Omaha daily bee., 1896-12-23
BANK OF MINNESOTA FAILS.

] BoOu condition.
BANK or MINNESOTA FAILS
/ 50, Paul Loses One oG Its strongest
. Institutions.
ST PAUL Dec 22--Thc Bank OF Min
nesota, capital 100000, one of the best
/ known and generally credited one OF the
/ strongest in The northwest was closed to-
I day. state Bank Examiner Kenyon took
. possession Of the assets Of the bank and
IL now in charge The last publ shed state
mcnt was on Oct0ber s. 1896, and was as fol-
| lows: Liabilities Capital stock paid In,
/ S60O,00O; surplus funds. 100000; undivided
profits, SlO2,7S311; individual deposits ST.
0IlO5l95; time certificates Of deposit, ST.
. 0ili93S@; due 20 banks S303, i2S19; demand
certificates Of deposit SlOl5229o; total,
Resources; Loans and discounts. S2,3u,-
SSG.f5; miscellaneous bonds, Si9, ,SSi9O; over
drafts, S1,677.2l; banking houses Sl95.OO0
real estate S1C57Ol66; furniture, etc"
$4,000; expenses paid $399Ol9; due from
banks, 1919. .469O2; exchange for clearing
houses, S296S11i; specie, United states
notes and national currency, 25iGi9S SIS;
checks and other cash items S5,632 90; total
resources, $500 ,3G9.49
Judge Otis of the Ramsey county district
court tonight agreed to appoint Frank Sey-
mour cashier of the Merchants National
to be receivers of the Bank of Minnesota
The state bank examiner is in charge of
the bank, pending such appointment, which
will be made tomorrow and after making
an examination of affairs today he said he
did not consider the failure a bad one but
expected that the bank would resume bust
ness before long. The officers of the bank
say they had been hoping the bank would
pull through the hard pressure of the win
ter, but had found 1t too great task and
had concluded to call in the bank examiner
and have him take charge. Their action
may have been Influenced by the clearing
house, which sent word for them not to
clear today, for the bank closed soon after
the notice. The Bank of Minnesota had
many correspondents, among then being the
National Bank of illinois, but it was stated
tonight the failure Of the big Chicago bank
had nothing to do with the closing OF this
concern. The small bank at the stock yards
that closed as a result of the other failure
was branch of the Bank of Minnesota but
no other local banks are at all affected by
the failure.
The Bank of Minnesota in common with
all the other banks in the city, had a share
of the deposits of state funds, and at the time
of the last statement had between $4,000
and SSOO0O OF state money on deposit. 1t was
also the depository for the county and until
recently was the main bank through which
the city business was transacted. Robert
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 Dawson, jr..
cashier. The Dawsons ranked high among
linanCiers. 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 brief statement Of the rea-
son as follows: 1--WE had a large retail
trade" said he (Which has suffered mate
rally from the hard times for the past eight
years during which time our individual de-
posits have decreased from $l,5000OO to
100000. Then, in addition to this, inability
to collect large bills receivable or notes and
the general depression in money and bust
ness all over the country that really Is the
story in few words"
The principal stockholders in the bank are
Ansel Oppenheln, Arnold Kalman, William
Dawson, William Dawson, jr., Peter Stems,
Il. A. Smith, A. b, Stckney Il. w. Peet, p
j. Nowlin. p. S. Harris. Thomas Grace, C. w.
Coplcy and others.
Among the heavy depositors is Norman
Iit;Son, whose every dollar was in the
Bank of Minnesota. The Union Stock Yards
bank which closed its doors simultaneously
with the Bank Of Minnesota, was owned by
the latter, and its president was William
Dawson. while John Flanagan was cashier.
That bank is perfectly solvent. 1t had a |
capital stock of S25,OO0, and there is abso-
lutely no danger to any of its depostors.
Bank Examiner Kenyon was early on the |
scene. aud took charge OF the banks affairs |
ne NOulu not give out any statement, and, |
IN iact, was not in position to do so, mas |
much as he had not completed his examina- I
ton He did state that the case will go into |
court tomorrow, when an application will be |
made for the appointment of a receiver and |
among the names for that position prOmi- |
nently spoken of today were T. B. Scott |
Frank Seymour end E. S. Warner
The Bank of Minnesota has been known |
as such since 1882, but prior to that date |
from 1853, 1t was well known as William |
Dawson Co., and under both titles was one |
of the leading banks in the |
northwest and was the Oldest
in the city. Mr.. Dawson was also
president of the smaller Union Stock Yards
bank, which closed as a consequence of the |
larger failure. The stockholders OF the bank
include many Of the leading capitalists of
the city and state, and it is stated they
will advance money to put the bank on its
feet again very soon. At any rate there is
no question that every dollar due deDostors
and others will be paid in full. During the
afternoon. there were numerous rumors
atioat in regard to other banks in the city,
but all such rumOrs that could be found |
10 give name were run down and found TO
oo without foundation in fact.
WASHINGTON, Dec. 22.-Robert A. Smith
Who was largely interested in the Bank of
Minnesota, was nominated by President
cleveland to be postmaster of st. Paul and
yesterday afternoon just before adjourn
nent, the senate confirmed the nomination
There was no opposition to the confirmation
md IL went through with bunch of other
outline combinations, to which there was
10 objection.
NEW YORK, Dec. 22.-The New York
correspondents of the Bank of Minnesota are
he Chase National bank and Merchants Ma
lonal bank. Officials Of these banks say that
la pnl oil t.. |