The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-01-04
DECIDES TO CLOSE
ST. PAUL TRUST COMPANY GOES
INTO VOLUNTARY LIQUI-
DATION
BUSINESS IS UNPRoFITABLE
Supreme Court Decision In the
Strong Case Causes Board Of
Directors to Take
This Step.

The st. Paul Trust company, after a
commercial existence of eighteen years
in this city, yesterday notified the bank
examiner that it was going into voluntary
liquidation.
This decision was arrived at after a
lengthy meeting of the board of di-
rectors, who say that within the next two
years all the business affairs of the COM
pany will be settled dollar for dollar,
and the company will go out Of existence.
1t is expected that it will be reorganiz,
ed within short time, and all the pres
ent officers will resign their positions
The immediate cause for this decision
on the part of the stockholders of the
concern Is the judgment handed down by
the supreme court, Dec. Is, making the
company liable to the heirs of c. D.
Strong to the amount of $3.50 with in
terest for the past ten years, making the
total amount nearly SIPS, coo.
In the decision the court exonerates the
trust company completely, but the judg-
ment is SO large that it will seriously af-
feet all the stockholders, and this added
to the fact that the business Of the COM
pany for the past year has not been par
ticularly profitable, decided the directors
to wind up it's affairs.
President J. w. Bishop, of the Trust
company, issued the following letters.
setting forth the reasons for the action
taken by the directors of the company:
J. w. Bishops Statement.
Referring to misleading announcements
published in the noon editions of our
city papers, l beg to say that the public
examiner is not, and has not been, in
charge of the office or business of the ST.
Paul Trust company, that it has not
made any assignment, that no receiver
has been appointed, and that none of
these things is likely to be true in the
future
years, the st. Paul Trust company has
found that the conduct of trust business
under conditions and restrictions exist
ing here has been improbable, and has
decided to liquidate its affairs, to accept
no new business, and within the next two
years to retire from the field entirely.
: All of the funds to the credit of trust
accounts, including all agency business,
have long been set aside as required by
law, in deposits separate and apart from
our own moneys, so that any or all of
them can be paid on demand at any time.
With it's other creditors it has arranged
to go into voluntary liquidation, and UNI
dertakeS within two years to convert its
assets, which are largely real estate, now
beginning to be salable, and to satisfy
all claims against it, and expects to thus
wind up its affairs full, amicably and
hCnorably
In the recent decision in the so-caIled
Strong case" the supreme. court says, 1t
assumes to be the fact, "as believed by
the trial court, that the company exer-
cised good faith in each Of these transac-
tons, and with a conviction that it was
complying strictly with the law in re-
spect to the investment of the trust
funds" Yet this decision makes the COM
pany liable to refund, in cash, with legal
interest from their date, a large amount
of investments, made ten years ago, IN
mortgage loans, which, by the deprecia-
ton of real estate in this city have nee
essarily been foreclosed. The company as
sLmes the responsibility of meeting those
conditions buG requires, and has obtain
ed, the time necessary for the CONVEX
sion of it's assets, and for the preServa-
ton of the interests Of all parties, includ-
ing it's stockholders.
There need be no excitement or sensa-
ton about thu matter; all will be con-
Quoted and consummated in an orderly
and busiresslike manner, and to the sat-
isfaction of all persons having accounts
or trust relations with the company.
j. w. Bishop, President.
The ST. Paul Trust company has a
capital stock of 5000, 000. Up until last
summer 1t was $250,00O, when the amount
was reduced.
Under the will of the late Freeman P.
Strong the ST. Paul Trust company was
trustee, and had invested a large sum of
money in mortgages on city property
which were owned by the company The
value of the property deprecated, al
though at the time the investment was
made. it was considered to be good.
The estate objected to a settlement with
the trust company based on the depre-
ciated values, and the matter was brought
into court where the estate presented the
claim that the trust company had no
right to dispose of the trust fund by SELL
ing it to it's mortgages. The court sus-
tained the claim of the estate, and hand
ed down the decision mentioned above.
Will Be No Loss.
The officials of the company all state
that the creditors Of the company will
not suffer any loss whatever, and that
all will be paid dollar for dollar. The
outstanding obligations of the company
exclusive of the amount due to the Strong
estate is estimated to be about $780,
It is said that the creditors of the
company have asked the present officials
to resign their positions, which they
have agreed to do. Gen. Bishop, it is
said will soon retire and allow the af-
fairs of the company to be wound up
without his assistance.
Hayden S. Cole, of the law firm OF
Stevens. OBrien, Cole & Albrecht, is
supposed to be slated to succeeded Gen.
Bishop.
The following is the report Of the st.
Paul Trust company to Public Examiner
Pope, made the last day of the past year:
Resources.
Mortgage loans ,.................s $3.50 10