Los Angeles herald., 1909-01-08
BANKS PATRONS
EAGER FOR MONEY
UNION EXCHANGE DEPOSITORS
READY TO ACT
NAME COMMITTEE TO REPRE-
SENT THEIR INTERESTS
Secretary Mclaughlin BIames Com
missioners and Asserts Their
Action Was Hasty and
III Advised

More than $50 depositors of the Union
Exchange bank, 901 South Main street
met last night in answer to a call is
sued by Secretary G. B. Mclaughlin of
the bank to discuss the reasons for the
closing of the institution last Monday
morning by State Bank Commissioners
Vawter and Sherer. The men and Wo-
men present were from every walk Of
life and of every condition and stand
ing. Many of them were labOring men
who had entrusted their small earnings
to the care of the bank; others were
small shop keepers; some were bust
ness men, and there were many women.
While all desired to have the affairs
of the bank so adjusted that they could
get their money without delay, they
were reasonable in their demands and
the counsel of patience and resignation
prevailed.
Mr.. Mclaughlin explained things to
the depositors and gave his version Of
the reason for closing the bank. He
denounced the action of the commits
sioners as hasty and uncalled for and
complained in bitter terms of the &C
ton of former president Of the bank c.
]. GoodenoW in refusing the demand of
the commissioners to return the $40, 423
in personal notes which the retiring
president was allowed to remove from
the assets of the bank as his remuner-
Mclaughlin also intimated that the
discussion would not end with the re-
opening of the bank.
Blame Commissioners
81 have been in the banking business
in this city for sixteen years." said Mr.
Mclaughlin, land this is the first time
that L have ever been closed out. If
the commissioners had given us twenty
four hours notice we could have ar
ranged all our assets to their liking;
but they closed us out without warning
of what they were going to do, and we
had no chance to arrange our affairs.
Personally believe that the closing
out of our bank was part of a program
of eliminating non-clearance banks. We
are not in the clearing house"
Several of the depOsitors agreed that
they thought the clearing house was at
the bottom of the difficulty.
Mr.. Mclaughlin explained that the
commissioners had offered to allow the
bank to reopen on condition that the
bonds and stocks which the new own
ers of the bank substituted for the
GOodenOw notes were replaced by 9TH
er securities. The commissioners claim
the capital stock of the bank had been
impaired during the transfer from the
old directors to the new owners and
maintain that the bonds introduced
not good collateral. They also ask to
have certain changes made in the ex
pense account of the institution.
Refuses to Return Notes
Mr. Goodenow refused to return the
notes in question, claiming that they
were the compensation received by him
for the sale Of his interest in the bank.
Mr.. Mclaughlin maintains that the
securities introduced into the assets Of
the bank by his associates are as good
as any held by other banks in this city.
They consist mostly of securities of
eastern industrial concerns, and some
of the bonds are issued on Pittsburg
real estate security. Mr.. Mclaughlin
expressed the opinion that the affairs of
the bank would be adjusted in a few
days and the institution reopened.
A committee of five depositors was
appointed by vote of those president to
represent the stockholders in an inyes-
tigation and to do everything possible
toward reopenng the bank Those
chosen to act on the committee are:
G. A. Bennett, A. P. Harris, l.. A.
Saunders, T. S. Hutchinson and A. c.
Hunter.
The state bank commissioners were
not represented at the meeting.