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

bank in this city subject to state super
VISION, SAID Gov. Lind yesterdays 'They
are absolutely sound. Fearing that the
closing OF the Savings Bank Of st. Paul
was inevitable. directed the bank ex-
aminer some time. ago to make the most
thorough and CAREFUL examination of all
the other banks, so that he would be in
position to make the statement which /
have just repeated, in the event of such
contingency ,andSthasnervousnes incident
thereto
In regard to the Savings Bank of St.
Faul: The condition of the bank was re-
ported to me some' three months ago.
since that time have had frequent con-
situations with sthe4 public examiner and
the officers of, the bank There was no
question but tha~-bank was insolEent at
that time and mas Been for some years,
out with the prospects of Improvement
IN the real estate market which every
one looked for and which I suppose has
been partially realized, we deemed 1t pru-
dent to delay action In the hope that the
bank might avail itself of this improved
condition and convert some of its real
estate, which is now a burden, into live
assets. This delay was also prompted by
the consideration that the officers of the
DanK promised to make every effort to Sc
cure their liabilities, aggregating up
wards OF $4,000, largely unsecured. 1
am conhdent that they made an effort in
that direction in good faith but did not
succeed. This-fact, tSl connection with
the disappointment in regard to what was
| expected from the real estate, made it
absolutely necessary for me to take the
step directing Gen. Pope to take charge
OF the assets, which l did. 1t must also
be borne in mind that the bills receivable
of the institution are IN very bad shape
generally.
1--WE realized fully the seriousness of a
| reCeiYership and would have been glad
to avoid 1t, and I ssineerely hope that the
| creditors can agree upon some plan by
which 1T may vet be avoided; but. new
! -ertheless, the situation was such that 1
| could not conscientiously refrain from
| taking action. 1t is a fact, as will appear
from the records of the bank, that not
! less than three dividend payments have
| been made largely from deposits instead
| Of earnings. To continue such a state OF
! affairs would have been little less than
criminal. The executive department has
! done its duty and 1T is now for the courts
and the depositors to sdo what they de-
| eide best for the interest of the creditors.
! 1 have not acted precipitately in the
matter. For many weeks back the pub
! lie examiner has had daily reports from
| the bank and has kept me advised of it's
| condition from day to day. That was
! done so that action might be taken be-
! fore the cash on hand should by any
means become depleted and Injustice done
to some Of the creditors by that fact
] 81 believe now that If the depositors
| and creditors would all agree to accept,
say SO or 65 cents on the dollar and allow
| the bank to reorganize under the general
savings bank Law with its present officers
or such as might be selected by the de-
I pcsitors, the bank could again open its
doors as a solvent institution, and I know
nothing to prevent such action being
! taken. a.
1.-The executivesdepartment will certain
! ly not urge th8 appointment of d re-
ceiver If the situation can be met in any
other way. In fact the whole matter is
now before the court for such action as
it may deem proper"