Los Angeles herald., 1907-12-10
OFFICERS OF
RUINED BANK.
AREACCUSED
BROWN IN JAIL, BARTNETT OUT
ON BONDS
PRESIDENT WALKER ARRESTED
AT SANTA BARBARA
Deposltors Start Run on Safe Deposit
Vaults, Fearing That They, Too,
Had Been Looted-Receiver
Appointed
By Associated Press.

By Associated Press.
SAN FRANCISCO. Dec. 9.--Attorney
General u S. Webb late this safternoon
commenced proceedings in the superior
court for the appointment of "a receiver
for the suspended California Safe De-
post and Trust company, whose presl-
dent, vice president and general man.
ager are under arrest for embezzlement.
The stockholders as we'll as the officials
and directors were made defendants III
the suit filed by the attorney general.
Superior Judge Coffey issued tenn
porary restraining order preventing the
officials and directors from disposing OF
the banks assets in any manner, penuihg
the hearing for the appointment OF
receiver
This action by the attorney general;
lne reduction by Judge Frank H. Dunno
of the bail fixed on the warrant Tor j.
Dalzell Brown, general manager OF the
suspended institution, from $2O0,0OO TO
$4,000 and of w. u. Bartnett, vice pres
ident, from 900 to $4,000; run on
the safe deposit vaults of the closed
bank, caused by rumor that the boxes
had been looted; meeting this after
noon of some of the stockholders, at
which committees were appointed to de-
mand the resignation of the directors,
examine the assets and confer with the
depositors, and meeting OF the depos-
itors tonight were the developments OF
the day in connection with the failure
of the California Safe Deposit and trust
company.
Brown Still in Jail
After futile attempts all afternoon to
secure bondsmen Brown was returheu "
the city prison tonight. Bartnett was
t.,,ncaScfi11 and was refe1SeQ lnlS
evening.
President David F. Walker is under
arrest at Santa BarbarL and will leave
there tomorrow morning for this city IN
custody of Detective Sergeant duncan
Matheson of the local police department..
Neither Brown nor Bartnett would as
cuss their arrests and the bank SITUATION
beyond declaring their innocence or any
wrongdoing Brown insisted that the IN
stiti1tion was not insolvent and COM
plained that the reports published OF It's
condition were unfair.
II still contend" said he 'that the
assets, although at .-is time nara To
realize upon, are far more than 5 ne da
bilities. And if the stockholders ana de-
nositors will come together, be reason
ahle and each make concessions the de-
nositors will be paid dollar for doliar'
AS to the disappearance OF the COTTON
securities, / am innocent. Beyond tha'
| can say nothing a
Bartnett would make no statement re-
parding his connection with the BANK,
its ALLEGED mismanagement or what pe-
came of the Cotton bonds and stocks,
which were by him placed in the instltu-
tion. Neither would he deny nor affirm
the stories published that he had con-
suited spirit mediums in regard to IN
vestments.
safe Deposit Vaults Looted?
A rumor gained circulation today that
the looting of the bank extended to the
safe deposit boxes, which are among the
largest in the city. In consequence OF
this rumor there was quite run on the
boxes this afternoon.
ANXIOUS lessees of boxes gathered
around the doors of the vault depart
ment and as rapidly as they could be
handled went in to remove their valu-
ahlos or assure themselves that they
were still safe.
A meeting of about seventy-five stock
holders was held at the Merchants ex-
change in the afternoon, $3.50 out OF 25zo
being represented John Lloyd, formef!y
nresident of the German Savings bank,
was chosen chairman. Some of those
present became dissatisfied with his con-
duct of the meeting toward the close and
he was removed and succeeded by O. M
Goldaracena
Depositors Must Wait
After being in session for two hours
II appeared to be the sentiment of the
stockholders that the bank could be re
habilitated il the depostors would make
concessions and wait one or two years,
with interest to be paid on their de-
posits 1t was also announced that the
appointment of a receiver would be fought
in the courts.
A demand was made for the removal
Of the directors and a committee was
appointed TO call upon the directors, de-
mand their resignation and arrange for
q meeting of the stockholders for the
election of new board Another com
mittee was named to examine the assets
of the bank
third committee was appointed to
confer with the depositors' association.
C. S. Cushing, an attorney was this
afternoon appointed special custodian OF
the bank by Attorney General Webb. 1t
is said that he may be named for the
recsivership. Webb with his assistants
was busy ali day preparing the papers
for the suit, in which all the stockholders
were also made defendants,
Bartnett and Brown appeared before
Judge Dunno this afternoon and request
ed a reduction in their bail. The matter
was put over until lis p. m. Bartnett
was represented by Attorney W. M. Can
non and Brown by Hiram w. Johnson.
Barclay Henly represented the depositors'
association and also Crittenden Thorn
ton. who swore to the complaints charg-
ing Bartnett Brown and Walker with
the embezzlement of securities to the
value of S2O5, 900 belonging to the estate
of Ellen NJ. Cotton of Santa Cruz, which
had been deposited in the bank and which
n Is claimed have disappeared.
When Brown and Bartnett were in court
sefa a,af n9ckrs A .
tornev w. Hoff Cook opposed the reduc-
tion Of bail on the ground that it was
rumored the defendants were endeavor-
ing to flee and Judge Dunno postponed
the matter until this afternoon to give
the district attorneys office an oppor-
tunity to inform itself as to the facts
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