The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-09


The complaint alleges that upon that
date. there was due for taxes and inter-
est to savings bank depositors SIS, 437 10
approximately, leaving an excess of la
bilities over the actual value of the as
sets, as appraised by the state bank
ing department, 1906, 552.86.
AN APPARENT SURPLUS.
1t is shown that ON Jan 1, 1896 the
bank carried on it's book in the undivided
profits account an apparent surplus of
70,447.02. That between that date and
April q, 1885, the loss due to excess of
expenses over receipts was $50, 389 13, or,
in other words, that the actual monthly
loss In the business had been approx
mately $500. The aggregate surplus, as
appears from the books, is now over
drawn $19,9421.
The sixth and last paragraph in the
petition alleges that
The trustees and officers Of said bank
are now and have been for the past
twelve months conducting the business In
an unlawful, unauthorized and fncom-
petent manner; and that a number of
wit: Thomas A. Prendergast, f. j. Meier.
John s.: Prince, ]. c. Prendergast, An
drew Thaanum and j. j. Farrell, have
unlawfuily appropriated, under the pre-
tense OF borrowing, the funds of said
bank to their own uSe and have other
wise conducted the business of said bank
In an unauthorized and unlawful man
ner, and as a whole have failed to dis
charge their duties as provided by law :;
that the officers, trustees and employees
named. under the guise Of a loan, have
sets of said bank the aggregate sum Of
S16,SOO, and are now indebted to the de-
PENDANT bank to the extent of this sum
DENIES EXTRAVAGANCE
President Prendergast denies that the
bank was, extravagantly managed The
total expenses, he says, including sal
aries. heat, fuel and light, were not above
$4,000 per year. His salary was 81, 800
per year and that of the cashier $4,000,
and the monthly pay roll of salaries was
not more than $3.50 -
The statement made by Gen. Pope
that the officers had recently borrowed
$16,500 from the bank funds for personal
uses was also denied by President Prem
dergast. He also denies that the total
sum borrowed by bank officials was S4S-
900. He admitted that he owed the bank
$1,000 on his own account and had in
dorsed paper for about S. 600 more. OF
his own salary he declared that he had
lately taken but $50 per month and an
piled the balance on his indebtedness
According to Mr.. Prendergast, the in
debtedness Of Vice President, Prince is
but $1,000, and this is secured by mort
gage. The other sums borrowed by en-
ployes of the bank are in two amounts.
aggregating $2,25O, which was borrowed
by the two bookkeepers, with the formal
consent of the board of trustees AS to
the loaning Of money to the officials Mr..
Prendergast says the trustees have full
authority for such action under the con-
stitution of the bank and the laws of
the state.
AS to the charge made by Gen Pope
that interest on deposits had been paid
from the deposits themselves instead of
from the earnings of the bank, Mr.. Prem
dergast admitted that this was partly
true. Something like $1,000, had been paid
in this manner. One of the reasons why
the expense account OF the bank had
been made to appear so large was owing
to the expense of mortgaged foreclosures
being charged to the expense fund, In
stead Of the real estate fund, as was the
custom in other banking Institutions =
+ BELIEVES THE BANK SOLVENT.
I Mr.. Prendergast declared that there
was a cash. balance of. $685. 600 on hanIl
Friday night, and. there was no need of
closing the bank. He considered the
bank perfectly solvent. and had not be-