The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-12-06
READY TO SETTLE
HoBLETER,s BONDsMEN SUBMIT A
PROPOSITION TO THE
GOVERNOR
ARE WILLING TO PAY $4,000
State would Only Lose $4,000 on
This observation-disclosures Cen
eraI Asks appointment
of Commission.

Attorney General Douglas yesterday
submitted to Gov. Van SAINT the offer OF
the bondsmen of Col Joseph Bobleter,
former state treasurer, in the matter OF
the claims of the state against them, ana
with it letter asking the appointment
OF two Justices OF the supreme court 10
act with him as a commission IN settiiNS
the controversy The bondsmen offer 10
pay the state s22, COO. The states claims
amount to $45,031.06. The assets OF the
defunct banks, as estimated by the state
auditor. amount to sI7,765. This means
.. loss 70 the state of Just S., 266.06 on the
settlement offered by the bondsmen. Inc
statement of the attorneys for the ponds
men. transmitted by Gen. Douglas to the
governor, reviews the entire history Oh
the matter, and is in part, as folioWs:
Suit was commenced on the bond early
in January, 1899. The court was unable
to reach any other conclusion tnan lnat
the state treasurer was technically hapie
as guarantee of the deposits Whlcn We're
in the val ous state institutions. AS
soon as Judge Kelly announced TINS
decision, the legislature promptly passed
a law generating the state treasurer
from liability when the deposits We're
made in good faith March 70, 1901 Pres
ent and future state treaSurerS are en-
tirely exonerated under substantially the
same CT, cuniStanceS, and it is haraShlp
that this same exoneration cannot De
arrl;ed to an officer whose fidelity ana
good faith in making these deposits the
record in the case did not question OF
contrcvert, and We understand that the
state authorities do not deny that COL
Bcbleter in making these deposits fully
believed in the solvency OF the state IN
stltutions in which these state funds were
placed. During Mr.. Bobleter.s term OF
eight years in all, the amount realized
f. ON the 3 per cent paid upon daily
balances was $3.50 62S.13.
AT the time the supreme court de-
cided the case the principal deposited
then in the insolvent banks referred to
and remaining unsolicited, amounted TO
$f5, 600. We are Informed that ATTORNEY
General Douglas has been advised by
written communication from the state
auditors office, that the property which
was purchased in the name of the state
under chapter 25O, laws of 1893, will yield ,l
to the state $17,7Go in addition to the
amount paid by the state. These assets
formerly belonged to the State Bank
of Minneapolis and the American Elk,
change Bank Of Minneapolis; there would
be due, therefore, after making such
application, less than $4,000, without in
GLIDING interest. The financial condition
of former State Treasurer Bobleter ana
the sureties on his bond have. become
so changed, it is submitted. it would
be manifestly unfair to enforce the
claims of the state.
One Surety Is Inso1vent.
Frank A Seymour, one of the sureties,
on the bond, it is supposed, is lnsoiVent
and unable to pay or in any manner con-
tribute to the obligation created by TINS
bend At the time of the execution OF
the bond and for some time thereafter,
he was supposed, and We think in fact
was, in good circumstances. The same
may be said of William R. Merriam,
derstand that Mr.. Merriam is unable
at, present to make any contribution to
the payment of the indebtedness. VIII
liam Dawson made an assignment for the
benefit of creditors and the claim of the
state is preferred and must be>paid be-
fore other creditors. Likewise Robert
A. Smith And an order TO pay the
amount which is herein proposed, almost
the entire assets of Robert A. Smith will
be exhausted, leaving if anything only
a small amount for every creditor. Jo-
seph Bobleter, the principal in said
bond, declines to join in this application
for a settlement. Mr.. Bobleter believes
that under. the circumstances of the case
the legislature Will relieve him from
the payment of any money whatever,
because of the hardships connected with
pay the Indebtedness due the state of
Minnesota, but we are unable to state
what part of the same he can pay. AS
to the solvency of Joseph Bobleter, the
statement. E. M. Saunders is ready,
joining with the assignment of William
Dawson and Robert "A. Smith, to pay
his proportion of the amount, which Is
tlement of the states claim. The amount
proposed to be paid to secure the dis
charge of all five sureties upon Col.
Bobleter's bond is $22.0G0.
-Countryman & Morrison,
Attorneys for A. 3. Stickney, assignee Of
William Dawson.
Springer & Seymour,
Attorneys for E. M. Saunders.
PriA al g. A oo1o%
Attorneys for Charles c. Miller, assignee
of Robert A. Smith.
Douglas Thinks 1t Fair.
Attorney General Douglas, in his letter
to the governor, says:
L herewith submit to you an offer of
compromise of the claim of the state of
Minnesota against the five sureties upon
the official bed of Joseph Bobleter.
think that l am safe in saying from my
investigation, and 1 have conducted the
litigation in behalf of the state, that
the representations set forth in the offer
of compromise are substantially true.
Without going into detail, feel that
can safely say that the statement of
facts is fairly made and truly sets forth
the present conditions surrounding the
claim of the state.
It is my opinion that because of unus-
ual and extraordinary occurrences the
financial condition of all the sureties
upon Mr.. Bobleter's bond has become
50 CHdnSGu tudl 1t WOulQ ne IndHlI6SIly
unfair to enforce to the utmost the
claim of the state. Assuming that the
communication made by the state audit
or's. department is true, I think that
the loss to the state would be very small.
if anything. If 1 am correctly inform
ed, sum sufficient to make up the de-
felt or principal can probably be collect
ed from Mr. Bobleter, who has de-
clined to join in the application for
compromise. although know, from in
formation which I regard as entirely
trustworthy, that he has been urged by
the sureties upon the official bond of
the treasurer and their attorneys and
representatives, to make contributions.
I would recommend, if it meets with
the approval Of your excelleney, that you
select tive, supreme judges of this state
to act with me as a commission to con-
slider this proposition of settlement
You are respectfully referred to chap
ter PIP of the laws of 1899, which was
passed for the express purpose of ena-
bling compromises of this sort to be
made.
NNyTAnr yrvr-Azr naxr1---