Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-09-24


one of the strongest financial institutions of
the country. The revelation of it's insol-
vency was surprise to the whole country;
while thousands of depositors were finsn-
cially ruined by it, Indictments were found
against the officers of the bank in the State
courts, but az yet none of them have been
brought to trial, and it now transpires that
these indictments will not be allowed to hold.
It is claimed by the attorneys for the crimi-
nails that they have violated federal instead
OF State law, and if they are to be tried at
all they must be tried by the federal courts.
Their offense was against the national bank
ing law, and the United States courts have
the first right to vindicate that law and to
punish those who have violated it, while the
prosecutions under the State law must be
abandoned. 90
Technically this plea or subterfuge is cor
rect, and by using it there is an excellent
prospect of the escape of the criminals from
any punishment whatever. The United States
Judges of the district and circuit in which
the bank was located, refuse to try the case
on one pretext or another. One is sick;
another has more than he can attend to,
while third is party in interest, having
been created trustee for depositor. The
only person whom those in interest can hope
to prevail upon to sit upon the case is the
successor of Judge Dillon, who has not yet
been appointed, and cannot be confirmed
sooner than January next. The consequence
will be that the persons guilty of SO great a
crime as the robbery of thousands of per-
sons who had entrusted their money to their
care will not be punished by even the de-
privation Of liberty for a short time. for it
is not on record that federal court has ever
punished wealthy criminal to an extent
commensurate with his desserts.
There are numerous instances Of this lax
ity of justice in the federal courts. BE-.
Allen, of Chicago and Des Moines, is a not
able example. He was reputed to be the
wealthiest man in the Northwest, and for
years conducted national banks in both of
the places mentioned, besides having q pri-
vate bank in New York. When he collapsed
it was found that he had never had five
thousand dollars of his own money invested
in either institution, but had used the funds
of depositors with which to buy stock and
speculate. He had, however, expended
million dollars in home at Des Nome and
quarter of a million in a home at Chicago,
both of which he still retains and erioys,
hesides quarter of million in horses,
carriages and other luxuries. He was in
dicted under the national banking law, but
has never been punished The only incon-
venience to which he has been subjected has
been the employment of q second rate law
yer, who has convinced the court that the
indictments were defective and that thew
must be dismissed. In New York, Boston,
and Chicago there have been numerous par
allel cases, but not single conviction. The
st. Louis defalcations promise to result ii
like manner.
There is q case nearer home, however, that
promises to take the same course. It ap-
pears that Keen, the assistant cashier of the
Northwestern National bank of Minneapolis,
who stole hundred and thirty-seven thou
Shuu uOAuIbS Afso CVumlGG0O no OUo060 Tor
which he is amenable to the State courts.
He can only be called to account in the
federal courts and to that jurisdiction he
is to be committed. The law, however, has
been pronounced defective by such jurists as
Judge Drummond, Judge Harlan and others,
and no punishment aside from nominal
fine Of less than five thousand dollars can
legally be inflicted. The imprisonment
clause of the law, ranging from five to ten
years for making false entries, etc., is of no
binding effect, and cannot be enforced. II
is, therefore, assured that as soon as the
courts assemble and the case comes to a
hearing, Mr.. Keen will be allowed to 90 at
liberty, as free as the mountain air, and
those whom he has defrauded will have no
recourse whatever. The way of the trans
gress0r is not very hard,