The weekly tribune. [volume] (Great Falls, Mont.) 1891-1894, 1893-10-13

this draft was credited to the account of
McClelland, although we are informed
that credit was not given in his pass.
book for the same. The draft was not
entered in the books of the Merchants
bank at the time as a collection item. but
was RENTED by that bank to the
American Exchange National bank
OF Chicago as a cash itom.
The American Exchange National
bank OF Chicago claims that the Mer.
chants National bank Of this CITY was
overdrawing it's account with then. 70
which they were objecting, and that The
Merchants National bank at the time of
renting this draft to Chicago wired
that they were RENTING $1,000. on the
strength of which the American Ex.
change National bank claims TO have
paid %overdrafts to the amount of about
$1,000. Draft having been forwarded by
the American Exchange National bank
to Cleveland for collection, payment was
refused by Hayes & Sons. Mr.. Hanks
thereupon went to Chicago and Cleve.
land and claims to have been there adj
vised to offer the bonds for sale for what.
ever they might bring at public sale for
the account of w. j. Hayes a. Sons with
a view to %instituting suit against w J,
Hayes X Sons for the difference between
the amount of their bid and what the
bonds might sell for in the market. He
caused an advertisement to be published
for the sale of such bonds on the 18th
day of June, 1893, at the National Bank
OF Commerce in the city of Cleveland,
but so far as we can learn there were no
bidders. lie at once caused another no.
tice to be published to the effect that he
would sell the bonds on the 2Ith day of
June at the Office of the school board al
Great Falls for the account of Hayes a.
Sons, and it seems from the correspond
ence between Dewar. the assistant
cashier OF the American Exchange Ma
tional bank, and Mr.. Hanks, which is
now on file with the clerk of the school
board, that bids were solicited upon this
proposed sale at Cleveland and Chicago.
but the correspondence would Indicate
that no bids were made, although yari.
Gus bond purchasers made more or less
inquiries concerning the proposed sale.
On June 10th Dewar wrote to Mr..
Hanks at Cleveland:
What have you done about de.
manding payment of the party
who guaranteed this sale and
the use of the reserve bid and
why is it not possible to telegraph ac-
ceptance Of the reserve bid and request
that the funds be placed here al once on
delivery of the bonds. Yours truly.
"GEoRGE l.. Dewar, Asst Cashier"
On June 2lst n. w. Harris e. Co..
in bonds, wrote Mr.. Hanks AS
follows:
1--WE are in receipt of your letter
Of tho 10th instant informing us
you propose to dispose cf the
Great Falls school bonds on the 9th
INST. either in Chicago or in Cleveland.
depending on from which place you re-
,eive the highest bid"
On the same day Mr.. Dewar wrote Mr.
tanks that he had put the advertise
meet in the Tribune.
On June 22nd Dewar again wrote
Hanks at Cleveland that he had inserted
he advertisement in the Tribune tho
lay before.
It Cleveland as follows:
- wired you this morning that up to
. o'clock w had received no bids but
hat we had a call from the Equitable
lortgage c~ompany's representative.
whose card ! inclose herewith. | may
ay had some kind OF tough questions
o answer. This Equitable Mortgage
IAN was so persistent in demanding in {
that ! DIT last told him :
'ould answer nothing as | knew moth /
~"
SO far as we can learn this terminated I
r~occedings on the part of Mr.. Hanks to /
of the bonds. !
In an interview between the president |
I the American Exchange National !.
ank and Messrs. A. NJ. Scott and A. }. /
hores of this city. the president is re- .
to have claimed that the bonds p
ere held not only on account Of the
above referred to but as SO. r.
lrity for the payment Of the whole in
ebtedness of the Merchants National
ink TO the Chicago bank, amounting
about $4,000 and claimed to have
authority from the Merchants r.
ational bank of this city for So holding ;.
Ie bonds. At tho same time he said K
at he desired no litigation with the If
strict and if advised by his counsel Il
at his bank had no legal claim upon II
o bonds they would be surrendered ..
Ithout suit. u
Early in September a formal written nj
'mand was made by the school board p
ION the Chicago bank for the return of II
eEe bonds, to which no reply has as A
I been received, although several mem u
re- OF the school board who have midi &C
lually written the Chicago bank have W
ceived answers to their communica. n,
ms.
We are informed that the Chicago u
is taking legal advice as to it's right ar
hold these bonds and that it is likely W,
be governed by such advice, but h,
lether the bonds will be surrendered -
thout litigation your committee is un, ~
10 to report, inasmuch as the Chicago tn
has not yet to our knowledge an WI
unced it's conclusion upon the matter. IN
is apparent from all the corrcspon- "
nee on file with the school clerk, as 20
as other statements made by repre- re
natives OF the Chicago bank, that tr;
done by Mr.. Hanks to effect -,
iale OF the bonds in the east was done $50
tn the approval Of that bank, and ed
ar committee is Of the opinion that Ho
, Chicago bank has no valid claim ne
on the bonds which would be good as n
ainst the school district. At tho same 81,
We are satisfied from tho facts IN
ted above that the American Ey- NJ,