The San Francisco call., 1909-04-14
CLOSES ITS DOORS
AFTER GAME FIGHT
Union National Bank of Oakland
in Hands of Comptroller of
the Currency
Confidence Expressed by OFF,
GERS That DepoSitOrs Will
Be Paid in Full

the comptroller Of the currency at
Washington. j. c.
Back Of this dramatic end Of the at
tempt OF d stricken institution to raise
its head above the water after the
panic Of 1907 and the peculiar financial
methods of J. DalzeIl Brown had well
nigh foundered it. is a story Of deter
mined opposition TO its revival that
has the appearance Of a financial feud
Taged against the institution in which
appears the figure of William E Oar
Eie. proprietor Of the Oakland Tribune.
ESTABLISHED IN 1879
The bank. established in 1875. -four
ished under the control Of Thomas
Prather, Edison +. Adams and John c.
Adams. 1t was taken over in Decem-
ber 1905, by Dalzen Brown. When the
crash came that buried him in october,
1907. il was only a few weeks later
that the Union national bank OF Oak
land closed its doors 1t opened later
nnder the management Of President
George ROeth. with n new board of di-
rectors. and since then has made
spirited attempt TO keep alive. The
dep0sitors have heen paid so per
cent Of what was due them, and the
bank officials hoped ultimately TO pay
Them iu fun. pay of all obligations
ana conduct the bank on profitable
basis
II was found. when the new manage
ment took hold. that unsecured loans
in large amounts had been made TO
Warren 3 English. former congress
man. and to the late Alfred ". Bur
rell president of the Burrel construc-
rion company. These loans aggregated
SI50.O00. This had been done under
The Adams-P -Prather regime. English,
who secured the loans to carry out con-
tracts for the construction of army
barracks near Prescott, Arizona, acted
as an agent for the banks, accord
ing 10 the language Of a lawsuit that
las been brought against the Adams
brothers and Prather, their brother
in law. for an accounting on this and
other transactions. The loans have
never been repaid. Burren is dead
and English is in British Columbia.
Meanwhile the bank is defendant in
2 suit brought by Burrell, who claimed
that lie lost on the contracts because
his credit was shut of.
not SUFFICIENT RESERVE
The bank was closed because It did
not comply with the United States law
tl,at requires a national bank to have 10
per cent of its deposits actually on
hand. Rorcback made an exanlinatioM
of the banks affairs yesterday. found
that the requined reserve was not on
hand and closed the institution. He is
setting as temporary receiver now.
Whether or not he viii be appointed
permanent receiver he does not know.
The payment OF a note Of $4,000
would hsVe saved the institution, ac-
cordine 10 Assistant Cashier 4. 7. Kales.
i was q note made out to the bank by
The Marip0sa power and electric COM
lany Of which A. Il Ward Of Alameda.
said TO be a close friend of Prather and
his financial associate. according to
Roeth is the head. The note has long
been overdue and the officers of the
Union national bank, knowing that it's
payment would save them from ruin.
made repeated attempts 10 collect it, It
had not been paid last night when
Borehack determined to close the doors
Of the bank 1t was paid today when
the money was too late TO be Of any
avan 10 forestau the action of the re-
ceiVer
WHERE DARGIE COMES IN
Dargie's relations with the Adams
brothers have been most peculiar.
There was time when he was
most subservient TO the family. which
IS one Of the richest Of Oakland. Again
the Tribune was most inimical TO them.
When the city Of Oakland brought CON
demnation suit against Edison +. Adams
and the Adams estate 10 secure land for
park purposes the Dargie organ was
excessively public spirited and devoted
columns against the Adamses. Shortly
after Dargie was most friendly to them
IN the warning over the Union nation
ais affairs In the meantime this had
happened:
in the spring Of 1908 ". f. Dargje
brought suit against Thomas q.
Prathef, who married a sister Of the
Adams brothers and who has been
closely associated with them In busi
ness ventures. The suit was for s25.
600; balance due for personal services
SAID to; have been rendered in lobbving
"a bin thrOugh congress that enabled
PratheF 20 build the Yosemite Valley
railroad into the national reservation
L. - Portal The boundaries of the
national park were changed so that
Pratlleg could operate. Dargie admitted
thar he had received $4,000 but he
considered that his services were worth
as Euch more. The suit was suddenly
dismissaed without explanation and
1largie- was again friendly to the
Adameses- and Prather. In the meantime
q number Of stock holders Of the Union
national bank had sued in the United
states circuit court for an accounting
asking that Edsen F Adams. Jotn
Charles Adams and Thomas Prather he
made to explain how Burrell and Eng
lish had been able 70 secure large ,In-
SECURED lDdi4H- Lafgle was bitter
- against the Adamses at the outset OF thfs
litigation. but became friendly over
pighc when his Tribune blasted the
Union nationals present officials.
MHIPSAWING BY TRIBUNE
This whipsawing by the Tribune was
the more Interesting when the fact be-
came known that Dargie has beer. com
PEELED by the Roeth management to pav
a note 1or $500. which was Ia the ba,k
SEheH they took control. Darrfe
now owes a. overdraft os nearly s.. 900
which. IS also in process Of settlement.
The Of5cers and directors are:
49, Ofscers- President. George Roerh: vice n-esi
dents James. l. de Freraery. George d GRAY.
cAsbief.- John Il. Peripe; assistant cashier. A.
rf7us p. klles; dfrectors-Ceorze -Roeth f,ao--a
=, Cray. George T. EaVley. f. p vaacercoat
.Hergaa Cover. A. F. kales.. J. Al Pedrini and
= II. Perine.
WHAT ROETH SAYS.
.concerning the closing, President
Eoeth. said:
= MISUNDERSTANDING All Of the talk IN the oss.
l6Dd Tribune, there Is this 20 be said: Thai In
JaausTy, 1907. the deposits were 81. .C3s 600 and
today there is $s29s 900. the difference over
$500. 600, having been paid TO 6epositors Cur
s+sternen< to t5e comptroller Of the t.,irrencr
f6S one. The cepositors can not suffer under
any circumstances.
.-.If the stock holders realize upon suits now
.. pending agsint the former management OF The
bank. the capital will be held intact and the
stuck hcIders well the depositors WI re-