Los Angeles herald., 1907-12-10
OFFICERS OF RUINED
BANK ARE ACCUSED
1Contlnued from Page one.l

ney then informed the court that he had
been unable to learn anything concerning
the rumor of flight.
johnson contended that the bail fixed
i'm both cases was prohibitory and ex-
cessive. He said that In such times of
financial stringency 1t was utterly I'M
possible to secure the deposit of the
amounts named, either in cash or in se-
curities, to get bondsmen.
Barclay Henly, who, MIR. Cook an
nounced, would be associated with the
district attorney in the prosecution of the
three men. strongly opposed the reduc-
ton to SIS 900 suggested by Mr.. Johnson.
He cited numerous decisions and argued
that the bail should at least equal the
amount alleged TO have been embezzled.
He was so insistent against reducing tho
amounts that Judge Dunno finally cut
him short by stating that It was not the
intention of the court to arbitrarily fix
bail beyond a figure that would insure
the attendance of the defendants, when
at this stage of the proceedings there was
always a presumption of innocence,
Heny Objects
Hcnly vigorously asserted that there
was no presumption of innocence in these
cases. Judge Dunno, however, ended the
matter by reducing the bail in each case
to $4,000 and fixed Friday next as the
date 1Or q
Mrs Bartnett was in court and smiled
encoura cement to her husband. The lat
ter had several bondsmen on hand ana
expected to be Immediately released, but
IT was discovered that his bondsmen
could not qualify because their property
was not in this city and county
Both he and Brown, accompanied by
detectives, spent the afternoon in hunt
ing for bondsmen. 1t was not until
q clock tonight that Bartnett finally sue
ceeded in getting a surety company 20
furnish a bond, on which he was released.
Brown. however, was unable to get bail,
and was again returned TO a cell in the
prison to spend the night.
Stockho Iders Meet
A meeting Of about fifty depositors of
the California Safe Deposit and Trust
company was held tonight, with Julius w
Raphael as chairman. Raphael is the
chairman of the committee which has
been actively engaged in the past few
DAYS in investigating the affairs OF the
closed institution. Raphael said in re-
viewing the work of the committee:
We figure there are assets of SS500,V0O
to meet liabilities of nearly 600. We
are irving to find means to rehabilitate
the bank and want to collect all that is
possible on the doubtful securities, which
we figure to have a face value OF s2,5'o,Ooo
Some of these, in time, may become more
valuable. We want to make the STOCK
holders pay their assessments, ana nope
by acting on lines similar to those on
which the Firemen's Fund Insurance COM
papy was saved after the fire. to eventu-
a1Iy have the depositors paid dollar for
dollar This committee was Instrumental
in causing the arrest of Bartnett, Brown
and Walker, and in causing the removal
of Dunsmoor. Our motto is Let no guilty
man escape.
Committeeman Rosenheim said that 1t
was found that most of the bills receiva-
Bile of the bank were good until they came
to those relating to the transactions of
the bark directors. Of the s4,50O,OOO of
such bills, about $2O00,000 were sound.
OF the bonds and securities upon which
the bank officials laid so much stress
practically none was marketable
School Teachers Lose
II. l.. Mccarthy principal of the Noe
grammar school, was one of 6e deposit
ors who addressed the asseniblage lie
represented the School Teachers associa-
tion, which had 5000 in the bank. lie had
serious suspicious that in the appoirt-
ment of receiver the bank might be CIV
en- over to people friendly to those now i'll
control He reviewed the settlement of
the affairs of the Peoples Home bank, In
which he declared ~ per cent OI tHS
money mad been frittered away. He said:
''The bank commissioners are vigi.ant
now. Where was their vigilance up to the
present time? 1t was their duty to eX-
anime these very securities which are now
declared almost worthless, and they
should have asserted that the paper had
no value. Do not let these commissioners
liduidate this bank. Get the stockholders
together, make some of them resign and
substitute depositors in the board of di-
rectors."
Two stockholders stated the stock own
ers were willing to cooperate with the de-
positors in restoring the soundness of the
bank.
Chairman Raphael said "On no basis
will we consent to reha habilitation other
than that which will give the depositors
eight members of the board of directors
and the stockholders seven members
After further discussion it was decided
to organize the depositors into a co-ope-
rative association to be incorporated un-
der the state law. The society is to be
known as the Associated Depositors of the
California Safe Deposit and Trust COM
pany The members of the original COM
mittee were made the temporary officers
and another meeting was called for to-
morrow morning at which all depositors
were urged to attend. The acts of the
Raphael committee were indorsed and
commended.