The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-08-17
WILL LIMIT THE PAY
JUDGE BRILL WILL NOT, HOW
EVER, LIMIT THE EXPEND-
ITURES
IN THE SAVINGS BANK CASE
He Has Been Receiving Suggestions
as to Whom He Should Name as
Receiver Since Before Breakfast
the Morning After the Bank Was
CIOsed-Wiu Think 1t Over Before
Announcing the Man or Men.


Judge Brill yesterday decided that the
appointment of a receiver for the Savings
Bank of St. Paul is necessary, and the
attorneys for the state and for the de-
positors were instructed to draw up the
form of order.
The court room was crowded when the
Savings bank matter came up on an
order to show cause why a receiver
should not be appointed. Assistant At
torney General Donahower appeared for
the state, and the bank was represented
by T. D. O'Brien. Mr.. Donahower opened
the proceedings with motion to amend
the complaint by inserting a statement
to the effect that 'since March, 1879, the
bank has been doing a business of dis
count and deposit" Then Attorney
OBrien, on behalf Of the bank, made
the following statement:
when this disaster was first realized
the trustees thought it possible that the
property might be turned over to the
creditors in some more advantageous
form than through the appointment of a
receiver, on the theory that a man can
take care of his own business more prof
itably than he can have it done for him.
The depositOrs have now had several
weeks to signify their wishes, and thus
far depOsitOrs representing $.S2,946 have
accepted the proposed plan of reorganiza-
ton, but that is a long distance short of
the requisite number. I understand that
at a depositors meeting held recently
many Of those who were present signified
a wish for the appointment of a receiver,
and if such is the prevailing sentiment
the officers of the bank do not wish to
stand in the way. Their desire is to see
the depOsitors realize the greatest amount
possible from the assets of the bank, and
they will assist in any way they can.
Therefore, we will ask no further delay.
l am somewhat at a loss this morning,
through the absence of Mr.. Mum, who
is unable to be present, owing to illness
in his family. He has given more time
to this case than 1 have, and I will
try to present his views as far as 1 can,
as we'll as my own. 1t has appeared to
both Of us that the papers in the case
did not fully meet with the requirements
of law, and, while we will not contend
against the appointment of a receiver We
would like to see the papers drawn in
proper form. If an order is drawn at
this time We want it to be a good order,
to avoid further legal complications.
Mr.. Donahower inquired if the speaker
was willing to stipulate for the appoint
ment of a receiver.
This matter came up on an order to
show cause, and we have no cause to
show except the committee appointed by
the court declared Mr.. O'Brien, ad-
dressing Judge Brill.
In view of the fact that there had been
no answer the court decided to proceed
with the taking of evidence, and Mr.
DonahOwer read the affidavit of Bank
Examiner Pope upon which the applica-
ion IF
took the stand, and, with the aid of his
published statement, reviewed the condi-
ton of the banks affairs. He believed
the appointment Of a receiver to be alb
sClUtely necessary. After introducing in
evidence the reports of the committees
appointed by the court to appraise the
banks assets the state closed its case
and the court directed Mr.. DonahoWer
to draw an order embodying the amend
ment, and also an affidavit of no answer
There appears to be nothing remain
ing, but to appoint a receiver or re-
celvers for the bank, and 1 would be very
grad to receive suggestions as to the
amount Of the bonds" said Judge Brill
John E. Stryker, representing the depos-
itors, stated that he had been requested
to urge the court not to appoint man
connected with the present management
OF the bank, and to limit the salary of the
receiver TO $500 per year and the attor-
Eey's fees to $500 annually
Thomas Cochran followed and after a
number of suggestions that he said had
originated with the depositors, presented
the names of H. Knox Taylor, former
bank examiner; Wilbur H Howard, z.
j. Hcdgson and Assistant Bank Exam
iner James Compton.
Humphrey Barton thought the ap-
pcintee should be a banker rather than
a lawyer, and indorsed the suggestion of
Capt Compton. Judge F1andrau put in
a word for E. J. Hodgson. Frank Griggs
favored the appointment of real estate
man, and stated that he held petition
signed by seventy or eighty depositors
asking that Chester b. Smith be named.
P. ]. Mclaughlin nominated John E.
Stryker and w. H. Mcdonald suggested
that j. w. Shepard and other members of
the real estate committee be given q
show. Ambrose Tighe indorsed E. J.
Hodgson and Charles Bechofer proposed
Z. S. Durment. The Durment suggestion
was seconded by John e. Hearn
Herchmer Johnson stated that the gen
eral sentiment favored the appointment
of two receivers, one to be an attorney.
and this brought John w. Lane to the
front with the names of r. D. O'Bren
and w. H. Farnham. Capt Finehout
made the last suggestion, J. w White
Mr.. O'Brien suggested that as the de-
and the convertible assets to as much
more, the amount of the bond be fixed at
100000 to $250000 in case of one receiver
or 100000 in the aggregate in the case of
two receivers.
This was generally agreed to by those
concerned:
The court said:
Il have already received many sugges-
items as to who the receiver should be
On the first morning before breakfast
they began coming and it has continued
with more or less regularity ever since.
1 want to say that I am not in sympathy
with the sentiments expressed as to a
prejudice against attorneys. I don't
think there is any general prejudice, and
l consider my profession the most honor
able in the world. While 1 am in sympa-
thy with the idea of keeping down ex-
penses, it must be understood that there
may be heavy expenses in this matter.
Where there are 100000 to 5000 900 of assets
there must be some large expense. There
will also be puZzling and difficult legal
questions. 1t is unavoidable that when
a large estate becomes insoIvent there
must be some shrinkage. Whether there
should be two receivers or only one I
have not yet been able to decide If the
depcsitors as a whole could consider any
question and determine 1t, their wishes
would be accepted by the court. I will
not announce any appointment at this
time, but will make an order as soon as
1 can determine 1 will limit the receiv-
ers compensation, but do not deem it
proper to limit the expenditures"
The attorney for the state and attorney
for the depositors were Instructed to draw
the form of an order for the appointment
of q receiver.