The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-07-21

note was secured Dy the l,oUO Ouu
shares. Miller gave this note to Grange
and the Metropolis bank for collection.
Both Miller and Grange declared yes
terday that the stock was in the pos
session of the former and that Grange
could not use 1t.
The stock was an important block
while the bank was running, for under
the bylaws it took a two-thirds vote
TO secure any internal legislation and
this lot carried the balance of power.
Grange explained that his other con-
tract with the banks was in the matter
of the National Bank of the Pacific
deal, in which he contracted to liquid
ate the 1874 shares of stock in the
national bank under an agreement with
Hays. Hays said that in the early
stages of the National of the Pacific
rowed $4,000 from the Metropolis bank
and $4,000 from the Western national.
$4,000 Is BORROWED
This $4,000 suf1ced for the purchase
of the stock but later $4,000 was bor-
rowed on collateral from the Western
national to strengthen the State saw
ings and commercial. At the time this
$50 900 loan was secured from Oranges
two banks Hays had $21, 900 to his
credit in the State savings and COM
mercial, he said, and Hasshagen had
$4,000. This s45,0OS was left in the
vaults, however, and the young finan-
ciers went to Grange to help them out
in their big scheme. Grange ended by
swallowing the big stew they brewed.
Prior to the campaign which was to
lead to the annexation of the National
Bank OF the Pacific Hays had a Bur
bank scheme of grating fresh new
national bank on the moribund stock
of the Union state bank He was busy
calling in stock in the Union state, for
which he was to exchange stock in this
newly propagated institution. But be-
fore he got the cuttings ripe he started
after the National Bank of the Pacific
and failed to land.
The hypothecation of securities OF
the bank will be gone into by Ander-
son and A. Wenzelburger, the expert
accountant. Some of the securities were
deposited with the Western national.
Part of the lot covered the clearing
house account and other papers pro-
tected the $4,000 loan. Grange de-
clared that the securities are triple
the value of the loan made.
As the Union state and the State saw
ings and commercial simmered in a
banking goulash. their accounts have
not yet been segregated sufficiently to
satisfy the examiners that the other
securities covering loans are well
placed.
WHAT ANDERSON SAYS
TT will be a week before this will
be Strengthened out and our experts
are able to tell where the banks stand
in regard to the depositors," said An
derson yesterday afternoon, on ieav-
ing the bank Offices in the Monadnock
building. The assets are wiped out
completely, but If the books have not
been falsified the banks can meet their
obligations. The people who deposited
money on Saturday morning before the
bank closed its door will receive 1t
back Immediately upon making proof
of demands. No other bank in the city
is or will be affected by the failure of
this bank"
Anderson yesterday issued notifica-
ton to creditors having claims against
the Union state bank and the State
savings and commercial bank to pre-
sent the same, with the necessary legal
proof, at his office within six months
after October 10, 1909, the last. day of
the publication of the notice to credi-
tors.
c. T. Hasshagen said yesterday that
there was 100000 in deposits at the
bank; that the capital stock was $780,
600. of which amount but $4,000 had
had $4,000 in the bank-practicaIly
her entire fortune-and that he stood
to lose his own money.
Mrs. Adeline Hasshagen's attorney.
Edward c. Harrison, was at the bank
yesterday in consultation with Ander-
son and Cutler, but would not discuss
the further plans of his client