The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-31
SAN FRANCISCO
BANK is CLOSED
Continued From PAGE I,

'The California Safe Deposit &. Trust
Co. has temporarily suspended. This
amount of money in circulation, and be-
cause the bank, not being member of
the clearing house. could not obtain
clearing house certificates to tide over
the existing conditions. The bank is per-
fectly solV and is making arrange
ments in the east for assistance. which
it confidently expects to obtain. The
bank will undoubtedly open its doors
within a few days. All of the depositors
may be assured that they will be paid in
full"
Bank to Be Examined.
]. Dalzell Brown, the banks manager,
said the officials were unwilling to make
any further statement of the banks at
fairs until after the state bank commits
SionerS have made their examination and
issued their report. They will begin the
investigation tomorrow morning.
Governor Gillett has decided to declare
tomorrow a legal holiday, and to continue
that suspension from day to day until
its need disappears.
This will not prevent the opening to-
morrow morning of such banks as desire
to accept deposits and cash checks, and
II Is generally thought tonight that not
all of the eighteen banks in the clearing
house, nor all of the trust companies and
savings institutions outside of it will
avail themselves of the state respite.
Opinion of Bankers.
Leading bankers, while admitting frank
ly that actual money is comparatively
very scarce in San Francisco as a result
of the stringency in the east, declare
there is nothing in the condition of the
large majority of the local banks to JUS
tify general alarm.
As they put it, they would not be great
ly surprised TO "see a few of the lesser,
weaker and speculative banks hoist sig
nails of Distress, and privately they
mention one or two such; but they are
firm in the statement that almost with
out exception the commercial and savings
banks and trust companies of the city
''are sound, solid, cOnservatively man
aged, and perfectly capable of withstand
ing the stress"
No Help From the East.
They complain, however, against their
correspondents in New York and other
eastern centers who ''offer nothing bet
ter than drafts in response to telegraphed
large balances due the banks of San
Francisco from them" The refusal of
the San Francisco sub-treasury to make
loans on large holdings of United States
bonds they also complain of.
Did Not Speculate.
Manager J. Dalzell Brown, of the Cali
fornia Safe Deposit & Trust company,
and former Judge Charles w. Slack, It's
general counsel denied tonight that there
banking circles that speculation has been
INDUCED In by that Institution. They also
denied that the paper of the Western Pa
cific Railroad company was in any way
involved in the banks suspension
1.-The California Safe Deposit g. Trust
company" said Mr.. Brown, has been
established since 1882 and has done con-
sentative and strictly legitimate banking
business. 1t has four local branches. The
reason we never applied for membership
In the clearing house was that we could
clear as conveniently through the Angelo
Californian bank and save the clearing
house charges, which are considerable. 1t
is probably true that clearing house MEM
bership would have helped us to tide over
our present difficulties.
One Rumor at Rest.
THE rumors connecting the bank S
name with the affairs of the Western Pa
cific no doubt sprang from the fact that
1 am treasurer of that corporation and,
with other officials of the bank, promoted
1t. The bank is not, however, involved
in Western Pacific, and only a small
amount of the corporations funds is on
deposit here. The Western Pacific has
about s1S.0o0,0oo distributed in deposits
among forty banks here and elsewhere in
the country"