Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-06-12
DOUBT CARLSON WILL
RETURN AT PRESENT
ONLY NEED FOR HIM Is TO
BRING CASH
Thought to Be Avoiding Jurisdiction
of California Courts--comnIs-
sioners Have No Direct
Word from Him

IL w lllldlll 4. AIdTlsOn RETURNS 10 llOc
Angeles he will surprise the state bank
commission. Mr.. Carlson is the presi-
dent Of the Consolidated bank, in the
Chamber of Commerce building, now in
charge of the bank commissioners by
reason of the impairment of Its capital
stock. and was last heard from at Albu-
querque, N. NJ. From there he is sup
pose to have gone to Ell Paso, and from
there
So far neither the bank commissioners
nor Mr.. Carlson's attorneys have had
word direct from Carlson. All informa-
ton has come from the family. So far
as the commissioners actually know
Carlson is mystery.
There are two reasons why he Is not
likely to return to Los Angeles. One is
that he may wish to avoid the jurisdic-
ton of the California civil courts. SO
far the bank commissioners have found
no officer of the bank on whom valid
service of legal process could be made.
Mr.. Carlson was the whole bank. The
commissioners have waited for his re-
turn, hoping that there might be an
easy, direct method of adjusting his
affairs and those of the bank, but ac-
cording to one of their officers yester-
day they have little real hope that
Carlson will return.
The other reason why Carlson would
return is that he has obtained the
money necessary to adjust his affairs.
Without the money his return would
not make any-important change in the
situation. And the commissioners have
little belief that he will return.
Trustee for Payments
Under authority from the commits
sioners Evan Lewis, who is in charge
of the bank, is receiving the money due
on installments for the lots sold by
Carlson through his realty company.
This money Is being held in escrow by
the commissioners for the benefit of the
lot owners. The first day or two these
receipts, amounting to 1928, were placed
by the realty company in the bank-all
In the same room-and were drawn out
by Carlson's son. But the commission
ers changed this. They required young
Carlson to pay back the money he had
taken In this manner and arranged the
plan of holding the money in trust for
the lot owners.
So far as the commissioners are able
to find, Carlson did not take more of
the banks money when he left than
enough to defray his expenses on the
trip to New York. But his realty COM
pany owes the bank about $4,000, and
the realty company owes the owners of
the fee simple title to the land he was
selling under contract, and between
the two fires 1t would take a very large
amount to straighten out the situa-
ton. So serious is this situation that
the original owners are now investigat-
ing where they stand under their con-
tract with Carlson, and this will Incl
dentaliy show where the man who was
trying to get home on the instailment
plan stands.
The Real TangIe
If Carlson were back he would have
to settle the unpaid balance on each lot
due under the original contract in order
to release the lots sold. This in the
aggregate would be large sum. He Is
the third party to the contract. There
Is due the original owners next month
1000, which must be paid. There is
another Indebtedness to the second
party which is not immediate nor large
But the original land owners must pro-
tect themselves. There Is belief that
Carlson has already vitiated his con-
tract with them and that they must
| take charge of the land. This will bring
| them into direct dealings with the lot
buyers--the men and women who were
paying small installments for homes
and will determine what balance the lot
owners will have to pay.
| The difference between what Carlson
| has paid under is contract to the orig
| inal owners and what he has collected
| from the lot owl,vrs is the item of great
| interest to the lot owners, for 1t will
establish just how much of their money
| Carlson has.
| Although the bank had a capital OF
| SCI. 900, there is only about $500 in cash,
and in addition tie Carlson realty COM
PAW has an overdraft $4,000.
+ One thing is sure to the bank COM
tmissioners, and that is that the books
| of the bank were well kept and that
| they are straight. Mr.. Carlson's return
with the money is, therefore, the real
thing that would be remedial of the
whole trouble. The commission will
await his coming, for the present.