The sun., 1907-12-10
CLAIRVOYGNT BANKERS GUIDE
MULES AND GOLDFIELD STOCKS
san FRANCISCO COLLATERAL.

WnhhG NfANrhhuuy hDWhEu WeAbco-PNr~
President Brown stin In .VaII-Hsart-
nett out Under S5S.OOO Bonds.
SAN Francisco. Dec. 0--The investiRa-
ton OF the affairs OF the wrecked California
Safe Deposit and Trust Company, which led
yesterday 70 the arrest Of W. J. Bartnett,
Vice-president OF the institution, and j.
Dalzell Brown, director and general man
ager, vas followed by the sudden arrest of
the president. David +. Walker, who was
under the surveillance of detectives at his
homo in San Mateo.
Judge Dunno to-day fixed the bail OF
Bartnett and Brown at 975.OOO bonds or
$4,000 cash. Bartnett managed to get a
bonding company to give bond for him
tonight but Brown is still in jail.
Yesterday afternoon the detectives re-
ported 10 Assistant District Attorney Heney
that President Walker was making prepara-
tions To leave San Mateo. and they were
ordered TO follow him and arrest him If it
seemed advisable. The president OF the
company took a fast train on the Southern
Pacific, going south toward the Mexican
border, and was arrested in Santa Barbara.
Walker had already rendered his resg-
nation, and his alleged flight is a surprise
TO most OF the depositors. as it had been re-
banks condition and occupied what was
practically an honorary position.
Attorney General Webb announced to-
day that all stockholders of the defunCt
bank will be Joined as defendants in the
suit for the appointment of "A receiver and
that they will he held responsible for the
banks debts. Later in the day Webb fled
suit for appointment of receiver.
Further investigation Of the affairs of the
bank, il " alleged, show that Brown and
Bartnett loaned on worthless security
$3.50 O0O of the banks funds within a few
days Of the collapse. One stockholder got
q loan Of $40, 600 on 4cO mules which he
had at work on ranches in California and
Mexico. One broker was allowed to make
an overdraft Of $3.50 900 by putting up Gold
field mining stocks that have shrunk in
value two-thirds in the last three months.
Grim humOr is added to the affair by the
allegation that Walker and Brown were
accustomed 20 consult spiritualistic me
diums rs to their Investments, as old Al
Viaza Hayward did in his mining ventures.
Walker, it is said. often held s6Inces at his
home. which were attended by Brown.
The medium was Mrs. Whitney. the same
woman who buncoed Mrs. Jane Stanford
and Hayward.
Through the activity of the depOsitors'
committee Of the bank arrests were made
possible in a few hours after the real work
of criminal prosecution began. The COM
nittee determined on Saturday afternoon
20 proceed Immediately with an inv estiga-
tion Of the affairs Of the Fillmore street
branch Of the bank. looking toward the
arrest Of the officers for embezzlement
Gustave Chevasuss, accountant OF the
Fillmore street branch, was examined
The testimony of Teller Gabbs of the same
branch was taken, and the committee
brought 10 light a startling series of alleged
reckless transactions, which the attorneys
brand as misdemeanOr embezzlements.
According 20 a statement issued by the
committee and the attorneys the officers
OR the bank took practically all the money
deposited at the Fillmore street branch
and loaned IL TO stockholders in large sums,
b tn hsmselves and to mythical companies.
That a joint suit to recover approyi-
nately 5000 900 will be begun at once by
the protective association Of the depositoTa
vas announced by Attorney Charles H.
Boynton, representing depositors who mum.
Der about $1,000. The suit will be directed
against the $50 odd officers and stockholders
Of the suspended institution.
A short time before his arrest yes
terday Bartnett telegraphed his resig-
Pacific Railroad and announced that he
would also withdraw as special administra-
tor OF the Cotton estate. H. is in connection
with his pos ition NJ administrator Of the
Cotton estate that he will probably be prose-
cuted. charged with felonious misappro-
priation Of trust funds. II is alleged that
he is responsible for the disappearance OF
more than $4,000 in securities belonging
to the estate.
Bartnett made, a statement to-day IN
which he said: y offered to resign as adj
nninistrator of the Cotton estate not because
am guilty Of the charges which have haan
brought against me but because there ia a
conflict Of interests which will make it i'm
possible for me TO act at once as adminisira
tor Of the estate and as an officer Of the Safe
Deposit and Trust Company. As to the Cotton
estate l am innocent OF all wrong and anal
have no difficulty In establishing that fact
w. J. Bartnett telegraphed his resignation
IA director. vice-president, general man
Rger and attorney Of the Western Pacific
to President Jefery yesterday. Mr. Bart
nett and MIR. Brown were among the OriRi-
natOrs Of the Western Pacific project and
whom the plan was taken mp by George J.
Gould they purchased the San Francisco
terminal properties for the company and
did much other work in the West for the
Gould interests. Mr.. Bartnett was the trs,
president Of the company and remained it's
head until 1905, when he changed places
with T.. 7. Jeffery, who before that was
vice- president.
President Jeffery said yesterday that Mr.
Bartnett's resignation would he accepted
hut that the vacancy would probably not
he filled in the near future as there s little
need for the office until the road s in opera
tion. The Western Pacific had a deposit
in the suspended institution, but Mr. Jeffery
said that the deposit was very small and OF
little concern TO the company.