Los Angeles herald., 1909-03-12
TO INVESTIGATE
CARLSON ASSETS
THREE BANKERS APPOINTED
AS COMMITTEE
PRESIDENT OF SECURITY BANK
SUBMITS PROPOSITION
Court Expresses Entire Approval OF
Course Suggested and Adjourns
Hearing for Another TWO
Weeks

w. III. Carlson's supervision, or pos
sinle srnervision. of the affairs of the
Consolidated bank, of which ne mas
been the head since its organlzatioli'
ended yesterday. If the conn u,et
apnointed by the court should ma Ihdl
I C.arlson's bank is solvent there is a
probability that depositors Will be palo
When the proceedings instituted by
the attorney general for the appoult
ment of a receiver for the Consoluaieu
bank were resumed in the superior
court yesterday 1t was beheVeu py az
most every person present that the al
fairs of the concern would be ordered
wound I'D. Deputy Attorney General
George Beebe, in charge of the stare
case, looked up with surprise when the
ever-resourceful Carlson, acting as ms
own attorney, explained that he hao
proposition to make peIole liie iii"'
witness was called.
IT nroyided for the appointment OF
committee of bankers to inVestlgale tile
affairs of the Consolidated bank, take
charge of it's assets, If they peheVeu
them sufficient, and pay depositors dol
lar for dollar.
Court Sends for Sartori
]. F. Sartori, who, according to Carl
son, first suggested the idea 10 ms
mind, was sent for by Judge James.
Pending his arrival in court testimony
in the receivership matter was re-
sumed where it was discontinued sew
eral days ago. 49,,
Rank Commissioner w. S. Vawter
was the only witness. Carlson immedt-
ately began an attack on the commls-
sioners capability, indicating by MS
questions that Mr.. Vawter's acts Whlle
in the banking business were such as
to reflect upon his ability to distinguish
a good from bad loan.
Carlson also criticised the commls-
sioners action in appointing Evan
Lewis custodian of the Consolidated
bank. and paid his respects to Mr.
Lewis himself, referring to him as
defeated politician"
Ibid you know that Lewis was in
competent and that you were impos-
ing on the depositors when you made
the appointment" asked Carlson.
Mr.. Beebe interposed an objection
and Mr.. Lewis arose from his seat
near the railing and strode forward IN
a threatening manner.
Affairs assumed a threatening as
pect when the low voice of Judge
James was heard, warning Carlson to
refrain from continuing his aspersions.
Facts Alone in Question
at must be shown that the bank is
or is not insolvent, irrespective or
motives The question OF preJudlce
cannot be considered by the court,
said the judge.
Mr.. Sartori, who appeared in court
less than half an hour after being
summoned, outlined the plan proposed
earlier by Carlson. "Mr. Carlson tol1
me the assets of his bank We're suffi-
cient to pay all claims" said the
witness. az told him if he was honest
in his belief an investigation should
fa1 hot he q
the proposition to have a committee of
bankers appointed by the court TO do
the work.
''It is the best proposition 1 have
heard so far in this case" said Judge
James, as he continued the hearing
until 2 o'clock, at which time MI
Sartori promised to bring in the names
of three bankers who would act on the
investigating committee.
The men selected. who promised to
act as appraisers, are w. H. Holiday,
president of the Merchants National
bank; ]. f. Fishburn, president of the
National Bank of California, and Nj.
S. Hellman, vice president of the Sc
curity Savings bank.
viii Abide by Decision
1t was estimated that the three men
would finish their work within a week.
but Judge James, i'll order to allow
them ample time, continued the near
ing two weeks Before doing so, how
ever, Deputy Beebe insisted on stlp-
ulation between himself, as represent
tative of the attorney general, and
Carlson, as representative of the Con.
solidated bank, that the banker would
not further contest the receivership
proceedings should the appraisers de-
eide that the assets of the bank are
insufficient, and recommend the APP
.pointment of a receiver. If they decide
b at the assets are sufficient but that
H gathering of them into the bank
n II be a tedious task, receiverShip, it
u believed, will be recommended.
= 'I have had enough of the banking
business" said Carlson, as the hear
ing was brought to a close "All
desire is that these appraisers shall
make thorough investigation and
take no persons word as to the value
of assets