The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-06-25
AGAINST
BARTNETT'S PLAN
visionary and UtOpian." Says
lie Breton of Bank Reha-
biIitatiOn Project

The project set on foot in New York
by Walter ]. Bartnett and Julius
Raphael for the formation of a trust
company to rehabilitate the insolvent
California safe deposit and trust COM
pany is regarded by Receiver lie
Breton as visionary and utopian."
The receiver so stated in Judge Sea-
wells court yesterday during the hear
ing of his petition to pay depositors of
the bank a dividend of per cent.
L l. Brown. representing depositors
whose claims aggregate about ST.,
500. 600. asked for a postponement of
the authorization of the dividend so
that the New York plan might be
proceeded with, but lie Breton said it
didn't approve itself TO him as seri-
Gus and practicable undertaking. He
did, however, consent to a continuance
Of his petition when Attorney Oscar
Cooper. appearing for the stock holders
of the bank, said he was endeavoring
to raise a fund of $750,00o, of which
$500, coo has been already subscribed, to
be presented by the stock holders of the
bank TO the depositors in return for
release of liability. The receiver re-
garded this plan as a promising one,
and said it would probably mean or
s per cent additional to the creditors.
100000 IN CASH
In his petition for leave to pay a
dividend. LIE Breton stated that he has
on hand 100000 in cash OF this
s72O. 600 would be used up in the
per cent dividend leaving $1SO,O00.
The outstanding preferred claims
against the bank total only $4,000.
l. L Brown arose TO ask for a con-
tinuance of the hearing, which caused
Judge Seawell to remark: This Is the
/ first time I ever heard of depositor
NAL king an objection to the payment of
a dividend"
Brown said that in the last 4S hours
advices had been received from Ne"
York of the formation of trust COM
many 10 take over the assets, the re-
sp1t of which would be that the de-
posftors would in the end receive more
/ than under the receivership admins
tration The plan would be leopard
/ lied he said. il the funds of the bank
Te~e senleted TO the amount of
| s-ao 600. A reinforcement for 80 days,
esfd Brown. would encourage the New
York project
OBJECTION TO CONTINUANCE
Y de Laveaga. representing the
]
! ~ ,.ousands Of depositors are clamor-
/ inc dav by day for the payment or a
dividend" said De Laveaga, ana IL
! &c hut fair they should receive some
hing. inasmuch as it is Is months since
tho hank closed it's doris. L can hot
see how the distribution of this SIZe'Oou
would affect the plans for the Iorina-
ton of trust company.
Attorney Oscar Cooper, who detehoeu
waiter I Bartnett in the criminal trial
seconded Browns request for post
nonement of the payment OF a dividend
| It have obtained very real and tangl /
HE results in an endeavor ! have oeen
| engaged in for some time TO raise a
fund of s750.0O0 from the stock holoers
TO be distributed among the deposit :
! ors IN return for release from LIABILITY,
lbe said. Il have $500, 900 actually ready
to be paid over If a 80 days continu-
ance be granted, 1 have great hopes
tba+ can raise the fund to SI50O0O'
The one time for getting the decision
&c tho denositors on this offer is when
/ thew mass before the window or the
receiver to get their dividend
Let me ask you. Mr.. Cooper, SAID
lie Breton. "are you prepared TO say
! that If this dividend is postponed so
da-s the stock holders will consent to
/ a program whereby. upon getting
release from the depositors, that money
/ will be turned over to the receiver
sTn the event that the plans for a
holding company fail. I am prepared
TO saw that the money ] have collected
/ will be given to you TO be distributed
answered Cooper. He explained further
/ that there is on foot in San FRANCISCO
/ q plan TO form a company to take over
and operate all the industrial concerns
an which the insolvent bank is in
| terested.
STATEMENT BY RECEIVER
"AI the receiver looks for is to
4 bring about the best results for the
| depositors," said lie Breton He is
/ ready to step out at any time that
serious plans are submitted that ap-
prove themselves to him as certain tc
do better for the creditors than liquida-
ton by a receiver. The plan set or
| foot in New York does not present
| itself to me with that seriousness Of
| character. It does not look to me as
! If there is very much likelihood of its
| being carried out. 1 have seen nc
evidence that capital is to be put into
/ the project. 1t is more or less 9
/ visionary project. and the hope that
IL Will be brought to success is not suf-
ficient warrant for postponing the pay
ment of a dividend But the statement
of Mr. Cooper as to the fund of $3.50. 00'
being raised by stock holders is a good
argument for postponement. If Mr.
Cooper will openly state that in the
event that the New York plan does moi
materialize by August the money he
has collected will be turned over tC
the receiver for distribution, / am IN
favor of not making an order for the
payment of a dividend at this time
n Cooper repeated his statement pre-,
viously made, whereupon LIE Bretor
withdrew his petition.
1t was understood that on August
the judge will sign the order giving
! the receiver pernission to nav a diYi.