The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-08-06
Assembly investigators Accuse Him of Duplicity,
to Put 1t Very Mildly
SAY THAT HE MUST HAVE KNOWN
That the Alleanna Bank Balances Not Only Violated the
Law. but the Resolution of the Council Pointed 0uer-
les Asked as to Alleged FavOrtSn1- Severely Criticised

did the council mean to convey by this reso-
lution?" and he asks inquiringly WAS it
an order to the city treasurer to withdraw the
moneys deposited under their order, or was
1t an order to deposit at his peril?" 1t seems
to your committee that the wording of the
resolution was exceedingly plain. further
evidence that the city treasurer knew what
the law required of him, is that he refers
to the charter, and particularly to that por-
t1on OF 1t referring to the duties Of the city
treasurer, so there can be no excuse on that
score. This statement is conclusive evidence
In regard to that The remainder of the
statement contains nothing tending to shed
any light upon the transaction under invest
gatlon and does not in any way explain the
apparent favoritism shown to the institution
statement.
ais showing the transactions between the
treasurer and the Allemannia bank was
called for by the committee The treasurer
furnished such statement and showing the
daily balance from June to JAN T. the date
the bank suspended:
You will notice that from the second day
post a larger amount in this bank than that
allowed by the charter and that it was there
in absolute violation of any authority and
at the peril of the treasurer and his bonds
men. This condition Of affairs was not nee
essary at that time or at any other time, be-
cause there were other banks that had been
designated by the council repositories of
city funds, which had given good and suf-
hcient bonds, that could have been used and
the treasurer did not have on deposit in these
other banks anywhere near the limit Of
money which he was allowed to deposit in
them under the provisions of the charter
For over thirty days in succession a balance
varying from $35, 1000 to 100000 above $147 000
the amount of the assessed valuation of the
capital stock, was kept in the Alleman-
MA bank, and in analyzing the figures we
find the following facts. For instance on
June IL, 1896, we find balance of $192, AGO. 27
in the bank, $50 900 more than allowed by
charter. On June II we find an additional
deposiE dp of $4,000, making balance of $242,-
26O27. Then ON the following day. June Is,
checks for the payment of school teachers
wages. amounting to $40,537.75, were drawn
on this bank. Now. it looks very much as
though the treasurer although he had about
S50O00 more than the limit he was authorized
to nave on deposit in that institution, put in
$4,000 more that the bank might be in a
position to meet the checks drawn on it for
the payment of the teachers wages. Another
instance of the same kind we find on June
z2, 1886 $5S,500 was deposited and a check
for the same amount drawn on the same
day. Why should the balance in this bank
have been maintained at more than $100, 600
at all times, and why in each case when there
was heavy withdrawal there also was
heavy deposit day or so before to meet it?
The balance in this institution was nearly
always kept above the, 100000 mark. and
many OF the other banks of the city that
were stronger and safer and had given bonds
good and sufficient to the city only had small
amounts on deposit. The question was asked
the treasurer why he kept so large amount
of money always on deposit in the Allemannia
bank. and he answered that he had to put
it somewhere. His attention was called to
the fact that some of the other banks had
on deposit but very small amounts of city
funds, and the money might have been dis
tributed. To this suggestion he had nothing
to say.
We find that after the council passed the
resolution containing the paragraph directing
that each of the banks therein designated
execute and deliver to the city bond. with
such conditions as should be approved by the
corporation attorney, and with such security
as should be approved by the common coun-
Gill; before any sums be deposited in said
banks. the treasurer deposited in the Allie
MAMMA bank. which was one of those named
in the resolution. $9S,403.13, without reuuir-
ing the execution or delivery of any bond
whatever. The treasurer, when asked by
your committee why he had ignored the or
der of the council, pleaded ignorance and
even stated that he did not know such reso-
luton had been passed until after the bank
had failed, WI en- some one called his attention
to the resolution.
Your committee cannot accept the treas
urer's statement as to this, for the reason
that it is in possession of trustworthy infor-
nation tending to show that the treasurer
was fully informed of this resolution within
a day or two Of its passage and publicat' on.
Your committee also find that certain check
for $35, ,100, drawn to the order of the treas
urer upon the Alemannia bank dated Dec
%. 1896, was, at the request of the drawer
of the check, deposited on the day of its