Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-09
RICH BANKER FLED,
BUT SOON CAUGHT
President of the California
Trust Company Arrested.
BAGGED SPEEDING SOUTH
Attorney Heney Charges Felony and
and Embezzlement.
OFFICERS LEFT BANK A WRECK
Cepositors' Committee Finds Evil
dence of Fraud and Criminal
Recklessness.
BAGGED SPEEDING SOUTH
OFFICERS LEFT BANK A WRECK

SAN FRANCISCO, December 9-Davit
J. Walker, president of the California
Safe Deposit and Trust Company. wa.
found speeding south on a Southrn Pa
cific train last night, when he was sup
posed to be at his San Mateo home H,
was placed under. arrest and taken from
the train at Santa Barbara on instruc
tions of Assistant District Attorney Fran
els ]. Heney.
Shortly after the arrest of Banker.
Brown and Bartnett last night, detective.
were hurried to San Mateo to keep Davit
+. Walker. president of the bank. under
surveillnce, but finding he had already
left his home, trailed him down to Santa
authorities.
Nearly Stole Away.
Though no warrant had been sworn out
for Walker, it was thought best to keer
him in sight. The detectives, on reaching
San Mateo, surrounded the house where
he was supposed to be lying ill. but heard
that man answering Walkers descrip-
tion had been seen boarding a train for
that their man had flown. but word was
sent down the line, and the police at
Santa Barbara took him in charge. Heney
telegraphed that Walker be held.
Through the activity of the depositors'
committee of the defunct California Safe
Deposit and Trust Company the develop
ments of yesterday were made possible
in a few hours after the real work of
criminal prosecution began.
The depostors determined Saturday
n inn a oil wit h ba inv
tion of the affairs of the Fillmore street
branch of the California Safe Deposit
and Trust Company. looking toward the
arrest of the officers for embezzlement.
Thereupon Gustave Chevasuss. account
ant of the Fillmore street branch, was
examined at considerable length and his
examination continued yesterday.
Carnival Of Lending.
The testimony of Teller Gabbs of the
same branch was taken. and the COM
mittee brought to light startling series
of reckless transactions which the attor-
neys brand as misdemeanors and en-
bezzlements. According to a statement
issued last night by the committee and
the attorneys. the officers of the bank
took practically all the money deposited
at the Fillmore street branch and loaned
1t to stockholders in large sums. to them
selves and to mythical companies.
1t was intended ito cause the arrest of
Tue lot tHeSe dClS, Dut upon aC-
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.
Other officers Held.
AS result of the committees work j.
Dalzen Brown was arrested last night, a
warrant was issued for the arrest of
Walter j. Bartnett on a charge of felony
and embezzlement, and a detective was
dispatched to San Matee, to the home of
David F. Walker, president of the bank.
with instructions to stay there day and
night, and to keep him under surveillance
until the committee gave the officer
further Instructions
His departure from there led to his sub
sequent capture and arrest at Santa
Barbara. w. j. Bartnett was arrested
at his home in Marion county last night.
and was held in custody there until today.
Brown, who was arrested earlier in the
day in this city, was locked up in Jail.
Bartness Pleads Innocence.
w. j. Bartnett. who was arrested yes.
terday on charges growing out of the
failure of the California Safe Deposit ano
Trust Company. is vice president and
general attorney of the Western Pacific
Hallway. Mr.. Bartnett yesterday tele-
graphed his resignation to President JET.
frey of the Western Pacific. and of his
own volition withdrew from the Office OF
vice president and general attorney.
Il shall also resign as special admins
traitor of the Cotton estate" Mr.. Bartnett
said, mot that l am guilty of the charges
which have been made aginst me, but be-
cause there is a conflict between the in.
terests of the estate and the California
Safe Deposit and Trust Company, anC
under the circumstances l cannot be
placed in a dual position AS to the Col
ton securities, all 1 have to say is tha,
j have not sold or hypothecated them
am innocent of any wrong. The bank has
Sl.JoO,OOO on call and 81, 400, 900 in notes
some of them slow. but most of them col.
lectible-and it has $4,000 cash. In thir.
" days. If the stockholders will help us
we will have 100000 in cash.
1t would be ruinous to have a receive,
appointed at this time. II would bt
against the interests of the depositors. i
receiver was appointed today anC
dumped these valuable securities on tn,
market il would mean disaster"
That joint suit TO recover approximate
ly S9,Oo,0o0 will be begun at once by tn,
protective association of the depositor
of the California Safe Deposit and Trus
Company was annouhced yesterday b,
Attorney Charles Z. Boynton. represent
Ing depositors who number about 1900
The suit will be directed against the 30
odd officials and stockholders of the sus
pended institution.