St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-29
A CHICAGO LOAN SOCIETY
LI6BLE, TO 60 INTO THE HANDS or A
RECEIVER
OWING TO ST. PAUL Park LOAN

One Hundred and Thirty. Eight
Thousand Dollars Advanced
by the Chicago Company, and
the Attorney General Insists
1t Must Be Paid Back-sliliers
and Blair, of ST. Paul. Offer to
Furnish Additional Security.
The American Building, Loan and
Investment Company of Chicago is in
trouble, quite largely owing to a loan of
Sl3S,OO0 made on st. Paul Park prom
erty. Chicago papers of yesterday say
that the attorney general willie deter
mine today whether the society shalpbe
given the statutory sixty days in which to
make good its assets or whether its saf-
fairs shall be turned over to a receIyer.
A conference was held upon the affairs
OF the society, at which State Auditor
core, Attorney General Meloney, AS
sistant Attorney General Schofield
James N. Young. treasurer, and w. e.
Cooke, attorney of the association, and
Levy Mayer, who has been retained as
cousei for the association, were present.
The rights of the society under the
statute and its financial condition were
discussed.
An answer to the charges made by
the attorney general was submitted. In
substance the answer denied that the
assets were insufficient for the contipu-
.ance of business and that business was
conducted in an unsafe and Illegal man
ner. 1t said further all loans were now
passed upon by the board of directors at
regular meetings and denied the society
was connected with the place of amuse-
ment known as the "Grotto." In regard
to the alleged insufficiency of security
on loans at st. Paul Park, the following
was submitted, signed by Joseph Jockey
and agreed to by Edward j. Hodgson.
I. M. kerst. a. M. Peabody, Charles
5. Bunker, c. E. Dickerman, WA
Miller and Peter Berkey:
ST. PAUL, MIMI, Dec. 19.-rTo c. F
Easton, Chicago: l have frequently
visited St Paul Park, Washington
county, Mimi, and have considerable,
acquaintance with the character of the
place, and with the improvements
IS within mile and half of the CITY
limits below st. Paul, OIL the Mississinni
river. and has many natural ADVANTAGES
as to situation. 1t is the site of quite a
number OF substantial buildings. resi-
dences and business houses, together
with manufacturing plants. | regard
1t as the most prosperous and promising
suburb of this city. | would regardgas
falr valuation OF lots in said Park at a
time when there is any reasonable
movement in real estate, say, an aver
age OF about $500 or $3.50 lot.
The st. Paul persons who vouch for
the foregoing appraisal are described
as follows:
Joseph Jockey is cashier of the Ma.
tional German-American bank; Edward
| j. HodgSon is president of the Security
trust company: z. NJ. KerSt is cashier
OF the Germania bank; A. N. Peabody
| Is private banker and mortgage loan
| agent; Charles s. Bunker is a general
| accountant and examiner; G. E. DECKER
| man is vice president of trust com
| pany, director in various banks and IAN
| extensive property owner in ST. Paul:
| W. A. Miller is assistant cashier of the
! First National bank; Peter Berkev is
! wee president of the ST. Paul Fire and
Marine insurance company and apprais-
| LII
insurance company, of Milwaukee.
The answer admits the cash account
OF the society is short $1,000 because
former officers unlawfully APPROPRIATED
that amount, and that the expense ae-
| count was oyerdraWn, but arrangements
were being made by which he amounts
| illegally Withdrawn would be returned
Against this statement, however. was
| the hndlng of the state auditor, who
visited the property of the society fe "
weeks ago. Mr.. Gore could not get any
one IN st. Paul TO estimate the value of
| the property. 1t had virtually no value,
he sad, and was not in the market at
anything like a good figure. This big
loan and one of $4,000 at Hammond,
Ind., make the assets dwindie down,
when 1T is considered that the little
town is hardly likely to grow much for
the next ten years. A written agree
ment from NJ. ID. Miller and Frank p.
Blair was shown in which they offered
| TO furnish satisfactory security on all
the St. Paul Park loans. But Miller
and Blair, the auditor said, were the
| men who manipulated the deal between
the American society and the st. Paul
| Park improvement company.
Attorney Mayer said the society was
solvent and that the filing of a receiver
ship bill would mean ruin. Put your
own men in here, Mr.. Auditor" he con-
tinued. land let them guard the affairs
of the society until the sixty DAYS grace
| have expired"
MIR. Gore said he would leave the mat
Ter to the attorney general. The latter
declared mat every penny loaned on
the st. Paul Park property would have
to be returned to the stockholders.
SHAN borrowers got the money of
the society on this worthless properly. -
| ne said, land simply paid it over to
! Miller and Blair. This was a frand,
and every penny has to be made good.
Can you make good that S13S, 600 loaned
on this property? You must get back
! the SIC, lbs paid to Modica as salary and
the other salaries illegally paid to all
| officers but the secretary. There was a
loan of $1,000 TO Stillwell, who never
got cent and whose mortgage was
cancelled. | cannot give decision in
this matter today, because l must learn
whether the interests of the stockhod-
erS Will be conserved by the promises TO
make good the securities"
DO you think Marston and Modica
will pay back the salaries they re-
celyed?' asked Attorney Mayer.
Yes, they will, or go to the peniten-
tIary," responded the attorney general.
An effort was made by the GLOBE to
find Messrs. Miller and Blair last even
ing, put 1t was unsuccessful.