Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-08
THEY WRECKED THE BANK
HIGH-HANDED METHODS OF
SAN FRANCISCO BANKERS.
Out of $4,000, 900 Assets Only &c.,
100000 Can Be Realized-Direc-
tors Get Cash on Own Notes.

SAN FRANCISCO, December Rec
| ommendation was made today by the
bank commissioners to Attorney Gen.
eral Webb to take legal action relative
to appointing a receiver for the Cali
fornia Safe Deposit and Trust Company
of San Francisco. which suspended bust
| ness several weeks ago. 1t was found
by the commissioners that instead OF
legal reserves of $1,sOOOOO, 20 per cent
of their 5000, 600, they had but 100000
The different of s1,4OO,OOO, in the opin-
ion of the bank commissioners, could not
be raised by the stockholders of the bank.
The legal reserve was in the bank on
December a year ago, when it was ex-
amined by the commissioners.
The bank commissioners today said that
the bank had INDUCED in reckless finan-
ciering. 1t had made too many
investments in California enterprises in
such a manner that it was unable to
realize now.
The same recommendation was made
by the bank commissioners in the case
of William Collins & Sons Bank of Ven
tura.
The true condition of the California
Safe Deposit and Trust Company has
only just become known. 1t is alleged
that the directors were apparently re-
quired to give no security except their
personal notes, and 1888 ,449 of the de-
posters money was loaned on such
which they were interested. D. NJ. Brad
ford, secretary Of the Carnegie Brick
Company, offered his personal note as
security and received $4S4, 410 of deposit
tors money in exchange.
Reckless Methods.
The bank commissioners say that much
money was loaned to commercial enter
prises, such as the Eldorado Lumber Com
pany and the Carnegie Brick Company,
on whose securities little could be real
lied in time of stringency. 1t is said
that out of 100000 assets only s.. 1000
600 could be realized. They discovered
that on the day the bank closed instead
of the 20 per cent of the deposits which
he law requires it had only 4 per cent.
The Building Trades is the heaviest loser,
as this organization had 100000 on de-
post
Attorney General Webb said this after
noon that the recommendation of the
commissioners that he take legal action
in regard to the affairs of this bank and
the order of the governor that he be-
gin proceedings for the appointment Of a
receiver for the concern had not yet
reached him in official form. He had no
been taken, and he probably would insti-
tute proceedings on Monday. or as soon
as possible after his formal instructions
had been received. =
Directors Borrowed on Own Notes.
SACRAMENTO, Cal, December T.
/ Gov. Gillette today made the following
statement:
Eat a meeting yesterday of the deposit
tors of the California Safe Deposit and
Trust Company l found the bank totally
insolvent. Orders have been given to the
attorney general to place it in the hands
of a receiver.
THE depositors found that So, 253, 449
had been loaned to directors on their per-
| sonal notes without security. and to COM
panies with which the directors were con-
nected. A clerk named Bradford was
loaned $484, 40 on his personal note with
out security.
THE committee Of depositors worked
all day and found the bank would be able
| to realize only $2,0O0,OO0 with which to
pay its liabilities to deDositors