The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-09
BANKER CAUGHT
FLEEING SOUTH
FROM FRISCO

San Francisco. Dec. 9.-David #. Walk
or, president of the California Safe De-
posit and Trust company, was found
speeding south on a Southern Pacific
train last night when he was supposed TO
be at his San Mateo home. He was
placed under arrest and taken from the
train at Santa Barbara on instructions OF
Assistant District Attorney Francis J.
Heney.
Shortly after tho arrest OF Bankers
Brown and Barnett last night, detectives
were hurried TO San Mateo to keep Da-
vid Il. Walker president of the bank,
under surveillance. but finding he had al
ready left his home, trailed him down to
Santa Barbara. where he was held by
tho police authorities.
Though no warrant had been sworn out
for Walker IL was thought best to keep
him i'm sight. The detectives on reaching
San Mateo. surrounded the house where
he was supposed to be lying i'll. but heard
than a man answering Walkers descrip-
ton had been seen boarding train 70,
the south A hasty investigation proved
that their man had flown, but word was
sent down the line and the police OF Santa
Barbara took him I'm charge Heney tel
egraphed that Walker be held.
Through the activity OF the depositors'
committee of the defunct California Sale
ments were made possible in a few hours
after the real work of criminal prosecu-
tion began.
COMMITTEES WORK.
The committee determined on Saturday
to proceed with an investigation of the
affairs OF the Fillmore street branch OF
the California Safe Deposit and Trust
company, looking toward the arrest of the
officers for alleged embeZzlement. There
OF the Fillmore street branch, was exam
ined at considerable length and his exam
ination continued yesterday.
The testimony of Teller Gabbs OF the
same branch was taken and the commit
tee brought to light startling series of
reckless transactions. which the attor-
neys branded as misdemeanors
According TO statement issued last
night by the committee and the attor-
neys, the officers of the bank took prac-
tcally all the money deposited at the
Fillmore street branch and loaned IL To
stockholders I'm large sums. TO themselves
and TO mythical companies.
IL was intended TO cause the arrest or
the officials for these acts but, upon adj
vice OF Francis J. Heney the minor
charges were dropped for that OF felony
embezzlement in connection with the mis-
appropriation of the funds of the Cotton
estate.
AS a result Of the committees work, j.
Dalzell Brown was arrested last night. a
warrant was issued for the arrest of Wal
ter j. Barnett on a charge of felony-em-
bezzlement and detective was Dispatch
ed 10 San Mateo TO tho home of David Il.
Walker. president of the bank.
His departure from there led TO his SUBJ
scquent capture and arrest at Santa Bar
bara.
BARNETT ARRESTED.
I'm Marin county last night and was held
was arrested earlier in the day i'm this
city. was locked up i'm Jail.
w. j. Barnett. who was arrested yes
terday on charges growing out OF the
failure of the California Safe Deposit and
Trust company. Is vice president and gen
eral attorney OF the Wisconsin Pacific
railway. MIR. Bennett yesterday tela-
grsphed his resignation 60 President JET
/ frey OF the Western Pacific and OF his
own volition withdrew from tho office OF
vice president and general attorney
II shall also resign as special admin-
istrator of the Cotton estate" Mr.. Bar
nett said. mot that / am guilty Of the
charges which have been made against
| me- but beause there is a conflict between
the interests OF the estate and the Cali
| fornia Safe Deposit and Trust company
and under the circumstances / cannot be
placed I'm n dual position. As TO the Coz
ton securities. all have 10 say is that
! have not sold or hypothecatcd them. /
am innocent of any wrong"
That joint suit 90 recover approXl-
matcly 100000 will be begun at once by
/ tho protective association OF the depost-
Iprs OF the California Safe Deposit and
! Trust company was announced yesterday
by Attorney Charles T.. Boynton. repre-
scnting depositors who number about ~. =
900. The suit will be directed against the
$50 odd officials and stockholders OF tho
suspended institution.