New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-12-23
A ST. PAUL BANK GOES DOWN
THE BANK OF MINNESOTA OBLIGED TO
CLOSE ITS DOORS
HARD TIMES OF THE LAST THREE YEARS GIVEN
AS THE CAUsE-wEALTHY STOCKHOLDERS
Will PROEAEIY REOEGANlZE 1.-TWO
INSTITUTIONS ALSO FAIL.


SMALLER INSTITUTIONS ALSO FAIL.
ST Paul. Dec. 22-State Bank Examiner Ken
yon to-day took possession of the Bank of Min
nesota. and. a result of the closing OF this
bank. the Union Stock Yards Bank, at South
81; Paul. also closed The Bank Of Minnesota
was the Oldest bank in st. Paul 1t was estab-
shed by Dawson & Co.. In 1879 The other
bank cleared through the Bank of Minnesota.
and its closing followed a matter OF course
1t stated at the Bank Of Minnesota this
afternoon that depostors would not lose. ana
that arrangements would probably be made to
carry on the banks business. This may be
done through the efforts of the stockholders all
of whom are wealthy men. who are reported
as willing to advance the funds necessary to put
the institution a sound basis The failure
was caused by the banks inability to make col
lections which it had depended to meet obi
cations due at this time. The average deposits
of the Union Stock Yards Bank of South St
Paul are 500, 1000: the capital S2ooDO. and the
average loans and discounts 100000
The officers of the two suspended banks are
as follows: Bank Of Observation-Disclosures.
William Dawson; president. Robert A
Smith; cashier, William Dawson. jr.: assistant
cashier. Robert Miller; directors. William Daw-
son. Thomas Grace, r. A. Smith, A. s. STICK
ney. A. Oppenheim, ?. Stems. f. W. Peet. Ar
mold Kaman p. j. Bowlin. c. w. Copley Will
lam Dawson. jr. and p. S. Harris
Stock Yards Union Bank-President William
Dawson; vice-president. William Dawson IT.;
cashier J. J. Flanagan.
The Bank Of Minnesota In common with all
the other banks In the city. had share OF the
deposits Of State funds. and at the time of the
last statement had between $4,000 and SSooOO
of State money on deposit. 1t was also the de-
pository of the county. and until recently was
the main bank through which city business was
transacted. +. a. Smith, present postmaster
and until last spring Mayor OF St Paul. was
for years vice-president OF the bank William
Dawson. ST. was president and William Daw-
son. IT, was cashier. The Dawsons ranked
high among financers. William Dawson. jr
was one OF the owners OF 1.-The st. Paul Globe"
in which he became interested eighteen months
ago. The closing OF the bank WAS as great
surprise to the officers as II was to the general
public.
Assistant Cashier Robert l.. Miller gave q
brief statement as follows: I'VE had a large
retail trade" said he. (which has suffered ma
terially from the hard times for the last three
years during which time our individual depos-
its have decreased from 81 100000 To 100000
Then in addition 10 this. there inability
to collect large bills receivable or notes. and
the general depression in money and business
all over the country. That really is the story
in n few words
Bank Examiner Kenyon was early on the
scene and took charg. OF the banks affairs. He
would not give out any statements: in fact. was
not in a position to do so. inasmuch as he had
not completed his examination
According TO the last report Of the Bank OF
Minnesota the deposits on demand certificates
amounted TO SS6JoD. There was due 10 other
banks the sum Of S2:}j.OpO. but there were also
LutaL La afrtntt Fff N IA
S3la3O The State ~ Minnesota carried n de-
post with the bank AT the time OF It's suspension
/ amounting to SlOi 600 but this sum Is mostly
secured by gili-edgcd bonds. The corresponding
banks in the country shown on the last report
! number forty-fve and many Of these are small
! banks In the country towns. whose fate may de-
! pend upon the maj resumption OF the h"''n Oh
/ Minnesota.
The Rank OF South St Paul also closed 1t
was merely branch OF the Bank OF Minnesota.
Tho correspondents in NewYork ot tho Bank
O, Minnesota we're tho Mechanics National Bank
and tho Chase National Bank. 6. W. Garth.
cashier o, the Mechanics Bank. said: THE Bank
OF Minnesota has had an account with us ior Il
great many years We have looked upon President
pnwson az one o. the wcaithiost mon In Minnesota
/ We received word this morning from ". u Ken
yon Superintendent % Banks % Minnesota that
he was in possession OF the assets OF the BANK
pendng the appointment OF n receiver We re-
Gently heard that the Dawsons had ihrse feh'
estate transactions. These may have affected 'he
bank together with the natural uneasiness result
Ing from the failure OF the National BANK OK
Illinois The bank never a heavy borrower
as Dawson was supposed TO take care OF its
wants" - a.. c,n.o N,
Henry W Cannon. president Of The Chasc "a,
tioral Bank said: THE Bank OF Minnesota mas
kent only a small account with us ana asked US
Tor no advances I know nothing or It's condl'ioh,
except that for some time It's business appeared 10
have been falling on incident 10 dry TOT anu ''o"
loans real estate