St. Paul daily globe., 1891-04-17
HIGHLY INDIGNANT.
President James II. Bishop Does
Not Mince Words i'm Reniy.

FreSiOent James II. Bishop Does
Not Mince Words in Reply.
Bank Examiner Kenyon's report c1e-
ated quite stir among the stockholders
and others interested in the national
building and loan associations. The
officials of the American Building and
Loan association were especially indig-
nant and did not hesitate to de-
nounce the report of the examiner
as Ill the nature of vicious attack, and
pointed to the fact that it seems to have
been virtually made to the newspapers
instead of the governor. They feel that
the American Building and Loan asso-
citation has been singled out for an at
tack at this particular time for the pur-
pose Of securing legislation adverse to
national building and loan aSsocia-
tons. President James II. Bishop was
seen last evening by q GLOBE reporter,
and, being asked his opinion concerning
the report, said:
Having read the article in an even
ing paper purpOrting to be the report of
the public examiner upon the American
Building and Loan association, would
say that If the report made to the gov
ernor Is i'll accordance with the article
then IL is tissue OF falsehoodS, and the
examiner has oVerstepped his authority.
Ihere has been no cOiluSiOn between
the officers and others in the sale of
forfeited stock. There has been no such
amount as stated made by any parties
on sale Of stock. In fact. nine -tenths
of the forfeited stock has been bid in
for the association and appears in our
statement under the head Of forfeited
stock. There has not been, as vet, any
loss on land i'll Washington county. The
land is III our possession, and we fully
expect to make good profit on it. The
officers salaries have been stated falsely
as to the amount. The large legal serv-
ices item of fSl3, 900 was mostly occasioned
by this same kenyon's unwarranted
attack on our association something over
a year ago. 1t is expressly stated in
the law that the examiner shall examine
every association at least once year.
The last examination was Dec. Z, 1880.
and the public examiner has clearly
been derelict in his duty. But the rea-
son is plain; he waited until he thought
he could influence the legislature, and
get them to pass bill in the interests
OF banks and mOnOpoliStS as against the
mutual building and loan association.
But he Will find the members OF the
legislature, the majority Of whom he
considers haySeedS, and men not capa-
ble OF serving the close corporations
and hlgh-interest banks, cloven-foot in
his bill. which is clearly intended TO
crowd out of existence the poor mans
medium OF investment, and force the
associations out of business, are men in
whom the people have confidence in
their Integrity and honesty of purpose.
The Farmers Alliance members will see
the necessity of protecting the members
OF the building and loan associations,
whose name IS legion, and who eXDect
their representatives to protect them
from such men as Kenyon. The effect
Of his report may be to cause a few
more members to drop out and forfeit
their shares, but he knows full well
that we have followed the law strictly.
and that we have cOnformed to our by
laws and the conditions of our certifi-
Gates. The examiner has never caused
to be published the report of any other
ASSOCIATION than the American. 1t
clearly shows malice, and the managers
OF the American want to say to Public
Examiner Kenyon, and all parties con-
nected with him in his attempt to do up
the American, that ttey are. prepared
to meet him and them Oh any ground
they may take. The examiner has been
repeatedly consulted upon the method
of selling forfeited stock. ana at one
time we postponed the sales for four
months 10 get some decision upon it
from his department, but he has re-
fused to give us any advice on the sub
Ject. Kenyon has known for over a
year and half of the method of our
sale OF stock, but he takes this occasion
to try and make capital out of it. In
our examination over year ago this
same question of forfeited stock sold
at auction. was brought out in the eX-
animation, and no comment matte
nDOn it