The Saint Paul globe., 1897-10-31


That the assigned property consists largely
OF real estate, most Of which is situated in
this city; that the indebtedness of William
Dawson Sr. to the bank, including his liza
bility a stockholder, amounts to about
$6S6,0G0, nearly one-half of the entire indebt-
edness.
That, at the time of the making of the
assignment William Dawson, Sr., was
ried man, and his wife did not join in the
assignment and in no way released her in
terest in the said real estate; that the as
signed real estate is of the cost value of
81, ,621, ,579, and of other assets the cost val lie
is 1868 299, making a grand total of $3;587,S S72.
That the contingent interest of Mrs. Daw
son in the real estate unreleased in the judg
ment of the committee renders the real
tat practically valueess, but if she should
release her interest it would add to the div-
dend to which the Bank of Minnesota would
be entitled, probably $5O0,0O0 the ultimate
value of which under favorable conditions,
may be much greater.
Your committee reports to the court that
it has reasonable assurance that il the plan
of reorganization of the Bank of Minnesota be
carried into effect, that Mrs. Dawson Will
Immediately release her interest in tie real
estate and your committee will propose in
the plan of readjustment and reorganization
to make the release of such real estate one
of the requirements of the reorganization.
That by such means your committee is of
the firm belief that after the payment of the
60 per cent in cash provided for, the stock of
the reorganized bank will have very sub
stantial value. Your committee in It's plan
further proposes to ask the court in of
reorganization to require that the affairs of
the bank shall be managed in the most eco
nomical manner practicable, and that no pay
ments shall be made to any officer or serv-
| ant except for services actually performed,
and then only such amount as shall be just
and reasonable
The report of the committee was
signed by C. H. Bigelow, John A.
Stees, P. J. Bowlin, Philip S. Harris
and E. B. Putnam.
Mr.. Mclaughlin. commenting on the
report. stated that the release of Mrs.
! Dawson had been executed and was
ready to be turned over to the COM
mittee in the event that the bank will
be reorganized. The committee was
not in favor of any particular plan. 1t
was for the creditors to say whether
or not they favored any plan. The
committee was ready to accept any
other plan proposed and give all need
full assistance. If the dividend was
granted that ended the matter of re-
organization.
Judge Otis-There is not before the
court any plan of reorganization. The
only question is whether or not div
idend shall be ordered or whether
there will be pOstponement till the
creditors shall have an opportunity to
cOncOct a plan.
Judge Flandrau said he represented
$4,000. His creditor favored the grant
ing of the dividend and was opposed
to reorganization.
Judge Otis stated that he thought
that the release of Mrs. Dawson was
worthy of careful consideration.
Attorney Nelson said that the deed
had been executed. A large part of
the assets was in real estate which
was worth little unless Mrs. Dawson
turned over her dover interest. The
oh not hoe hon
there was an opportunity of adding
600 to the value of the assets A
plan was being formulated for the re-
organization of the Allemannia bank
practically along the same lines and
he believed it would be successful.
Mr.. Barton stated that he represent
ed creditors to the amount of $4,000
who favored reorganization.
Mr. Morphy thought that the COM
mittee should have further time.
Hiler Horton said he represented
$150,O00 in deposits. He recited the
efforts that he and few others had
made towards reorganization, and the
stingy cooperation of some of the
other stockholders The rest didn't
three months, 100000 OF deposits
agreed to the plan, but the plan was a
failure He thought it was impossible
to reorganize the bank. Under the
laws there was no right to postpone
further action towards the granting of
the dividend. AS he understood it, both
Mr. and Mrs. Dawson had been ready
and willing at all times to turn over
their property if the bank could be re-
organized. That was not new propo-
sition. He for one never conceded that
the granting of a dividend foreclosed
the right to reorganiZe. The solvent
stockholders should put up the capital
and not require the depositorS to come
forward with their little pittance. 1t
would be easier to reorganize on the
basis of s., 500. 900 than with $120,0 900 and
there would be money with which to
open the bank The people were en-
titled to their money-the plan of re-
orga nization could be taken up later
on if thought best.
Mr.. Mclaughlin denied that Mrs
Dawson had ever intimated before this
time that she was ready to transfer
her dover interest. If the creditors
were willing to reduce the assets by
the amount of Mrs. Dawson's interest
let them do So They might change
their minds on this score. The COM
mittee represented $500, 600, and, If al
| lowed, could get majority in number
and amount of the creditors to agree
to plan such as was proposed.
Judge Otis stated that he did not
know what erect the granting OF the
dividend would have on the proposed
plan of reorganization. He did not
know that the committee had stated
that if the dividend was granted that
ended reorganization. The question Of
allowing the dividend rested in the dis
cretion of the court. 1t seemed to
him that there was a proba bility. at
least, that some arrangement could be
made whereby all the creditors might
receive a great deal more than if the
dividend was allowed and ordered paid
Creditors representing S500,000 were en-
titled to consideration.
Mr.. Mclaughlin was asked how long
1t would take him to secure majority
in the number and amount to agree
to plan of reorganization. He said
that it would take at least sixty days.
Judge Otis thought this was too long,
but said he would postpone the matter
till Saturday, Nov. 27, when the COM
mittee could report what progress had
been made, and if it was possible to
reorganiZe under any plan.
This seemed to be agreeable to ALL
The receivers presented their account
for allowance, and the court set this
matter for next Saturday. During the
interval, objections may be presented.