The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-07-21
Officials of Defunct
Banks to Report Daily
Attorney Kington for Concerns Appears
With Rambling Statements

State superintendent Of Banks Alden
Anderson has ordered w. c. Hays. T..
A Bechtel. c. T. Hasshagen and Attor-
ney Frank V. Kington of the state
savings and commercial and Union
state banks to report regularly to him
during the investigation of the two
defunct institutions at 691) Market
street
The financial fog in which the banks
are lost still baffies Anderson and the
experts working under him, and the
men responsible for the condition in
which the concerns are must be within
reach Of the superintendent when they
are needed. AS yet there has been no
suggestion of criminal prosecution. 1t
is reported that W. C. Hays has over
drawn his account $1,000 and for that
reason was ousted from his position
as director and cashier.
Frank V Kington, the attorney for
the bank and formerly the associate
of George d. Collins, appeared on the
scene yesterday after subpoena had
been issued for him by Superintendent
Anderson. Kington assumed the role
OF an astonished child Of i'll fortune.
He was not attorney for the bank, he
said-had not been for two months;
was not stock holder, simply was a
depositor. singed with the rest of the
depositors That was the story Kington
told the press Moreover. he said that
he left the bank because he was not
satisfied with it's methods.
HASSHAGEN ALSO POSITIVE
Hasshagen, however. who was a di-
rector at the time of the closing of the
banks, was positive In his declaration
that Kington was attorney for the
bank, had never withdrawn as attorney
and that no other lawyer had ever
engaged to succeed Kington. Fletcher
A Cutler, attorney for the superintend-
ent of banks, said that Kington repre-
scented himself to the superintendent as
attorney for the bank. 1t was reported
that he owned 500 shares of stock.
Kington said that he was not on
speaking terms with Hays, but while
Hays was being interviewed he leaned
over and whispered in Kingdoms ear,
asking advice on whether or not he
should answer a certain question. King
ton finally said that he previously had
arranged to withdraw as attorney for
the bank, his resignation to take effect
on July 81.
Clarence Grange, whose name has
been mentioned particularly in connec-
tion with the financial movements of
Hays, was at the bank for a long time
yesterday afternoon In conference with
Anderson and Cutler Gavin McNab,
attorney for Oranges bank, the Me-
tropolis bank and trust company, was
with Grange. 1t was given out that
they were simply adjusting the clear
ance account between the defunct
banks and the Western national, an
other Grange bank, which was the
medium for clearing accounts for the
Union state and the State savings and
commercial The latter banks had on
deposit with the Western national GER
tain securities TO protect the clearing
house bank in its dealings with the
smaller institutions. There is a balance
of somewhere in the neighborhood of
Western national.
DETAILS OF TRANSACTION
The full details OF the transaction
whereby Grange is said to have Sc
cured control over about one-third of
the stock of the State savings and
commercial bank were cleared UP yes
terday.
At the time of the suits brought by
the minority stock holders of the State
savings and commercial bank, a set
Element was made by Hays and Hass-
hagen. The disgruntled stock holders
sold their interest. They pooled the
stock, between 1864 and 1000 shares.
and put 1T in the hands of W. s. Miller.
treasurer for the Standard oil company
at this city. Hays and Hasshagen
bought it of Miller, paying IN cash and
promises $4,000. OF this $1,000 was
paid down and a note was given for
$1,000, payable $1,000 a month. The