Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-08-10
FARMERs AND MEoHANIcs' BANK.
Reply to the Suit for an Accounting DE.
NAL of the Alleged Fraud

Reply to the Suit for an Accountipg-De-
NAL of the Alleged Fraud.
The answer to the complaint in the case of
Mrs. Eve Lamprey, Mrs. Iobn R. Irvine and
Others, against the directions Of sEe Farmers
and Mechanics bank, in which suit was
brought for an accounting as stockholders, was
fled by Davis, O'Brien d Wilson, Yesterday
afternoon. The answer admits that the bank
was a legally organized Institution, the death of
Morris Lamprey and the proceedings in regard
to his estate. 1t is admitted that Morris Lam
prev was ono of the qualified directors OF the
bank to the time of his death.
It denies any belief that Morton, Wharton,
Culver & harrington ever unlawfully or fraud
ulenty conspired to divert any OF the assets OF
the bank. or appropriate the same to their pri-
yate uses or speculations. 1t is averred that the
bank loaned large sums Of money by discount
ing paper and that at the time such loans were
made the persons were of undoubted SOL
vency.
The same allegations are made in regard to
money loaned Culver and his survivors. 1t is
admitted that on June 25th the bank was in
debted to deposits in the sum of $58. 150. That
most of the above was due the city and county,
wall secured, and that 1000 was due the
defendant Wharton.
1t is admitted that defendants, including
Culver were once indebted to the bank to the
extent of $4,000, and AYERS that $4,000 was
secured on real property in Ramsey county,
and $5 200 on the Metropolitan hotel, of this
city. It is admitted that said notes have not
been paid. 1t is averred that when the bank
failed it had between three and four Thousand
dollars in cash, and collectable bills receivable
to the amount of $4, QUO. It admits that if all
due the bank had been paid, the failure would
not have taken place and that of its debts
SCI, 900 is due from defendants.
It denies that the assignment was made to
carry out any fraudulent design, but that the
assignment was regularly made in all respects.
That Mr.. Kirk, assignee, did not qualify. and
that defendant, G. b. O'Brlen, was duly quail
fed by Judge Wilkin, and gave bonds in the
sum Of $2O7, 600. 1t is averred that all neces-
sary and legal means have and are now being
employed to collect what is due the bank, and
that plaintiffs have never applied for any re-
lief. 1t is denied that G. D. O'Brien was ever
appointed assignee at the instance of Morton,
Wharton, or any of the defendants Defend
ant G. D. O'Brien, denies that he ever had
any knowledge of the affairs of the bank prior
to the time of his appointment.
He AYERS that he is proper person TO admin
lister the trust and the effects of said bank. 1t
is denied that any member OF the frm OF
Davis, O'Brien & Wilson was ever or is now
the legal advisor of Morton, Wharton, Earring
ton or Culver or that they knew of or advised
or any Of its members was ever asked or given.
1t AYERS Morris Lampney, from the date of
its organization to the time of his death, well
knew the condition of the bank. As to the dis
position Wharton, Morton & Harrington made
Of their property defendants have no knowl-
edge or belief.
It is denied that q receiver should be ap-
pointed to take charge of the property or CT
fects of the bank. He denies that plaintiffs
have not been allowed to inspect the books or
papers of the bank, but that said books are
subject to inspections of the stockholders. 1t
is averred that plaintiffs brought the suit in
bad faith for the purpose of embarrassing the
defendant in the execution Of his trust.
It is averred that since becoming the assig-
nee of the bank defendant has diligently per-
formed all his duties in the premises, and that
if he is permitted to perform his duty
as assignee the debts of the bank to its de-
positors will be paid in full.