Los Angeles herald., 1907-12-08
BANK Gull TY
OF FRENZIED
FNANCLERLNG
STATE DEPOSIT AND TRUST
CO. INSOLVENT
RECEIVER APPOINTED BY ORDER
OF GOVERNOR
Institution in San Francisco Loans
Millions Without Security, and
When Pinch Comes s Un-
able to Collect

by Associated fress.
SAN FRANCISCO, Dec. 7.-orders
were issued today by Governor Gillett TO
Attorney General Webb to make apph-
cation to the courts for the appointment
of a receiver for the California Safe De-
posit and Trust company.
AS a lasis for this action, 1t is SAID
that when the bank closed its doors
early in November 1t had reserve OF
but per cent instead of the 20 per cent
Of deposits required by law.
1t is also charged that over sS,OOO,oOO
had been loaned to directors Of the bank
on their personal notes, without secur-
ity, and to companies with which some
of the directors were connected.
1t is jlrther said that out of $9,OOO,OOO
assets only 100000 could be realized at
present.
The condition of the bank 1t Is said, Is
such that depositors may not receive
more than u cents on the dollar.
The total liabilities of the trust COM
pany are $A3,504 672.67 OF this amount,
$S,74S,4S7.S3 is due to depositors and SS42,-
7441S is owing to other banks Against
these sums there is less than 100000 In
the vaults cf the institution.
Many Loans Made
Among the loans, one for s1,S00,000 was
made on stock of the Eldorado Lumber
company Another loan for about the
same amount was made to the Carnegie
Brick company of Stockton. Among the
items in the assets is loan of $4,000 on
10000 shares of Western Pacific common
stock, which has never been listed and
is not in the market, and 1t Is doubtful
if it could be realized upon at the present
time.
This stock was given as bonus to pur-
chasers of Western Pacific railroad
bonds One transaction which has caused
much comment was the loaning of $780,
900 to D. M. Bradford, secretary of the
Carnegie Coal company, on his personal
notes. One note for $4,000 was secured
by 1000 shares of Western Pacific com
mon stock.
j. Dalzell Grown, manager of the bank,
gave out the following statement tonight:
"The statement that the California Safe
Deposit and Trust company is insolvent
is untrue : committee of stockholders
of the bank has been working all day
1t is the opinion of the committee that
with the cooperation of the depositors
and with changes in the dictatorship the
company will be able to resume.
1.-THE statement that large loans have
been made to a clerk without security
is not true. The loans to D. NJ Brad
ford are secured and the notes also are
guaranteed by James and John Tread
well. These men have large interests,
and their obligations, in my opinion. car
be collected.
1.-THE company owns practically all the
stock in the Eldorado Lumber company
which company is a reorganization of the
American River Land and Lumber com
pany. Fifteen years ago loans were
made by the former management to the
American River Land and Lumber COM
pany.
''To protect the loans made to that
company it became essential that the
California Safe and Deposit company adj
vance money which was put into the
Eldorado Lumber company. The Eldora-
do Lumber company is now in success
full operation. During the past season II
cut 36.OOO000 feet of lumber and is now
a dividend paying concern and has been
for the past two years.
Explains Loans
Loans made under former manage
ment to the San Francisco and San Joa-
quin Coal company required the company
to advance the moneys which were put
into the Carnegie Brick and Pottery COM
pany The Carnegie Brick and Pottery
company is a property which is valued by
M. A. Murphy, it's general manager. al
$5,0O0,OO0. 1t is on profitable basis. earn.
ing over $4,000 per month. 1t is my opin,
ion that the depositors of the institution
will be paid dollar for dollar.
1.-THE stockholders generally are show.
ing a willingness to pay the assessments
levied on the stock. With the co-opera.
ton of depositors and stockholders, ir
my opinion, the company can safely re.
sumo. Depositors aggregating over s., 600.
600 have already signed the agreement
extending the time of payment.
None of the officers or directors of the
bank are interested in the Pacific Win.
dow Glass company or the EdoradC
Lumber company. Mr.. Treadwell has q