The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-19
WILL PAY Sc CENTS,
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Continued From First Page.
further said that the total amount invested
in stocks and bonds was So 500, but as to
whether those other stocks and bonds are an
asset or liability we have no means Of know
good any bank or other bank might be,
we are of the opinion that this bank, organ
lied as it was under the act of 1867, had no
right to invest it's savings deposits in any
stocks, bonds securities except those Of
the United States and the state Of Mime
sofa.
BILLS RECEIVABLE.
The bills receivable are Of the face value,
including good, bad and Indifferent, Of $685.
735.14. We found about 210 different bills re-
celvable, of this number about twenty-five
were signed by one person, and neither in
dorsed nor collateral security. Thirty of the
bills receivable are secured by mortgages.
The remainder of the bills receivable have
one or more tndOrsers or are secured by
other collateral or chattel security. We are
of the opinion that bills receivable repre-
senting $79139.4 are good; that $78,639.N are
fair, and that s., 976.40 are bad In our opin-
ion, therefore, there can be realized on the
bills receivable, which include the mortgages
as above stated, except those under foreclo-
sure, the sum of Sis, 10.
Among the items marked good among the
bills receivable were $26 641.07 in the paper Of
Alfred S. Kittson. These were indorsed by
John F. Baker. These gentlemen are both
II
came trustees about the time the notes were
given. The committee, Influenced somewhat
by the opinion Of Mr.. Kenyon, marked those
notes as good, but after some discussion the
committed thought well to report this as a
special case for the consideration Of the de-
pOsitOrs.
The notes Of the Security Real Estate In
vestment company were marked by Mr.. Ken
yon as among the doubtful and poor loans
Their present Indebtedness to the bank is
81, 800. Our committee have marked 1T fair,
but on further discussion we decided to state
the facts to the depositors inasmuch as the
note was comparatively large one. The COM
pany, are informed, consists OF three
gentlemen, namely, William F. Bickel and
John F. Baker, two of the trustees Of the
bank and one other. We do not think any
thing could be realized from the stockholders
in that company, in case the note should not
be paid when due. 1t would seem that certain
tax certificates and other chattels were pur-
chased by this company, and that the bank
advanced the money for these and would,
security for the note which this investment
company would give to the bank for the
money loaned.
We would recommend
First-That the resignation which Mr.. Will
liam Bickel has offered to make of his posi-
ton as assignee he filed, and we make this
recommendation without any reflection what
ever on Mr. BickeTs honesty or uprightness
of character, and desire to say in this connec-
ton that Mr.. Bickel and his son William T.
and the clerks employed by him have treated
throughout this lnV6SuSdClOn WlLn uul-
form courtesy and kindness. .~. 7
Various plans of reorganization have been
discussed by your committee, and the follow
ing has been deemed the most feasible:
Issue certificates Of deposit for so per cent
of the Indebtedness of the bank, payable in
five equal annual instaliments due in one,
two three, four and five years from date Of
reorganization.
For the balance Of 40 per cent issue condi
tional certificates contingent upon the sale Of
the balance of the assets and good for their
proportionate share Of the amount realized
therefrCm.
Reopen under a new management by the
election OF new trustees or majority there
Of with the understanding and agreement
that in the event of a favorable offer for the
charter, the new trustees apply the amount SO
realized to the payment of the contingent
certificates above mentioned.
Otto SHERMAN wanted to know If he
could get 66 cents on each dollar or
his deposit Mr.. Lambert said, al
though there had been considerable
criticism regarding the work Of the
committee, he would say they had
worked hard and submitted report.
The plans of the various suspended
hanks was to have each depositor
take stock in the reorganization. In
the recommendation Of the committee
this objection had been done away
with. Mr.. Lambert, in answer to Il
question put by a depositor, said Mr..
Bickel had not resigned as assignee.
He had, however, expressed himself as
being willing to resign when the de-
positors requested. Mr.. Lambert gave
little inside history about plan by
which Mr.. Bickel was to be ousted.
NJ D. Mum requested Mr.. Bickel to
resign, and Eli S. Warner was to be
appointed in his place. Mr.. COnrOy
and Mr.. Burden heard Of the proposed
change in the assigneeship and went
to Mr.. Bickel and requested him not to
resign.
Mr.. Hawthorne said there were some
facts that were not in the report. The
work had been done without any ex-
pense and everything fairly stated. Mr..
Stevens, the president of the bank,
was very busy man and could not
give his time to the affairs of the bank
and the loans had been made without
his sanction. The cause, to his mind
of the suspension was the Internal con-
traction Of values, which were crush
ing out the life Of the country like an
eggshell. The officers of the bank had
no right to loan the money of the de-
positors, except as provided by law.
In November, 1885, in the savings de-
partment Of the bank, the deposits
were $13,590.24 and the Withdrawals,
3,83016. In December, 1896, the de-
pCsits were $8,186.11 and the withdraw
ais, 3,25S67. These figures showed at
least to him that some OF the depOS1-
tors we're better informed than others.
In January, 1897, the saving deposits
were 5000, and the Withdrawals 81, 200.
If the affairs were wound up at once,
Mr.. Hawthorne stated, not more than
25 cents on the dollar would be paid,
but If carefully nursed. 60 or 70 cents
might be realized. In answer to ques-
tions Mr. Hawthorne said that about
$35, 900 had been loaned to trustees Of
the bank, although it was question
whether the loans to Kittson and
Baker had not been made before they
were elected as trustees. There was
some question about the passing Of
resolutions requesting Mr. Bickel to
resign, but after some discussion the
motion was carried with much APP
plause. The appointment of a successor
was left to Judge Willis. Chairman
Lambert explained that both Mr..
Stevens and w. F. Bickel agreed to
allow the sale of the charter. A COM
mittee of five in addition to the seven
previously appointed, were instructed
to consider the plan Of reorganization
as recommended by the committee in
their report.
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