The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-11
Size UP THE ASSETS
JUDGE BRILL WILL NAME TWO
COMMITTEES TO EXAMINE
THE HOLDINGS
OF THE SAVINGS BANK CLOSED

tate Men to Be SeIected-In the
Meantime the Affairs of the In
stitutiOn VIII Be Locked After
by e. j. Meier, While Bank Ex-
aminer Will Remain in Charge.
Judge Brill yesterday, in the district
court, decided to appoint two commit
tees one of three real estate men to ap-
praise the real estate, and the other of
three bankers to appraise the other as
sets of the defunct Savings Bank of St.
Paul. The court also filed an order APP
pointing E. ]. Meier, cashier. and one of
! the trustees, to carry on the business until
July 20. when the matter will again come
up before Judge Brill, at 10 a. m The
| possession of Cashier Meier, under the
order, is to be in connection with the bank
examiner, but Mr.. Meier will ''have full
authority to perform all acts and carry
! out the provisions of this order without
the authorization of the bank examiner"
| Mr.. Meier is authorized to retain such
! employees as may be necessary and to
| keep full account of the moneys paid out
| and received, and a record of the business
| transacted to report to the bank ex-
aminer. 1t is also ordered that the de-
PENDANTS shall have to July Is in which to
| prepare their answer to Attorney Gen.
eral Douglas.
The court room was thronged yester-
day when the case of the state ex rel.
| w. B. Douglas against the Savings
Bank of st. Paul was called before Judge
Brill, in the district court. The hearing
was on an order to show cause why a re-
! ceiver should not be appointed. Among
| those who crowded the court room were:
Thomas Prendergast, president Of the
! bank; ]. F. Hoyt, J. c. Prendergast,
James King, w. P. Murray, James
| O'Brien, William Lee, J. N. Rogers,
| Thomas Cochran, E. S. Horton, D. D.
Smith, w H. Mead, Frank Hanson, c.
N. Bell, John Prince, DR.. Ancker, Den
mis- Ryan, w. H. Lightner, Phil Schweft-
zer, John Caulfeld and James A. Novel;
No opposition developed during the
hearing to the plan submitted by the
! representatives of the trustees and stock
! holders, and after an argument with w
| j. Donahower, representing the attorney
general, the court acquiesced to a propo-
| sitiOn for continuance until July 20
c. D. O'Brien and M. D. Mum, attor-
| neys representing the bank, stated that
the Ddnk examiner nau maze q Sr1eVOuS
mistake and proposed to subStantiate
! their declaration at the proper time
| through competent testimony of undoubt-
ed credibility.
w. ]. Donahower asked the court for a
| continuance for the present.
Mr.. O'Brien addressed the court, speak
! ing substantially as follows:
REPRESENT THE BANK.
Mr.. Bell, Mr.. Mum and myself are
/ ha1.n fnleaI
! We propose to put in issue here the allie
! cations made by the bank examiner Of
! insolvency, reimbursement, of any I'M
| lawful act, or undue borrowing by the
| officers of this bank-in short we wish
| to put in issue the entire complaint
| There is another matter to be raised be-
! fore the court at-the proper time, and
! that is the jurisdiction of the bank eX-
aminer, for we claim that by the terms
of the law under which this bank has
been doing business the bank examiner
has no such power over the bank which
| he has taken possession. AS to the con-
tinuance which the attorney general has
est here is the interest of the depositors,
and the desire of the trustees is to guard
! these interests alone. We believe that, a
! proper examination Of the affairs of this
bank by the court will show that the
depositors Of the bank will not lose a
single cent. There is enough on hand
now to pay every commercial depOsitor;
there are assets enough to meet the
claims of the depositors in their proper
order This bank, your honor, has for
many months been conducted with the
most rigid economy, to SUCH an extent,
| indeed, that the president of the bank
| has. given up his salary and worked
! gratuitOusly, and the same quality of
! economy has been practiced by all those
! connected with the bank. Our PROPOSE
ton to the court this morning is this
| We propose that the court shall appoint
q committee of three well known men to
examine the real estate and the mort
cages and make their report to the court;
! "a 1aT
mittee of three bankers to examine the
! other assets, the paper, the loans and
securities, and make report to the court
OBJECT TO RECEIVER.
| 1--WE believe that, as a result of these
reports, it will be determined that the
bank is not going to lose a cent. AS to
the future, that is another question; but
for the present we desire to demonstrate
that the assets of this bank are availa-
BILE and sufficient. We strenuOusly object
! to the appointment of a receiver at any
time, unless the court finds such appoint
ment absolutely necessary. The manage
| ment by a receiver would cut values in
! two. A receiver would throw the mar
| ket at forced sale a great quantity of
| real estate, with disastrous results, not
alone to the depositors and trustees, but
to the entire community.
Should your honor grant our applica-
ton for the appointment of these COM
mitteeS, the next question is: What shall
be the status of the bank, while the
committees are making their examination
rent business of the bank must be car
ried on meantime, such work as fore
closing mortgages, collecting and pro-
testing notes. so that the assets may be
kept intact We shall then, in this view
| Of the case, ask of the court a mOdiica-
ton of the order made on Saturday. so
that this current business may be con-
Quoted and the assets conserved. Mean
time, funds would neither be deposited
in the bank nor drawn out.
I'VE indulge in no criticisms, but we
say that deplorable mistake has been
made. This bank has existed for many
| years. 1t has weathered storms and no
man has lost dollar by it"
! NJ. D. Mum, also representing the
| bank then addressed the court, speaking
in much the same strain. as follows:
81 will not at this time go into an
| analysis Of the organization of this in
stitution. other than to say that it was
| organized under the laws Of 1867, and has
what is known as a special bank char
ter by reason of that act, and we shall
! contend, when the proper time come.
that owing to its organization under that
act it is not. subject to the general pro-
visions of the banking law under which
! bank examiner have seen fit to act in
making this application. Just at this time
| 1t Is largely question of policy, rather
| than a question of procedure involved
| this application for a receiver, it must
| take place at some later day. because
! the trustees of this bank and its de-
positors are entitled to present any de-
| Tense they have to this application based
upon proper evidence, which we have
not had time to prepare.
LAW DIRECTED INVESTMENT.
81 wish to state briefly one or two
matters which will explain the present
situation of the bank. perhaps, and en-
tighten the court upon the application
made by Mr.. O'Brien for the appoint
ment of these committees or commits