The record-union., 1899-02-02
Dsrositors Of the San Jose Concern Greatly
Alarmed at the Outlook.
! Large Portion of the Deposits
of the Bank the Hard-Earned
Savings of the Working Glasses,
Who See Little Hope of Rccov-
ering Their Money Shady
Transactions Connected With
the Closing.

SAN JOSE. Feb. 1.-The feeling of
Security which existed in regard to the
Union Savings Bank during the earlier
hours of yesterday has given place to
one of dismay and bitterness. There
are. even threats of criminal prosecu-
tions. 1t is now being openly charged
about the street that the banks affairs
are. In a terrible condition. and that it
has not acted fair toward its depositors
and the commercial public. The feel
ing of yesterday morning was well ex-
pressed by one depositor, who said: :!
have 81 600 there, all the money
have, but l know 1 will get my money,
for the bank has large assets and
strong stockholders, and here is the
clearinghouse"
Later in the day the deed conveying
the banking house to Mrs. Myra E
Wright went on record, and this fact
became public. Other stories of trans
ferring away of valuable assets became
public, and before banking hours closed
in the afternoon a crowd of anxious
depositors lined the sidewalks and filled
the bank lobby. There was a great
deal of discussion and canvassing of
such facts as came out, and the de-
positors became alarmed
The absence of President Wright and
reticence of the other officers made II
impossible to get any official state
ment. But by this morning many
facts had become public through rec
ords here and banks and records in
San Francisco, and these facts brought
about the feeling of bitterness and dis
may which now generally exists in the
minds of depositors and smaller stock
holders. The feeling was accentuated
when the doors of the bank did not
open this morning
When the semi-annual statement was
furnished the State Bank Commission
ers on January L. 1899, the bank build
ing, furniture and fixtures were in
cluded as an asset and valued at 500,
900. The deed transferring the build
ing bears date of June 10, 1898, and
this causes much comment of an un-
favorable character. Then in the after
noon came the fact that assignments
from the bank of mortgages amount
ing to $4,000 had gone on record. It
is these things which cause such a
reversal of public sentiment in a few
hours.
When the bank made its statement
to the Commissioners on January LIST
It gave as due depositors slightly over
SI91 600 No statement later than that
has SO far been obtainable from the
officials. 1t is known that local banks
have looked with distrust on the Union,
and 1t is possible that some depositors
have withdrawn their money Some
tried to do so during the past week,
but did not succeed. Gossip has it that
the bank has promised extravagant
rates of interest to induce depositors
to let their money remain there.
There were a vast number of depos-
itors from the working class and clerks
who have put their hard-earned saw
ings there. These are particularly hurt
and disturbed with conditions now
The bank has been carrying E. B.
Howard, a fruit dealer on a large scale,
and he was attached Saturday. This
has precipitated the trouble. 1t is said
that Howard owes the bank $4,000.
Efforts have been made to secure an
official confirmation of this, but the
only reply given is that he owes the
bank.
The San Jose Building and Loan As
ISOLATION is now being discussed in con-
dent of the bank managed the asso-
citation, and in the excited talk abou,
the streets to-day there are fears that
1t may suffer. Headquarters were at
the bank, and it is conceded that the
association had $1,000 on deposit there
1t may take several days to reveal the
true situation.
Efforts were made during the fore
noon to get some statement as TO what
course the bank would follow. Thess
were unsuccessful, but just after noon
President Wright was seen. He said
that a meeting of the Directors would
be decided upon. ). He thought, how
ever, that an assessment would at once
be levied on the shareholders and be-
lieved that $40 on each share would
square things. certainly SIS.
Every bank in town was seen to-day
At each it was officially declared that
none were caught by the Union Savings
failure, and in no way affected The
officers declared that they had been
aware of the difficulties of the broken
bank, and had protected themselves in
ample time All checks on the Union
Bank rendered other banks yesterday
were returned to the person rendering
them.
While the depositors of the defunct
institution are uneasy. and while those
stockholders who have their all in the
stock Of the institution may suffer, II
may be, If President Wright's state
ment is correct, that all depositors will