The Saint Paul globe., 1897-09-25
laws HEAVY HAND
DESCENDS ON THE EDITORS OF
THE MINNEAPOLIS DAILY
TIMES.
THREE INDICTMENTS FOUND.
THE CASES SET FOR EARLY
TRIAL.
THREE INDICTMENTS FOUND
CRIMINAL LIBEL THE CHARGE
Based on Malicious PubIica ii ons In.
tended to Injure the Mtnne-
apolis Trust Company.

While the Indictment of W. E. Has
kell, publisher, and John Blanchard,
editor of the Minneapolis Times was
prematUrely announced. it did not ap-
scluteIy take place until yesterday. The
Indictment is for criminal libel and
is based on an editorial article
which appeared in the Times of Aug.
1. The article in question, however,
was only one Of long series Of at
tacks made by the Times upon the
Minneapolis Trust company, whose
president is Samuel Hill, son-in-law of
j. j. Hill, president Of the Great North
ern railroad. For a year or two the
Times has been conducting a violent
warfare upon j. ]. Hill and the Great
Northern road, and it's attack upon
the Minneapolis Trust company was
seemingly an incidental branch of it's
general warfare upon the Great North
ern.
The Minneapolis Trust company was
appointed receiver for the Guaranty
Loan company after Menage fled the
country. Among other assets the re-
ceiver found on hand were some
West Pullman bonds, which were
based on a real estate town site spec
ulation sixteen miles from. Chicago.
These bonds aggregated 1852, 500, and
were sold by the trust company, as re-
ceiver, for 10 cents on the dollar.
The La Sale National bank, of La
Sale, ILL.,, a Menage creditor, brought
suit against the trust company, claim
ing that the West Pullman bonds
could have been sold for so cents
on the dollar instead of 10 cents, and
asking judgment against the receiver
for the difference between the 60
cents and the 10 cents on the dollar.
The Times took the matter up, tried
the case in it's columns and rendered
| verdict against the trust company, ac-
cusing it besides Of having stolen $780,
900 in the operation.
When the suit came before an actual
legal tribunal, results were different,
but that seemingly cut no figure with
the Times and it's warfare on Mr. Hill.
| The case of the La Sale National bank
was thoroughly and eXhaustively tried
| before Judge Russell, of Minneapolis,
the judge who had appointed the Min
neapolis Trust company receiver OF
the Guaranty Loan and who directed
| al! the movements of the Trust COM
| pany from the start. On the 7th of
July, Judge Russell rendered an ex-
| hauStive opinion, completely 1ndorslng
the action of the Trust company, whom
the court had appointed as receiver.
1t was shown IN that opinion that the
West Pullman company was originally
based upon the purchase of 500 acres of
| land, one-half of which had already
| been sold and the remainder had great
ly deprecated by the general collapse
of real estate values. 1t was further
shown that the West Pullman bonds in
question were second mortgage bonds,
there being a first mortgage of $150,000
and special assessments for as much
more aggregating claim of $500, 900
ahead of the bonds which were to be
sold. The first mortgage bondholderS
were threatening to forecloSe and un-
| der the law of Illinois it would have
| been strict foreclosure, with no oppor-
tGnity for redemption. Holders of the
second mortgage bonds, therefore, were
| liable to be called upon to put up
$30G,0O0 to avoid losing their entire in
vestment, and even when they did so
only have the remnant of deprecated
| real estate. The Trust company took
! the precaution to send a circular to
every creditor of the Guaranty Loan
company, notifying them that the ap-
plication would be made to the court to
/ sell the bonds at 10 cents on the dollar
| Many appeared, but none of them OBJ
| jected. The court acted very deliberate
| ly, allowing two days for the hearing
in order to give objectors, if any, an op-
! portunity to be heard. The result was
| that the court approved the sale, which
! was duly made and never questioned
| by any one but F. B. Hart, attorney
for the La Sale bank and the Mime
! apolis Times.
In Judge Russell's opinion on July Z,
in the suit of the La Sale National
bank against the Trust company, he
says:
There is not scintilla of evidence tend
| ing to show that any one else would have
Of 1885,
In addition the judge says:
| Was there any conspiracy connivance
! between the trustees and the bidders for the
bonds? This we also answer no.
In the face of this decided opinion,
| rendered by the judge who had or
dered the sale, the Times, of Aug. 1.
some three weeks later, renewed and
reiterated its attack declaring that the
trust company was guilty of "unblush-
| ing, ineXcusable stealing" The Times
| developed its real animus by the fol-
| lowing paragraph in it's editorial:
'The head and front of this despicabe con-
! spiracy to rob lot of unfortunate creditors
| OF Jn6 Guaranty Loan coNnpdny is SduuSl HILL
| who is the representative in Minneapolis of
| his father-in-aw, j. J. Hill, who is supposed
to be the real financial hacker of che Mime
| apolis Trust company"
The Times also reiterated that the
| Trust company had deliberately stolen
in the transaction $4,000 for the bene-
fit of itself or it's officers.
1t was this last onslaught which led
to the finding Of the criminal indict-
ment Messrs. w. H. Dunwoody, Chas
A Pillsbury Anthony Kelly, Daniel
Bassett, Clarkson Lindley, Samuel
Hill, E. c. Cook. P. B. Winston, Chas.
H Woods, A. H. Linton, w. G. North
| rup, directors Of the Trust company,
as we'll as Judge Russell, appeared be-
fore the grand jury with the result al
ready stated. Among the members Of
the grand jury was the city editor of
the Times. The Trust company did not
appeal to the civil tribunals because
it has no desire or necessity for Sc
curing financial damages.
LUMRERMEN ARE ACQUITTED.
big Logging Case Goes Against the