The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-08-06

r J. lie BRETON. receiver for
the California safe deposit and
I' trust company, yesterday re-
jected the scheme of Walter J.
Bartnett for the rehabilitation of the
jefunct company. He viii ask Judge
seawen Monday. August y6. to declare
an immediate dividend of 10 per cent.
After lie Breton had decided to op-
pose the Bartnett scheme the reorgan-
than s2,000,OOO. or a quarter of the
deposits, met an dapproved the Bart
aett proposition Of inviting $1,000, 900
u New York capital to re-establish
he institution. They viii urge an ex-
Ayeasion Of 60 days on the proposition
of declaring 8 dividend.
Divergence of Opinion
The situation yesterday resulted in
wide divergence of opinion between
he receiver and the reorganizers,
backed up by a quarter of the de-
2ositors
i can not recommend the Bartnett
plan or offer to the depositors of the
California safe deposit and trust
company for acceptance" said lie
Breton. i make this statement for
The benefit Of all the persons connected
with the project Of reorganizing the
company. If any disappointments
should occur later on I wish to avoid
he accusations hereafter that, being
familiar with the affairs of the Cali
6ornis safe deposit and trust COM
pany. 1 allowed representations to be
made TO the deposftors and intending
investors which / could not conscien-
fously indorse. and in whose accuracy
did not believe"
Lack of Experience
The receiver, after two long confer
snces with Bartnett. former vice presi-
sent and counsel Of the defunct insti-
luton, says that the lack OF financial
experience of the men connected with
The project and the absence Of con-
servstive principles and safeguards for
success ar, to his mind unfortunate
features OF the enterprise.
Although he knew the plan before it
was submitted to him, he desired to
ind out who were the people behind
The project. He has listened to Bart
aett. 10 the members of the depositors
association and to Henry L Kowalsky,
who says he represents interests that
have offered to rehabiiitate the bank.
In his statement issued yesterday LIE
: Breton says:
The plan as explained to me was
hat New York investors would be
asked TO furnish 81 100000 capital for
new organization on the condition
hat the present stock holders of the
company would furnish a similar
amount, thus organizing trust COM
oany with a capital Of $4,000 ,O00 The
company so formed planned to buy the
claims OF the depositors of the defunct
oank and pay for them as follows:
twenty-five per cent in cash (using
in part the 100000 now on hand).
Fifty per cent in certificates Of the
aew trust company. payable in one,
.wo, three. four FIVE years. one-hfth
annually, without interest and security.
Twenty-Five per cent in certificates
of preferred stock Of a company that
was to take over the shares owned by
he California safe deposit and trust
company in the El Dorado lumber COM
,any, Pacific window glass company
and the Carnegie brick and pottery
company,
Apt TO Be Objection
I 90 not believe the superintendent
II banks would allow the new bank to
30 business on those lines. because the
aew bank would be crippled from its
inception.
Waving that objection, however" I"
ae continued, and leaving that diff
suity to the solution OF the promoters.
Comffmnrrd Fs.~~ . f-s,Irsrnr