The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-12-17
|DEPOSlTORS TO
GET TOGETHER
Move Is Taken TO Probe Schet-
tier Bank Affairs.
MEETING WILL BE CALLED
SECRETARY OF STATE HAM
MoND MAKES EXPLANATION.
r oLLowING ~ pubIIeatIon yesteraay

r OLLOWlNG the publication yesterday
morning in The Herald of the true
condition Of the assets of the de-
funct private bank OF B. II. schettler.
conferences We're held hV several OF the
5000 each into the bank. for the purpose
of outlining some action 10 be taken by
them. The chief mover in getting the
depOsitors together vas Andrew Grun0-
Tor OF I26 West Sixth North street, who
mad SLIGO in the bank. tie said last
night that meeting would be called Tor
next Monday or Tuesday night. at which
II is expected ali the depOsitors Will be
present The bank affairs viii then be
thoroughly discussed ana a motion wall
ne offered TO effect permanent organ
ization for the purpose OF taklnS sGch
steps as may be deemed proper IN order
10 get as much as possible out of the
assets OF the Institution.
Some declared they would favor prose
cutting Schettler. alleging that in their
opinion ne had received deposits after he
became aware that the bank was insOlv-
ent. Others were for suing the secretary
OF state on his bond. claiming that If he
had not been deTelict in his duty he would
not have permitted Schettler 10 run pri-
Vate bank without the capital OF S5V,a'l
required by the state banking law in a
city of the size and class of Salt Lake
But none of these was willing 20 be pat
upon record as doing or attempting "a
do anything until such time as all the
depOsitors. or a majority Of them set
together and decide upon some line OF
action.
Hammond Makes Explanation.
State Bank Examiner W. J. Beatie was
this morning Secretary of State James
T. Hammond was in his office and was
asked why ne permitted Schettler 10 con-
tinue running his private bank without
the $4,000 capital he should have had
He said:
Soon after ! went into office 1 made a
verbal request OF Schettier 10 comply with
the state banking law, SO far as capital
lzing his bank and making the required
reports were concerned. He refused, con
tending that as his bank was IN existence
in territorial DAYS. before the state law
was passed or could be passed. he was
not bound by II. He claimed that ms
law could not be made retroactive.
smoke to him again about il. but he still
refused In 1898 he began making guar
terly reports of the condition Of MS bank
and has made those reports regularly ever
since.
None OF the statements showed hin
to be insolvent. but "A few weeks before
he was closed up / began 10 see that Dis
capital was becoming impaired The item
Of current expenses and taxes paid KEEP
growing unreasOnably. and / decided tina
he ought not to be allowed to continue II
business
Schettler Made Promises.
Il called his attention to his financia
weakness and he agreed 10 sell some rea
estate not included in the banks asset.
and with the proceeds to rcinstate th'
I bank capital.
{ Il want TO say that there is no pro
/ vision ia tho laws of Utah for the exam
( inatiou or private banks. and consequent
/. y What- did in the matter Of insistin{
that Schetter put more money into hi
( business or close up was Of my own mo
ton and for the protection OF the depOS
itOrs. Ny action was based upon his las
quarterly report.
There are only five other private bank:
( in Utah. and they each have the fun cap
italizatOn required by the state Law fol
such banks in towns of the size OF thOS'
in which they are located. one OF theS,
banks is in Salt Lake. two ace in Boz
Elder county. at Brigham and CCrinne
one at American Fork and one at Rich
field"