The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-12
ASSEMBLY COMMITTEE ON WAYS
AND MEANS TALKS OVER CITY
DEPOSITS.
MINNESOTA . SAVINGS BANK
PRECIPITATEs "A PULLING PROB
LEN ON THE COUNCIL AND
OTHER OFFICIALS.
BoNDsMEN WOULD BE CLEAR.
They Claim the, Fact That the De-
post Exceeded Charter Linz
itatiOns Relieves Them.

The proposition of the sureties on the
bond given to the city by the Mime
sofa Savings bank was considered by
the ways and means committee of the
assembly yesterday. The bond is in
the sum of $4,000, with H. L. Schade,
George j. Mitsch, L. ]. Casserly,
Charles E. Chapel, Fred G. Stevens
and Thomas F. Conroy as suretles
The proposition made by the sureties
is to pay the city $2,633 in full of all
claims. The contention of the bonds
men is that the city treasurer had no
authority under the charter to deposit
larger sum than the assessed capital
stock of the bank, which was $1,000
This amount and interest the suret1es
are willing to pay providing they be
released on the bond.
E. E. Mcdonald informed the COM
nittee that the $1O,0 900 claimed to have
been deposited in the Minnesota Saw
ings bank, was, as matter OF fact,
deposited in the Allemannia bank. AS
to whether it had ever passed through
the Minnesota Savings bank he was
not prepared to say. 1t was ques-
ton if the Minnesota Savings bank
had right to issue any stock, but as
it had issued stock the sureties on the
bond would hold themselves liable for
a sum equal to the maximum amount
that under the charter could be de-
posted. The acceptance of the propo-
sition would not, Mr.. Mcdonald
claimed, violate the claim of the city
against the bank and stockholders for
the balance.
Nearly ali the sureties on the bond
were insolvent and were not respon-
sible even if judgments were taken
against them.
Mr.. Markham did not want to make
any recommendation in the matter.
He thought it was a very serious queS-
ton if the city could collect, even If
a judgmt Mt was secured against them.
AS far as he could learn, not more
than two or three of the bondsmen
were in a position where judgment
would be of any practical good. He
advised that, if the matter was set
tied on the proposition made by the
bondsmen and the 50, 633 accepted by
the city in full of all claims, it would
relieve the city treasurer from all re-
sponsibility in connection with the al
legged illegal deposit of the $500. He
held that the bond was a good one, so
far as the sureties were concerned,
even admitting that the city treasurer
had placed more money in the bank
than the charter provided. The bonds
men for the city treasurer would be
liable, if the treasurer had exceeded
his authority, but there was a question
about this. The city council had des-
ignated the Minnesota Savings bank
as one of the repositories for city
funds. 1t was possible that the city
treasurer under the resolution of the
council would claim that he had not
exceeded his authority in putting the
amount in the bank. The principal
question to be settled was, would City
Treasurer Horst and his bondsmen
consent to the proposed settlement
without relieving him or his bondsmen
from any liability in the matter.
Mr. Mcdonald said he would consult
with Mr.. Horst and his bondsmen, and
the committee laid the matter over,
pending the result of the conference
between Mr.. Mcdonald and the city
treasurer.