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

i
was not worth that sum. but because
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 |
/ use that an illustration. 1t has just
| reached a period where 1t feels that this !
tiles are becoming valuable For exam
pie, it has sold within the past forty
days. real estate amounting to $685. O0.
which stood upon it's books. with all costs
and expenses added, at 0G0, being a
| plain profit of $4,000 in the real estate
sold in the past forty days. Now. this
| curities we feel are today worth moro
! by reason of the changed condition of
! 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 CRITICIsE
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, but by reason of defense. In the
| papers file in this court we find that
he has seen fit to go to the city of Min
| neapolis 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
| examiner has taken that appraisement
as the basis Of this application.
What do we find as result? We find
that, the real estate, which stands upon
| the books of this corporation as amount
ing to $SsS. 600, is appraised by this I'M
than it stands for upon the books of this
company. And the court must bear in
mind that this real estate was taken at
| one-third its value originally.
| I'VE find the same individual has ap-
praised the mortgaged securities, which
stand upon the books of the corporation
at 1916, 600 in round numbers, at 1882, co.,
We find that the bank examiner has
taken the tax certificates, which stand
upon the books of the corporation at
| round numbers-Just one-half the amount
| they stand at on the books Now what
does that mean? These tax certificates
| nave always been considered the very
pest investment that could be made: they
| are all upon real estate within the limits
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,-
600 in round numbers, upon the books Of
! the corporation. There is not a single
we'll Informed man in this community
who would say they were worth one dol
! them in at S31 0e0.
is there anybody who knows anything
about these affairs going to assume that
| we will not realize $62, 600 out of that item
died? -''' 90 anu nan
1--WE find, in addition to that q don't
know whether it is a typographical error
or what but it characterizes the condi-
ton of things here in the procedure upon
| this applfcation) that the bank has on de-
post with other banks the sum of ST.
600. In the statement here, as we have
It. this item is appraised at the sum of
$b,09O in his estimate of assets. That item
! IS Just as good as a government bond
absolutely secure and certain. We find
that he has, scaled down the bonds held
! a ,crely ha hoe e-ENE
to the officers of this bank. in discussing
this matter with them, that $4,000 Of
terest, which are worth today $12O, are
not worth 80 cents on the dollar Bonds
OF that very, county sold within the past
sixty days in New York, drawing only
8 per cent cent, for $114
! Now, we say, in view of these facts,
that the court ought, in justice to these
| !ustlce to these trustees, in justice to an
intelligent procedure to be had hereafter,
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 solvency or insolvency Of this bank
I [ doubt If such a scheme as that pre-
or feasible. The bank would in the inter
i'm remain in the hands of the public ex-
aminer. : shall answer Mr.. Munn's crit
icfsm at the proper time, when the ex-
aminer and the appraisers 60 on the
stand. This scheme Will be resisted by
4 the state and it will stand on its rights"
/. NO USE WRECKING THINGS.
Mr.. O'Brien-If the statements brought
in here are true, then a receiver ought
to be appointed but meantime the money
! or the depoSitors should not be ground
between the upper and neither stones of
court procedure. These trustees who have
long been faithful are willing to con-
tinue their faithful work. These com
4 mittees~would be the committees of the
119l ya hnir IT to h.
court. We ask a continuance for two
or three weeks, and do not believe they
have autocratic powers to enable them
! 70 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 1t is true that
1t is possible that this business cannot
go on, but let US exercise a little care
a 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 we'll pre-
served and cared for with the examiner
IN charge. We do not feel a disposition
to force a 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
the first of the year. He suggested meas
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 We're running out;
taxes. were falling due. What could the
| examiner do about it?
c. 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 continuance The request to trans
act necessary business was reasonable.
Humphrey Barton spoke for another
group Of creditors. A long continuance
would work delay and injury.
MI. Stryker said that his clients agreed
to the appointment of the committees.
Mr.. Bell-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 ques-
ton what is best for the creditors. "A
receiverShip means delay and necessary
| expense, but he must be appointed if 1t
IS found necessary. 1t is. however, proper
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
! 80 Affs.