Los Angeles herald., 1910-07-02
Alden Anderson Forwards Letter
to Governor GiIIett Announ-
cling His Retirement
OUTLINES RESULT OF WORK
Will Give Entire Time to His Cam
paign for Republican
Nomination
Associated Press1

SAN II lNfAANClOSO, July 1s-EAluS
Anderson, state superintendent G
banks, in order to give his entire tim
to his campaign for the Republica
for governor, has for
warded to Governor Gillett the follow
ing letter of designations:
Permit me herewith to tender my
resignation as superintendent of
banks of the state of California,
to which Office you appointed me
on July 1, 1909.
l take this action because of my
candidacy for political office, in or
der that 1 may devote time to the
campaign.
The annual report of this office,
required by law, will be submitted
in october, but l deem 1t appropri-
ate at this time to give a short
resume of what has been accomp-
lished during my incumbency.
On July /, 1899, when l assumed
office, there were 4S6 state banks.
During the year forty-five new
banks have been established. How
ever. owing to consolidation and
amalgamation, facilitated by the
provisions of the new law for de-
partmental banking, liquidation,
voluntary or otherwise, the number
of banks has not been materially
increased, there being at the
present time 491.
Thirteen banks changed from the
state to the national system. 1 am
pleased to say that this is a smaller
number than nationalized during
the previous year.
S45s,s25,577 IN DEPOSITS
The total individual deposits on
July /, 1909 Excluding deposits in
banks nationalized during the year,
were $403, Az, ,99O.71. On March 20,
1910. the date of the last call, prac-
tically nine months of administra-
tion, there were individual deposits
of S45S, ,S25, ,577. 80, showing net gain
of $55, 352 5S709; handsome show
ing, and one confirming the opinion
that stringent and effective bank
laws and efficient administration
would win the confidence of the
people and substantially increase
deposits.
During the year forty-eight banks
were required to make good i'm
paired capital stock varying from
10 per cent to 70 per cent, and in
one case $50 per cent. Doubtful as
sets have been written off, excessive
loans reduced, overdrafts and in
vestments in stocks largely elimi-
mated.
have found 1t necessary to close
twelve banks, including two
branches. The affairs of two of
them were so handled that the de-
positors were able to secure their
deposits without discount immedi-
ately, the assets of both being sold
outright to other banks. The liqui-
dation of another, the State Saw
ings and Commercial bank Of San
Francisco, had progressed far
enough so that 1 would have paid
a first dividend of 60 per cent to de-
positors on May l last had 1 not
been restrained by the suit brought
against me as superintendent or
banks, in which the constitution
ality of the bank act was brought
into question. I have done every
thing possible to bring about a
speedy adjudication Of the same,
and hope for final decision in the
near future.
EIGHT BANKS CLOSED
Eight Of the banks closed were
controlled and managed by Japa-
nese. Three of these were allowed
to resume business after making
good their impaired capital.
In realizing upon the assets OF
these banks l have found it neces-
sary to file fifteen suits, eight petit
tions for the sale of property and
fifteen claims in bankruptcy pro-
ceedings. There have been filed
against me in my official capacity
eighteen suits for various reasons.
AS soon as the suit, involving the
constitutionality of the bank act,
has been settled the affairs of all
banks now in liquidation can be
closed up rapidly.
The LIQUIDATION of the closed
banks has been conducted with
strict economy. One receiver in
central office has acted for all Of
them. In this manner expenses
have been kept down to the mini
mum, to the benefit of depositors
When final statements are rendered
they will show cOnclusively the eff
fectiveness and economy of this
method Of liquidating failed banks,
and demonstrate that this feature
of the new law has been an un-
qualified success.
In the performance of my duty
have had the moral support and CO.
operation of the conservative bank
ers OF the state, who realize that
their own position is strengthened
when all banks are put in an abso-
lutely safe and sound condition. At
the present time there are only two
banks giving the department any
trouble, and, including these, every
bank in the state is solvent and
able to pay it's depositors in full.
The present bank law should practi-
cally eliminate bank failures.
Thanking you for the confidence
manifested in selecting me for the
ia, t., . IA OF ff1it Of
important office, and hoping that
my handling of the same has been
satisfactory to yourself and to all
the people of the state, l am sin
cerely yours,
ALDEN ANDERSON.