The San Francisco call., 1909-08-06

Continued from Page
the deferred payments of so per cent
are merely unsecured promises which
would fail of realization il the new
concern did not succeed in business.
Ihe lack of financial experience of the
men connected with the project and the
absence of conservative principles and
safeguards for success are, to my mind.
unfortunate features of the enterprise.
There is a wide difference between
the valuation 1 place upon the assets
Oh the California safe deposit and trust
company and the value placed upon
them by Mr.. Bartnett and his associates.
Mr. Bartnett says they are worth So
100000 Reckoning the 41.500 shares
OF Western Pacific stock at $50 per
snare, todays market value, L value
the total assets at $3,940.429.79.
Not only have the stock holders rep
resented in the reorganization scheme
approved the Bartnett scheme, but they
have shifted the 100000 originally
subscribed to their holding company
plan into the required fund of 100000
called for by the New York plan. They
have increased this to 100000 and are
now circulating a petition to secure
the remaining 100000.
Yesterday afternoon about 80 prom
inent depositors and stock holders and
their attorneys met in newly rented
offices in the Kohl building and formed
an association to take hold of the ac-
tive work of accomplishing the reor-
organization. This body proceeded to
organize and elect the following Of
ficers
President, Richard M. Hotaling; vice
president. Julius W. Raphael; vice
president, William Metzner; secretary,
Oscar Cooper; executive committed
Milton T. URen, attorney Charles c.
Boynton, attorney; William Metzner,
president Monotuck silk company; ].
D. Isaacs, wholesale merchant; IS. l..
LesZynsky wholesale cloak merchant;
DR.. J. Mora Moss; I. I. Brown, attorney;
o. NJ. Goldaracena, Spanish consul; r.
NJ. Hotaling. president Hotaling estate
company w. c. Peyton. president Pey-
ton chemical company; Julius a. Young,
manufacturers agent; W. III. CHECKER
ing, attorney; Oscar Cooper, attorney;
II. L. A. Bates, general agent Shawnee
fire insurance company; w. 7. Plunkett.
attorney; w. j. Bartnett, attorney; Ju-
Illus w. Raphael and Rev. NJ. S. Levy.
The sentiments expressed were strong
ly in favor OF the reorganization move
ment and against a continuation of LIE
BretonS rule. There seems to be vast
ma jority in favor of the high values
estimated upon the assets as going
concerns, and no one except lie Breton
to speak for his valuation, which they
term the valuation of a wrecker. The
dissatisfac ction with the fees eXacted
by the receiver and his attorney, j. V.
de Laveaga, who, by the way, is the
receivers nephew, amounting in all to
about $4,000. for the last year, seems
to be general
The reorganization committee of the
California safe deposit and trust COM
pany after due consideration is op-
posed to the payment of an or 10 per
cent dividend by the receiver in August,
1909, for the following reasons:
This committee is satisfied that the property
in the receivers hands under the administratiou
Of going concern Is worth about - O0OOOU,
based upon three independent apprasenents
and that it can be managed and used TO
result in the payment to the depositors OF 20
cents in cash within 90 days and reasonable
probability of 20 cents additional In few
years.
1905 at 50 4S3 900 and said 1t would pay the
creditors only 1916 cents on the dollar. ne
raised this value slightly on the hrst OF the
sSr psg about &c cents on @ the dollar He now
says that the property, together with the cash
in his HANDS viii & pay op be must on bs9e
raised his estimate Of the val value OF the prop.
erty in his hands TO 4.50oO 600 an increase IN
his estimation of over S2oOoO0O or nearly 1Vu
per cent increase in six months.
IT is evident that great caution, is necessary
on the part of the reorganization eommittee so
as 10 avoid permitting the dissipation OF this
prperty until its value has been more safely
determined and until all efforts to dispose OF IT
whole and to the best advantage nave been
exhausted. The reorganization committee knows
that the payment of n dividend at this time py
the receiver will destroy all cnance or seliing
the banE's assets as a whole of establish
ing new bank on their. foundation and the
committee believes that the best and quickest
reeults in cash to the deposftors viii be OBJ
tanned by and through reestablshed bank
In order to give the movement for such reor-
ganfzation a chance TO be perfected the reor
ganization committee recommends reasonable
delay in the payment OF the contemplated ulVl-
dend by the receiver.
Oscar Cooper. the attorney representing Bart
nett. when informed OF receiver LeBretons un-
remarked that he was sorry but not greatly
surprised, 80, -
lie Breton'' said Cooper. His interview in the
Chronicle Of last Sunday a week ago. before
he had even seen Mr.. Bartnett or heard the
plans specifically. was an unexpected blow 10
us. but on the following morning he called 1T
nv office and said that the article was not an
entirely correct expression OF what he had said,
reporter | think Mr.. lie Breton regarded the
plan itself as practical and intelligent ut
doubts the value of the assets
LAS to the difference between his valuation
and that of our appraisers and the independent
appraisers of the eastern capital. which seems
to be be & the difference between st;ooo,oJp ana
are taken from different standpoints The re-
ceiver must necessarily place upon the proper
ties OF the bank what amounts to practically
their SCRAP value under the hammer OF the aue-
tioneer. The Yslues placed upon the properties
by onr appraisers however. are values nxeo
upon the assumption that the banks ndustrfais
will be operated and with ample capital to in
sure their operation intelligently and economi
caly.