The San Francisco call., 1908-07-25
FINDS A JOKER
IN BANK ASSET
Receiver MOOser of Market
Street Concern Discusses
Peculiar Irregularity
Directors Are Said to Have
Made Personal Profit in Sale
CT Burlingame Terrace

II believe that all the frantic efforts
to keep the receiver out of this bank
were to keep this transaction and pos
sibly others from being exposed to the
public"
The above statement was made by
Louis H. Mooser, receiver of the Mar
ket Street bank, yesterday afternoon,
after the discovery had been made that
transaction involving the Burlingame
terrace, one of the principal assets of
the bank, was clearly irregular. IT
cannot understand" he said, how
! such sum as 1921 900 can be charged
against this piece of property as ex-
| penses."
The transaction referred to in
Moosers statement was the purchase
of the tract of land from the Mutual
trust company for $154,000. The prop
erty was originally sold to the Mutual
trust company, whose officers and di-
rectors are the same as those of the
Market Street bank, for $105.000, S55,000
| being paid in cash and mortgage
given for the remaining $4,000. The
| property was then sold to the bank for
$164,OOO, the bank assuming the mort
gage of $4,000.
IRREGULARITY OF PAYMENT
In looking over the books of the bank
| yesterday MooSer discovered that $751;,
600 had been paid on mortgage and
he was at loss to account for $4,000
being paid when the mortgage only
called for $4,000.
There is also a charge against the
property of $121. 900 for expenses. 1t is
not itemized and gives the transaction
a very shady appearance.
This Burlingame terrace is the
largest single asset of the bank" said
4 ATl
/ the bank at 1926 900. There is also due
the bank on lots sold on contracts
100000. Many of the lots remain un-'
sold, and L cannot understand where
the S121,000 expenses come in."
CLERK ACTS AS DUMMY
Frank B. Sylvester a clerk in the
bank, purchased the land for the bank,
and Immediately decided it over to the
| bank. He merely acted as a dummy,
| and was not aware at the time he
signed the deed what he was signing.
Our information is that this prop
erty cost the Mutual trust company
| $105,000." said Mooser. The matter is
now being investigated to ascertain the
correctness Of the information, which,
| should 1t prove true, would indicate
that the directors of the Market Street
bank paid to themselves as directors
of the Mutual trust company profit of
about $4,000 on the property"
A. F. Martel, president of the bank,
! refused to discuss the matter last
! night, saying that everything was in
the hands of the banks attorney. Oil
Yer Ellsworth, and the Market Street
/ securities company. Ellsworth could
not be located last night,
DEPOSITORS WANT THEIR BOOKS
Hundreds of depositors called at the
! bank yesterday morning and besieged
| Mooser for information as to whether
| the securities company would return
the bank books that had been turned
| over in lieu Of bonds that were issued
| by that company The majority of the
| depositors were in an angry mood, and
| it required much persuasion on the
part of Mooser to get them to go to
| the office of the securities company and
| ask the directors of that concern what
action they would take in regard to the
/ exchanging of the books for the bonds.
| Evidently the securities company re-
fused to consider the depositors' pro-
posal, as the depoSitors returned to the
bank later in the day in a very indig-
nant frame of mind. 1t was stated
that the securities company refused to
| return the books, giving as an excuse
that the matter was to come up before
the supreme court on appeal in a short
time and that the books were required
| as evidence.
Mooser advised the angry depositors
| to organize to bring legal action
against the securities company for the
return of the pass books. Pursuant to
| Mooser's advice, several of the leaders
| in the crowd of depositors called a
meeting of all depositors for next Sun
day afternoon at o'clock at the bank
An attempt will be made at that time
to form an organization among the de-
positors and counsel employed to pro-
ceed against the securities company