The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-10-31
ROTTEN RECORD!
Gross Dersliction Of Duty on the
Part of the State Examiner.
How the People Were Robbed Be-
cause Of His Negligence.

some years ago former state OIncldl Oh
this state was sent to examine a company
which at the time was actually insolvent,
but which he found to be solvent, and it is
said a check for 500 passed from the com
pany to the hands of said eX-official. This
instance is noted since it may or may not
the present officials of this state. since it is
evident of the number has been and
is either incompetent or dishonest.
At page - of the last annual report of
the public examiner he says: THE definite
work of the office at this time includes the
following: State treasury, IA state institu-
tons 50 counties, III state banks, 13 saw
ings banks, . loan and trust companies, Is
national building associations 65 local
building associations, an aggregate of
Sl2'' and this does not include any that
the public examiner mentions in his report
as having examined.
Whether there has ever been an actual
examination made of all these concerns in
the manner provided by law, we have grave
doubts. and that all of them have not been
examined, are satisfied; for the exam
tants, one his father-in-law and another.
1t is, therefore, plain that all the examining
must be done by hmself-the examiner and
one man-and every sane man knows that
no two men can in one year thoroughly
examine the books and assets of 312 differ
ent institutions when all in the city, let
alone when they are scattered all over a
ct to nd in
1t follows. then, that the annual report
of the public examiner is worse than
farce, since it misleads many people into
believing that the figures given are the re-
suit Of the examinations made. when in
stead in many cases they are no doubt the
cooked statements of the bank officers
themselves.
We have desire to be unjust and fully
coneede that with two assistants the ex-
aminer cannot examine all the concerns
by law required, but he and they should
do things right as far they go, even if
they only get done with one a year, since
it is far better for the state to have one
thoroughly examined than 312. whitewashed.
Had the examiner obeyed the law and
made conscientious examination of the
Standard investment Company, of ST. Paul,
it might have closed up and many poor
people saved from ruin, and the same re-
marks apply to the Union Debenture Com
pany, Northwestern Guaranty Loan Com
pany, Citizens, Commercial, Farmers and
Merchants and State Banks all of Min
neapolis All of which purport with the
exception of the two first, to have been
examined by Mr. Kenyon. and yet almost
Immediately thereafter closed their doors
which doors still remain closed
This is by no means all that have been
reported solvent and later failed, nor does
1t show all the concerns whose doors are
not closed, but whose business has not at
all times been in strict accord with the
dictates Of statute and moral law
1t would do the state no harm, and if
they are III all respects doing a careful
business, would not injure the concerns
themselves for the state to examine and
report on the Bank of Minneapolis, Irish
American, Security, Minnesota Loan and
Trust. Title Insurance and Trust North
ern Trust. Metropolitan, Home Savings
and Loan, Railway Building and Loan,
Minnesota Savings Fund and Investment
Company, American Security and Loan, all
Of minneapolis the Iron Exchange Bank
Of Duluth; the st. Paul Trust Company,
St Pauf Title insurance, and indeed all of
he so-called financial concerns of the
state.
The writer has no desire to see the ex-
animation confined to the concerns named
but cnumerates these because a part of
them might Withstand, possibly with
credit a rigid examination. A part might
not, and indeed in all financial concerns
VIII be found transactions which will not
always pass muster before a rigid censor
Mr.. henyonS course may be briefly
shown by citing the case of the North
,irtr Mt
shown by the following certificate, which
was later printed and widely circulated by
the company
''Office of the Public Examiner and Su-
perintendert of Banks, ST. Paul, Mimi.
March 2S, 1872 hereby certify that / have
examined the books and accounts of the
NorthW estern Guaranty Loan Company,
of Minneapolis. at close of business, Jan.
49, 1892, and that / found proper vouchers
for the several accounts as per the above
statement.
In my investigation as to the character
of the first mortgages owned by the COM
pany, $l795,00o | relied upon the written
appraisals of DISTINGUISHED parties for a
large proportion of the local loans, and
awaited myself of the public records and
obtained the assessed valuation by CORE
spondence with officers in the various To-
calities. With these values as a basis, the
loans appear to be we'll secured
In general the company's business APP
pears to be in good condition, and well and
carefully managed. Respectfully,
IN. d. KENYON,
Public Examiner"
The books of the company are said to
show that at the time Kenyon examined
them the company was insolvent, while
Mr.. Kenyon had facts, as shown in the
following charges, filed with Nelson.
st. Paul, Mimi, May Is, 1898.
Hon kunte Nelson, Governor:
Dear Sir have this day read, for the
first time, a report made by Mr.. Kenyon,
public examiner, under date of March 49,
1892 upon the alleged condition of the
Minneapolis, and from a general perusal
thereof coupled with his other financial
acts and late results in financial concerns.
l feel constrained to make the charges
herein contained.
Hitherto while 1 have had occasion to
differ widely with Mr.. Kenyon, 1 have
cheerfully conceded to his honesty OF pur-
pose, hence it pains me exceedingly to be
compelled to feel that have been in error
and TO make against him the following
distinct and specific charges:
l. Malfeasance in Office.
2. Msfeasance in office.
3. Violation OF his oath of Office il any
was ever taken by him.
4. With willfuly and deliberately and.
as | fear, fraudulently, if not corruptly,
making and filing a false and fraudulent
document and report.
5. With willfully and deiibera telv vioIat
ing the law; also with violating the orders
OF the governor, made in my presence
III you will examine the report first
named herein, you will find at the end
thereof that Mr.. Kenyon says that said
companys affairs appear to be in good
CONDITION and arc apparently well and care