St. Paul daily globe., 1890-02-01
MINNEAPOLIS.
THE "AmERloANn ON TRIAL.
A Continuance OF the Examina-
ton OF the Associations Affairs.

a Continuance OF the EXamina-
ton OF the Associations Affairs.
The adjourned meeting of the investi-
gators of the affairs of the American
Building and Loan association was held
yesterday at 10 o'clock. before Examiner
Kenyon, Assistant Attorney General
Childs conducting the prosecution.
G. A. Farwell was the principal
witness, and told of proposition
nadt him by President Bishop, to have
him purchase stock to be paid for by
MIR. Bishop, in real estate. He stated
that Mr.. Hurd had met him on Dec. 81
and had asked him if he did not wish to
get control OF the association. Farwell
stated tAat Hurd said, ''If you can raise
some money we can get control of the
whole thing and will make pile of
money!"
lnere was considerable testimony in
troduced by Mr. Farwell in the shape of
figures and correspondence, but the
majority of the verbal testimony was
about letters he had had from rural dis
tricts in regard to the wish of parties to
pay off their loans. He also made OBJ
jections to the shares, and thought they
did not show when they would be
paid up.
The actuary of the association, Will
lam Kendall, was next called. He said
that the auditing committee need not Of
necessity be members of the association,
as it could be composed of men who
beld no stock whatever. He said that
their present building committee had
but one stakeholder on it, and aside
from him Its members had no inter-
est whatever in the affairs
of the association. In reference
to the outstanding certificates of stock,
he said that none had been cancelled
except in cases where the holders mad
pleaded poverty, and in that case they
had been allowed to withdraw, and he
then described the method of forfeiture.
When payments are six months in ar
rears. notice is sent to the holders, in
forming them that in ten days after
their stock would be sold at auction.
He described the manner in which the
auctions were conducted. Once month
the stock was offered for sale that was
subject to forfeit in the directors room.
and when there had been no bidders the
stock had been bought by the officers or
members of the company. He said that
few people attended these auction sales,
but insisted that there was no discrim-
inatiOn whatever in favor of the officers
or anybody else.
MI FarWell is exceptionally urgent
in his work against the association, and
has many of the shares in his charge
which people have sent to him to nego-
tiate, and arrive at some settlement
with the company in regard to their
business relations.
In the afternoon the books Of the COM
pany were inspected by c. A. Farwell,
of Waterloo, To-, and MIR. Ingalls,, from
Duluth. both of whom stated that thew
did not own dollar of the stuck. 1t
appears that the notes held against the
association are payable from the ex-
pense fund, and that there is $4,000 in
the loan fund, which cannot be used for
expenses. John B. Atwater, of the
firm of johnson &c Atwater, will testify
at 10 O'Clock this morning. and will tell
who was to employ him for attorney,
and how he gained information that
would lead him to suppose that a re-
ceiyer was to be appointed.