The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-02-28

While not a few people in the state
have. perhaps. been led to believe by
the Republican politicians and still be-
lieve that the Kenyon bank examina-
there are cropping out from
time to time little incidents which
show an especially friendly and f1du-
ciary relation between representatives
of the state and some of the least
worthy banks in the state.
The Glob has already exposed
how, among the treasured possessions
of the Minnesota Savings bank, was
| note for $1,000 Endorsed by the late
public examiner and superintendent of
| banks himself.
| Now, in connection with the Savings
Bank Of Minneapolis, a fyby-night
| concern. comes information showing
| that the deal between B1ckel and Ken
yon was practically duplicated, al
| though on slightly smaller scale, be-
/! tween Oscar Lonegren, assistant bank
| examiner, and the Kelseys, who were
| in command Of the latter bank
| This Minneapolis savings bank was
never a very pretentious institution,
| although quite ambitious, and in its
modest way it managed to secure from
the people Of that city, or from about
500 of them, deposits aggregating about
| $1,000.
The bank was organized by a man
| 1r,l,o -
a bank organizer that is relatively
unique. Kelsey organized bank with
as little trouble as a street soap fakir
sets up his little tripod on a street
! corner. He ordered a sign and started
into business.
Assistant Bank Examiner Lonegren
had, as a part Of his official duties,
| the examination of such institutions
as this. The bank was only organized
| within year or two, but In June Mr..
| Lonegren's check for $50 turned up
| in the assets (?) of the bank, being
credited to the cash and cash items
| account.
A little later another check for $50
turned up. That made $100 which was
being carried on the books of the bank
as cash on hand.
In order to get a line Of patronage
that they had been unable to get into.
the directors elected Magnus Turn
blad, Of Svenska Amerikanska Posten,
and August Walkow trustees.
When Kelsey was arrested for some
troubles in connection with his bank
| at Preseon, the trustees, who had been
very busy attending to their own busi-
ness decided to look into Kelsey's.
They soon found these checks. This
| was in November Public Examiner
| Kenyon was waited upon, and he and
| Lonegren afterward had rather a
| breezy session, the result finally being
| that Lonegren drew his December pay
/ early in the month and took up these
| checks, which he had left in the bank
| all the time.
That is all right, therefore. between
| Lonegren and the bank, but some of
| the depositors want to know how that
protects them and other people in the
state who have to depend on the ex-
animation of the public officials to
| know whether or not a financial insti-
| tuition is sound or unsound. and who
may reasonably view with suspicion
| CQe SO frequent III lHG dleScu
assets of failed banks evidence of
Accommodations" given to the former
| examiner and his assistants.
Mr.. Kenyon seemed to think, when
Lonegren drew his December pay in
advance and cleared the matter up,
that 1t was all over, but the trustees
Turnblad and Walkow were a little
nervous over their afflliation with the
bank, and besought e. M. Pope, the
| new bank examiner, to close up. Gen.
| Pope was averse to summary pro-
ceedings, insisting that, If the bank
people wanted the place closed. they
should first procure some additional
securities for the depositors which
could not be so well obtained after the
closing of the bank, or even following
an application for receiver. AS soon
as these formalities were complied
with to the present examiners salts
faction, he took the steps necessary
to have the bank put in the hands OF
receiver, where 1t is now