St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-09-05
EMBARRASSED
Gov. Hubbard Carried Down
In the Financial
MaelStrOm.
The Assignment of the Minnesota
Elevator Company.
And the Coming Assignment To-day
of the Mazeppa Mill Company.
Run on First National Bank of Wabashaw
Which Soon Terminated.
Especial Telegram to the Globe. |


WABAsHAw, MIMI, Sept. 4.-The news of the
suspension of the Mazeppa Mill company was
received here Tuesday morning and that of the
assignment of the Minnesota Elevator company
in the afternoon, which when taken together
with the fact that Senator Lawrence as president
of the Minnesota Elevator company was one OF
directors of the First National bank here and has
large business transactions with the bank caused
an uneasy feeling amongst its depositors as to
the amount it had become involved through his
connection with the elevator company. On
Wednesday morning run was made and from
to II a. m. the cashier had paid out $50, OOO
There was no outward excitement among the
depcsitors each very quietly drawing out their
money without word passing between depos-
itor and cashier
In the midst of the run Vice-President C. f.
Rogers and one of the principal stockholders
stood beside the cashier and told depositors that
the bank was perfectly solvent and no depositor
would lose dollar, and that the bank would be
kept open for business Notwithstanding The run.
The bank temporarily suspended payment
before noon but resumed Immediately after one
O'Clock and paid all demands, which was small.
as the excitement had subsidized, and some de-
positors returned their money to its vaults being
convinced that the bank was solvent.
In the afternoon, Thomas Irvine, secretary of
the Beef Slough boom and Mississippi River
Logging companies, accompanied by his head
bookkeeper, arrived from the Slough Mr. Irvine
was depositor to the amount of $4,000, and,
after looking over its books, at the request of
the bank officers, said he was satisfied of the
banks solvency, and told them that they had is
sued some checks upon the bank, but would
send exchange and cash to pay them, and i'm
mediatey made deposit of some $500. He
also stated that if necessary they could call upon
him for SIC, 600 more. Confidence had by this
| time been almost fully restored.
Thursday morning a delegation of business
men attended meeting of the bank directors
and made an examination of its securities, the
uncertainty of which caused the run, and became
satisfied that the bank was solvent and so re-
ported. The directors at their meeting passed q
resolution to withdraw from the bills receivable
held by the bank all papers made by Mr.. Law
renee and any of the companies in which hewas
interested, and replace it with cash. Everything
has been quiet all day and depositors have nearly
all replaced their money and confidence has been
fully restored. The bank opened its doors at
the usual hour and did their regular business all
day. The closing of the bank doors would have
been calamity, in addition to the failure of the
elevator and mill companies, and everybody is
thankful that such a crisis has been avoided.
In the matter of the cause of the assignment
of the Minnesota Elevator company upon inter
viewing Mr.. Lawrence he says the failure of
that company was caused by the inability of the
Mazeppa Mill company to pay for a large amount
of wheat they had purchased of the Elevator
company, and at the time of assignment the Ma
zeppa Mill company owed the Elevator company
over S50,0O0 Mr. Lawrence was not the mana
ger of the Elevator company, nor does he
charge any blame for the failure to the Red
Wing management.
The farmers along the line of the company
elevators will be no sufferers, as all wheat in
store has been paid for or has been held subjec,
to receipts and would be duly honored on pre-
sentation. The failure of the elevator and mill
companies does not affect any interest here ex-
cept that of Mr.. Lawrence.
The Wabashaw Mill company, of which MI
Lawrence is president and manager, to-day de
clared dividend of ten per cent. and is in &
prosperous condition, running night and day,
and still intends to continue doing SO as long as
there is demand for its products, which has
been increasing every year.