The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-29
TRUST COMPANY AFFAIRS.
They Are Thoroughly Explained by
Witness webb.


Haskell the defense introduced letter writ
ten by Stephen A Foster for the purpose
of showing Fosters idea Of the issue OF the
bonds three months prior to the sale, and
the connection between the building sale and
the sale of the bonds. The letter was very
vague and hardly substandated the claims
for it. made by Mr.. Jackson.
The trust agreement, under which the 1856
lots were held was offered by the defense. but
was objected to as whole The court al
lowed such parts as were pertinent to be
read to the sCenographer and taken in that
way.
Benjamin Webb would not be sworn, but
took affirmation. He had lived in Mime
apolis since 1855, and was bookkeeper and
cashier of the Minneapolis Trust company.
Mr.. Flannery started to show what means
the company had on hand, when Mr.. Jackson
objected to a showing of the resources. The
objection was not sustained.
After q number of questions were asked
and much argument made by Judge Jackson
the books of the trust company were allowed
in as evidence. The amounts for each month
exclusive of the trust fund in the Nicollet
bank, were follows:
April 30, 1894, 1926, 1894; May 81, $57, 1892
June 80. $72,374.55; July 81, $6+,6O7.39; Aug.
81. $50, 1856; Sept. 80, 49, TSP; Oct. 81 $55
1880; Nov. So s39 42S u; Dec. 81, Sill SS1. As
Jan. 81. 1895, $S7 .308.32; Feb. %, sos, 1854
March 81, 1884 1851.
Regarding the loans made by the Minneap-
oils Trust company to the receiver, which Mr..
Jackson had limited were taken from the fund
on deposit in the Nicollet National bank
trust campony had given, one for S.. 600 and
the other for $40 900. The charges for inter-
est, made by the trust company, were for
these funds
This was all the direct testimony and the
REORGANIZATION was kept until the after
noon, when the other books would be in.
In the afternoon Mr.. Flannery put in evil
dence the account showing the receipts and
disbursements IN the Menage collateral trust
Mr.. Webb took the stand again and was
cross-examined by Mr.. Jackson. Mr.. Jackson
wi he cd
ment Sept. II, 1895, of $39 900, which was in
fact a restoration of the money It had taken
from the trust fund year before The wit
ness denied this, and claimed that the trust
company had this money on hand all the
time. Oct. 81, 1895, there was a charge
against the Menage collateral Of $4,000 for
services performed by the trust company. Mr.
Jackson showed that this credit was made be-
fore the order of the court was made allowing
fees.
Mr. Jackson also claimed that the trust
company had held out the $50, 600 of bonds
and, after exchanging them for the new
bonds, paid themselves a dividend on the
other $265,00O of bonds which were sold at
10 cents on the dollar out Of the cash that
was realized
Mr.. Jackson thought he had the witness
well cornered as to the Menage collateral
trust not being intact so far as the s26 900
went, when he was informed that the money
was withdrawn from the Nicollet National
bank and placed in the Northwestern bank
None Of the funds were kept separated and
there were also deposits in the Security bank
and the Chase National bank of New York
The attorney then went into the balances
the witness had testified to in the morning.
and asked what trust money they were ac-
countable for at the same dates The witness
showed that when 1925 673.64 in money was
in hand the company was liable to trusts in
the amount of 1888 1854. Mr.. Jackson was
so dissatisfied with the result that he made
the witness go all over the books to show
how he arrived at the total. There was
$50, 524.92 to the account of the Menage trust
which not included in the sum AT the
same time there were some other liabilities
OF money belonging to estates on which thew
paid interest amounting to $4,000. There
were some other liabilities of $780, COO upon
which the company was paying interest The
total liabilities were S59S 273. rs. In his oues-
1oning the attorney asked for no other assets
but the cash on hand. He went down the
line, asking the same questions relative To
each monthly balance. The best Showing the
attorney made was that of March 81 1895,
when the actual cash was $50 600 short OF
enough to meet all payments il cash demands
had been made.
Mr.. Jackson wanted to ind out all about
| the contracts under which mortgage loans
! and other loans were placed but the witness
| could not testify to thse points as he know
/ nothing about the interests and agreements
On redirect MI FIaEtnery wanted to show the
| Jackson had placed upon he records
The witness read list Of the securities or
hand, exclusive OF any real estate, and
showed that there was on hand sS71. Tx * A.
nearly every monthly balance the company
had balance to the good of s550. 600. This
! balance showed neither real estate nor can
| ital stock. Mr.. Jackson asked If the Lake
wood Cemetery association fund was in
| Guided in the account and the witness ex-
! planned that this money was in the interest
| bearing money.
"Is it not fact that the company invested
! that without the consent of the Lakewood
people, in worthless securities, and they were
obliged to make it good ?"
jected to.
Was the Seattle company bonds in that
Eyes sir
'Is 1t not fact that these bonds never
belonged to the company, and that Mr.. Hill
was obliged to take them himself, to square
things?"
mo sir. Not to my knowledge"
Court adjourned until Monday morning at
10 o'clock.