The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-10-20

apolis litigation is concluded. The
matter was argued IN the court there
at special term last Saturday, and an
early decision is expected.
1t is possible that criminal proceed
ings may be resorted to.
The chapter in question provides
that, if the state superintendent OF
banks and public examiner shall find
that the association is unable to sat
isfy all it's liabilities, he shall notify
the attorney general, who shall notify
the association to discontinue business,
and shall apply to the courts for an
order removing the directors, and ap-
pointing three outsiders to wind up
it's business. If the association is still
solvent, but shows such evidences of
mismanagement on the part of one or
more of the officers or directors that
the rights of the shareholders are en-
dangered, then the court, on a similar
application by the attorney general,
may remove such of the dehnquents
as it shall select The expenses OF the
liquidation are to be borne by the as
scciation delinquent.
That much Of the law relates to the
closing up of such an association by
the intercession of the public examiner.
Then there is provided a provision Tor
the voluntary liquidation as 1t is called
It is that when three-fourths OF the
stock, or q majority OF the board OF
directors. shall vote to go into liquida-
ton, they may, with the written con-
sent of the public examiner. There
after, the stockholders shall be not1-
fled, not before. Then the corporation
may adopt such methods and meas
ures as shall be lawful, equitable and
just for the winding up Of its affairs,
subject to the control and direction OF
the public examiner; provided, that the
i Ia ,l,.,1 n
may be approved by the public eXamln-
er. The directors may change the plan
of loans to a definite time or times OF
payment. or may negotiate all it's mort
cages for cash.
Two of these embarrassed companies
may combine, if deemed advisable.
The six concerns referred to, which
are now in liquidation, report monthly
to Public Examiner Kenyon, but no re-
port is made by him to the public,
either Of the progress of the Gqulda-
ton. or even of the original determi-
nation on the part of the association
to go into such a state. If the plan of
the states connection with it was
expressly designed for keeping the
shareholders in these concerns in the
dark, as to what was being done With
their investments, it could not be more
completely a success in that respect.
Thunder people wanted to raise thun-
der of other kinds when they discover
ed that they We're likely to lose prac-
tically all of their investments in the
liquidation.
Public Examiner Kenyon's position is
that reports Of this nature concern the
public, but Indirectly. He reports them
to the governor, sometimes, and II the
governor wants to give them to the
q
about the liquidation yesterday lit
tie, though.
81 do not know" he said, chow much
the shareholders in any of these as
sociations will realize as yet. 1t is slow
work 1t is necessary to arrange an
equitable system, by which the borrow
ing, as well as the non borrowing
stockholders in these concerns shall
be protected as evenly as may be. 1t
is not easy to arrange plan Of this
kind, where real estate holdings of
various, and sometimes uncertain val
ues are involved In the case of the
Continental, where the amount of the
stock was small, the problem was COM
paratively simple, and that association
has plan we'll under way now. The
work of winding UP an association OF
this kind, however, is necessarily
slow"
holders any?' was asked.
at was designed to, in this way.
It was purposed to reduce the expense
of winding up the association. Previ-
ously the associations, and there are
only four now left in this city out Of
fifteen we had three years ago, had to
assign or go into the hands of re-
ceiver The receiver or assignee had to
be paid and he was usually well paid.
this fee. If the officers of the company
are honest they are permitted to go on
and wind the things up If they are
not, 1 am empowered to begin proceed
ings for their summary removal"
what caused this sudden collapse
of all these companies?"
Largely shrinkage in real estate
values. Misplaced confidence in the
value of certain tracts has seriously
embarrassed some of them. I do not
think there has been any mismanage-
ment serious enough to be called crinf-
nal An officer of one association did
lead it up with a lot Of worthless prop
erty in taxes, He is in the prison there
now. But there has been some mis-
management in the sense Of using bad
judgment in placing loans or making
investments. These could not be help
ed The associations needed to close
up their business, and this bill was
aimed to give them a more expeditions
and economical plan than they had I'M
der the old general bankruptcy law"