Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-07-30

Rail Road Banks I'm NE Supreme Court.
The following is correct report of the pro-
'eedings in the Supreme Court of this State
n the matter Of the application of manda-
nus to the Attorney General, to compel him
% apply for leave to commence an action, in
he name Of the State, against the Bank Of
Ia Crosse and La Crescent to annul the exis-
ence OF said Bank as corporation under the
General Banking Law:
To the Hon. Judges Of the Supreme Court of
the State Of Minnesota s--r =.
The Petition of William L. Banning, cit
zen OF said State, residing at st. Paul, in the
County OF Ramsey, respectfully represents,
That on the 18th day Of July, 1859, he
presented to G. H. Berry, ESQ.,, the Attorney
General of said State, an application, in the
words and figures following, viz:
To the Honorable IL Berry, Atto,nev General
Of the State Of Minnesota: .rEs ri &. .
The undersigned. citizen of st. Paul. in said
$ respectfully represents: That the Bank of
La Crosse and La Crescent, located at Hokah, in
said State, is corporation formed professedly for
the purpose Of banking under the provisions Of
the Act of the Legislature of the State OF Alnne-
sofa, entitled, IAN act to authorize aud regulate
the business of banking" approved July 18th
1858. That the said corporation has offended
against the provisions of the said act creating it,
aud is exercising privilege not conferred upon
it by law. That the facts upon which this allega-
ton is made are as follows: The said act requires
that the said corporation shall duly assign or
transfer trust to the Auditor of the State public
stocks issued by the United States, or by any
semi-annually paid at rae of valuation to be es-
timated and governed by the average rate at which
such stocks have been sold in the City of New
York within the next six months preceding the
time when the said stocks are 50 deposited, and
the said act expressly prohibits the Auditor OF
State from tax ny such stocks at rate above their
current value in the City Of New York at the time
Of deposit Whereas, in violation of said act, and
withnnt IAwf! authority, the said corporation did
on the third day OF June, 1889, transfer to the
said Auditor in trust Minnesota State railroad
bonds at valuation of ninety-fve cents on the
dollar and is with the aid of SAID Auditor, issu-
ing circulating notes thereupon at that of val
uation, when in truth such bonds have not been
sold in the City OF New York for that, or any 9TH
er price, within six months preceding the time Of
deposit, nor at any time, and when, moreover, the
said bonds had not, and have not, that rate of cur
rent value, nor any current value whatever in the
City of New York, at the time of deposit, nor al
any other time. That the said action of the said
corporation and the said Auditor, is protessedly
founded upon an amendment to the said act, emit
tied IAN act to amend an act to authorize and re
guate the business of banking" approved July
18th, 1858, which said amendment is absolutely
null and void, for the that the same was moi
passed w :wnthirds vote Of the Legislature o.
the State.
And that this information is stated pursuant to
the provisions of chapter 80 of the Revised Stat
utes OF Minnesota, to procure the commencement
Of an action, in the name of the State, against
said corporation, to annul the existence of saiC
corporation, and stop the said unlawful and fraud
uent proceedings.
w. L. BANNING.
STATE of MINNESOTA,
county Of Ramsey 3d.
William L. Banning, being duly sworn, say.
that the foregoing statement is true of his owl
knowledge, except as to matters therein stated OF
information or belief, and that as to those matter
W. L. BANNING.
Sworn to and subscribed before me, this 2sth day
WIN. B. McGEORGE, Notary Public
STATE OF MINNESOTA,
attorney Generals office,
st. Paul, July 18th, 1859.
Vim. Hollinshead, Esq.,:
SIR-Tn answer to your request of this morning
l have to say, that have carefully examined tn,
papers submitted by you. but do not see sarisfac
| tory evidence that the Bank of La rosse and l.,
Crescent. IS a corporation, has violated the pro
visions Of the act creating it, or that it Is exercis
ing privilege not conferred upon it by law.
shall at any time be ready to institute proceeding
as you desire. whenever it shall appear by compe
tent proof that such allegations can be sustained
and that the public interests will be subservet
thereby. For the present decline to make thu
application. Very respectfully aspect fully ..,v..
c. H. BERRY, Atty Gen'l.
STATE OF MINNESOTA.
.State Au,iitor's L6ice,
st. Paul, June 18th, 1859.
Vim. HollinsAecd, Esq.,;
SIR-In answer to your favor of this date I an
swer your questions in the order in which they
are given.
lst The La Crosse and La Crescent Bank de
| posted fifty thousand dollars in Mimi. per cent
bonds issued to the Southern Mimi. r. Il. 10. Oh
the third day of June. 1859. also nine thousand o
| the same issued to the Transit Railroad Co. on tn
| 25th day of June, 1859.
I'd. Answered above
Sd. There has been issued to the Bank unon III
above securities forty three thousand one huudre
| and seventy nine (43, 1877 dollars
4th. The securities are valued st 95 cents O,
| their par value at the present time. What the
will be valued at in future depends upon their cur
rent value in future.
Respectfully yours,
| W. F. DUNBAR, State Auditor.
Your petitioner further respectfully repre-
sents that the Journals OF the Senate an,
House of Representatives of said State SHOW
that the Amendment referred to in said appli
cation did not pass the Legislature of sal
State by twothirds vote as required by tn
| Constitution Of the said State, and did no
pass the House of Representatives of said Stat
at all. That the said Journals exhibit tn
following proceedings of the legislature of sal
State upon said Amendment.
1t was first brought to the consideration q
the Senate on the 26th day of July 1855
when it was submitted to, and acted upon, il
| committee of the whole, amended, and repor
ted with recommendation that it be engross
ed for third reading, which recommendation
was concurred in by the Senate. On the sam
day it was reported to the Senate, as correctl,
engrossed, and was put upon its final pas
sage, and was passed by vote of yeas 81
nays 8, the Senate being composed of 36 mem
berS.
1t was reported to the House of Represen
tatives, as having passed the Senate, on tn
9th day of July, 1853.
1t was referred to the Committee on Bank
ing in the House, on the 18th day of July 1858
with instructions to report on the next day.
On the 29th day of July, 1858, four of tn
five members of the Committee on Bankin.
reported it without amendment, and recon
mended its passage.
One Of the members of the Committee mad
minute report and recommended that Sec
ton be stricken out.
The majority report was rejected by yea:
"a, nays 80.
On the 3Oth day of July, 1858, it was con
sidered in the House. A member moved t,
strike out the first Section. This motion wa.
adopted by yeas 36, nays 81. The following
is copy of the said amendment including tn,
First Section thus stricken out:
Be 1t enacted By the Legislature of the State O
NinnesOtd:
SECTION !. Section five of said act is hereb,
amended SO as to read AS follows: Whenever an,
person or association of persons formed for The
purpose Of banking under the provisions of thi:
act, shall duly assign or transfer in trust the