The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-05
KENYoFs PART OF 1T.
He Says Nothing but the Law Speaks
Ont

L.
In view of the fact that there have
been general doubts of the soundness
of the Germania and Allemania banks
ever since the suspension Of the Bank
OF Minnesota, two weeks ago. and the
fact that since their solvency was so
questioned, the G Q b yesterday made
an effort to find out what steps had
been taken by the state officials to pro
tect the depOSitOrS in the banks named.
Not only did the banks named receive
deposits when offered up to the very
hour of closing Saturday noon, but the
G b e is informed that the Gernania
received moneys-after that hour, when
its business day was closed. and when
it must have been 'fnsolvent, according
to the papers filed in the district court
yesterday Public Examiner Kenyon,
being busy In the banks, could not be
found at the capitol yesterday, but in
this connection it may be we'll to state
the powers of the public examiner and
superintendent of banks, as defined by
the laws of the state:
Section Alb Of the general statutes
provides the duties of the public ex-
aminer in relation to banking institu-
lions as follows:
The examiner under this act shall in like
manner and with like authority visit with
out prior notice, each of the banking saw
under the laws of this state or the territory
of Minnesota, and thoroughly examine into
their affairs, and ascertain their condition, at
least once In each year. 1t shall be his duty
to carefully inspect and verify the validity
and amount of the securities and assets held
by such institutions, and examine into the
validity of the mortgages held by savings
banks, and see that the same are duly record
ed and ascertain the nature and amount of
any discount and other banking transactions
which he may deem foreign to the legitimate
md Ia n 0f nSfit rftA
He shall inquire into and report any neglect
or infringement of the laws governing such
banking, moneyed and savings institutions
and for such purposes shall have power to
examine the officers, agents and employees
thereof and persons doing business there
with. He shall forthwith report the condition
Of such corporations, so ascertained to the
governor, together with his recommendations
or suggestions respecting the same and the
governor may cause the same to be published,
or, in his judgment, take such action as the
emergency may seem to demand.-1878 C..
SO Sec. 4, G. s. 1S78,fCC. 6, Sec 92
Sec. Ala transfers to the public examiner
all duties formerly imposed on the state
auditor.
The revised banking law, chapter las
of the laws of'1S95, after providing for
the methods of Incorporation, imposes
on the superintendent the duty Of ex-
aiming the condition Of such bank,
and the amount Of capital stock of
which each of it's directors is the owner
In good faith, and whether it has
complied with all the laws Then he
may permit it to do business. He may
withhold his certificate whenever he
has reason to believe that the stock
holders have formed the same for any
purpose other than the Legitimate OBJ
jects contemplated by this act" He
may require publication of the reports
made to him by said banks not less
than four in one year,, and shall have
;ol
any particular bank whenever in his
Judgment the same are necessary in
order to obtain a full and complete
knowledge of it's condition. He may
prescribe certain forms for bank ac-
counts. On becoming satisfied that any
bank has refused to pay its deposits in
accordance with the terms on which
they were received Qf received in ac-
cordance with the provisions of the
act), or that any bank has become in
solvent. or that it's books or accounts
are kept in false and fraudulent man
ner, or that any bank has violated any
of the provisions of the act, he may
take possession Of the books, records
and assets of every description Of
such bank and hold the same and they
shall not be subject to levy or attach
nlent during such reasonable time as
may be necessary for further examina-
ton and to enable him to apply to a.
court of competent jurisdiction, for the
appointment Of a. receiver for such
bank, and under the direction of such
court the receiver so appointed shall
take possession ofitthe books, records,
ETC., collect ais debts, dues and claims
belonging and sell or compound all bad
or doubtful debts. dues and claims, and
real or personal property on such
terms as the court may direct The re-
ceiver shall reportsto the superintend-
ent in like manner.
He is also given power to relinquish
possession of bank assets and books
when there are indications that the
bank is in a. condition to do business
safely.
Another section of the law defines
bad debts as debts which have been
due. or on which accommodations Of in
terest have been due, for twelve months
or more, unless there Is ample security
of a tangible nature.
Attorney General Childs, when asked
concerning suspensions, stated that
while the state had taken no action, it
undoubtedly WOULD IL the public exam
iner's report should develop anything
tending to show that the state interests