The San Francisco call., 1908-07-26
MARTEL TO EXPLAIN
HIS BANK DEALINGS
Ex-President of Market Street
Institution Protests His Acts
Were Not Dishonest
Depositors VIII Meet at Colonial
Theater This Afternoon to
Consider Plans

Yesterday
meeting of depOsitors of the institu-
.tfon. which is to be held this afternoon
al > O'Clock in the Colonial theater In
BIcAIIister street, near Market. Martel
stated last evening that he viii be pre-
pared 10 make full statement of his
relations with the bank to the people
who lost money when the establish
ment closed its doors.
The former president of the defunct
bank is sorely affected by the strain
which has been put upon him recently
through the disclosures of the methods
Of finance ascribed 10 the Market Street
securities company.
Laboring under great mental excite
ment. and, according to some Of his
associates, on the verge Of break
down Martel sought John Ranter Of
9049 Green street yesterday. kanter
is the man who took the initiative in
assembling the depositors for the mass
meeting today Early in the morning
Martel telephoned TO Kanter and ar
ranged a meeting. The interview was
marked with some warmth.
u am innocent Of any dishonorable
act" Martel declared to Kanter, who for
years had been his friend.
Il have known men who have been
perfectly honest in all their dealings
until they have been placed in po-
sition OF financial responsibility" an
swered Kanter.
Then Martel outlined the defense
which he viii make today before the
angry depositors.
PROTESTS HIS INNOCENCE
He reiterated his protestations of in
-nocence TO a Call reporter last evening.
Il have nothing to do with the tactics
Of the Market Street securities com
pany," he said, and will be able to
1aof oT1
How about the purchase OF the
Burlingame terrace tract2" was asked.
The Mutual trust company secured it
for 100000 and the bank paid S154.-
600 for the property Immediately aft
erward."
The Burlingame tract was not pur-
chased" Martel replied, but declined TO
enter further into his defense.
I. H. Mooser. receiver of the bank,
stated that the Burlingame tract propo-
sition does not seem right TO him and
that he has conferred about the matter
with Assistant District Attorney Will
liam Hon Cook, who successfully prose-
cuted the cases against DalzeIl Brown
and Walter J. Bartnett.
If it is found that the transactions
were I'm violation OF the law" said
Mooser. the matter will be brought to
the attention Of the grand jury The
Burlingame terrace property is charged
- on the ledgers with $3.50. 600, while only
slo5,000 was paid for the land orig
iually by the Mutual trust company.
Some Of the difference between those
figures is legitimate expense, but ii is
question If the total balance of $245,-
600 is legitimate.
SUGGESTS CRIMINAL ACTION
I think that if it can be shown that
the directors OF the Mutual trust COM
pany and the Market street bank were
the same at the time of the transfer
there viii be grounds from criminal ac-
tiOn. Lots in the tract have been con-
tracted for sale for S125. 600. The sales
represent about so per cent Of the tract
When the entire property is sold 1 don't
see how il can come up to the amount
charged against the tract"
Mooser viii be present at the deposf-
tors meeting today and viii have a
statement TO present.
f I. Gintz. a lodging house keeper
al l144 Market street. will have a de-
tailed plan for cooperation among the
depOsitors to present to them this aft
ernoon. Yesterday he had printed sew
eraF thousand circulars which will be
distributed today His plan IS to have
all depositOrs assign their claims to one
person and have actions brought
against the stock holders. A charge of
] per cent of the deposits viii be made.
Attorney W. H. II. Hart is representing
Gintz.
Kanter is also to have an attorney
on the field in the person of Hugo X.
Asher, and Attorneys Emil Pohli and
Berth Weyl have become enlisted in
the affair. Kanter stated last evening
that he had no plan for today's meeting
beyond organizing the depositors.
DENIES CLEVER FINANCIERING
More details Of the methods of the
Market Street securities company are
coming TO light and place the concern
in an unenviable position. F. NJ
Meigs, president Of the securities com
pany, denied the tales of clever fnan-
ciering accredited to him.
"FrenZied insolvency, or the capital
lied deficit" is the characterization
given by Gavin McNab to the scheme
broached by agents of the Market
Street securities company to the Me
tropolis bank and trust company, for
which concern McNab is attorney He
added that the scheme was absolutely
unlawful
At the Metropolis bank It was stated
that three propositions were advanced
by the Market Street securities COM
pany.
The first was TO borrow money on the
bank books which the Market Street
securities company got from depositors
on the issue Of five year bonds. When
that money was borrowed the "fnan-
ciers" would be able TO make a showing
In the court that they were qualified
TO again take possession Of the bank
Once in possession of the bank the
msnipulators would use bank funds to
repay the loan made on the pass books.
The second proposition was TO take
into court the bank books secured on
the bond issue and make a showing
of ownership. With those books in the
possession Of the "fnanciers" they
could cancel the deficit by skillful ma
nipulatiOn Of the bank books, eradicat-
ing a certain percentage of the de-
posits.
DELAY FOR DEPOSITORS
The third method proposed was to
take the books and exchange them for
the bad debts of the corporation. and
then use the remaining bank books to
acquire the assets Of the bank, secure
control Of ii and even borrow money
on the pass books.
The owners Of the books used in the
transactions would have TO wait five
wears for their money and IL was fig
i,red that the bonds could be purchased
from impatient depositors at dis.
couut. A profit of $153,0O0. according
fcurod on nv the rneT