as they are not
stockholders, but merely hold stock in
trust Attorney Leo Archer is going to
appeal to the Supreme Court to compel
! Judge Lorigan TO hear the petition of
Filipello and others to have the same
trio of directors removed because of
tIGlI Indebtedness 10 the Ddnk.
The depositors are unable to see the
| outcome with all these lawsuits and
delays on hand. Many are poor and
| in immediate need of their money. A
pitiful case has just come to light. John
| Sunderland. an old Swede, had toiled
about the farms of this vicinity until
he accumulated $4,000. Last December
he intended to go back to Sweden and
spend the remainder of his days He
deposited his money in the Union Saw
ings Bank for a few days. Five thou
sand dollars of it was in shape of a GER
tificate of deposit. President Ward
| Wright at once credited him with S75
| interest for the coming quarter on the
back of it, and induced the old man 10
delay his trip for a time. Then the
bank failed. Now Sunderland is a
| mental wreck. The loss of this
money has unbalanced him. He
has been trying to sell his claim
| in order to get away. To-day he
sold it to Jacob Miller, a farmer, for
| $1,000 cash. AT first Miller offered the
old man $500 cash and $4,000 in almost
worthless claims against E. B. Howard
the insolvent fruit shipper. A few min
utes after the transaction Sunderland
was offered better price for his bank
claim, and asked Miller to release the
transaction, but the latter refused, and
| said he would not take less than $4,000
| for it. Several other persons in their
| desperation have made like sacrifices
| IN