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

EIGHTY-FIVE CENTS.


This meant, Mr.. Stryker said, that the
depositOrs would receive about 81 cents
on the dollar, If the expenses were kept
down to the minimum. 1t had been sug-
gested that, as the bank was insolvent,
unless action was taken a receiver would
be appointed. The committee of fifteen
had considered a plan by which, if the
depOsitOrs agreed, the bank could be run
in the interests Of the depositors. The
plan was to have the depOstors elect
tWenty-one men by ballot These names
were to be handed to the court and seven
of the twenty-one selected as trustees,
who would conduct the bank under the
present charter, and, while doing no new
business, wind up the affairs and pay
the depositors. If the plan was consid-
cred good one action should be taken
at once.
Herchmer Johnston was opposed to the
trustee plan proposed by Mr.. Stryker.
The scheme sounded plausible, but when
analysed it was weak. The trustees
would have the appointment of the Off
GERS and the fixing of the salaries. The
money it took to pay the taxes of the
property owned by the bank was $4,000
per year. To protect the interest in prop
erty under foreclosure it took SIS, 900 more.
That was increased by 81, 500 more for in
surance. That made $12.500 for expense,
without anything for salaries. On the 20
per cent of improved property held by the
bank the cost Of repairs and collections
aggregated $500. which made a total ex-
pense Of $751; 900 per year, and the receipts
from the improved property were just &c.
900 per year. The reorganization scheme
was impracticable and impossible.
Thomas Cochran interrupted the speak
er to say that this was not the plan con-
sidered by the committee.
WNTED THE COURTS PROTECTION.
Continuing, Mr. Johnston said there
was nothing in the plan suggest
ed by the bank officials to limit the
expenses of the bank OF the two evils
the lesser should be chosen. If a re-
ceiver was appointed he would be under
the court and he for one did not propose
to be plundered by any men or class of
men. under the guise of trustees, who
would not be under the jurisdiction of the
court.
Mr.. Cochran explained that the COM
mittee was not interested in the trustees
or stockholders, but only in the depos
itors. He reviewed the figures of the as
sets, as returned by the depositors' COM
mittee, and said they were very con-
sentative. He favored trustees because
he thought it would be the least eXpen-
sive means of winding up the affairs of
the bank A receiver would want the
Job continued for as long time as posi-
BILE If trustees were appointed they
would first pay dividend of Is per cent
at once They could sell the mortgages
and by Jan. l, 1900, have all the property
but the unimproved realty disposed of.
If a receiver was appointed it would mean
5000 a year at least and attorneys fees.
What was wanted was not reorganiza-
ton, but liquidation as soon as possible
and at the least expense.
Chairman Egan suggested receiver at
Of 60 nm qbOnt 80 600 for ATTORNEY
and s., 900 for incidentals.
FAVORED THE TRUSTEES.
J. NJ. Hawthorne favored the trustees
plan advanced by Mr. Stryker. The COM
mittee did not intend to use the bank
plan. The Minnesota Savings bank failed
in 1897, and two receivers were appointed.
Nothing had been paid except attorney
and receiver fees. Under a board of trus-
tees 40 per cent Of the claims could be
paid within six months, and without any
great expense. Under chapter 81 of the
Laws of 1897 creditors could receive for
claims real estate in part or full payment,
and this would allow considerable Of the
assets Of the bank to be disposed of. The
trustees would get no salary.
A depositor inquired If the stockholders
were not liable. To this Mr.. Hawthorne
said only about $4,000 could be collected
from any of the stockholders.
r.
members of the committee about the trus-
tee reorganization plan. Such scheme
was impracticable Any depositor could
sue after the trustees had been appoint-
ed. and securing Judgment take the as
sets in the hands of the trust 4e3, sell them
and get 100 cents on the dollar. Acting for
his clients this was what he would do
The trustees plan would mean that in
the long run some scheming financiers
would reorganiZe the bank for the pur-
pose of paying those who were in on the
reorganization, and the depositors would
be left. 1t would not cost cent more to
have receiver than a lot of trustees, and
he favored a receiver.
Humphrey Barton, who was opposed to
the reorganization of the bank, was inter
rupted by a depositor who appealed to
the chair to know If Mr.. Barton was
speaking for Bank Examiner Pope or the
depositors Chairman Egan said the au-
dience was as capable of judging of that
matter as he was, and ordered Mr.. Bar
ton to proceed. Mr.. Barton thought a re-
ceiver would have to be appointed Anv
plan of reorganization would REQUIRE the
signatures of $500 of the depositors. These
would be hard to get, and would take
time. His idea was to get the court to
APPOINT A RECEIVER
at a salary of from S, 800 to SO, 900 per wear
and have an attorney employed only when
needed. After the receiver had been an
pointd the question of reorganization
could then be taken up.
w. H. Mcdonald favored an adjourn
ment for two weeks. If it was possible IN
get away from a receiver he advised
doing 1t. The plan suggested by Mr.
Stryker was a good one providing under
the law of 1897 liquidation could prevent