The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-08-15

court 10 take charge of the assets of the
ST Paul Savings bank.
Bank Examiner Pope was introduced
by the chairman. Mr.. Pope said he had
attended the meeting by invitation, and
was glad to meet SO many depositors. He
spoke as follows:
GEN. POPE'S STATEMENT.
In a conversation with the then COVER
nof-eIect, MIR. 1ind,3 held prior to my ap-
polntment as public examiner, L learned
I IL ms views as to the functions Of the
department of public examiner and mine
We're in exact accord. Since my appoint
ment no important action has been TAX
en- without the, knowledge and approval of
the t! governor and in the many consulta-
tl0ns heid with him I have been impress
eu with the necessity of constant vigil
lance and fearless action for the protec-
uon OF the depositors in ali the financial
lIHStltuuohS under the supervision of this
department of the state. Some difficult
problems have been presented and solved,
otheFs may arise in the future, but each
question as it arises shall be considered
primarily for the interest of the depOs-
ltorS Tor whose protection this depart
ment is maintained.
me laws very properly give to the
superintendent of banks great powers,
ana afford him exclusive sources of in
FORMATION He ought to know something
OF the condition of every bank in the
state and his information should be SUI
PeTlor to that of the depOS'tOrs or stock
noIderS, and equal, at least, to that Of
the press and its reporters and editors.
Acting with careful elaboration and I'M
der wise counsel upon the information
before me, may sometimes err in judg-
ment as to the wisdom of a proposed line
or aclon, but l should be ineXcusable if
l We're mistaken in my statements of
TACT and did not do my duty as l saw
1t, regardless of clamor based upon
creditabe
AS the information obtained by this de-
partment is for the benefit Of depOsitOrs,
It follows, that with due regard for pub
nc interest, it should be placed at their
disposal, and l have accepted an invita-
ton, to attend this meeting, thinking 1
might be able to impart to you some in
formation preliminary to your action as
creditors of the Savings Bank of St. Paul.
After examinations and consideration
extending over period of five months.
It was decided to apply to the court for
a receiver and by order of the governor
the bank was closed on July Z. and on
July the application was made for
receiver.
The affidavit of the public examiner,
which was the basis of the application,
stated that the assets of the bank were
impaired to the extent of over 100000;
that its trustees and officers had borrow
ed the funds of the bank in violation Of
the law to the amount Of $44,61906; that
its current expenses and interest We're,
in excess of it's earnings, and that it was
hopelessly inSolHent.
VALUE OF ASSETS.
At a hearing on the 18th of July, the
trustees and officers of the bank appear
ed by counsel, who disputed the accuracy
of the valuations of the superintendent
of banks and impugned his motives. They
asked that the court should appoint two
committees of three men each, one of
which should examine and aDpraiSe the
valuation of the real estate and real eE-
tate mortgages owned by the bank, and
the other of which should appraise the
valuation of all other assets of the bank.
l have waited the reports of the court
committees until this morning when they
were presented to the court, [ give you
the valuations q the date of closing the
bank July Z, the departments and COM
mittees:
Bank. Banks. Committee.
Real estate 3 423 g g 55 s. 4 4 $ e go %
Other assets 456,561 81 3l7,S12 II 3l2,224 Sc
Total .$f.164, $50 80 $875,64G "A 1858, 1856 6S
The total liabilities on ledger of
Taxes axes due Dec. i. 1885. S. los o5 - i'' 90
Interest to depositors
p5 5gly a L 1s32- ~: T. t s79:91
- Is, 26O. OS
Total liability ................$1,1 79, 10. As
Assets examiners report........ S75, GAO. Il
Impairment ................... 1904, O7O. 80
Liabilities OBSERVATION-DISCLOSURES 81, 179, 10 46
Assets court committee. S53, 9S5 IS
Impairment ................. 1926, 734. rs
Court committees impairment
in excess of superintendent of
banks NEUTRALITY-SUSPICIOUS.. $21, 65f. 46
1 can easily disguise my sentiments of
admiration for the motives which inspired
the vituperation and misrepresentation to
which the executive of the state and the
superintendent of banks have been sub
jected while patiently waiting their day in
court.
Many here present have been misled by
the false statements so freely circulated,
and for your information I will touch
upon some matters which we hold our
selves ready to prove in court, but which
under the present conditions are not now
likely to be called for.
NO LEGAL TRUSTEES.
The stockholders of the bank out of a
capital stock of 100000 never paid in but
$4,000 and the dividends paid to stock
passage of the law of 1897 the trustees
were elected by the stockholders. None
of the trustees, I hold, has ever qualified
as such under the laws and when the
question has been put to me as to why l
did not call a meeting of the trustees I
have been obliged to answer that there
were no trustees.
We charged that the trustees had taken
over 600 of the banks money Prem
dergast and Meier owe the bank $4S, 900,
and it is so badly secured that the de-
pctI lIi6Ill SCdl6u Tie oLIIOuul QOMu DIS an
asset to 5000. When the department
took charge of the bank July 7, tickets for
500 taken by Prendergast and a ticket for
$3.50 taken by Meier were found in the
bank drawer, these amounts being taken
without warrant Of law. 1t was in the
face of such conditions as these that we
took charge of the bank. 1t has been
charged against the department that the
governor and the superintendent of banks
were trying to make a record and close
up solvent institutions. This is not true.
as the result of the Investigations of the
committee appointed by the court have
proven in this particular case, and the
only record which the governor and the
state banking department is DESTROYS of
making is in protecting the honor of the
state and the interests of the citizens
Thomas Cochran introduced the resolu-
items, which were, after discussion, adopt
ed, asking for the appointment of a re-
ceiver, and the meeting adjourned subject
to the call of the chairman.