The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-09
SOME HOPE FOR
THE POSITORS
Stocks and Bills Held by Cali
fornia Safe Deposit & Trust
Company Have Value.

San Francisco, Dec. S.-Bank Com
missioner Sherer. in a statement, said:
In my Investigations of the affairs of
the Safe Deposit & Trust company, 1
found they had loaned a great deal of
money on stocks of their own compa-
MES. They seem to have very few
bonds on which they have loaned
money. 1 found in my Investigations
they had $S75,OOO of Western Pacific
railroad stock. l have been advised
that within three hours before they
closed they accepted a deposit of $4,000
from Il certain construction company,
and that within half an hour before the
closing they accepted a deposit of
81, 500.
LAS far as l am able to figure out
the banks affairs. it has loaned So
100000 on stocks which have some
value, but are not easily convertible at
this time. What these stocks may
eventually realize i'm cash l do not pre-
tend t. say. The bank has also about
s5,000,000 of bills receivable, much of
which has good collateral. Many of
these bills will be realized at par. The
bank has about 100000 of savings
and commercial deposits.
Much Can Be Realized.
Il cannot predict how much of it's
various stocks and bills receivable can
be realized at par. but it seems to
me that i'm the process of liquidation
the bank can realize a good deal of
money and that the depositors can get
a substantial return.
There has been a great deal of talk
about the securities held by the Cali
fornia Safe Deposit & Trust company.
/ found in my investigation that both
Mr.. Brown, the general manager, and
Mr.. BARNETT. one of the directors of
the bank, have absolute confidence in
all of their various securities. The
trouble with their bank. however, is
that the securities of which they think
so much have not enough cash convert
Utility to help them out of their pres
ent embarrassment"
D. r. Walker Resigns.
David F. Walker, president of the
bank, has rendered his resignation. On
behalf of Mr.. Walker the statement is
made that he knew nothing of the
banks condition and occupied d sort
of honorary position.
The depOsitors of the bank are for
the most part professional men and la
boring people.
The bank was a depository of the
Western Pacific railroad, which, it is
said, had a balance in the bank of
$3.50, 900 when it closed. An Ogden in
stitution is said to be a creditor for
S25O,O0O
Cause of the Trouble.
Vast industrial enterprises were
launched i'm the form of the Carnegie
Brick & Pottery company. the Eldora-
do Lumber company and the Pacific
Window Glass company. Enormous
sums were expended on these enter
prisas, and to sustain them it became
necessary to advance them large sums
of money. The drain became heavier
than the bank could stand. Then came
q general slump in stocks throughout
the country, and with il a steady run
of depositors. The bank was not a
member of the clearing house and
found itself in a perilous position when
the panic seized New York. The re-
serve was depleted The clearing
house was not disposed to assist the
bank and it was forced to close its
doors.
FruitIess Effort.
A desperate effort was made to save
the bank from a receivership, and to
that end the directors proposed to raise
$500 600 by an assessment and the sale
of stock, and an additional $500. 900 was
to be supplied by the directors indi-
vidually Some of the directors have
already placed their property in escrow
in he Metropolitan Securities compa-
ny. a holding corporation, but upon the
advice of his attorneys David F. Walk
er declined to be a party to the plan.
Walker has stated that he was shocked
to discover the condition of the insti-
tuition.