The San Francisco call., 1909-08-17
RFORGAN|z[RS
OF BANK WIN
DESIRED TIME
Judge SeaweII Grants Bartnett
and Wilson Sixty Days to
Perfect Plans
Scheme for Rehabilitation of
Defunct Institution Outlined
TO DepOsitOrs in Court

morning the so days of grace desired by
the reorganization committee Of stock
holders Of the California safe deposit
and trust company. in which the plan
OF walter J. Bartnett and H. P. Wilson
for rehabilitating the defunct institu-
tion as a trust company may, if possible,
be perfected Neither Bartnett nor
Wilson was in court. the latter being
in New York. but they had spokesmen
in the persons OF Attorneys oscar
Cooper. counsel OF the reorganization
committee. and Colonel Henry I. Ko-
walksy. who gave Wilson boost.
Wilson's name was mentioned only
casually, but Cooper said that the
story published exclusively I'm The Call
yesterday morning. in which wilson's
connection with the scheme was first
made known, was correct in all its
details. Cooper handed TO Judge Sea-
well letter from Wilson and another
from William H Croker, the banker,
which vouched for Wilson's financial
responsibility. The courtroom was
crowded with depositors and attorneys.
TIE discussion was general
Receiver Edward J. lie Breton. at
tended by his attorney. J. V. de La
yea ga, was in court, TO demonstrate
against the extention of so days; but
Judge Sea well said that in his opinion
the question was OF Indifferent interest
to the receiver and tnat he would listen
chiefly to depositors and that if they
had objections to the plan he would
. hear from them. lie Breton desired a
court order authorizing the dividend
OF 10 per cent.
EXTENSION Is APPROVED
A. P. Van Duzer. an attorney. repre-
senting an estate involved in the bank
failure, took the floor TO oppose the
petition for the 60 days extension. He
classed the man behind the reorganiza-
tion, Wilson, as a promoter" 1T is
your honor's duty to stand by the re-
oeiver." said Van Duzer. He is under
$1,000. 900 bonds. while these other peo-
pie are under no bonds
Il understand this is nothing but a
postponement," suggested Attorney
Frank H. Powers. No harm can be
done by granting the continuance"
II suppose the same old crowd will
he back at the bank" asserted Van
Duzer. .'DalzelI Brown is out of Jail
and can be put back at his old place.
and the Treadwen case has been con-
tinUed. 50 / presume ne can be made
Banks Alden Anderson VIII never grant
a charter TO the bank to reopen its
doors. In fact, no one outside lunatic
asylum would consider such propo-
sition."
Attorney J. J. Brown of Vogelsang &
Brown. representing s4.155,O00 unse-
cured claims of depositors, said that
the new scheme promised 100000 OF
new money for the bank. He argued
that the receiver was not ready at
present 10 pay the dividend, as out OF
l2.O 900 depositors certificates had been
issued to but 5000.
lie Breton joined in the discussion
at that point, saying, The whole mat
ter is OF Indifference 10 me. The re-
ceiver is able TO pay 100000 a
dividend and thinks that it ought to
be paid. But as a servant Of the court
he is ready TO obey the court. When
the dividend is declared the people will
come in for their certificates"
BIG SUM SUBSCRIBED
L Brown continued with his argu-
ment, forcing the point that $4,000. 900
would be available as soon as the stock
holders had completed g subscription
70 81 10000 worth Of stock, of which
sum S6sS,OO0 had already been sub
scribed by stock holders.
Is there any objection to telling US
The plsn?' asked a voice from the
courtroom
Brown briefly outlined the plan as
already reviewed IN The Call.
The bank will open on or about the
Portols festival" said Brown. In one
year they propose to pay US 35 per
cent in cash.
Attorney Eugene J. Sullivan Of Cush-
ing & Cushing representing the
Equitable protective association Of de-
positors with S750.OO0 in claims, Joined
in the petition for q continuance At
torney Rosenheim indorsed the New
York proposition. Oscar Cooper, at
torney for the reorganization COM
mittee lauded the men behind the
proposition, telling Of Wilson's achieve
.Inents in promoting the Great Western
power company
DEPOsITORS FAVOR PLAN
Cooper offered a petition signed by
individual depositors with $1,41z, 900 in
claims, petitioning for the postpone
ment OF the dividend. Otto Irving
Wise. attorney for himself and other
depositors. expressed himself in favor
Of the postpbnement. Warren Olney
Jr. attorney for the Western Pacific
railway the largest individual de-
positor, argued that the Industrial
concerns, the Carnegie brick and not
terry company and the FL Dorado iun1-
Der company. could not be developed
bv the receiver. but could by a holding
company and he Joined in the petition
for the postponement- Colonel KowaI-
sky delivered eulogy on the hackers
Of the project.
Judge Seawell then granted the petit
ton, setting the date Of the next hear
ing October is, the day before Por-
tola arrives.
The court continued until August IS
the petition Of the receiver for con-
frmation of a sale Of Kern county real
estate, and to September I3 the con-
tempt proceedings pending against
j. r. Riley and others.
Assets Cover All Debts
The schedule of the FL Dorado lum-
Der company, one Of the principal as
sets OF the California safe deposit and
trust company. was filed with the ref
cree in bankruptcy yesterday, and
showed that the debts totaled 1929
or. with 81 ,0s9.224 in available assets.
Among the liabilities scheduled is a
nrst mortgage for $341,865. at s per
cent interest. There are secured notes
amounting TO $4S,620.45, and the unse-
cured paper totals $459,I57.52. Al
though there is a difference of $780,
coo in the debts and assets of the COM
pany. it will take long time TO have
This amount realized.
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