The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1893-06-29
out with very little capital though assum-

out with very little capital though aSSum
ing to have $4,000 BY means OF thes
certificates which were not entered upol
the regular bank books, the absence o
capital was not discovered and the banl
ran on with It's capital seemingly paiC
up, until the inventory taken by the as
signee showed the true situation. As
said before there is no indication that
any of the money received for these GER
| tifcates was diverted to the personal
| use of any one, but was used to give the
bank fictitious standing. Had it not met
the heavy losses through the Howell Co.
and the Sioux City concern and few
| others, each less in amount than the last
| named, it would have paid dollar for dol
lar Notwithstanding the absence OF capt.
tai. Had 1t had capital paid up ii would
have paid over 80 per cent. of its indebt-
edness.
This is as full statement of the affair
as The Pilot has been able to reach after
considerable time spent in research. No
ones word has been taken for anything,
and certificates issued as before stated
have been personally inspected and their
absence from entry in the books verified
by examination. The books have at this
writing been checked back to 1883 and no
error or omission found with the excep-
ton of the 20c. before men toned.
Now as to the assignee of the bank.
Naturally there was some comment made
upon his selection because of his friend
ship and relation to parties connected
with the bank. But it must be under
stood that these revelations have come
through his agency. Few men would
have done 1t and the temptation would
be strong 10 most people to proceed with
the assignment on the basis of facts dis
covered without probing to determine
the origin of facts. In the end it would
have been bad policy as the examination
now being prosecuted by the assignee
would have been attempted by others.
But, Notwithstanding, the temptation
would have been stong with most men to
cover up and run the chances that al
exposure of the means taken to conceal
portion of the liabilities of the bank
or in other words, it's absence Of capital
would net be made. Mr. Barnes decided
to investigate thoroughly regardless of
the consequence to individuals and be
certainly has been doing so up 70 the
present. His work may be reviewed, pos
sibly be may request that it shall, but one
thing is certain, he is doing as thorough
work as any man can do and all who
know John Barnes know that when he
undertakes work Of this kind he leaves
mighty small field for those who follow
him as he never fails to cover the whole
territory himself. That there was dis
honesty in the management of the bank
designed to benefit fanny individual, The
Pilot is free to say it does not believe;
that there was deception for the purpose
Of giving the bank credit, it does believe.
All the facts bearing upon this point
should be made public and a thorough
investigation is desirable. This is be-
ing done now without cost to the credi-
tors except that atten dant upon the as
signment, and by a man than whom there
is no shrewder in the state. He had no
interest in the bank at the time it was
organized nor for long time after and
is as much interested as any one in hav-
ing it's past affairs fully investigated.
Just as soon as the law will permit,
dividend such as the cash on hand might
make possible to pay, will be declared.
A dividend of 10 per cent. is possible now
as the cash on hand is amply sufficient
to that extent.