Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-12-10
IN CUSTODY.
Fleeing San Francisco
Bank President Caught
TraiIed to Santa Barbara and
Held by the Police.
Deposifors Of Bank Will Sue to Re.
cover S9,000,000.

Walker, president Of tie California
SafeS& Trust Co., was found speeding
south on IL 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 urain
at Santa Barbara on instructions OF
Assistant District Attorney Francis j.
Heney.
shortly after the arrest of Bankers
Brown and Barnett last night, detec-
tives We're hurried to San Mateo to
keep David F. Walker. president Of the
bank, under surveillance. but finding
he had already left his home. trailed
him down to Santa Barbara. where he
was held by the police authorities.
Though no warrant had been sworn
out for Walker. it was thought best to
keep him in sight The detectives on
reaching San Mateo, surrounded the
house, where he was supposed to be ~
ing ill, but heard that a man answer
ing Walkers description had been seen
boarding a train for the South. A
hasty investigation proved that their
man had down but word was sent
down the line, and the police of Santa
Barbara took him in charge. Hency
telegraphed that Walker be held.
Through the activity of the deposit
tors committee Of the defunct Califor-
MIA Safe Deposit & Trust Co., the de-
velopmcnts We're made possible in a
few hours after the real work of Grim
inal prosecution began.
The committee determined on Satur-
day to proceed Immediately with an in
veStigaton of the affairs of the Fill
more street branch of the California
Safe Deposit q Trust Co, looking to-
ward the arrest of the officers for en-
bnZZement. Thereupon GustaVe Che
caSuSs, accountant of the Fillmore
street branch, was examined at con-
siderable length and his examination
| continued Yesterday.
| The testimony of Teller Cabs of the
same branch was taken and the COM
mittee brought to light a startling Sc
| ries of reckless transactions which the
| attorneys brand as miSdemeanors.
| According to a statement issued last
| night by the committee and the attor-
neys, the officers of the bank took prac-
| tically all the money deposited at the
Fillmore street branch and loaned it TO
stockholders in large sums. to them
1
| 1t was intended to cause the arrest
Of the officials for these acts, but upon
advice OF Francis j. Heney. the minor
charges were dropped for that of fell
| ony embezzlement in connection with
the transportation of the funds Of
| the Cotton estate.
| AS result of the committees work
| ]. Dalzell Brown was arrested last
night, Il warrant was issued for the ar
rest of Walter J. Barnett on a charse
| of felony embezzlement and q detective
was dispatched to San Mateo to the
home Of David F. Walker, president of
| the bank.
His departure from there, led ii his
| subsequent capture and arrest at San
| ia Barbara. w. J. Barnett was arrested
at his home in Marin county last night
and was held in custody there until to-
day. Brown who was arrested earlier
in the day in this city, was locked up
in jail.
w. j. Barnett, who was arrested yes
terday on charges growing out of the
failure of the California Safe Deposit
d Trust Co, is vice president and gen.
eral attorney of the Western Pacific
Railway. Mr.. Barnett yesterday tel,-
eraphed his resignation to President
Jeffrey Of the Western Pacific and of
| his VolItlOn withdrew from the office
of vice president and general attor-
ney.
Il shall also resign as special admin
istrator Of the Cotton estate" Mr.. Bar
nett said. mot that l am guilty of the
charges which have been made against
me. but because thara IL q conflict ho
tween the interests of the estate and
the California Safe Deposit & Trust Co.
ana under the circumstances I cannot
be placed in dual position. AS to the
Colton securities, all I have to say is