The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-21

~ - ASSCCANSE OGn BE Avoided.
Three hundred depositors of the Saw
ings Bank of ST. Paul met in the senate
chamber at the capitol last night and
listened to report OF the general com
m1ttee appointed to investigate the
banks affairs. ]. ]. Egan presided and
| opened the meeting with a. review of thu
action taken by the depositors at differ
ent times since the failure. Little bust
ness was done and the reports submitted
were not complete, as the committee had
found that their time was too short to
prepare a full statement. ARRANGEMENTS
were made for a meeting on the even
ing of Aug. II, at which time printed
summaries of the reports of the de-
| positors and courts committees will be
distributed and detailed information CIV
en- of the work of investigation.
| The main interest of the meeting CEN
| tered about the report of the committee
appointed on July to investigate the
banks books; real estate commercial
| paper, tax certificates and other assets,
with view of presenting the depositors
with an accurate statement of the af.
fairs of the insolvent institution AS
chairman Of the committee, J. E. Stryk-
er gave the following report
Your committee have found that in
the time at their disposal they could not
prepare more than partial report We
have made considerable effort to get at
the facts, but the magnitude of the I'M,
| dertaking prevented it's completion be-
fore this melting. After considering the
task before us the committee was divided
into four subcommittee as follows:
A committee to investigate the bank S
real estate. A committee to examine
the commercial paper of the institution
not secured by real estate. A commit
tee to look after the remaining items
of assets, such as cash on hand, stocks
and bonds and other matters.
The real estate committee found that
owing to the number of pieces of real es-
tate held by the bank, a thorough inves-
LEGATION would be impossible in the time
at their disposal. They investigated
partially, but are as yet unable to give
full report. Twelve different pieces
of property were looked over and esti-
mates made and these were compared
with the estimates of the courts COM
work. The results were satisfactory.
OF the other subcommittee, the one APP
pointed to look after the banks COM
mercial paper found it difficult to COM
plete their work and ask for additional
time. The committee on tax certificates
meets with the same difficulty, as it
cannot readily secure necessary data.
The work of the committees, however,
incomplete, has demonstrated, however,
that the affairs Of the bank are in such
a condition that a receiverShip may be
avoided with careful management. Pres
ent conditions are much more favorable
than at first thought. OF the item Of
stocks and bonds 1t has been ascer-
tanned that the book figures, $4,000, are
correct. This amount can be realized and
the committee already has an offer to
take the item for this amount. The
gentleman who makes it will trust to the
profits above this figure from the dis
position of these assets as his commits
sion. Of the commercial paper, the
committee have been unable to COM
plete a report. 1t Is certain that this
item will show some loss. how much
cannot be said. There will also be some
loss on the tax certificates. The COM
mittee has worked in conjunction with
the committee of the court, which has
gone through three-fourths of the real
estate items, and would advise the de-
positors that its final report can be de-
pended on for an exact statement OF
facts.
No one should become panicl1y yet. The
showing so far is more favorable than
anticipated The committee especially
advises against dtsposing of certificates
of deposit to Minneapolis or other par
ties at a discount. If the depositors
do not receive dollar for dollar they Will
obtain nearly that. Between tWo-th1rds
80 nFI0-
tanned in the items of real estate and
real estate mortgages MI Stryker
was asked for an opinion as to what
amount the commercial paper would
bring. He replied that he was unable
to express an opinion for the committee,
but personally considered that 1t would
be worth about $4,000
Since the meeting held in Labor hall
Judge Brill has granted the additional
twenty-five days before taking final ac-
ton, which was asked for by the de-
positors' committee. He has also in
structed the court committee to file its
report within five days of the expiration
of the period in order to give the de-
positors time to review the report ana
make a statement before depos1tors'
meeting. NJ R. Prendergast opened
short discussion with a suggestion to
the stockholders that if any scheme of
reorganization is effected a committee
of depositors be appointed to place val
uation on all mortgaged property and
all real estate owned by the bank.
after this is DONE" he explained, ''the
depositors should be allowed to buy in
real estate with their deposits and in
this way utilize this item Of assets.
would also suggest that since the de-
positors have been receiving 3 and per
cent on their money for the past few
wears they allow this committee to re-
bate this amount for two years and de-
duct it with the understanding that If
the bank pays dollar for dollar they re-
ceive their interest before other claims
are paid"
The only discussion out of the routine
was occasioned by a motion of P. j.
Mcdonald that before the next meeting,
to be held Aug II, the depositors' COM
rnittee prepare a printed statement of
the report of the court committee for
the use and information of the de-
nositors. This raised a storm of criticism
and was not clearly understood, G. w.
Griggs restored order by explaining that
a summarized report of the work of the
court and depositors' committee would
answer the purpose. A motion to the eff
feet that such a statement be printed
was carried.