The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-04-08
ACCOUNTS FALSIFIHD.
..aslatiye Committee lnvesti-
~ates Some Bank Failures.
D,SclosrREs ARE SENSATIONAL.

DISCLOSURES Ahh H'''' 'o''''"'
uonrst supervision by Directors
l'' ,onn-Great overdraits Made by
t,lividuals- Ailemauia's Assets
49,. worthless and Its Directors Were
~ 80, borrowers -rhe scandia Failure
40. Honest aud May Pay out.
., paul April S.-The Joint legisla-
rommlttee investigating insolvent |
w Tuesday made public the testi-
s secured during the past two
III ms The committee investigated |
in ST. Paul and Minneapolis, and
- ~ the disclosures are sensational
~ evtreme As to the Bank OF Min
Ito w. Fl. Lightner. one of the re-
.slyers. stated that on oct'7 SlSoeoo.95
,,os due The bank from the Fort Dear
national bank Of Chicago. This
,.,a,oa was incorrect. The accounts
! e,aoer these two banks were falsified
A-.tbs extent Of 100000 The testimony
sous that il was customary for the
rausons 10 sell St. Paul PlOw company
80 through remittances TO Boston.
sseh notes were sold 10 the amount Of
v0Ooo crediting the amount TO the Mer-
sants, National bank OF New York. On
~ morning Of Dec % they paid notes
The amount of $4,000 in the Bank Of
n,nresota. These were st. Paul Plow
company notes.
Due from officials.
A. the time of the failure of the bank
there was owing to IL by the bank ON
elals the following sums: William
nawson Sr, about $4,000; william
(hwson. Jr., $59, 900; r. A. Smith did owe
k.5ne bank $4,000. and has since paid $35-
mO In addition to that, William Daw-
son. Jr.. was guarantor OF $4,000. OF
which 100000 was overdrawn. AS to the
cause of the failure of the bank. 1t was
testified that William Dawson, ST., owed
II s2Sl 600 During the last thirteen
months before suspension William Daw'
non ST.. the ST. Paul Plow company,
and the Gladstone Land company bor-
rowed $3.50, 900 from the bank
Scandal bank of Minneapolis-1ts fall
IRE was honest. according to. the evi
dence. and il may yet pay 100 cents on
the dollar There was no Indebtedness
direct or indirect on the part of the Of
fclals Lack of Judgment in loans
Akused its suspension
Had No Capital.
Washington bank of Minneapolis--l'
went under for want of paid up capital
Second as a result of loans made di'
rectly or indirectly to officers, and
third from lack of honest supervision
The directors knew, or seemed 10 care
nothing about it's business, then en-
Urged from the private bank OF John
Son Haugan & Co.. TO the Washington
bank Assets were accepted at par Whei
practically worthless Stock was sim
ply issued without the capital or pai'
in part in securities of doubtful o
worthless character. IL never shoul'
have been allowed to start up. TIL
committee were unable 10 find all tn
!, 4pks although they found enough I
Cause them to assert that the book
show that as money was paid into TN
bank, il was used by the officers
square their old debts. so that at n
time was the bank in a solvent condi
ton The committee was unable
learn the names of the stockholders an
failed to secure the stockholders lede
i %and transfer book
Directors Were borrowers.
Allemania bank Of ST. Paul-The as
sets or a large portion Of them cam
from the old Commercial bank, an
were worthless. The directors wei
heavy borrowers and were guilty
misstatements We found that near
an their quick assets failed to show
, stringent liability on rediscount.
Minnesota Savings bank of st. Paul
Directly or indirectly the officers we
borrowing TO an amount more than dol
be the capital stock. The character
their accounts is shown by the asse
Ct $4,000 cash they exhibited when Il
receiver found ii to be 81 in actual col
The loans were worthless. The last e
Fnation was made in October, Isl
and on its evidence the bank eXamin
ought to have closed 1t then. After e
animation in 1895 ii was not inspect
by the examiner again until its suspe
sion, Notwithstanding the fact that
Knew Of its precarious condition in Is
Confederate Memorial Day.
+ Few Orleans, April S.-Confedera
<demorial Day, which is also a legal III
iday, was celebrated with militia
parade. which marched to the tom
OF the Army of Northern Virginia, &C
tinenta guards, Washington artillei
Army of Tennessee. Soldiers home
confederate monuments. A salute
hSsd before ach tomb. The set Gel
- vines Of tn day took place at the CO
.eserate monument. where an INNER
crowd gathered
Onion supply Short.
san Francisco. April S.-There is
scarcity of onions In the local mark
Dealers say that all the California CT
was shipped as soon as gathered TO
EASTERN and southeastern states
corner has been effected in
- washington and Oregon crop. So sh
is the supply in this state that I
carloads were shipped from Reno, Ne
10 Los Angeles. which seems like sci
ing coal to New Castle.
Lamont FOR Railroad President.
New York, April SIT Is stated