The Saint Paul globe., 1897-10-21
w. t. KIRKE, OF ONE OF THE LOAN
ASSOCIATIONS IN LIQUIDA-
TION, TALKS.
ALL TELL THE SAME STORY
THAT 1T WAS PASSED IN THE IN
TEREST OF THE STOCK
HOLDERS.
PLAN OF LIQUIDATION IN USE
Received the Approval of Bank EX-
aminer KenyOn-He Has a Kick
Coming.

Upon the decision of the district
court, of Minneapolis, as to the valid
ity of the law which allows national
building and loan associations to so
into voluntary liquidation rests the
question as to whether receivers shall
be appointed to wind up the affairs of
some half a dozen of the concerns in
the Twin Cities. AS stated in the
Glob yesterday, the law was passed
by the last legislature, ostensibiy to
allow the more economical closing UP
of embarrassed building and loan asso-
Citations which had been organized un-
der the national laws. A number OF
the officers of the associations Whleh
have taken advantage of the law ana
under the approval of Public Examiner
KENYON, claim that it is the best pos
sible manner in which the stockholders
can be cared for. AS to the question OF
the validity of the law, by reason OF an
enacting clause not being attached, OF
fioers of the several associations dld
not care to express an opinion They
all agreed, however, that if the law
was declared invalid, the result would
be that receivers would have to be ap-
pointed and in this way large part
of the assets of the several associations
would be expended In receivershlp
fees.
W. T. Kirke, secretary of the st. Paul
Saving and Loan association, in speak
ing Of the matter yesterday, said that
the law passed by the last Legislature
allowed national building and loan as
socitions to wind UP their business
without going into the hands of re
ceiver The law applied only to ma
tional associations, but had 1T allowed
local associations to come in under 1t
a large number would have taken ad-
vantage of the provisions, the same as
national associations were now doing.
The law simply put the national as
sociations under the charge of the
bank examiner and made him the
practical receiver for those desiring to
go into liquidation. The result was
that the affairs of any national asso-
citation could be settled without entail
ing the large expense Of receiver or
assignee The whole trouble was that
most of the building and loan assocla-
tions, both national and local, were
loaded up with foreclosed property.
The object of the new law was to al
low the stockholders to get as much
as possible out of the associations.
usually assignees or receivers were
obliged, as soon as appointed, 10 dlS-
pose of the assets and property IN tnelr
charge at a certain time no matter
what the condition of the property or
market was at the time. This meant,
of course, a great loss to the stock
holders. Under the new law the pub
lie examiner was given discretion IN
the matter, and the association was al
lowed to deal directly with It's own
stockholders to the best advantage to
them.
Some half a dozen or more assocla-
ions in ST. Paul and Minneapolis have
taken advantage of the new law and
have have formulated a plan of liquidation
which has been approved by M. u.
Kenyon and is now being carried out
nv the officers of the various associa-
tions. The plan which has met with
the approval of the public examiner
and has been adopted in general way
by those associations who have gone
into liquidation is as follows:
First All delinquent mortgages shaI be
settled and collected or foreciosed
as soon as possible and the officers shall have
authority to make such COMPROMISE ADJUST
ments thereof as may be equitable and ex-
nedient. in view Of the condition OF the
mortgagors, the amount paid by them On
the stock pledged thereto the value Of the
premises, and all the facts erecting
the condition OF value Of the security.
ssSecond Every effort shall be made to sell
and disnase of the real estate Of the COM
nanv mon such terms and payable in such
manner as the officers shall deem suitable, |
md al sueh prices as they deem reasonable |
and nroper. having due regard to the value
thereof and the condition OF the company'S
affairs.
Third. The mortgages of the company
heretofore or hereafter taken in settlement or |
existing indebtedness or on sales of real estate
shall be collected or sold and converted
into money as soon as may be, on such
shall deem expedient without sacrifice Of
value
: 1Fourth The officers shall Arst apply the
proceeds collected as above to the liquidation
of its bills payable, after making the nece5-
sary disbursements for taxes and the care of
its property and reasonable running expenses.
Fifth Whenever the bills payable of the
assoc.a alton have been settled CT discharged
the officers may offer its forecosed real estate
to the shareholders OF the association upon
some equitable plan decided upon by the
directors and approved by the public exam
iner.
Public Examiner Kenyon takes ex-
ceptien to head over the article bear
ing on this subject published in the