Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-09
MANAGER
SEIZED FOR
FELONY
GRAVE CHARGE AGAINST
SAN FRANCISCO BANKERS
Sensational Disclosures Follow
Investigation of Failure of
California Safe Deposit and
Trust Company

fBy Morning Journnl ssecI-i Leased Wire l
san Francisco. Dee. S.--Ja Dal2ell
Rrowrs a prominent financier of this
city and general manager of the cal
ifornia safe Deposit and Trust con-
pany. which closed its doors early In
November. was arrested tonight on
the charge Of felonious embezzlemenl
A warrant has also been issued for
the arrest Of W. }. Bartlett. a leading
lawyer and a director Of the banking
company Officers have gone 90
Bartnett's suburban home Go serve the
warrant.
Brown and Bartnett are accused
OF having hypothecated securities
amounting to the sum OF $500, GOO be-
longing to the Cotton estate. OF which
Baunett was special administrators.
The securities were placed IN the
bank by order of the court one year
ago pending the settlement OF sui;
To have Bartnett removed
The warrants for the arrest of
Brown and Bartnett We're obtained to-
day from the district attorneys office
by the attorneys for Helen Saeher.
who Is contesting for a portion of the
Cotton estate Mrs. Ellen NJ. Colron.
widow of the late y. Cotton. who was
associated with Stanford and Hunt
ington IN the construction Of the Cen
tral Pacific railroad. died In 1908,
leaving almost his entire estate to
Mrs. Caroline Dalgren OF Washington,
ID. c.. one Of her daughters. and be-
queathlng to her great granddaughter,
Helen NJ y Sachcr, only $l,H00. The
viii Is now being contested In the
courts In this state II is alleged that
Mrs Cotton was induced TO make the
win as she did by undue influence eX-
arffaAa nv "a la D.
gren. Mr. Bartnett Is prominent in
the construction Of the Western Pa
cific Of this state.
Bank Commissioner sherrer said ia
a Easement.
I'm my Investigations Of the bank's
affairs. ! found they had loaned "a
great sum on the stocks of their own
companies. They seem 10 have very
few bonds on which they have loaned
money | found they had SS75.000 of
Western Pacific railroad stocks I
have been advised that within three
hours before they closed they accepted
deposit OF SS0.000 from a certain
construction company and that within
half an hour before the closing they
accepted a deposit Of S2.500.
"As far as ! am able 10 figure out
the bank affairs, IL has loaned $4,000
600 on stocks which have some value.
but are not easily convertible at this
time. What these stocks may realize
eventually in cash I do not pretend
to say The bank has also s5. 5.0O0. GOO
of bills receivable, much OF which is
good collateral. Many of these bills
will be realized at par. The bank has
about S9.00O,000 OF savings and COM
mercial deposits.
II can not predict how much OF us
various stocks and bills receivable can
be realized at par, but It seems to me
that in the process of liquidation the
bank can realize a good deal OF money
and that the depositors can get sub
stantial return"
David f. Walker. president OF the
bank. has rendered his resignation.
on behalf of Mr.. Walker the state
ment is made that he knew nothing OF
the banks condition and occupied a
sort of an honorary position.
The depositors OF the bank are for
the most part professional men and
laboring people.
The bank was a depository Of the
Western Pacific railroad. which, IL Is
said. had a balance in the bank OF
$3.50. .000 when IL closed An Ogden
institution is said 10 be a creditor for
$3.50. 1000.
Vast individual enterprises we're
launched In the form of Carnegie
Brick and Pottery company the FL
dorado Lumber company and the Pa
cific Window Glass company Enor-
nous sums were expended on these
enterprises, and 20 sustain them e. be-
came necessary to advance them large
sums OF money. The drain became
heavier than the bank could stand.
A desperate effort was made TO save
the bank from a receivership. and 10
that end the directors propoeed 10
raise 100000 by an assessment. and
the sale Of stock and an additisnal
2700,0O0 was to be supplied by the di-
rectOrs Individually Some Of the di-
rectors have already placed their
property in escrow In the metropolitan
Security company, holding corpora
tiOn, but upon advice Of his attor-
neys' David r. Walker declined 10 De-
a party TO the plan Walker has stated
that he was shocked 30 discover tho
condition Of the institution.