The San Francisco call., 1909-09-13
RfORGAN|zATIONOF
BANK is INDORSFD
Fasteners Ready to Put Money
Into California Trust, Says
j. w. Raphael

That the stock holders and deposit
ors of the California safe deposit and
trust company would find it expedient
to their own interests TO fall in with
the plans of the reorganization COM
mittee. is the gist of a letter written
from New York by julius W. Raphael
and received yesterday In his letter
Raphael states that various New York
financiers, after having made an inde-
pendent examination of the assets of
the concern. are quite willing TO back
it, and this fact, he asserts should be
sufficient TO prove the proper value of
the property controlled by the insti-
tuition. The letter in part follows
To the Depositors and Stock Holders of the
California Safe Deposit and Trust Company;
There have been many misleading state
ments and reports put forward regarding the
assets Of the California safe deposit and trust
company that it seems proper. at this time for
the writer 10 submit 10 the depositors and
stock holders a brief statement setting forth
clearly the exact history Of the institution since
october 30: 1907. and the condition of its af-
fairs at this moment.
The depositors and stock holders have had
rendered from time TO time since the appoint
meDt of the receiver statements relative to the
assets of the California safe deposit and trust
company, statements that were misleading and
based upon the presumption that the assets were
a pile of junk. thus leaving no hope for the
stock holder TO retrieve his losses and giving the
amount OF his claim.
co OVER BANKS RECORDS
In the month Of April. 1909. Walter j. Bart
nett asked for a conference with the writer and
committee selected by the writer from the
depositors' association. These persons went over
the assets together. with the result that
Bartnett came to New York 10 enlist capital for
the proposed reorganization OF the bank In
the closing part of May BartDett telegraphed
the writer to come to New York and assist
him. which he did. and. after several confer
ences, was surprised to learn of the willingness
of certain New York financiers TO enter the re-
organization, of the high esteem and serious
regard with which Bartnett was held by these
banking interests and of their firm belief in his
integrity and constructive ability.
III. Z. Wilson of % Broad street. New York
city, heads the reorganization syndicate The
reorganization plan was discussed at consider
able length at many conferences, with the
result that early in June Wilson went to San
tion. He enlisted the aid of responsible
to render him true statement of the affairs
of the institution. to make thorough and in
dependent examination of its assets and to re-
port to him In New York city. Wilson then
agreed TO conclude negotiations If these exam
nations satisfactory TO him. A rigid and
thorough scrutiny of the assets was made by
well known and trustworthy experts. whose
opinions are authoritative and upon whose favor
able reports capital is uniformly willing to
Wilson July y, 1909 They were satisfactory
TO him and he announced himself ready to
engage in conclusive negotiations toward the
reorganization. BARNETT was requested by VIII
son 10 return TO San Francisco with the under
standing that the stock holders there were TO
raise 81 600, 900. and that the New York syn
dicate headed by Wilson would raise $1,000. 900
more Wilson left for Europe July "A with
woutd have comnlefed the legal details IN San
Francisco. Wilson returned from Europe August
10 and ON August 2s, at conference between
necessary 81 900 600 of New York capital was
then available This amount is ready today
and only awaits the assent of the depositors to
the plan and the participation of the San
Francisco stock holders.
The gist Of the attitude OF Wilson and his
associates toward the reorganization is con-
taincd In the following statement he made to
the writer:
I'VE are willing now 10 pay 100 cents on the
the trust company field in San Francisco. The
California safe deposit and trust company has
able money and time TO work up such a large
business. We feel that by paying these de-
postors dollar for dollar we will merit their
confidence and the confidence of the people Of
Californian fact of all the Pacific coast,
which in itself is valuable asset
SAY RESOURCES ARE AMPLE
The conclusions 1 have reached are that the
resources of the trust company reorganized and
a going concern are more than ample to pay
the depositors dollar for dollar; that fully
81 500 600 of the capital of the old bank is
intact and that the stock holders can ann nous W
combine with the New York bankers and pro-
tect this capital. have given perhaps as close
STUDY TO the assets aB0 resources OF the Cali
fornis safe deposit and trust company as any
one during the last IS months. l fully believe
that the real value of the assets approximafes
SIG, 500 O00 furthermore believe that the
appreciation of Western Pacific stock and GER
tain other properties and securities owned by
the trust company viii enable the stock holders
who now subscribe 500 per share for each
share OF stock they had in the old company to
protect their interests in the reorganization In
such a way that they will ultimately make good
their former investment in the old stock as well
as relieve themselves from all stock holders
liability. 1t is my belief that the stock holders
can thus save themselves by uniting with the
New York bankers and protecting their old
investments
In view of all these conditions the writer be
lieyes that the reorganization plan viii appeal
10 the depositor and stock holder alike as
the only logical and profitable solution of the
affairs Of the California safe deposit and trust
company The writer therefore respectable
urges the immediate ratification of this re-
Organization plan that the benefits It will bring
may no longer be deferred. Yours very re,
specffuly JULIUS W. RAPHAEL.
Raphaers letter was accompanied by
supplemental statement OF resources
showing the present assets Of the con-
cern.