Los Angeles herald., 1908-06-18
BANK
NOW IN COURT
COMMISSIONERS ASK FOR IN
VOLUNTARY LIQUIDATION
JUDGE JAMES ISSUES RESTRAINT
ING ORDER
Banker and Realty Promoter Has
Promised Settlement Proposition
Today-contract Holders
Hold Big Meeting

William H. Carlson. president OF the
suspended Consolidated BANK all us
directors and employees, are now bound
by orders issued by Judge W. f.
James yesterday, restraining them
from disposing OF any property OF the
bank.
This order was issued after the bank
Commissioners through Attorney Cen
eral Webb had filed a complaint al
1eping the insolvency Of the Cohsoll-
datad hank and the danger to its assets
IL involuntary liquidation was not p9
gun. This means a recelVersnlp, a.
fhoneh If is asserted the bank COM
r,1issioners. who were represented by
Denutv Attorney General George
roche took the step to safeguard as
sets that might not be under thelr
The complaint fled alleges that the
commissioners determined May 20,
after an examination, that the pan>
was doing business In an unsafe man
We, "e,9 ina there was a deficit in its re-
serve of s41O6, that there was only saw
cash available and that 1t had loaned
10 Carlson $30250. The commission
fnrther found the significant fact tnat
If was not able to do business at q
profit. ss,. X,.;oe,, VOC.
Carlson visited ms olllCe5 VI tShy
+ardav but spent most Of the Gay else
t WI ore mart of the time at the office
of cage & Foley. across the street
II &c understood that while Mr.. PecK
o,,ioinal owner of the lands involved
IN Carlson's real estate 6eals, may not
hiring a suit for a receiver TOT the Los
Angeles Securities company sucn a
suit will be brought by contract
holder this week.
Promise for Today
Carlson insists that If he Is let alone
he will be able to bring everything
out all right In view of this the pailA
commissioners will welcome ms prop
ositinn today as promised by him II IL
carries our his verbal promise OF Tues
dav. However, there is no disposition
to let him get control of the pank )
injuries are beginning to come IN
Los Angeles friends of outside invest
ors in Redondo Villa and other lo.s
and it seems that they have peen SOLO
ali over the country. Carlson boasts
that +he income from sales reached
S586 a day and that If let alone II
would have solved the problem or the
company easily. Contract holders are
now reading their contracts careIuily
and think they can see new meaning
between the lines.
Here Is the Contract
Here Is a sample contract, held by a
man living near the Atlantic coast:
rs PER CENT GUARANTEED INCREAsH'
CONTRACT.
LOS ANGELES. Cal. -. 1907.
pooa,ved of -- the sum of four
collars (s40O), as q deposit to secure the
purchase Of the following described lots
Of the "Redondo Villa Tract B." Lot num-
bered - of block numbered = accoraihs
adj
Henderson, and fled { in the county re-
corder's office of Los Angeles county on
page 10 of book IL of Maps. subject TO the
following conditions;
The said deposit is accepted only as rent
IN said property for the period or one
month from date and the Dement'S OF TINS
contract are conditioned on the turther
sum of four dollars being paid as monthly
rent to be paid on the 1za gay VI e e,'
month hereafter for twenty-one months
with exact punctuality. as time Is the es-
sence of this agreement, then ana IN CON
sideratlon OF having paid sara rent lor
said period, upon payment or Two dohafs D.
a warranty deed is to be furnished TO the
above named party, conveying a perfect
title to the above described property. free
and clear of all encumbrances. on May ~,
1909 or we will refund all money paio
together with per cent per anhuih III
terest added
All deeds are to contain clause pro-
hibitng tho establishment of saloons 10
sell spirituous liquors on said property ana
also prohibiting the erection OF shanties
thereon, ana that all buildings erected on
said property must be neat, modern ana
attractive. the plans Of which must nrst
be approved by the city building inspector
of Los Angeles in order to assure the erec-
ton of only attractive homes thereon.
All deeds to said property will contain
clause prohibiting the erection Of any
building to be used for manufacturing or
any other Questionable purpose. as It u