The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-29
WILLIAM DAWSON MAKES A COM
PREHENSIVE STATEMENT
OF HIS FINANCES.
WORTH 100000 IN 1890.
UNsALABLE REALTY AT THE BOT
TOM OF HIS REVERSES SIX
YEARS LATER.
THE SUSPENSION OF THE BANK
Brought About by the Taking Up of
PlOw Works, Land Company
and Other Notes.

The correspondence below between
Mr.. William Dawson, president of the
Bank of Minnesota, and Hiler H. Hor-
ton, chairman of the depositors' COM
mittee on reorganization, fully explains
itself. Mr.. Dawson shows that in 1890
the value Of his assets above all liabil-
tiles was $3,179,9591S. That year his
net income was $4,000. He gives in
detail his connection with the Gladstone
Land company, the ST. Paul Plow
works and other enterprises. The land
carried in the East, the Bank of Min
nesota merely protecting it occasional
ly for a few days. During the presi-
Dental year there came a period when
this paper would not sell in the East,
and the bank took it up at maturity
with the expectation of disposing of it
in the usual way. The opportunity,
however, for such transfer did not
come. The bank took up an aggregate
Of $490,0OO of this paper and was forced
to suspend.
Mr.. Dawson concludes his statement
by offering to surrender all his prop
erty for equitable division among his
creditors. He says if his vast holdings
of real estate can be held for few
years he believes they will pay his en-
tire Indebtedness and leave fair sur
plus. He expresses the opinion that, if
the Bank Of Minnesota can be reorga-
niZed, under good management, every
dollar of it's liabilities will be paid
with interest. The correspondence in
full is as follows:
MR.. HORIZONS LETTER.
Office Reorganization Committee Bank of
Minnesota, Jan. 90 1S97-Mr. William Daw-
son, City-My Dear Sir: In my position as
chairman of the committee appointed to at
tempt reorganization of the Bank of Min
nesota, | am asked dozens of times daily,
What does Mr.. Dawson intend to do in case
the bank is reorganized?'' What proportion
of his Indebtedness to the bank does he in
tend to pay? - ''Will he turn his property
over to the bank when reorganized in pay
ment of his liability to the bank?' and many
questions of similar import.
l think it only fair to the depositors that
you inform me of your views regarding the
desirah:lity of recognizing the bank on the
plans suggested and approved by the COM
mittee; also inform me whether or not you
intend to turn over to the reorganized bank
your property in payment of your stock liza
bllity and Indebtedness to the bank, and per-
nit me to give full publicity to your answer.
L am sincerely yours, Hitler H. Horton.
MR.. DAWSON'S ANSWER.
st. Paul. Minn., Jan. 27, 1897-Hiler H
Horton, Esq.-Dear Sir: In answer to your
letter of inquiry concerning my view and
attitude towards the reorganization of the
Bank of Minnesota, permit me to say: Ever
Of O han
templated making a public detailed statement
OF my affairs for the information of persons
interested. L hesitated to the opportune
time and occasion to do so. Your letter seems
to furnish such an occasion, and I gladly
avail myself of it. Yours very truly,
William Dawson
THE STATEMENT.
In order to make such a statement
fully comprehensive, it seems neces-
sary to premise it with a compreheE-
sive statement of my own affairs and
my relation to the bank.
L became resident of the city Of ST.
Paul in 1861, now nearly thirty-six
years ago, bringing with me what
seemed for those days a considerable
sum of money, about $4,000, which I
Immediately invested in the banking
and real estate business.
For many years my banking busi-
ness was carried on in partnership with
various partners, but in 1882 the bank
ing business was incorporated as the
Bank Of Minnesota, with a paid-up cap
ital Of $600,000, of which in a short
time became the owner of nearly one
| half, and at the time of the suSpen-
sion Of the bank, and my family own
ed $275, 400 of the stock.
| have at times been purchaser Of
the stock, but never a seller. Both
my banking and my real estate busi-
ness, which [ commenced in 1861, pros
pered from the start, and there has
not been a time since l came to st.
Paul when ! have not been regarded
by others, who knew of my affairs, as
among the rich men of the city, and
there has not been a time until the
suspension of the bank that I have not
regarded myself as a rich man, able in
the end to pay all my debts and have
comfortable competency left.
In 1890 l was beyond doubt a rich
man. My inventory of assets and La
bilities, made on the 31st day Of Janu-
ary, 1890, showed the following assets
and liabilities:
Assets January, 1890
L had large number of improved
and unimproved lots, scattered
over every section of the city.
and acre land, principally in
Ramsey county, which lat prices
which / then regarded con-
servatiye values, by no means
high current sales in
boom" days would have just-
fed) | estimate to be worth. -. 50 $40 662 %
Bills receivable, secured
by mortgages .........$ $194 040. 20
Bank of Minnesota
stock (market value).. 1886, GO
Miscellaneous stocks,
bonds and interests
in real estate syndi-
Gates Cost ......,..... S15,O79. 80 S45,C SO
Total assets ....................$3, ESQ, 745 81
Liabilities
Bills payable ......,.... 1882, 433 "a
Accounts payable ..... 23, 353 35 505, 786 SO
in excess Of my liabilities. 49,. SO, 179 $50 18
1t will be noticed that my bills re-
ceivable, added to the then market
value Of my bank stock, were about
$25,G00 more than my entire liabilities
Considering my estate, therefore,
from the point of view of valuations
and cost, the above statement would
seem to entitle me to be regarded by
myself and by others as a rich man
in this community
Now, let me apply. the other test Of
wealth Namely, the income producing
quality Of my assets.
During the year 1890 1 received
from rents ....................... $66 S19 II
| From interests and dividends, etc. %, 1874 Is
Total gross income ............ $96 603 sc
Business Expenditures
For taxes ..-......... .$23, 22S. 20
For assessments ......r16, 400 13t