The San Francisco call., 1909-04-15
THE COUNTIES BORDERING ON THE BAY OF SAN FRANCISCO
FACTIONS BATTLE
TO NAME RECEIVER
Bitter Contest Waged to Control
Union National During
Period of Liquidation

OAKLAND. April 1z-Beneath the
formal taking over of the affairs of
the Union national bank by the comp
troller OF the currency is an under
current Of bitter contest, which has
already resulted in the suspension of
n prominent federal official, Charles
G. Reed. district national bank ex-
anainer and the opening of a battle
for the control Of the institution during
the period Of liquidation. From Wash
ington. D. c., today came a message
to interested oficials Of the bank that
representatives of Edison Adams and
Thomas Prather were there endeavor-
ing 70 influence the naming Of the man
who shall be permanent receiver. As
an offset TO this, the fight has opened
Among the names Of local men who
have been mentioned in connection
with the appointment is Victor H. Met
calf former secretary of the navy, and
said TO be backed by those who are
not unfriendly 10 the interests of Pres
ident George Roeth.
REMOVAL Is SURPRISE
The removal Of District Examiner
Reed came as a surprise in banking
circles Reed was for many years
prominently identified with the Union
national bank under the Prather-
Adams regime. He retired upon his
appointment as district national bank
examiner. and among the first Of his
duties was to take charge Of the bank
during its suspension in 1907. Reed
continued after the reopening Of the
bank 10 file reports with the comp
trOller Of the currency, and it was not
known thar he was 10 be suspended
until National Bank Examiner E. +.
Rorebeck arrived from Washington
several days ago and took charge.
Under recent action by the comp
troller Of the currency a staff of ma
tional bank examiners at large, with
general Jurisdiction. was created, these
taking precedence over the district
examiners After Rorebeck took
charge. Reeds work ceased. Reed has
high reputation for ability and
probity. He has not been accused of
any misconduct which would reflect
upon his integrity or ability. 1t has
been strongly whispered in Union ma
tionaI bank circles that Reed was a
victim OF the warfare which is wag-
ing around the institution.
Rorebeck has commenced the routine
work of inquiry. which will require
several DAYS time before his report
viii 60 10 Washington.
SUIT Is DISMISSED
: The suit Of the Union national bank
against the Mariposa electric power
company. Julius II. Ellis, Augustus H.
Ward y c. Ray. Harold Ward and
Thomas Prather. which was filed last
Saturday on a $4,000 note, was dis
missed today. payment having been
made 10 the bank yesterday
That this payment. II made before
the bank was closed, would have been
OF material help in the banks fight
10 keep Up its reserve has been the
open declaration OF its officials. Ac-
cording TO them, Thomas Prather. prin-
cipal stock holder Of the electric COM
pany. went 10 Attorney r. N. Fitzger-
aid. representing the bank, after per
sistent demand. and promised to pay
the note between March Is and %.
But promises instead Of payment fol-
lowed. AS a last resort the suit was
fled. But before another move could
be made, the bank learned that the
deferred payment could be accounted
for by the fact that Prather was cam
paigning in Washington. D. C, with
evidence as 10 his fight against the
bank
Yesterday when the payment was
made Captain A. II. Ward. one of the
smaller stock holders, appeared at the
bank at 10 minutes after 10 O'Clock
with q bag of gold, containing $4,000.
which he rendered to Temporary Re
ceiver Rorebeck. The exact amount
due on the note, principal and interest,
amounting 10 $4,000 odd. with the
change, 5000 odd. Ward left at the bank
and. according to the officials, paid it
over to Prather
Cashier Perine said today that with
that money, $4,000 which was TO be
realized from the sale OF Western
Pacific railroad stock. and other funds
Tor which early collection had been ar
ranged, the bank within less than two
weeks would have had $4,000 on
hand.