The Superior times. [volume] (Superior, Wis.) 1870-1912, 1896-04-18
Council Meeting.

/ but the most important matter was the
minority report of Mr.. Champ Green
as member OF finance committee upon
/ the proposition of w. f. McCord OF
/ Chippewa Falls, to buy up the city :
/ claim against the keystone Bank. The
report was as follows, and action will
! be taken upon the matter Friday even
! ing:
LAS one Of the committee appointed
I to investigate the condition OF the Key
/ stone National bank and report as to
. the ACCESSIBILITY of accepting the offer
Of W. L. McCord, to purchase the claim
of the city Of Superior with others
against said bank at 30 cents on the
dollar, less dividends already paid by
the receiver, permit me to say that |
am unable to concur in the report OF
the majority Ct said committee and beg
to file the following report:
Gas stated in the majority report,
your committee met and looked over
the assets, of said bank and carefully
selecting the good" from the bad
and doubtful" we found that the as
sets then considered good equal some
So 900 and more than 80 per cent OF the
banks liabilities. This included an
equity in the bank property upon
which there is $4,000 mortgage; also a
debt of the Superior Rapid Transit
Railway Company, which were after
wards excluded, leaving about 500, 900
considered good" II is very prob
able that on some of the assets con-
sidered good, there could not be real
lied the full amount, but in my Judg-
ment, there could be collected from
those considered "bad' or doubtful"
a sufficient sum to balance this loss.
ITO take the figures given in the ma
iority report as substantially correct, i.
e., that the good assets amount to $780,
900 and the liabilities to Sl5S,0 900, or in
other words that the good assets amount
to about IS per cent of the liabilities.
This would be a margin in favor of the
CITY above Mr.. McCord's bid of about
per cent, as his offer is to pay 90 per
cent OF the claim, less dividends al
ready paid, or about 80 per cent, and
this without recourse to stockholders or
bonds held by the city.
at is said that some of the stock
holders have not paid for their stock,
and therefore, do not own the same j;
this, in my judgment is erroneous. a
court of justice will not sanction any
scheme whereby man may hold stock
for the purpose of drawing dividends,
and at the same time evade a stockhold-
er's liability. Many of these stock hold
ers are considered solvent, and in my
Judgment, at least ID per cent of the
banks liability can be collected from
them.
"As to the bondsmen, it is said, ''thcy
boldly assert that they are under no
liability" on what technicality, We
know not The best way to find out is
to give them an opportunity to set forth
specifically their reasons by way of
answer.
I'VE do not expect them to come for
ward voluntarily and pay the amount of
their bonds, certainly not, in view OF
the recommendation in the majority
report. The fear that they will fight
vigorously and to a court of last resort
is no good reason why the city should
not attempt to enforce the obligation.
Our courts are open for that purpose
u n / 20 81 ms AT a
as vigorously as it is said they would
be opposed, it is more than probable
that p per cent. of them at least might
be collected from that source.
The policy of treating the bonds Civ
en- to the city as mere matter of form
is pregnant with evil and sure to give
birth to disaster. 1t enables men with
| out principles or financial standing to
bonds for city deposits, the signer5 OF
said bonds believing, as they have a
right to from the experience of others,
that they incur no risk in so doing
at is not necessary to 90 to Duluth,
or any other locality beyond our Dor
! ders to witness the result of loose,
| careless and unbusiness-lik financial
| policy. The readiness to burden the
| people with enormous taxes, the care
| less disposition of the money when col
| lected and the ease with which the
city's debtors are allowed to escape
payment of their obligation, stand out
IN bold relief and operate to prevent
outside capital from investing here, to
| discourage our own citizens and induce
them to withhold the payment of
| taxes.
| eve believe that the city should pur-
sue an energetic business-like course in
| this matter and enforce so far as posi-
| BILE all just obligations to it, and there
! by encourage and assist the receiver OF
! said bank in collecting from its debtors,
| instead of setting the example and en-
courage said debtors in the belief that
eventually they may discharge their
obligation at 30 cents on the dollar.
THAT by pursuing such a course, we
would realize more money, avoid bad
I precedent, inspire our people with CON
/ tidence and in the end be infinitely
better off than by accepting this propo-
sition.
I'VE, therefore, recommend that the
offer of W. L. McCord Toe not accepted
Aid. Bcardsley moved that the report
be spread in full on the minutes, to-
gether with the majority report, and
that both be published together before
the next meeting Of the council. Car
ried.
The printing bills were allowed hav.
ing been endorsed by the comptroller
The bill of 800 from kellogg 4 Dur.
ley. for legal services in compiling
the ordinance book published by Mr.
Nonger of the citizen, for the city