Los Angeles herald., 1908-12-13
CARLSON MAKES
ANOTHER OFFER
SAYS SURETY COMPANY WILL
FURNISH BOND
BANK COMMISSIONERS PREFER
ACTUAL CASH
Deposltors chafe at Laws Delay-san
Francisco Woman Finds Her
self in Pltlable State Of
Destltutlon


| bank commissioners by w. H. Carlson,
having for it's object the settlement OF
| depositors' claims against the Con-
| solidated bank at some time In the tu-
| ture. These claims, according to carl
son, aggregate about $4,000. Carl
sons proposition is made the subject
of a letter, copies of which have been
sent to depositors. One of these was
| taken to the district attorneys office
yesterday by Miss Alice German,
whose case is a pitiable one.
| According to the letter, Carlson has
arranged to furnish a bond with a
surety company for $4,000, the bond
to be placed in a recently organized
bank and held as a guarantee that
depositors will receive their money at
some stated time in the future. The
plan was submitted to the bank COM
missioners for approval, but without
| success, the commissioners, it is said,
preferring that the actual cash be
| placed in the defunct banks tills
This is the stand taken by George
Beebe, who, as deputy attorney gem
eral, began proceedings some time ago
to have the bank placed in the hands
of q receiver.
With this bond the $500 cash and
other assets now held by the Consol1-
dated, Carlson claims he can pay off
all depositors at 100 cents on the dol
|
was placed in charge of the bank by
the commissioners, the amount due
depositors is $4,000.
The difference of about $4,000 1t is
said, can be explained by the fact
that Carlson has secured deposit books
from large number of persons who
| placed funds in the bank, giving in re-
turn neatly engraved promissory
notes, and when an examination OF
| the books was made it Is said these
accounts were swept aside by Carlson
as not to be considered in the liabil-
tiles.
Early Hearing Expected
Hearing In the suit for the appoint
ment of a receiver for the bank Will,
it is expected, begin December rs in
| the superior court and until this mat
ter is decided depositors will be COM
PEELED to wait for their funds. a
number of continuances have been Sc
| cured in this action, for the purpose,
as it is claimed by persons interested
| of giving Carlson an opportunity 10
make good the shortage. At present,
as it was stated yesterday by person
| familiary with the banks affairs, de-
positors cannot hope for more than 20
cents on the dollar, and If 30 cents on
| each dollar deposited is paid out 1t
will be surprising.
The action of the bank commission
ers in refusing Carlson's latest prop
osition, 1t was said yesterday, has been
used by the banker and promoter to
satisfy the minds of complaining de-
positors and throw the responsibility
! for present conditions upon the COM
missioners and Evan Lewis, who Is
| charged by Carlson with being at the
bottom of the whole trouble.
Few of the depositors can under
stand the necessity for delay in the
| tho 1nnninfT0anf
of a receiver and the settling up of the
affairs of the Consolidated bank. AL
ready wrathful over what they believe
is premeditated procrastination, they
have become further disgruntled, 1t is
claimed. over the action of the bank
commissioners in turning down Carl
| sons proffer.
Miss Alice German. to whom, as a
depositor. one of Carlson's letters was
! sent complained to the district at
| toroney yesterday that she could see
no reason why the proposition should
not be accepted.
Gave Carlson Last Cent
Miss German said she came to Los
Angeles from San Francisco about
three weeks before the bank was
closed. Just before leaving San Fran
cisco she sustained a severe injury to
her ankle, which was struck by a fall
ing sign. She withdrew suit for
damages against the owner of the
| sign when her attorney told her the
man had a family and was without
means, borrowed $500 and came here to
seek employment. She deposited $500
of the money in the Consolidated bank
and gave Carlson 5000 to keep until
| called for. This sum, she says, was
also deposited to her credit by Carl
son and was involved in the banks
| downfall.
The woman returned to San Fran
cisco. where she expected to start
| school of music, but on hearing of the
| banks troubles came again immedi-
ately to Los Angeles.
~ am without means and do not
know where to turn" said Miss Cor
man yesterday. EVERY cent L had
was placed in the bank, and because
| of the delay in court procedure am
prevented from drawing any part of
| it out Besides the money was loaned
| to me, and / feel that it should have
been repaid long ago. Carlson tells
me there is plenty of money in the
| bank to pay depositors, but, owing to
the pending receivership suit, 1t cannot
| be touched"
| Miss German is almost destitute.
She has almost broken down under the
| strain of her troubles and during the
preliminary hearing of Carlson in JUS
| tice Selph's court has been regular
visitor in the little court room, watch
| ing the proceedings intently hopeful
! that the criminal examination may
elicit something to cheer her mind.
I MANY other depositors call at the
| offices of the Consolidated bank
doi1y irving 10 learn when they may