Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-06-16
CONSOLIDATED BANK is SOL
VENT, HE DECLARES
BLAMEs EVAN LEWIS FOR RE-
OWNERSHIP TALK
Does Not Go Near Commissioners Nor
George II. Peck--Man In Charge
Says President Is Big
"Bluffer"


state bank commission, depositors In
the bank, creditors Of 1t and the Los
Angeles Securities company, and an in
terested public. returned yesterday.
Mr.. Carlson came at time when
George H. Peck was preparing to insti-
tute receivership proceedings and just
day before the office of District At
torney Fredericks is to receive state
ments from those who think a grand
jury inquiry into Carlson's affairs would
be advisable.
The bank examiners, too, were as
sured that on his return Carlson would
assist them in smoothing what they
call tangled" condition of the bank
affairs, towit: insolvency due to- the
impairment of the capital stock. But
Mr.. Carlson did not see the bank COM
missioners, who waited patiently Tor
him, nor Mr. Peck, who also was as
sured he would call.
Carlson came in from Arizona yester-
day morning at o'clock and hurried
to the bank with his two sons. There
he found Evan Lewis in charge ana
number of lot buyers on hand to de-
, mand explanations. He gave them in
loud speech declaring there was no need
to worry and that he would protect
everyone. Then he left.
Bank Commissioner Vawter waited at
his office in the Germain building until
and then left without any arrangement
to meet him today. Vawter tried vain
ly to ge? a meeting But Carlson In an
interview last night declared he would
see the bank commission today and
would see Mr.. Peck.
Carlson Is Defiant
Late yesterday afternoon Carlson was
behind the counter In what was the
bank and real estate office combined;
He received many patrons OF his iand
schemes and assured them that every
thinp was "all right" He took charge
of the Securities company's business,
but left the bank alone. :.
Eyes, I am back, even from Mexico"
said he to Herald reporter. Il sup
pose If the papers had known was SO
far in Mexico as Torreon, where Went
ito see q man worth million whom l
once befriended, they would have
brought me back in manacles. But I
had this business to look after and 1
went to and came from Mexico under
my own name and without disguise.
ST am back to shame those who tried
TO break the heart and faith of women
who was alone during my absence. l
tell you, 1t makes my blood Doll when
think of 1t. Put ] am here and Will
stay until everything Is Strengthened
out and my name cleared.
1.-THE charges are malicious and come
from enemies whose names are those OF
the basest towards in the world.
"As for the Consolidated bank, 1t was
a small institution. perfectly solvent,
and it was my intention to put 1t In
liquidation before went east. MY at
torneys, Woodruff & Mcclure. will bear
me out in that. Now the bank commits
sion can wind up its affairs
The Banks Money
"But to show you the malice of this
thing 1t has been given out that there
was but $500 on hand, whereas the COM
missioners admit they have $523S. IT
was the rule rNt to carry over S5OO In
the bank but to carry balances In the
Farmers and Merchants bank, San
Francisco banks and elsewhere. NO,
the bank was solvent and will work out
ali right just as 1t would II I had put
it In voluntary liquidation, as l had
planned.
.'The real inside of the matter is that
all this talk of receivership has come
from this janitor the bank commits
sioners have put in here in charge OF
the bank, this man Lewis, who finding
that there was an income of $3.50 a. day
to the realty company, has tried TO
; maneuver things so that he could be-
come the receiver. oh, can see It
as plain as day, but want him In the
future to stay over here" and Mr..
Carlson indicated the front corner at
the space inside the bank counters,
land not to cross this line," indicating
an imaginary line on the floor, for he
has no business over here
; lover here Is that part OF the office
used by the Securities company.
Charges Against Lewis
"No. this long-legged, flat-footed
Lewis, this provate letter opener, must
keep to himself. Here Is Q letter." said
Carlson, as he pulled an envelope from
his pocket, that he opened. 1t Is my
nriyate mail. He asked my attorney,
Mr.. Mcclure, to open 1t. Mr.. Mcclure
said he had no right to open another's
mail.
Lewis, and he opened 1t. I will see
what the government has to say about
that.
"You intend, then, to let the bank
stay In the hands of the commission"
"Certainly. L would have wound 1t
in before but feared 1t might AFFECT
the real estate business.
"Then what do you intend to do for
the hundreds of lot owners who have
been aroused?"
At intend to protect them, as am
amply able to do, out of my private
fortune. I have sold II, 900 lots at 500
each. which makes $990,000. or this
amount I have received $450,000, which
has been expended-$175,G GOO for land, l
have built a railroad seven miles long,
. have built water plant and laid pipes
and have paid $4,000 for the Pasa-
dena Villa tract"
What Carlson Owes
s.Do you mean that the difference
between what you have received and
what the lots have sold for is your
equity in all the land p
"Why. certainly" said Carlson.
s'But it is claimed that you owe $780,
to Mr.. Peck on one tract alone
"rrhat is true, / do. They have made
much of that. They have also made
much of the fact that l owe Mr.. Peck
and that the debt must be paid next
month But they did not say that l
have three years, very long time in
this business, to pay Mr.. Peck's whole
amount. and that all l have TO pay
next month is $780,
..You see, this whole thing has been
an attempt to wreck me so that some-
: BODY could get fat receivership for
the next three years. Lewis, you know,
Is a politician out of job, and 1t
would be fat thing for MIN 1or the
next three years to be receiver.
"Fie and Bank Commissioner Vaw-
ter were declaring I would never come
back to Los Angeles. why, 1 love eV-
cry stone in 1t and l have every rea-
son to come back. l believe In ~, IN
its future and in its stapility, ana 1
do not believe the people VIII be mis-
led by this attempt to wreck me-"
''But the Securities company is a
debtor of the bank?"
Eyes, ] know 1t is, and the uept is
ne a -