The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-11

there was no person who had the means
to buy it and desired to buy it under
the conditions Of affairs, The bank has
been Obliged to carry that real estate.
L use that as an illustration 1t has Just
reaehed period where 1t feels that TINS
real estate and these real estate secur-
tiles are becoming valuable. For exam
pie. it has sold, within the past forty
days. real estate amounting to $4,000.
which stood upon its books, with all costs
and expenses added, at SOP, 900, being
plain profit of $4,000 in the real estate
real estate and these real estate Sc
curities We feel are today worth more
by reason of the changed condition of
affairs and the approaching demand for
real estate than they stand for upon
the books of this corporation. So much
for the reason why there is so much
real estate and real estate securities in
this list of assets.
COMPELLED TO CRITICfSE.
1.-THE bank examiner has seen fit to
make an appraisement of this proper
ty, by means which we feel compelled to
criticise-not for the purpose of criticism
alone, out by reason of defense. In the
papers on file in this court we find that
he has seen fit to go to the city of Min
pTeapolis and employ some one that we
nave as yet been unable to learn knows
even the streets of the city Of st. Paul,
let alone the value of real estate and
had, him appraise this real estate and the
examiner has taken that appraisement
as the basis of this application.
, what Go We find as a result? We find
mat the real estate, which stands upon
the books of this corporation as amount
ing to 1899. 900, is appraised by this IN
known individual at $275, 000-$120, 900 less
than 1t stands for upon the books of this
company. And the court must bear in
mind that this real estate was taken at
onezthird its value originally.
We lind the same individual has ap-
| praised the mortgaged securities, which
! stand upon the books of the corporation
at $Sl6, 900 in round numbers, at $3.50, 900.
We find that the bank examiner has
! RI an r hn f1x fHrrf l.
upon the books Of the corporation at
| S62U00 in round numbers, at $31 000 in
round numbers-just one-half the amount
does that mean? These tax certificates
nave always been considered the very
pest Investment that could be made; they
| of the city, largely, between the two cit
les, and some of it the very best prop
! erty In the city. There are no prior liens,
because the bank has continued to pay
! the taxes accruing subsequent to OBJ
| tanning the certificates, and has main
| tanned its first lien upon all this real es-
tate. The tax certificates stand at $62,-
C0O In round numbers, upon the books Of
the corporation. There is not a single
well informed man in this community
| VINO would say they were worth one dol
! lar less, and yet the bank examiner puts
! them in at $31,000
rs there anybody who knows ANYTHING
| ABOUT these affairs going to assume that
! we VIII not realize $1,000 out of that item
OF assets II properly managed and han
eve find, in addition to that q don't
know, whether it is a typographical error.
| or what, but it characterizes the condt-
! ton Of things here in the Drocedure unOn
TINS appl1cati0n) that the bank has on de-
post with other banks the sum of ST.
! 0OO. In the statement here, as we have
It. It ot this item is appraised at the sum of
! $oO0O in his estimate of assets. That item
! IS Just as good as a government bond
absolutely secure and certain. We find
ina mat t, ne has scaled down the bonds held
a Ea hos, -4O i
to the officers of this bank in discussing
this matter with them, that $4,000 Of
t4 dsef county county bonds, at per cent in
| not worth 90 cents on the dollar Bonds
OF that very. county sold within the past:
SHY Kay Gays Gays IN New f York drawing only
Now, we say, in view of these facts,
mat the court ought, in Justice to these
Justice to these trustees. in justice to an
| intelligent procedure to be had hereafter
to appoint some fair-minded, competent
men to pass upon the values of these
real estate securities, these bonds and
this commercial paper"
Mr.. Donahower-I do not see of what
use 1t is now to go into the question of
the solYency or insolvency of this bank
l doubt If such a scheme as that pre-.
scented to the court would be practicable
or feasible. The bank would in the inter-
i'm remain in the hands of the public ex-
am1ner. shall answer Mr.. Munn's crit
lc1sm at the proper time, when the ex-
dullner ana Jn6 appraisers go the
stand. This scheme will be resisted by
the state, and it will stand on it's rights
NO USE WRECKTNG THINGS.
Mr.. O'Brien--If the statements brought
! In here are true, then a receiver ought
to be appointed; but meantime the money
OF the deposftorS should not be ground
between the upper and neither stones OF
court procedure. These trustees who have
long been faithful are willing to con-
ttnue their faithful work These COM;
mttteeS would be the committees of the
court and would make their report to the
court. We ask a continuance for two
or three weeks, and 1 do not believe they
have autOcratic powers to enable them
to remain in possession in the intarim
we don't ask that any money be paid
1n-that any money be paid out; but let
US not waste time in disputing; there is
no use in wrecking things. It is true that
1T is possible that this business cannot
little judgment.
Mr.. Donahower-The examining de-
partment makes no objection to the ap-
pointment of the committees; we object
to the delay that would result and we
doubt the wisdom of the modifying Or
der. The assets would be as well pre-
served and cared for with the examiner
in charge. We do not feel a disposition
to force q receiVerShOp.
We come in here as the agents of the
examining department and as servants
of the state because one of the states
trusted officials has made his report after
a careful investigation continued since
suggested
ures to be employed to manage the af-
fairs Of the bank, but the officials were
unable to put these suggestions in force
Mr. O'Brien again objected that the eX-
amtner in possession could not conduct
/ the necessary current business of the
bank. RedemptionS were running out;
taxes were falling due What could the
examiner do about 1t?
G. N. Bell then spoke The main ques-
ton wah what time would be allowed
the bank to plead.
DEPOSITORS WILLING
e. Stryker for the depositors, favor
ed a continuance. The request to trans-
act necessary business was reasonable.
Humphrey Barton spoke for another
would work delay and injury.
Mr.. Stryker said that his clients agreed
to the appointment of the committees.
Mr.. Beh-The current business must be
done by somebody no matter what would
follow the making of the order. There
were three things to be passed upon by
the court; The answer of the bank, the
modification of the present order, and the
naming of the committees
Judge Flandrau Endorsed the sugges-
tons already made on behalf of the
bank
Thomas Cochran believed the commit
tees would be willing to serve without
remuneration.
Judge Brill-There is but one Dues
ton what is best for the creditors. A
receivership means delay and necessary
i~eXpenSe but he must be appointed if it
is found necessary. 1t is, however, proper
that we proceed cautiously and deliber-
ately in a matter of so great consequence.
All concerned agree in a delay for an
investigation of the banks assets, and
concur and think this matter should be
continued to some future time, The
order of Saturday should be modified
to some extent Some officers or trus-
tees of the bank should remain in the
! bank to look after the transactions of the