The San Francisco call., 1908-08-29
LE BRETON SCORES
J. DALz[LL BROWN
Receiver Says Creditors of Trust
Company May Expect z3.6
Cents for Dollar
Walter j. Bartnett and James
TreadweII Are Praised for
Giving Assistance

Edward J. le Breton. receiver of the
California safe deposit and trust COM
pany, filed a lengthy report with the
county clerk yesterday in which he
presents calculation that the depos-
itors will receive about 23.6 cents on
the dollar of their claims, praises Wal
ter J. Bartnett and James Treadwell
for the ready and full assistance they
have given him in the task of disen-
tangling the affairs of the institution.
and roundly criticises ]. Dalzell
Brown, who turned states evidence
against his fellow wFeckers and got
off with is months Imprisonment, for
Withholding information of value to
depositors.
Particularly hard comment is made
upon Browns refusal to give any in
formation about the account entitled
- Dalzell Brown, trustee No. s."
which lie Breton calls "a maze of false
and juggled entries" and "a clearing
house for all kinds of fraudulent en-
tries for the appropriation of funds" "
Brown absolutely refused to answer
any question regarding this account on
the ground that to do so would incrim-
mate him.
Learning from the newspapers after
Brown pleaded guilty that the ex-man-
ager was prepared to turn over val
liable securities to the receiver, LIE Bre-
ton asked him for the stock and OBJ
tained from him certain shares which
the receiver says he does not believe
represent 500 in value at this date.
MIsREPRESENTATI CHARGED
This receiver wishes to avoid any
controversy with the district attor-
ney." the report proceeds, ''but in JUS
tice to himself and to the creditors Of
the California safe deposit and trust
company this receiver will not allow to
go uncontradicted the statement made
to the public that Mr.. Brown enabled
the receiver to recover $1,00O,00O for
the depositors, represented by 10000
shares of the Western Pacific railway
company in the possession of John
Treadwell and held by John Treadwell
as the property of the Western security
company, of which the California safe
deposit and trust company holds 23,5eC
shares as security for the loans made
TO Mr.. Treadwell."
LIE Breton asserts that 10000 West
ern Pacific shares would not probably
be worth today more than $4,000, and
adds: 1T is a far cry from $50,000 to
$1,00O,0O0 He says he is willing that
justice should yield to charity and
commiseration, but this receiver will
representation to be made to the de-
positors. They have suffered enough
already" He states, further that the
depositors are entitled to have from
Brown g full statement of his mystic
rious No. 5 trust account.
DEBT REDUCED
AS to Walter j. Bartnett, who was
convicted of embezzlement and SEN
70 Snn fCo ConT n
receiver records that he sent word tC
lie Breton that so far as was in hi:
power he would secure the bank fol
any money he owed it, and Immediately
handed to the receiver a first mortgag gs
upon his home in Marin county fol
$23, 900. With other moneys collected
the debt of Bartnett to the bank ha:
been reduced to $3.2S4, and the receiver
holds securities that will probably wipe
out this. Bartnett. il is stated, ha:
never refused the receiver information
asked for or refused TO resign from di.
rectorates when requested to do So
James TreadwelI. now under trial fol
perjury as far as can be learned BY
the receiver, has no property which ht
could turn over as security for his
Indebtedness to the bank, but ha;
greatly facilitated LIE Breton wher
called on for information, and Gin nc
by him found to be false or untrue,
the report says. John Treadwell. hi:
brother. who has been continually alb.
sent from the state, through James
gave the receiver a first mortgage fol
$500 on his home in Oakland. which
has been applied to the partial pay
ment of one of Johns notes.
ROBERTSON CALLED TOOL
John Dalzen Robertson, the assistant
secretary and a relative of of Brown
was, according to the report, the In
strument or tool used by the managers
to put through nearly all the fraudu-
lent and juggled entries" and was
apparently connected with many IL not
most of the embezzlements OF funds and
securities"
The receipts of the receiver, includ-
ing the cash on hand when he took
charge in January, total $1.03S, ,097.7S
and the disbursements amount to $469,-
1880, leaving on hand 1868, ,47S.98. As
of July 81, 1908, lie Breton places {
valuation upon the resources of tht
bank of $2,4S2,332. The realization OF
236 cents on the dollar will depend
largely upon Improvement of busines:
conditions and upon the energy anc
ability and good fortune of the re-
ceiver. it is stated 1t will, he adds
take four or five years to intelligent,
terminate the liquidation of the institu,
ton.
LIE Breton gives a list of claims al
legged but not admitted toNbe of a pre-
ferred nature, totaling about $170. 900
and adds:
The unfortunate depositors ar,
threatened with many additional claim,
and lawsuits. A liquidation of thii
character is a tempting prey to many
i,.rf m noua eo femntinR as TO attorney,
and politicians"
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