Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-06-09

Some think that the law of 1880
which permits the stockholders of any
bank organized under the state laws
to file a declaration whereby they
become individually liable without limit
for all Of the banks obligations, should
be made mandatory; that is, that the
stockholders of all state banks should
be liable witout limit Nobody con-
siders it very likely, however, that such
law could be passed.
| The banking act of 1880 was passed
through the efforts of the late Alex
ander Mitchell, and the Wisconsin Ma
rine 4 Fire Insurance company bank,
of which he was president, Is the
only bank in the state that has filed
the declaration provided for in the law.
Mr.. Mitchell thought the business of
his bank was getting very much eX-
banded for the amount of its capital,
which at that time was only 100000,
and by filing this declarati ton the stock
holders gave the bank the backing of
the total amount of their personal es-
whose stockholders were liable without
limit, collapsed, and the stockholders
We're ruined, as they had to pay out
every last shilling in settling the claims
against the bank
Among She attorneys who gave off
hand decisions on the subject there is a
great diversity of opinion on the cues
ton OF the individual liability of bank
stockholders. Some lawyers maintain
that they are not responsible for more
| than the amunt of money which they
have put into the bank, that lige stock
holders in ordinary corporations they
lose their money if the institution fails.
and there their responsibility ends.
Most of them, however, hold that the
individual responsibility is twice the
amount of the stock held by the stock
| holder, and those who have looked up
the law assert that it cannot be more
than that. The stakeholder, they say,
in addition, Il sum equal to that amount,
bu that is all.
| J. ]. Mcdonald was the first person
to appear before the clerk of the court
and swear to Il proof of debt i'll the
| planllinton bank matter. He had
$500 10 in the PlankintOn bank.
| Cornelius Hickey. of Chicago, was the
second to file Il proof of debt in the
matter of the assignment of the Plank
inton bank He had $576.37 in the
| bank.
There are ninety days i'll which to file
these proofs. All persons having de
posits must file sworn proof of debt
! in, 10
! A rather interesting incident is re
ported in connection with the bank fail
ure A young lady having 5000 on de
post concluded to draw it out and sent
Il gentleman to attend to the matter
| for her The gentleman went to the
bank ON Decoration day and though
the bank was not doing business he
was told that the notice rule would not
| be observed and that he could get the
money the next day. When he went
for it on the following day he wanted
the bank to pay the interest that was
due on the money, but the officials told
| him that the interest would not be
| payable until July I. He protested
that the bank had had the use of the
|
pay the young lady some interest. FL
naly the bank people told him to let
| the money remain there until the next
day. which would be June 1, and they
would pay the tive months interest.
! He left the MONEY and when he went
after it yesterday the bank was closed.
The young lady feels very badly aboul
it and is inclined to blame the bank
officials. They, however, thought the
organization was assured, it is said,
and had no idea that the bank would
have to close.
President Day was himself heavy
borrower from the bank, the amount Of
his Indebtedness being placed at $780,,
600. This is secured by a mortgage on
his Highland boulevard property given
to the bank last evening The proper
ty is estimated to be worth fully $780,,
COO.
The bank is reported to have made
four loans which aggregate four times
tie amount of it's capital stock. There
is the Lappen loan of $4,000 and the
Day loan of 100000, amounting to
$685. 900, and besides these two more Of
about 100000 each. 1t is rumored
that there may be some difficulty in
collecting one of the 100000 loans, but
that the other was made to a firm
which is responsible.