The San Francisco call., 1909-01-26
VICTIMS OF BANK
TO GET S612,5OO
Receiver lie Breton Proposes a
Dividend of Seven Per
Cent for DepOsitors
Recommends That Western Pa
Cific Stock Be Held for an
Inevitable Rise

E. ]. LIE Breton, receiver of the de-
funct California safe deposit and trust
company bank, made application to the
superior court yesterday for permission
to pay the creditors first dividend of
per cent on their claims. That would
mean a distribution of S612,5O0. In his
petition the receiver stated that he had
$65S,3S5 available for distribution, or
more than enough to meet the dividend
and pay preferred claims. The IiabiIi-
ties of the bank were put at $5.T29, 99T.
LIE Breton is of the opinion, from pres
ent indications, that at least 26.42 per
cent can be realized on the assets of the
bank.
The petition was contained in a volu-
minous report on the conditions Of the
bank and was offered in court by At
torney de Laveaga. Of particular in
terest to depositors will be the state
ment incorporated by LIE Breton in his
report regarding negotiations now be-
ing carried on with the stock holders
and directors of the bank for compro-
mise of the claims of the creditors of
the bank. Regarding this matter, LIE
Breton says in his report:
The superior court has decided that
the claim of creditors against stock
holders for proportionate liabilities is
OF personal character and that the
receiver has no power under the present
law TO bring any suit against the stock
holders for proportionate liability nor
against former directors for malfea-
sance."
In outline. the plan under consider
alton is that the stock holders and
former directors raise sum amount
ing TO or per cent of the total liza
bihties. Upon the distribution of the
money secured in this way the receiver
would present to the creditors for their
signature document agreeing to re-
lease the stock holders and directors
who furnished the or per cent from
further liability. The receiver would not
act in this matter in his official capa-
city, 1t is stated. and he adds that he
desires all creditors to be treated the
same, whether they have begun action
against the stock holders and directors
or not
The summary of the accounting made
by lie Breton is as follows =
Receiver has on hand, SS5s3SS31. on
deposit with the London and Paris ma
tional bank, to cover special claims,
S4S,2S425. Claims which certain cred
itors have asked to be declared pre-
ferred, but which in the opinion of the
receiver should not come under that
head s4,594.158.54
CdSn DdiRnce nrSt or year 1909 S65S 3S2 81
increased cash balance to January % 80 412 90
Total now on hand s69o 500 %
For per cent distribution TO general
creditors on claims of IS. $50, 600. re-
qulred ..-.----..... -....... $612 500 90
Receiver LIE Breton claims that he
can count on receiving $50. 600 addi-
tional assets within the next two
months. He advises strongly that the
Western Pacific stock which the hank
holds be not sold at present, as he ex-
poets that it will prove a big asset to
the creditors in the future
In concluding his petition the receiver
says:
Unless the calculations of the re-
ceiver are very much at fault he will
yet receive from the assets of the bank
nearly s2,000,000, and it would appear
prudently safe to distribute now to the
general creditors first payment of Z
per cent on account of their claims.
The above recommendation is, of course.
based upon the assumption that there
is no merit in the claims that the saw
ings accounts are preferred claims en-
titled to be paid in full The receiver
is advised that there is no serious foun-
dation for this claim"
The case of the California safe de-
post and trust company is now pending
in Judge SeawelPs court The hearing
on the petition will be set for the latter
part of February.