Los Angeles herald., 1909-05-20
ORDERS CARLSON
HELD FOR TRIAL
BANK PRESIDENT TO ANSWER
IN SUPERIOR COURT
JUSTICE AFFIxEs BONDS IN TWO
CASES
Former Official of Consolidated Must
Explain Action Relative to
$1,000 Draft and $127.65
Check

w. H. Carlson, former president of
the Consolidated bank. was held to
answer in the superior court by JUS
tice Stephens yesterday on two charg-
es, one of making a false entry of
$1,000 on the banks books in Decem-
Der, 1907, and the second of embezz-
ling $127.65 of the funds of the insti-
tuition.
Bonds Of $1,000 were fixed in each
case, and Carlson was given until 3
o'clock today to furnish the amount.
Preliminary examinations on more
than half score of other complaints.
in which Carlson is charged with en-
bezzlement and false entries while in
control of the affairs of the Console
dated bank, are still pending against
the banker and promoter, and these,
it is expected, will be taken up in
short time.
The two actions disposed of by JUS
tice Stephens yesterday were partly
heard together and the testimony was
taken on about twenty different days.
the duties elsewhere of Frank Blair
deputy district attorney, who conduct
ed the prosecution, together with the
search for material witnesses, causing
continuances for several days at a
time, during which numerous civil
suits have been heard.
Jugglss Draft
For these reasons, Justice Stephens
has taken more than a weeks time in
reviewing the evidence before arriving
at a decision. His work in this con-
nection is contained in a statement
made last night, as follows:
II find the facts to be about as fol-
lows: That the defendant is the pres
ldent of and the practical manager OF
the Consolidated bank, general man
ager of the Los Angeles Securities
company and the Carlson investment
company. One complaint charges a
false entry in the bank books on De-
cember 2S 1907, of a credit to the Los
Angeles securities company of $4,000.
On that date the Los Angeles secur-
tiles company, which for several years
had been a large depositor with the
bank, was considerably overdrawn.
The defendant placed a draft for $4,000
against the Ralston Realty company
of San Diego from the Carlson invest
ment company, and signed by him
self in the drawer of the bank, and
caused the item to be entered to the
credit of the Los Angeles securities
company. This draft was on more
than one occasion, according to the
testimony of Miss McKittrick, the
cashier. taken from the drawer and
replaced with another of later date,
but was not forwarded until May y,
1908. and in due time was returned,
marked no authority to draw.
"As to the facts in the other case,
Carlson, as general manager of the
Los Angeles securities company, drew
a check on the Consolidated bank,
payable to ]. R. Newberry, marked,
account of w. H. Carlson for the
sum of $12765. At that time the Sc
curities company account was over
drawn for a short time: afterwards
the account was to the securities com
pany's credit. 1t was shown that this
check paid for provisions delivered to
Carlsons house. If he had a right to
use the funds or the amount of the
check thereof, as he contended, there
is no evidence to that effect. If such
had been shown to be the case the
check would, in my opinion, be an
overdraft, and would not constitute
a crime. He will have an opportunity
to show this in the superior court"
Justice stephens added that 1t would
be only fair to Carlson to state that,
contrary to the public idea as ex-
pressed in the hearing and by letters
written to him by depositors, the mon
ey represented by the draft and check
upon which the cases were based, was
not lost to depositors these two ac-
counts being in good shape so far as
balances are concerned when the bank
was closed by the commissioners.