The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-22

only be a question of who is to pay about an
unsolicited $4,000, $22,O 900 of which is inter
est money in the Bank of Minnesota, Of
which the city will in all probability receive
only the percentage paid by the receivers, as
co WSt from the assets Of the bank.
When we take into consideration the con-
o1tlon the financial crash has left other cor
porations in, we have reason to congratulate
ourselves on the happy outcome.
AFTER the above had been written the
city treasurer attended a meeting of
the investigating committee Monday
and felt so cut up about it, that he
1ndited the following, which was read
in connection with his first letter:
Gentlemen: At your first meeting on Mon
what 1t meant, what the accusation was for
a call for an investigation must mean at
least reasonable suspicion of wrongdoing.
AL least 1t naturally so appears in this
case, for no member of a body SO important,
with SO large an interest placed in their care,
as the welfare of 100000 people, physically,
would for the sake Of satisfying a private
grudge have offered a resolution to investi-
gate an office which in the ordinary order
OF Things, was under the supervision Of the
regularly appointed committee appointed for
the purpose of frequently examining the ac-
counts and doings of all the offices under the
supervision of the council.
Ihe matter was explained by the chairman
or the meeting in this manner. After reading
the resolution upon which the appointment of
the committee was made and stating that
he, the author of the resolution, had made it
for the reason, that his understanding of the
affairs of the city treasurers office was as
follows: That on the first day of November,
1886, the deposit of the city of St. Paul in the
Allemannia bank $25, coo. That in the
! first part of said month of November, 1896
the common council of the city of St. Paul
passed resolution prohibiting the deposit of
any moneys in any bank until the council
mad properly approved of-said bonds, and
that disregarding the mandate of the council
ne did deposit an additional $95, 900 in afore-
said bank between the time that said council
prohibited any deposit in any bank and the
time said Allemannia bank failed making
total amount of the city funds in the bank
at the time of the failure of $12O, OCO.
NOW gentlemen, where did he get his in
by the treasurer and sent to the council on
Nov l, 1896, for that showed the facts in
the case; showed that the city's deposit on
that date more than $1140OO Not from
the Allemannia bank had city funds on de-
post for more than $114,000. Not from the
daily papers, for they reported the city funds
in the Allemannia for more than $114,000
why make so grossly false statement on
point where any ordinary intelligent being
could easily have informed himself, if any
honest wish had existed to get at the truth?
Gentlemen, annexed find statement of de-
posts and withdrawals of the Allemannia
bank, in which 1 especially call your atten-
tion to the deposits and Withdrawals from
Nov. 1, 1896, to the time Of the suspension of
the bank. They figure as follows: Deposits
5 inc dn interest $9S,4OS13; Withdrawals,
Y"-1VoS'4V'
Attached to the two communications
was detailed statement showing the
deposits, withdrawals and monthly bal
ances from June 2, 1896, up to the time
the bank closed. Mr.. Horst, in reply to
questions put to him by Mr. Arosin,
said, as far as he understood the, law,
there was no provision for the annull-
ment of the bonds given by the Com
mercial bank, which institution was
afterWard merged into the Allemannia,
| and he. supposed the bank was emit
tied to the deposits.
Mr.. Arosin thought the statement of
the treasurer placed all the blame on
the city attorneys office. In reply to
question by Mr.. Kirke, the capital
stock of the Allemannia bank, Mr..
Horst said, was 100000, and the as
sessed valuation of the bank, according
to the assessors returns was STAT 900.
which, under the law, would be the
maximum amount the city could de-
post in the bank
Assistant City Attorney Phillips was
asked If he had told the city treasurer
in June 1896, that the bond of the Allie
MAMMA bank was all right. Mr. Phil
lips said he had no recollection of the
conversation, but if he had said any
thlng, 1t was as to the form of the bond
ana not to the suretieS. Mr.. Horst said
ne did not mean to say that the assis-
tant city attorney had said the bond
was all right, except that the change in
the name of! the institution from the
Commercial to, Allemannia would not
1nNalldate the bond. :r. s.
Mr. Arosm said the statement of the
city treasurer showed that on June q
$118,919.1 was deposited in the bank to
the credit of the city, and that on the
following day an additional $10O, 900 had
been deposited. Mr. Horst explained
this by saying that the payment was
made by the county to the city, and as
the check was drawn on the Aueman-
MA and it was big one, it was de-
posted in the same bank. The practice
was followed simply as a matter of
courtesy and also because it was good
business principles. fie hardly thought
MIR. AroSin put it right when he said
1t was question of courtesy to the Of
fclals OF the bank. Mr. Arosin called
attention to the deposit of S35. 900
which the statement shows was made
Dec. 70, 1895. Mr.. Horst said the
amount was in the shape OF a check
drawn by William Hamm on the Ale
MAMMA bank. The check was depos-
ed in the bank by the city simply be-
cause it was following out the practice
and custom in such cases. The check
was to pay for thirty-five liquor Ii
censes. He denied that Mr.. Hamm had
begged him to deposit the check back
in the bank
A deposit of $4,000 on Oct. 20 was ex-
planned as another check from the
county and was deposited in the same
bank for the same reason as he had
given before. Mr.. Horst denied en-
phatically that he had deposited large
checks at the request of the bank Off
Gals, either of the Allemannia or other
banks. He had heard no question as
to the solvency Of the bank. Neither
had he ever drawn from other banks
and put the amounts in the Allemannia
bank to bolster it up. Mr.. Scheffer has
never called on him and asked that
additional money be placed in the Allie
MAMMA bank. To the best of his recoI-
lection no banker had ever asked spe-
cifcally that more money be placed in
any particular bank Officials Of banks
had often asked that Withdrawals be
not made too heavy, but that was ALL
No checks had ever been drawn on
one bank and the money put in another
bank, and all the deposits made in the
Allemannia bank were in the regular
course of business. The only time
there was any exceptions to this was
when heavy deposits were made follow
ing the payment of funds from the
county and then the checks were rede-
posted in the banks on which thew
were drawn.
The discrepancy spoken about by
Aid. Kenny between the report of Re-
ceiver Auerbach and the statement of
the city treasurer was explained by Mr.
Horst stating that Comptroller Nc
Cardy and President Scheffer had on
the morning Of the suspension of the
Allemannia had $4,000 in the Chase Ma
tional bank, of New York, transferred
from the Allemannia bank account to
the city of ST. Paul This had been
done by kilograms, and the books of the