The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-06-19
ROAST FOR KENYON
MILL. CITY GRAND JURY SAYS HE
is GUILTY OF CULPABLE IN
ACTION.
PUBLIC NEEDS PROTECTION.
DEMAND ON THE GOVERNOR TO
REMEDY THE EXISTING
EVILS.
Number of Last Day Indictments
Dickinson Jury Disa-
gree.


reported to Judge Simpson at o'clock
| last evening, returning fifteen indict-
ments, making twenty-five bills for
one day. They also handed in their
reports and asked to be excused, a
request which was allowed, and the
hardest worked grand jury in the his
/ tory of Hennepin county, jury which
! has broken the record in the number
! Of indictments returned, quit business.
The reports handed in are not as
/ VOluminous as those of some of their
! predecessors, but they are couched IN
! stronger terms. The public examiners
department is roasted in an open let
ter to the governor, and the city treas
/ urer's department is handled rather
without gloves. The most important
letter to the governor, is as follows:
Hon. David F.. Simpson, Judge of the Dis
trtct Court-DeaT Sir: At a session of the
grand jury Of Hennepin county, held June II,
the resolution herewith enclosed were unan-
/ imously adopted, and they are submitted to
you with the request that they be forwarded
! to his excellency, David NJ. ClOugh, governor
! OF this state, at your earliest convenience.
/ Yours very truly,
Isaac P. Lehman, Foreman.
Jay c. Williams, Clerk
Hon. D. M. Clough, Governor Of the State
! the session of the grand jury of Hennepin
/ county, in court chambers today the fol-
! lowing resolutions were unanimously adopted,
to which your official attention is herewith
! respectfully called:
Whereas, From evidences in our possess
sion, certain banks and trust companies in
! the city of Minneapolis have been conducted
! for several years in violation of the statutes
/ of Minnesota and of honest business prin-
| cples, to the robbery of depositors and in
! jury to public and private credit and so far
! bPPD jnfOrO0a-
/ ton of this state of affairs has been given
! by the public examiner to the public, and
no action taken for public protection;
Whereas, For a period of three years,
! every sworn statement of the Washington
bank of this city to the public examiner
false, the returns being apparently fall
sified to up the Banks insolvent con-
dition, and this state of affairs, easily dis
coverabe by an examination of the books,
was allowed by the public examiner to
! tinue, thus jeopardizing hundreds of thous-
ands of dollars of individual deposits and
city funds in its possession;
Whereas, The records of the Northern
Trust company of this city show that the
funds of the company were loaned to many
of the officers directors, agents and
ployes in violation of the law, and that the
management was otherwise culpable and in
violation of sound business principles, and
this condition was allowed by the public
examiner to continue, and no action was
taken by him to protect the public and the
patrons;
! Whereas, The evidence as disclosed by the
records of the Northern Trust company and
the Washington, Irish-American and Bankers
| Exchange banks show that these institutions
from the time of their establishment were
conducted on insufficient capital; that the
capital which they possessed from time
| to time seriously impaired; that during much
| of the time of their existence they were
insolvent and ought to have been closed for
public protection, and no steps were taken
| by the public examiner to this end;
| Therefore we, the members of the grand
| jury of Hennepin county, state Of Mime
sofa, hereby express the conviction that the
| inaction Of the department of public
amlner Of this state and the suppression of
! the information in its possession and at its
| command, have been aid to fraudulent and
! loose methods on the part of financial insti-
| tutions in this state, instead of said de-
| partment being protection to the public
| as contemplated: and,
Resolved. After a thorough, careful and
| unprecedented investigation, 1t is the unani-
nous opinion of this jury that the wholesale
| larceny of the public funds and private trusts
has been materially aided by cupable mac
ton on the part of Public Examiner NJ. d.
| Kenyon and First Assistant Examiner Oscar
| Lonegren who made the reports on the above
| named banks; and by the Withholding of the
| facts from the courts and the public, and the
attention of his excellency the governor of
| the state, is earnestly called to this sub
| ject
"In conclusion to the end that said depart
ment of public examiner may be of future
value and effect in protecting the pubic from
| fraudulent and loose methods in financial in
| SUIuIOnS, ana also IN preventing recurrence
and continuance Of such methods, it is ear
| neStly recommended by this jury that the
reports of the public examiners department
be of public access and placed at the dispo-
sal of the courts. to aid them in stopping such
practices and prosecuting the guilty
"All of which is respectfully submitted.
| Isaac p. Lehman Foreman
Jay c. William, Clerk
| In it's regular report to the court the
| grand jury says:
In our investigation of the city treasury
we find that for several years past large sums
of public money have been paid to various
parties, without lawful authority and with
out warrants drawn by the city comptroller
The then city treasurer, A C. Haugan and
the parties receiving the money apparently
FOUND 1t necessary to conceal the transactions
by having the money drawn through third
parties. We find that the city comptroller
has been derelict in failing to examine the
papers and vouchers of city treasurer, as re-
quired by chapter 8, section Is, of the city
charter We also find that the mayor has
been derellct in not requiring the city treas
urer and comptroller to perform their duties
that he has failed to use his right of manda-
mus against delinquent officials to prevent the
unlawful conversion of city funds. The re-
suit of this neglect Of duty, on the part of the
city treasurer. comptroller and mayor. is
that the city treasury has. lost several hun
dred thousand olars. being practically all of
its available cash balance.
We find that the city attorney has been
derejct in collecting and enforcing the c:ty's
rlghtfui claims, in recovering diverted funds,
and in enforcing liability against bondsmen
We likewise find that both the ity and coun-
ty officers have not exercised proper vigilance
in accepting bonds. and hondsmen, whether
for saloons, contracts, for the appearance
of persons arrested for the commission of
crime, and that this negligence has been a
source of great loss to the city and county
The balance of the report is prin-
cipally routine statements Of condi-
ton Of public departments.