Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-01-12
COMMISSION HAS
CARLSON'S OFFER
BANKER PROPOSES TO GIVE
BOND AND REOPEN
ASSETS NOT SUFFICIENT is
BELIEF OF SOME
Meeting of Depositors Is Called for
Tonight in Attorneys Offices
ard Proposition Will
Ee Submitted

When the state banking commission
ers meet in San Francisco Monday
there will be placed before them for
consideration the proposition of w. H.
Carlson to furnish a bond to secure
the depositors of the Consolidated
bank, of which he is president.
The receivership proceedings against
the bank came up before Judge James
of the superior court yesterday and
were continued until 10 o'clock
Wednesday. On account of the COM
miSsiOnerS' meeting in San Francisco
Monday, it is likely another continu-
ance will be asked for and that no
further hearing of the matter will be
had until the middle of the coming
week or later.
Carlson's proposition is to furnish a
bond for $4,000, which is about the
amount of the liabilities of the bank
For security he offers his equities in
Pasadena Villa tract lots, lots in Re
dondo, about $1,000 cash on hand in
the bank, $4,000 represented in pass
books held by Carlson for which he has
given thirty and siXty-day notes, and
the charter of the bank.
The proposition has already been
submitted to Attorney General Webb
in letter from Carlson. Mr.. Webb
has replied to this in a communication
to the bank commissioners, dated
D,
ney generals office has no authority
to accept the plan.
AS admitted to the attorney general,
Carlson's plan was to furnish a bond
executed by the United Surety COM
pany, conditional that the bank would
pay to depositors the full amount of
deposits, plus interest to date of pay
ment.
1t is also proposed. according to Carl
son, that the bonding company take
full charge of the Consolidated bank
and pay out the money to the deposit
OrS.
Depositors to Meet
A meeting of depositors has been
called by Carlson's attorneys to be held
in their office at 1880 o'clock tonight,
at which time it is expected the
other plan advanced.
According to some persons who have
been following the turbulent affairs of
Carlson and his bank, the security he
proposes to offer for the bond is quite
insufficient. 1t is claimed his interest
in RedOndo and Pasadena Villa tract
properties is tied up in such a manner
that it cannot be realized on and that
the charter of the bank, which was
secured during hiatus in the banking
laws and because it allows the holder
to carry on almost any kind of bust
ness, is regarded as valuable, is in
reality worth only about 5000 or $780,
Notes given by Carlson in return for
pass books held by depositors, the lat
ter of which he includes in his assets,
are also about to become due or have
already been extended and their pay
ment must be met in the near future
or arrangements made to further ex-
tend them.
Whether the bonding company has
actually agreed to furnish the bond
mentioned by Carlson is another ques-
ton. 1t was rumored yesterday that
such was not the fact, but that, in
stead of agreeing to pay off depositors
in full, the company expected to take
over all of Carlson's assets, realize as
much as possible on them and satisfy
the claims of depositors as quickly and
as fully as possible.
The criminal proceedings against
Carlson will be resumed before Justice
Selph this morning