Los Angeles herald., 1907-12-12
SAN FRANCISCO FlNANCIERS
IN JAIL
PRESIDENT WALKER RELEASED
ON BONDS
Issues Statement In WhIch He Says
He Had No Active Control Of
California Safe Deposit and
Trust Company
BY Associated Press.

SAN FRANCISCO, Dec 1.-Following
his arrival from Santa Barbara, in the
custody of detective, David F. Walker.
president of the insolvent California
Safe Deposit & Trust company. To-Day
gave out statement in which he de-
clared that not until about two weeks
ago did he become aware of the true
state of affairs in the institution over
whih he presided. and whose rate Is
causing grave anxiety to 1900 deposit
tors
Walker, according to his own statement,
appears to have been merely figure-
bhead as he declared that he had no
active part in the conduct of the trust
company and the management of Its at
fairs. which, he said was left in the
hands of j. Dalzell Brown, the general
manager, who at present Is occupying
cell in the city prison on charge of
embezzlement based upon the disappear
ance of securities valued at $205,00O, be-
longing the Cotton estate, which had
been deposited in the bank by w. j.
Bartnett, director in the trust company
and until yesterday general counsel and
vice president of the Western Pacific
railroad, who was the special admins
traitor of the estate.
While neither Walker or Bartnett will
v
is responsible for the disappearance of
the securities the fact remains that the
former has denied all knowledge of their
existence, and the latter today stated
that the securities were deposited in
the bank by order of the court that
neither he nor Walker had anything to
do with their removal. nor at the time
that it occurred had any knowledge of
1t.
Suicide Results
Among the developments of the day
was the discovery of She suicide of T..
Otway Sadleir, manager of the West
End bank. one of the four branches of
the California Safe Deposit & Trust
company. Sadleir was an Intimate friend
and confidential employee of Brown. He
had worked increasingly to get his en-
ployer bailed out of prison, but without
success.
After talking with Brown in the city
prison late last night, Sadleir went to
room in the rear of his bank and blew
his head off with a double barreled
shotgun. Brown, who has maintained
sphinx-like demeanor since the crash of
the bank. and his arrest, was visibly
affected when he learned of the death
of his employe.
A bond offered by surety company
for Browns release today was rejected
by Judge Frank H. Dunno and the ac-
cused banker is still in the city prison.
President Walker spent from o'clock
this morning until in cell in the
city prison with DR.. Lee, charged with
murder, for a cell mate. He asked not
to be placed in the same cell with his gen.
eral manager. When, shortly before he
was released. he was placed in a cell on
the woman's side of the prison, near
Brown. the two officials of the insol-
vent bank made no attempt to commune
cate with each other.
Court Accepts Bond
Judge Dunno accepted a bond for
SIS. 900, given by a surety company, for
the release of the agen bank president,
and set his preliminary hearing for De-
cember 49, Walker avoided the news
paper men, but late this afternoon gave
out a statement through his attorney, w.
H. Chickering.
Walker said that he became president of
the California Safe Deposit g. Trust
company in July, 1905, at the earnest
solicitation of Mr.. Bartnett and with the
understanding that he was not to de-
vote his entire time to the management
of the corporation. During large part
of the time since then he had been alb
sent mi New York an6 Europe.
'In1my duties as president" said Mr..
Walker, "I was at the bank from time
ts time, but had no active conduct in
connection with the management of
the affairs of the bank. Those all re-
NAMED in the hands of Mr.. Brown, who
had been connected with the bank
prior to my becoming president.
"On the Sth day of June, 1907,
again went east on business in con-
nection with the San Francisco Bond
and Mortgage company. The first I
knew of any weakness in connection
with the bank was the receipt of tele-
graphic information from San Fran
cisco that the bank had closed it's
DOORS
s"During the few days Immediately
preceding this information 1 received
letters from Mr.. Brown to the effect
that the business of the bank and its
branches was in fiourishing condition
and that in spite of the financial crisis
tho institution was doing well.
II know nothing whatever regarding
the Cotton securities. l have never
seen the securities. nor have I ever
had possession of them in any form.
Would Aid Bank
II am not a debtor to the bank in
the sum of $4,000 or in any other
amount On the contrary at the time
when the bank closed / was creditor
of the bank in the sum of about $24,-
600 and Mrs Walker was also credit
tor. I am ready at all times, in event
depositors and stockholders can bring
about the reorganization of the bank,
to aid it so far as 1 am able.
''I have seen the attorneys for the
Cotton estate this morning and have
told them fully and frankly everything
that I know in connection with the
securities OF that estate, and I am
ready at any time to extend to them.
an TO any one, such aid as l can in
gaining information regarding the af-
fairs of th bank
Assistant District Attorney Cook
stated this afternoon that the two men
CONTINUED ON Page TwO.)