Los Angeles herald., 1907-12-31
3 OFFICIALS
ACCUSED BY
GRAND JURY
WILD FINANcIER'NG EXPOSED
BY WITNESSES
TREApwELL SAID TO HAVE OWED
OVER $3oo,ooo
Brown and Bartnett Alleged to Have
Used Clerks as Tools and to Have
Given Worthless Security
for Big Loans

BY Associated Press.
SAN FRANCISCO, Dec. 3O.-FolIowing
a thorough investigation into the affairs
of the California Safe Deposit and Trust
company, which failed, owing depositors
nearly $1,000, 900 and the methods of its
officials alleged to have been responsible
for wrecking the bank. indictments were
returned late this afternoon by the grand
jury, charging James Dalzell Brown, ex-
general managers Walter j. Bartnett, ex-
vice president, general counsel and direc-
tor, and James Treadwell, director, with
felony embezzlement.
One Indictment each was returned
against Brown and Bartnett and two
against Treadwell
Bench warrants were issued and bail
fixed at $4,000 for Brown; $S5,vO0 for
Bartnett and $4,000 on one charge and
$4,000 on the other against Treadwell.
Brown and Bartne.~ are already con-
fined in the county Jail on indictments
charging embezzlement in connection with
the disappearance of securities valued
at 200, belonging to the Cotton estate.
which had been deposited by Bartnett as
special administrator with the trust com
pany.
Used Bookkeeper as Tool
The indictment against Brown returned
today is based on note for SIS, 900 given
by H. N. Storrs, bookkeper in the bank
on May T. 1906 Storrs, according to AS
sistant District Attorney Cook testified
before the grand jury that he signed this
note at the request of Brown, and the lat
ter took the money from the bank. AS
security for the note some stock In the
Central Traction company. a street rail-
way company in Stockton. was put up.
This stock stood in Storrs name as trus-
tee. The latter, 1t is alleged, testified
that he never owned the stock and that
it was not issued until some time after
the note was given.
Bartnett's indictment for embezzement
was In connection with note given by
w. T. Kearney, an attorney, for a loar
of $4,000 on October IS, 1906, Bartnett
1t is alleged, receiving the money and
Kearney acting only as dummy On
that date, it is claimed, Bartnett had
ovedrawn mis- account at the bank about
$4,000 and got Kearney to give the note.
which left Bartnett $4,000 to his credit
Stock In the National Bank of the Pa
cific was Originally put up as security, but
upon investigation it was found that
later this stock was taken up and shares
in the Trinity Bonanza Mining company
substituted for it.
Owed Bank Over $3oo,ooO
One indictment against TreadwelI, OF
Treadwell mine fame in Alaska, and well
known in mining circles in this state was
based on a loan for $45, 600 from the bank
in which he was director, for which
Treadwell gave his personal note on Sep
tember last.
At this time it is said Treadwell AL
ready owed the bank over S3OO.UOU for
loans and had overdrawn his current ac-
count about $4,000 Instead Of paying
interest, 1t is claimed that every time
that interest was due he gave a new note.
The obtaining of a loan of s45, 900 left sy0-
600 to the credit of his current account.
but on October 8 this was all gone ard
he had again overdrawn. on this date, 1t
is alleged, ne made a new note for s62
ooO, dated 1t back to September a. had the
note made on the latter date destroyed
and substituted for it the note for s6,.-
800, which left $17,500 to his credit.
The second Indictment against Tread.
well was based on the latter transactton
and specifics sl750O as the sum embez-
zled
Not Good Attorney
In open court this morning Judge era
ham said that Walter j. Bartnett had
not been a good attorney and was denied
the fee he asked for settling the estate
of e. j. Raphael. Some years ago
Raphael was left $780, Bartnett was
his attorney and had the California Safe
Deposit and Trust company appointed to
care for the money as a trust fund until
Raphael was of age. Six months before
his list birthday Raphael notified the
trust company he would want his money
on reaching his majority.
His 2lst birthday arrived. On applica-
ton for the money he was put off with
an excuse until the bank had suspended
and his money and interest were tied up.
Bartnett went into court asking thar
he be paid from the money the amount
Of his fee, Durings the course OF the
nearing r. p. Otway, who was paying
teller at the bank, testified that Rarf-
nett was overdrawH at the bank $4,000.