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

Three Bankers and Three Real Es-
tate Men to Be SeIected-Tn the
Meantime the Affairs of the In
stitutiOn VIII BE Locked After
by e. j. Meier, While Bank Ex-
aminer VIII 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. j. Meier, cashier, and one Of
the trustees, to carry on the business until
July 90 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 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 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 Schweit-
zer, John Caulfield 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.
general, the court acquiesced to a propo-
sition for continuance until July 90
c. d. O'Brien and NJ. D. Mum, attor-
neys representing the bank, stated that
the bank examiner had made a grievous
mistake and proposed to substantiate
their declaration at the proper time
through competent testimony Of undoubt-
ed credibility.
w. j. 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
here today to represent the bank, and
we propose to put in issue here the ale
cations made by the bank examiner Of
insolvency, mismanagement, 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
mentioned to the court, the only Inter
est here is the interest of the deposftors,
and the desire of the trustees is to guard
| these interests alone. We believe that a
proper examination of the affairs of this
i%bank by the court will show that the
depositors Of the bank will nots 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
a committee of three well known men to
examine the real estate and the mort
cages and make their report to the court;
that the court shall appoint another COM
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 receiver would cut values in
two. A receiver would throw on the mar
ket at forced sale a great quantity of
real estate, with disastrous results, not
trustees,
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
of the bank assets? The routine, cur
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 f11n aclY~n Of fEn n14~f
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.
1--WE indulge in no criticisms, but we
say that a 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:
Il 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 1857, 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
| the learned attorney general and the
| bank examiner have seen fit to act in
! making this application. Just at this time
| it is largely a question Of policy, rather
| than a question of procedure involved.
| If we are going to have hearing upon
! 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