Los Angeles herald., 1907-12-09
BY Associated Press.

BY Associated Press.
N AN FRANCISCO, Dec. S.-J. Dalzell
~ Brown, among the most prominent
~ financiers of this city, and general
manager of the California Safe Deposit
and Trust company, which closed its
doors carly in November. was arrested
tonight on the charge of felony-embezzle-
ment.
A warrant was also issued for the ar
rest of w. ]. Bartnett, leading lawyer
and director of the banking concern.
Late tonight Bartnett was put under
arrest at his home in Marin county. AT
midnight Brown was still held at the tity
jail, being unable to secure bonds.
sartnett, vino mas been vice president
and g.neral attorney of the Western Pa
cific railroad, tonight resigned.
Brown is in custody pending the Sc
curing of a cash bail of 100000, or bond
of 100000.
bank, has rendered his resignation On
behalf of Mr.. Walker the statement Is
made that he knew nothing of the
banks condition and occupied sort of
honorary position.
Brown and Bartnett are accused OF
having hypothecated securities amount
ing to 100000 belonging to the Cotton es-
tate of which Bartnett was special ad-
ministrator. The securities were placed
in the bank by order of the court a year
ago, pending the settlement of suit to
have Bartnett removed
The warrants for the arrest of Brown
and Bartnett was obtained today from
the district attorneys Office by the at
torneys for Helen Sacher, who is con-
testing for portion of the Cotton estate.
Associate of Huntington
Mrs Ellen M. Cotton, widow of the
late D. D. Cotton, who was associated
with Stanford and Huntington in the
construction of the Central Pacific rail-
road, died in 1905, leaving almost her en-
tire estate to Mrs. Caroline Daghlgren
of Washington, one of her daughters,
and bequeathing to her great grand
daughter, helen Sacher, only $1,000 This
will is now icing contested in the courts
of this state. 1t is alleged that Mrs.
Cotton was induced to make the will by
undue influence exercised by Bartnett
and Mrs. Dahlgren.
Bank Commissioner Sherer, in state
ment: "In my Investigations of the af-
fairs of the bank 1 have found they
have loaned great deal of money on
stocks of their own companies. They
seem to have very few bonds of which
they have loaned. I found they had
sS75, 900 of Western Pacific railroad stock
I have been advised that within three
hours before they closed they accepted
deposit of $4,000 from certain con-
struction company. and that within
half hour of the closing they accepted
a deposit of $500.
'As far as am able to figure out the
banks affairs, it has loaned $5,900,000 on
stocks which have some value, but are
not easily convertible at this time. What
these stocks may eventually realize in
cash I do not pretend to say. The bank
also has about $5,000,000 of bills receiv-
able much of which has good collateral.
Many Of these bills will be realized at
par.
Brown Confident
'The bank has about $9000,00O of saw
ings and commercial deposits.
"I cannot predict how much of it's
various stocks and bills receivable can
be realized at par, but 1t seems to me
that in the process of liquidation the
bank can realize a good deal of money
and that the depositors can get sub
stantial return.
"There has been a great deal of talk
about the securities held by the Cali
fornia Safe Deposit and Trust COM
pany. I found in my investigation that
both Mr.. Brown and Mr.. Bartnett have