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

bank in this city subject to state super
vision. said Gov Lind yesterday. ''Thev
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 l
nave just repeated, in the event of such
contingency and the nervousness incident
thereto.
In regard to the Savings Bank of st.
Paul: The condition of the bank was re-
ported TO me some three months ago.
Sinees that time havehad frequent con-
SITUATIONS with the public examiner and
the officers of the bank. There was no
question but sthe bank was insolvent at
that time and-h5S been for some years,
but with the prospects Of Improvement
IN the real estate market which every
one looked for and which 1 suppose has
peen partially realized, we deemed 1t pru-
dent to delay action in the hope that the
bank might avail itself of this improved
cono1tlon 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
bank promised to make every effort to Sc
cure their liabilities, aggregating up
wards of $4,000, largely unsecured.
am confident that they made an effort in
that direction in good faith, but did not
succeed. This fact, in 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 I did. 1t must also
be borne in mind that the bills receivable
| of the institution are in very bad shape
| generally
eve realized fully the seriousness of a
receivership and would have been glad
| to avoid 1T, and 1 sincerely hope that the
creditors can agree upon some plan by
which it may vet be avoided; but, new
! ertheless, the situation. was such that I
| could not conscientfously refrain from
! taking action. It is q 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 state OF
affairs would have been little less than
! criminal. The executive department has
done it's duty and 1t is now for the courts
| and the depositors to do what they de-
! eide best for the interest Of the creditors.
I 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 Go cents on the dollar and allow
| the bank to reorgaLiZe under the general
savings bank law, with its present officers
or such as mie9t be selected by the de-
pcsitors. the bank could again open its
| doors as a solvent institution, and know
nothing to prevent such action being
| taken.
The executfSs department will certain
| ly not urge the appointment of Il 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"