New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1898-10-19

misleading, the condition of institutions
that are solvent. 1
A more disreputable, underIhanded and
shameful stroke of political partisanship
is not cf record in the history of Mime
sofa campaigns. Its only equal is to be
found in the low and dirty attempt of
two years ago to brand John Lind as an
intidel.
Now as to the truth or falsity of the
charges preferred by this bank examiner,
who don't examine, against Mr.. Lind.
Mr.. Kenyon claims that Lind, as a
director of the Brown County Bank, at
tested to the correctness of certain re-
ports on the condition of the bank which
he knew to be false.
To be more explicit, he says that the
bank had loaned the New Ulm Roller
Mill Co. sums far in excess of the legal
limi: of Is per cent of It's capitol stock,
which IN this case would be $1,000; that
the mortgage of $4,000 finally executed
by the company as security for these
loans bore Mr.. Lind's name as witness,
thus showing that he was fully aware of
the excessiveness of the loan; that, not
withstanding this knowledge, Mr.. Lind
signed several reports to the bank exam
iner, attesting their correctness, although
the schedule calling for loans exceeding
the legal limit was filled out with the
word "none.''
So much for Mr.. Kenyon's charge.
Now for the facts,
When the Brown County Bank was
converted into d state bank, the presi-
dent talked the matter of loaning money
to the mill company over with Bank Ex-
amlner Kenyon. Kenyon himself sug-
gested method, within the law as he
contended, by which this could he done.
He advised as follows.
The mill company as a corporation
could not borrow to exceed $1,000, but
that did not prevent loans being made
to individual stockholders in the COM
pany.
This was done, the mill company in
each case endorsing the loans.
Kenyon was satisfied and approved of
the loaus, and why shouldn't he? They
were perfectly legitimate and had been
made at his own suggestion.
Early in 1897 the bank directors con-
cluded that they wanted additional secur-
ity and obtained mortgage on the mill
property for $4,000.
Kenyon had not demanded this. On
the contrary he had been content to ap-
prove of the old arrangement through
out period of several years.
Suddenly, however, he changed his
tactics. He took the imbecile ground
that a bank couldn't loan money to any.
one without knowing what it was used
for. Hereafter the loans of the indlvid-
ual members must be considered as mill
company loans. ........
There was no warrant for such rul-
ing as this, for the status of the loans at
that time was better than ever before
and, besides, he was taking position in
direct contradiction of that he had held
for several years prior. = -~>7
So it will be readily seen that the
bank, in reporting that its loans were
not in excess OF the legal limit, reported
what was an absolute fact, and Mr.. Limo
in attesting to the correctness of these
reports did not, as Kenyon asserts, MAKE
statements that he knew to lie false.
| He simply gave his approval to man
agemcnt that had been perfectly legiti
mate and that Kenyon had approved o.
for several years, or until he changed
his mind at the opening of campaign.
! Here is Mr.. Lind's own statement O
the facts as made at Hallock on Satur
day:
cit would seem from the statement Is,
) Mr.. Kenyon that the moneys loaned b,
the Bank of Minnesota to the presiden
and other officers and their companie
} aggregated S56o.o0o, instead Of 5000,
600. | assume that he is correct. It j
a year almost since made the examina
:, ton. He says that there existed par
allel condition of affairs in the Brow
County Bank in which I was = stock
holder. This is false. Not one cent o
the money of that bank was loaned t
its officers. Some of the directors, pos
sibly, had small amounts. They ar
among the best business men Of Ney
Ulm. The loan to the Roller Mill com
pany of 81 800 had been made long be
s fore had ANYTHING to do with the af