Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1901-05-31
BANK ASSIGNMENT.
The Facts Covering This In
teresting Event.

people will give him due credit for the
the fight he made to,save the assets OF
the bank from, destruction, when they
understand the actual condition of
affairs. TheLEADER has learned 1de
following facts which are reliable.
On Friday, the 10th of May, Judge
Kennedy was called into the bank fer
the purpose Of fconsultation with refer
ence to the means to stem the storm
which would arise when, it became
known that President Bacon had fled.
He made careful and speedy examin
alton of the banks assets and found
that it was hopelessly insolvent and
would not live an, hour when it became
known that it was in trouble. It was
to hold it up and the only
thing left to do. was to close its doors
Closing it's doors involved the task ,o1
placing it in legal. position SO that the
mad rush Of creditors, would not wreck
it totally in wild ,scram BILE for prefer
ence. 800
Bankruptcy proceedings would moi
lie and the only proceeding available
was assignment under the state law
To make valid assignment it waf
necessary to havea board of directors
that could act. 1T was found that q
majority of the board was not 10 be had.
Thaboard consisted of F.. H. Bacon, A.
A. Bacon, his mother, Burre II. Lien
and IL. H. Larsen and ibis wife. Or
Thursday before Mr.. Kennedy was
called in, the stock of Mr.. Lien had
been transferred on the books of the
bank to his brother, and Mr.. Lien
claimed the real transfer had taken
place many months ago. before his
brother.died, and by reason of ceasing
to be stockholder, Mr.. Lien refused
to act. Mrs. A. A. Bacon was in
Nevada. This left Only Mr.. and Mrs.
Larsen available. They were min.
ority and could not Act 1t was im.
possible to reach Mrs. Bacon 'immedi-
ately and attachments aeing threatened
there was ao,hing to do but to make q
paper assignment and by 90 doing ward
off attachments until time GOULD be had
to reach the directors.
The depasitors were disposed to
await the report of the Pabaie Examiner
before making On attack, and they did
not know just what kind OF authority
Mr.. Larsen had to make the assign,
ment. Mr.. Kennedy at once went to!
work to reach the directors and at the
came time went on with the eKamin-'
alton with Puhiic Examiner Cooper.
While this was being done envious
and jealous parties were melting the
maddened depositGe to ire and suepic-
tion against Mr.. kennedy. He was in
no position to let il be known that the
assignment under which he was hold
ing was not sound, A petition was
circulated among the depositors and
when presented he was willing to let
20. He desired to turn over the whole
matter to the deposi,ors but he dared
not show the real situation. He knew
that as soon as MIR. Conklin found it's
invalidity he would refuse to accept
and the fact being known the mad rush
of depositors and creditors would come.
He took counsel of Knudson &
Forrest, and Brown & Brown, and it
was their united opinion that it would
never do to let 60 until the assignment
was got into legal shape. This petit
ton was presented to Mr.. Kennedy on
Friday in the afternoon and he took
until the next day to answer it. In the
the meantime he took advice of his
attorneys TO strengthen his own Judge
ment and it was seen that it was i'm
possible for him to resign, the assign
ment not being sound and until it was
made sound it was out of the question
to consider resigning.
He was under the necessity of giving
a reason for his declining to turn it
over to Mr.. Conklin and he dared not
give the vital one and the one he did
give was legal and proper one and
should have been accepted.
On Monday the Goth he found him
self in shape to hold a meeting of the
board of directors and then the second
assignment was made. Mr.. Kennedy
was now in position in which he be-
lived it safe and his attorneys at once
went to work to investigate the legal
questions involved and the moment
they had made decision on the legal
status, Mr.. Byrnes who was active in
circulating the petition, was informed
that Mr.. Kennedy was ready 10 deliver