The San Francisco call., 1908-05-17
InterbOrO Bank Makes Brave Struggle to
Recover From Panic, but SuCCumbs
Solvent Institution Dragged Down by Its Former
Director Who Helped Wreck Trust Company
By C. C. Carlton


boro bank, in which Bartnett
Of the defunct California safe de-
posit and trust company of San Fran
cisco were also directors, has finally
closed its doors after a brave effort
to survive the effects of the panic 1t
was declared to be perfectly solvent
but did such a poor business and lost
so many depositcrs after the failure
of the California safe deposit and trust
company, the directors decreed 1t wise
to liquidate the business of the institu-
tion.
II Will be recalled that Immediately
after it became known that the Cali
fornia safe deposit and trust company
closed its doors in San Francisco the
Interboro bank here requested Bart
nett and to resign as directors.
The president of the Interboro stated
to The Call correspondent at that time
that the Interboro bank was not
creditor of the safe deposit and trust
company Of San Francisco. and would
not lose a dollar by the failure Of the
latter institution, but that in view of
all the circumstances 1t was deemed
advisable to request the designations
of Bartnett
The president of the Interboro in
an interview with The Calrs corre-
spondent. was glad to give a
vote Of confidence, but not so much for
Bartnett. Concerning the latter he had
nothing to say-favorable or otherwise.
At this time too, the president of the
Interboro bank seemed quite anxious
to have it known that the Interboro
was perfectly solvent and in nowise
affected by the san Francisco failure.
To those who understand the rela-
tions between the two banks, how
ever the failure Of the New York in
stitution following that OF the Cali
fornia safe deposit and trust company
did not come as a surprise.
The Interboro bank people, although
processing to be not concerned about
the outcome of criminal prosecutions
in San Francisco, nevertheless betray
an eager interest in all reports from
there. It is evident that they expect
Bartnett VIII be convicted. The Inter
boro bank is or was located in the
same building with the Atlantic safe
deposit company, at 40 Wall street.
When Bartnett came east to try and
secure aid for the California company
he spent most Of his time at 49 Wall
street, for he was not only a director
of the Interboro bank. but had vault
in the Atlantic safe deposit company,
which, according to Bartnett's letters
10 Brown. was secured merely as a
bluff-to carry out a pretense that GER
tain securities were locked therein.
When J. Dalzell Robertson was in
New York and declared TO The Call
correspondent that he was ready to
return TO san Francisco and tell the
story OF how the trust company was
located he tried to shield his foster
brother. J. Dalzell Brown, and throw
the burden of guilt on Treadwel and
Bartnett.
But why did Brown continue to
make loans to the very last?' Robert
son was asked. and he replied:
I was absent from the Office during
the last half of the month on a vaca-
tion and can only say I believe he
hoped matters would straighten them
selves out with an Improvement of the
general financial situation"
Did Brown appropriate the funds Of
the bank for his own aggrandizement
and profit and Robertson an
swered:
Y fully believe Brown anticipated
that should all Of his deals pan out he
could and would repay any moneys he
might owe the bank"
IN his speculattons and investments
did Brown believe there would be a
return in profits by which he would
reimburse the bank funds?
Yes" said Robertson.
''Why did Brown permit the bank to
continue TO receive deposits up to the
hour Of failure?'
Not being at the bank for two
weeks previous TO the date Of closing,
I can't say"
Did he really believe that Bartnett
or others could secure aid in the east?"
Yes" replied Robertson.
What was Bartnett's part in the
hnanciering that wrecked the bank?'
"Bartnett received proceeds of loans
made in the name of other parties in
his own behalf"
What was TreadweIl's part?"
7 consider that TreadwelPs projects,
especially the coal mining schemes,
were greatly responsible for the bank 5
failure" said Robertson.
Did any bank commissioner receive
money or credit from the bank as a
bribe or gratuity for services rendered
or for sighting his duties?
Not to my knowledge replied Rob
ertson.
Did Gould or any of the Western
Pacific interest share illegally in the
funds Of the bank?"
No" said Robertson, quite posi-
lively.
f. l. Minchot, the Los Angeles miner
reputed to be fabulously rich, arrived
at the Hotel Astor this week and, like
"Scotty," was the recipient Of much
attention on the part Of the walters,
bellboys and other household servants.
It was even reported along Broadway
that Minchot had brought S1,000,000 to
New York for investment The figures
were enlarged upon, and soon grew to
a preposterous amount. Various gents
along Broadway who live by the sweat
Of other peoples brows got busy i'm
mediately; but unlike 'Scotty'' Minchot