The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-04-01
NEW BANKING BILL.
Text of the Measure as Passed by
the House.


The house In the morning took up the
Spencer bill. Is. F. $685. as a continual
ton of the special order set for yester-
ed in a number Of minor particulars.
During the debate Col GAIbert 'Scheffer,
of the suspended Allemannia bank, who
is very much interested in the bill, was
on the floor making Suggestions and
counselling the friends of the bill.
Mr.. Scott. introduced an amendment,
Which, however, was not adopted,
which provided that more of these re-
organized banks should be permitted to
do new business or open new accounts
until they have complied with all the
requirements of the state banking law.
The scathing report upon the methods
Of q number Of the suspended banks
submitted yesterday had thrown a good
deal of light upon the subject. The
bill as it finally passed the house pro-
vides as follows:
Section l. Whenever any company or cor
poration exercising banking powers, under
the laws Of this state, has shall have be-
come insolvent. and has or shall have come
under the control of any court Of competent
jurisdiction under an assignment for the
benefit of its creditors or the appointment
or receiver in proceedings to enforce any
mortgage, deed trust, or for the payment
Of debts, it shall be lawful for a majority in
number and amount of the creditors of such
company or corporation, exclusive of secured
creditors, and of the preferred creditors
hereinafter specified, by themselves, or by
committee to be appointed by them, TO pre-
pare and submit to such court plan for the
readjustment of its affairs. or for the reor-
ganiZation of such company or corporation;
such plan shall provide:
First-For the payment Of debts due and
owing to the United States and the state of
Minnesota. ~
Second-For the payment of all debts for
which lien shall exist on the property
thereof, under the laws Of the state of Min
nesota
Third-For the payment of all debts owing
to servants, laborers and clerks for labor
and services performed for such company or
corporation within ninety 800 days next pre-
cedtng the act of insolvency, or the COM
mencement of such insolvency proceedings.
Fourth-For the payment, upon equal terms,
of all other debts including debts not due,
and for the issue of new, or other or further
securities, and for their distribution.
Such plan shall, so far, as practicable, re-
gard the relative rights and priorities of
creditors and security holders.
Sec. 2. Whenever any such plan as pro-
vided in the next preceding section, shall be
presented to and filed in such court, it
shall be the duty Of said court to fix a time
and place of hearing thereon, and to- cause
such notice of such hearing to be served
upon the assignee or receiver personally;
and notice Of such hearing shall be published
for two weeks-or such other time the
court may deem proper-in some newspaper
notice published shall be served upon all
creditors by mailing a copy thereof in the
manner now provided for serving notices by
mail, at least fourteen days prior to the date
set for the hearing. And if personal service
cannot be made upon the assignee or re-
ceiver within the time fixed for the publica-
ton of the notice, such notice by publica-
ton shall be deemed sufficient to such as
signee or receiver.
The filing of such plan shall be deemed
petition for the adjustment or reorganization
Of such corporation, upon the terms stated
in said plan.
At the time fixed for such hearing, any
creditor may be heard in person, or by at
torney, in opposition thereto.
Upon such hearing, if it appears that
three-fourths in number and amount of the
creditors. exclusive of secured creditors and
of the preferred creditors, specified in sec
ton 1 Of this act, assent thereto, and if no
objections have been made, the court may, in
it's discretion, make an order approving said
plan; if any objections are made the court
shall make such modification Of such plan
as 1t shall deem advisable, and thereupon
make an order approving such plan as modi
fed And the court may. in its discretion,
thereupon order and adjudge that the plan
so approved shall be adopted, and shall make
provision for the execution thereof, under the
supervision Of the superintendent of banks
and also for the continuance discharge
of the assignee or receiver, and the winding
up of such insolvency proceedings, and pro-
viding for the expense thereof.
Sec. 8. All creditors of such company or
corporation, and others interested therein
not ObjeCting to such plan Of reorganization,
at the hearing hereinafter provided for, shall
be deemed to have assented thereto; and the
court, in such order and judgment, APPROX
ing said plan, shall adjudicate and determine
the validity and amount OF any and all
claims and demands of dissenting creditors,
or interested persons, and shall thereupOn
provide for the payment of the same at such
future time, and in such manner and amounts,
or installments, is provided in said plan
as approved. Providing, that such dissenting
creditors shall, by the terms of said order,
be allowed to participate pro rata, in the
sets Of such corporation, upon the same
terms as the asserting creditors; and pro-
vided, further that such order shall not re-
asserting creditors, but shall only operate
as a stay Of their remedy for the enforce
ment of their claims and demands, upon the
same terms, and for the. same periods, as
provided in said plan as approved. And in
aid of the execution Of such plan, the court
may enjoin or stay the enforcement or COL
lection Of any and all claims, demands and
disabilities, OF and against
said company corporation, except in ac-
cOrdance with the provisions of said plan
but not in such manner as to impair the
Of any contract.
Sec 4. The stockholders, being stockholders
at the time the insolvency proceedings are
commenced, Of the corporation or company
so reorganized, or the affairs Of which shall
be adjusted under the provisions Of this act,
together with the stockholders who have
sold or transferred their stock within one
of the corporation, shall remain liable as
of said corporation for a period
of one year after the time fixed for the pay
ment of the obligations of such corporation
by such plan and order, notwithstanding any