Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1881-01-08

NO. 44.
was paid on the day it was due, and the
honor OF the state was protected by It's
treasurer.
In the month OF August following,
when 5000 900 of maturing bonds Of the
state had te be paid. the treasurer DIS
covered, for the first time, greatly to his
dismay, that the Mastin bank, it called
upon to pay any large portion Of ths de-
posits of state money. would, without
doing so, suspend. Believing 1t to be
his highest duty to save the state from
loss, Treasurer Gates adopted the pru-
dent business rule OF dealing with doubt
full debtors-not to break them, but TO
nurse them for better security and more
propitious times. He applied this rule
to the Lastin bank and when IN August.
1873, 1t suspended, owing the state treas
urer $500, 600, he held securities and col
laterals. with which he has reduced that
indebtedness to what it now is, Sle3,-
572 50. At the time of its suspension
and assignment the Eastin bank had
cash deposits aggregating nearly S2,-
100000. OF its assets but little more is
known than that the assignee. in the
criminal court Of Jackson county, on trial
of John J. NJ astIn, the cashier, testified.
long after he had come into the posses
sion OF the entire estate. and alter be had
had iull time to inform himself OF the
facts, that from them he would be able
to pay all the creditors IS cents on the
dollar and probably par. Yet the same
assignee, now in the third year OF bis
administration, has paid to the creditors
but II cents On the dollar. Such man
agemsnt will necessarily lead to fierce
litigation in the near futue, but frsm this
the state must be kept Tree. And 1t will
be-
But the money of the state must be
paid into the treasury. The parties with
whom it was deposited won't or cannot
pay it, Treasurer Gates must. He has
perfected arrangements for that purpose,
and result will be at encs reached that
will be satisfactory to all. 5Of these ar
rangsments 1t need only be said Treas
ursr Gates is ADVISED that the state, un-
der the doctrines of the commen law, by
virtue of It's sovereignty, is now entitled
to priority OF right Of payment against
the Mastin bauk and its securities, and
if he SHOULD step in and pay the nisnsy
owing by the bank and receive from the
state such power to pursue the same
remedy as may be lawfully transferred,
he can recover from suuch bank and It's
securities the money he now pays to the
state. In protecting this supposed right
it is not deemed safs'to pay the money
directly into the treasury until some ap-
proprixse legislation can first be had fer
the reason that such present technical
pay yment might extinguish both the claim
and priority sought to be preserved.
The general assembly will therefore be
petitioned at an early day VI the ap-
preaching session TO pass an act or acts
transferring whatever rights the state
may have, on condition of complete
payment OF the entire; amount due the
state. In this way payment as matter
of law will follow rather than precede
| legislative action, and for the satisfaction
| OF all as to the safe consummation ol
this business, the entire amount OF money
due the state from the Mastin bank will
be deposited In the bank OF Commerce,
in ST. Louis, on or before the 4th OF Jan.
uary, 1881, to be fully and formally paid
to the state on the oassage OF the neces.
sary legislation.
The two bills following have been
prepared with reference. 10 the desired
legislation, and which are believed tc
DO proper and appropriate for the Sc
curing OF the proposed end:
An act to secure to the state OF Misssur
q priority in the case OF insOlven
debtors to the state.
Be it enacted by the general assem-
bly, OF the state OF Missouri as follows:
Section l. Whenever any person in.
debted to the state of Missouri is insol
vent, or whenever the estate of any
deceased debtor in the hands OF the ex.
ecutor or administrators Is insuHiclen
to pay all the debts due from the de-
ceased, the debts due the state Of Mis-
souri, shall be first satisfied, and the
priority hereby established shall ex
tend as we'll to cases in which debtor
not having sufficient property to pay
all his debts makes = voluntary assign
ment theroi, er in which the estate ant
effects Of an absconding. concealed OF
absent debtor are attached by process
Of law as to cases in which an ac, 0
bankruptcy is committed. Provided
that nothing in this act contained shall
be construed to Interfere with priority
nor the payment of the expenses Of th'
last sickness, wages OF servants, de
mands for medicine and medical atten
dance during the last sickness nor ia
neral expenses. s4 .s.r,-.-..
Sec. 2. Every executor, administra
} tor or assignee or other person wht
, pays any debt due by tho person or o.
i tate for whom or Tor which he a0is bS
lore he satisfies and pays the debts du,
the state OF Missouri from such person
or estate shall become answerable il
. his own person and estate for the debt
! 20 due to the state OF Missouri or for s,
much thereof as may remain due ant
unpaid. -..5 ar-..g
Sec. g.. Whenever the principal il
! any bond given to the state OF Missour
is insolvent, or whenever such prlncipa
/ being deceased, his estate and effect
which come to the hands OF his execu
! tor, administrator or assignee are in
sufficient Tor the payment OF his debts
: and in either Of such cases any surot
+ on the bond, Sr the executor, admins
r TRAITOR or assignee OF such surety pays t.
the state OF Missouri the money du
! upon such bond. said surety, his exscu
, tor, administrator or assignee, shal hav
: the like priority for the recovery an
receipt of the moneys out OF the estat
: and effects of such insolvent or decease,
, principals as is secured to the state G
, Missouri; and may bring and maintai
suit upon the bond in law or equity, il
, his own name, fer the recovery OF al
, moneys paid thereon.
Sec. 4. Whereas doubt may be en-
: tertaned by some as to the priority o
f the state IN the case as insolyent deb,
ors, and it is important that the question
; should be put at rest at once, an emer
gency exists within the meaning of tn
J constitution why this law should go int
immediate operation; therefore this &C
shall take effect and be in force from an,
after its passage.
An act to secure 10 the state The speed,
} settlement and payment of all sums O
! | J,,a, trc,, Elijah Gutac lotn,