The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-01
SAN JOSE BANK
CLOSES ITS DOORS
Union Savings Institu-
ton Suspends.
MADE DISASTROUS LOANS
PRESIDENT SAYS DEPoSIToRs
WILL NOT LOSE.
Collapse Caused by the Advancing Of
Large Sums to Fruit Ship
per Who Could Not
Repay.
MADE DISASTROUS LOANS
PRESIDENT SAYS DEPoSIToRS
WILL NOT LOSE.
Special Dispatch to The Call.

| SAN JOSE, Jan. S1.-The Union Savings
Bank of this city suspended business this
morning, and the Bank Commissioners
will arrive here tomorrow to assume
charge of the institution. The failure was
caused by the bank making advances to
E. B. Howard, fruit shipper, amounting
to about 100000, and from the fact that
1t has been unable to realize upon the So
curities given.
The doors Of the bank were opened as
usual this morning, but all checks were
refused and depositors turned away. News
of the failure spread rapidly, but no great
excitement was created. A small crowd
gathered at the place, but all expressed
confidence that the depostors would be
paid in full. There was no run on other
banks. AT o'clock it was announced
that the doors would remain closed IN
I'll matters were Strengthened.
For over year rumors have been in
circulation that the bank was shaky
and many deposits were withdrawn.
Lately it became publicly known that the
bank was carrying Howard along and
this made people wary. During the past
few days acceptances in the shape of time
drafts deposited by Howard were re-
turned protested These amounted to
about $4,000 The Union Savings Bank
had to meet these and it took all It's
working capital. This morning 1t is
said, there was less than $40 1000 on hand
II. Ward Wright, president and manager,
went to San Francisco to try to raise
some money yesterday afternoon, but was
unsuccessful. 1t was then decided to
close the bank.
t. r. Weaver, president of the Berry
essa Fruit Growers Union, on Saturday
attached Howard for $2O59 for fr,'.. sold
to him by the union. Before doing so
Weaver went to the Union Bank and
drew out $4,000 belonging to the Fruit
Growers Union. This attachment con-
WINGED the bank that Towards failure
was certain and would involve the insti-
tuition. Efforts to raise money were
futile and the only alternative was to
close.
The stockholders of the bank are all
rich men whose wealth aggregates 81, 000,-
600. Among them are c. H. Hopkins, J.
o. Hirschfelder, E. Mandel and the De
Laveagas of San Francisco. The deposits
amount to about $3.50 O0O The securities
are nearly ample to meet these. The San
Jose Building and Loan Association
which has its office in the bank, has $4,000
on deposit, but otherwise will not be af-
fected.
This morning an absolute deed of the
bank premises on First and Mountain
liam II. Wright, one of the stockholders,
was filed in the Recorders Office The
deed was dated June 10, 1898 Revenue
stamps on It to show the consideration to
have been $50, 900.
This afternoon a whole batch of assign
ments from the Union Savings Bank were
filed These were mortgages that had
been transferred about two years ago.
The assignees and the amounts were:
Union Trust Company of San Francisco,
$4,000; l. w. Hellman, president of the Ne
The Union Savings Bank was organized
ten years ago with capital of $1,000 900,
of which 100000 was paid up. The re-
serve fund is given as $40 900; The officers
are: II. Ward Wright, president and man
ager; Henry Edwards, vice president An
tone Friant, cashier; directors-N. Bow
den, A. Friant, W. H. Wright, H. w.
H. c. Morrill,.
President Wright said this evening:
The Union Savings Bank will reopen
within three months. The depositors will
be paid in full by assessing the stockhold-
ers.. The bank has good securities. The
deed to Myra E. Wright filed to-day, was
for security for 100000 borrowed last
summer. Thirty-fve thousand dollars of
this loan has already been paid. The
banks failure is due to carrying Howard
along. He became so deeply indebted to
us that we had to keep advancing him
money, and some of his securities in the
shape of drafts were not good. His in
debtedness of nearly 100000 is probably
secured for two-thirds."
E. B. Howard, who succeeded Howard
& st. George, has done an extensive BUSH
ness in dried and green fruits. He prob
ably is indebted to orchardists for nearly
s100, 600 The failure of the bank will force
him into insolvency.
In the last report of the Union Saw
ings Bank of San Jose to the State
on the morning of January /, 1899, the
following data appears:
RESOURCES.
Bank premises ...-...........s........S $1,000 90