The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-19

Inc report OF the cOIn1nltIee as TO the
condition of the affairs Of the Mime
sofa Savings bank was made to about
500 of the depOsitors at Labor hall
last evening. The report showed that
in the opinion of the committee about
66 cents on the dollar would be realized
for the depOsitOrs in the course of two
years or so, if the assets were proper
ly handled. The meeting decided by
unanimous vote that the resignation of
Mr.. Bickel, as assignee, would be salts
factory, and a majority of the gather
ing greeted the announcement with ap-
plause and cheers.
The report of the committee, an alb
stract of which is given below, was
read. The report, after reciting the
history of the bank from it's organiza-
tion in 1867, states that in 1889 William
Bickel, w. F. Bickel, F. G. Stevens,
Jacob Hammer and Andrew Delaney
were elected trustees, each Of whom
gave bonds in the sum of $4,000, which
were approved by a judge Of the su-
preme court. In January, 1894, De-
laney and Hammer resigned, and j. F.
Baker and A. S. Kittson were elected
and gave bonds. Continuing the report
says:
Some time thereafter the trustees decided
to issue stock to the extent OF $25, ,00O There
was no provision of law for it, but they
thought that by issuing stock they would
get a greater number Ct persons interested in
the bank. These stockholders cannot elect
directors and have say whatever, directly
or indirectly, in the management of the bank.
That is controlled entirely by the trustees,
who are self-perpetuating body and are not
amenable to the stockholders. What the legal
condition and liability Of the stockholders is
1t is not cur duty to determine except we
would say that they have held themselves out
as stockholders and may be estopped from
denying any liability. We also call attention
that chapter 331, Laws of 1895, which appears
to be curative act or attempt thereat
provides that all articles of incorporation or
bylaws OF corporations existing under chap
ter %, which provide in such bylaws or
articles for issue of stock, are legalized and
validated. This act was approved on the 18th
OF April, 1885. In the Laws of 1879, chapter
lO9, section As, approved March, IL, 1879 it
was expressly made unlawful for any bank
banking association or individual banker, ex-
cept savings banks, to advertise or put forth
sign as a savings bank, or in any way to
solicit or receive deposits as a savings bank
and provided a forfeit of $100 day from any
bank or banker so doing.
DIDN'T APPLY 1T.
But the officials of the Minnesota Savings
bank seemed to think that this general pro-
vision, most salutary one, by the way did
not apply to them, and claiming that their
original charter was wide enough to allow
business.
gagged In business of a commercial nature
and in this one of the great sources of their
weakness lay. They did savings bank busi-
ness and general commercial banking busi-
ness under the name of the Minnesota Saw
lngs bank. These general deposits could be
drawn out at any time, and no sixty-day
notice could save them. Money as it was paid
into the bank all went into one drawer, al
though different books were kept, and
the amount of each individual or
eommfTfial nbifa de deposit was indicated by
posits were indicated by a yellow Slip. All
checks and drafts whether to pay with
draWaI from the savings bank or to pay a
draft on the commercial department of the
bank. were paid out of the same money draw
er and the funds were mixed. The only ex-
eeption your committee have been able to
nnu nina was IN IN the commercial deposits made
since the failure of the Bank of Minnesota,
When 1t seems they were kept separate from
the savings fund. -
If the bank should be reorganized and re-
opened, we recommend the entire abolition Of
the commercial department of the bank as
being unwise, improbable and menace to
the security which the savings depositors
are entitled to under the general law of the
state.
Section of the original act of 1867 pro-
Vldes that mo president, trustee or officer
or servant of such corporation shall directly
or indirectly borrow the funds of such corpo-
ration or its deposits, in any manner use
the same in their private affairs or business -
Section of the same law provides "At least
invested in the stocks of the United States.
or of this state, on which interest is regu-
larly paid; or on unincumbered real estate
worth at least double the amount to be Sc
| cured. The remainder may be invested in
said stocks or loans on the aforesaid securi-
| ties, or upon approved personal security; but
| no loan shall be made upon the personal Sc
curity of less than two responsible individ-
| uals.'
Your committee think that the provisions Of
| the act are plain; that the bank had the
! right to loan the savings of the deposftors on
| the following security, and 1t only, namely:
Ffrst-Stocks or other securities of the
| United States.
! Second-Stocks or other securities of the
! State OF Minnesota, If the same pays inter
| est regularly.
Third-Unincumbered real estate worth at
| least double the amount to be secured cat
| least one-half of the savings had to be in
| vested in the above class of securities)
| Fourth-Still more of the savings might be
! invested In the above class of securities.
! Fffth-Upon approved personal security of
not less than two responsible individuals.
! There is no authority whatever in the law
| to loan on chattel mortgage security, on
| deeds or mortgages put collateral to per-
| sonal loan, or in any other way except as
! above described, and, we may add, that as we
! understand the law the trustees had no right
! to loan the savings even on tax title secur-
| tiles.
MR. KENYON'S OVERSIGHT.
The last examination made by the state