The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-07
CREDITORS WILL
!. !. LOSE HEAVILY
Continued from First Page.

Of collapse. His condition was such
this morning that he could not talk
with The Journal correspondent.
Mr.. Clement has been in business in
Faribault for more than thirty years.
It is astonishing the confidence the peo-
have carried money to him by the hand
full just to let him keep it for them.
AS a result some very large amounts
are tied up. Perhaps the largest is
that Of the estate of the late George
Robinson, father Of Mrs. Joel P. Heat
wole of Northfeld. Mr.. Robinson prac-
tically left his estate in the hands Of
$685. to $4,000. The estate is now
believed to be in an almost. hopeless
tangle and Mrs. Heatwole is not Sc
cured against loss,s as her father re-
CURED no bonds of MI. Clement.
$4,000 in Insurance Lost.
Another case is that Of a woman who
received $4,000 insurance on the life of
her husband. Report said that she was
responsible men for the use of this
She declined ana placed the money
in the hands Of Mr.. Clement, tax
ing as security it is said, bonds Of a
certain cereal company which it is now
Clement will be sued for this money.
Another heavy loser is A. w. McKin,
stry, Of the Faribault Republican. Mr..
McKinstry went on the bonds Of the
bank to secure a city deposit. Unless
these deposits are paid, Mr.. McKinstry
will: be drawn on heavily to meet the
bonds. Z. .". -
This all shows the great faith Of the
people in Mr.. Clement.
Why Stockholders Felt Safe.
Mr.. Clement was practically the own
er Of the bank. He and his family
owned. a controlling interest. Rela'
tives in the east were associated with
Mr.. Clement and stockholders felt very
jeopardize his own interests.
Despite the almost universal faith II
Mr.. Clement IS honesty, rumors are rife
of very serious irregularities in his
methods. There is some very bitter tall
about him. :-s.a .
houses in Faribault and is surrounded
by all the comforts of life. The con
trast between his condition and that O.
many Of the depositors IS striking
Many poor people have lost all thei
savings, and are.left destitute. Z
Attitude of the Directors.
The directors Of the bank say that
they are not responsible for the fail
ure. They say that they met frequent
ly, tho all the meetings were not for
: NAL, and looked after the interests o.
the Bank to the best of their ability
They still believe that the national
bank examiners should have disclosed
the banks condition earlier than they
did. They say further, that they sup
posed that the bank examiners wer'
appointed to discover just such condi
tions, whereas the directors themselve
first discovered that everything wa
not all right in the banks condition.
Lyman G.. Baird is now in charge o:
the bank. He has been looking up tn
assets, but as yet has reached9no. con
clusion as to their actual worth. Whil'
prosecuting his Investigations, he is re
Il ceiving the claims of the depositors
who are taking the situation quietly il
the hope of getting a settlement n dut
time. #.@S 20 n
The depositors number more thai
1900.
Farmers Talked of Lynching.
+ The failure of the bank caught al
classes in Faribault and vicinity, bu
chiefly farmers and persons of small
means who were not engaged in activ,
! business. The collapse came like
thunderbolt to the community. Farm
ers who had used the bank as a saving
institution were among the hardest hit
There was great indignation among
them. 49, -
i. It is reported that a short distanc
t west of Faribault the day after tn
bank closed there was talk even o
lynching among some farmers who ha,
gathered to discuss the failure. Thi
. was upon the first receipt Of the new
and of course nothing came. Of it. I
shows, however, how deeply stirred til
;. people around here have been.
:; How a Washerwoman Collected.
Laboring men. as we'll as farmer
: were caught by the failure. Some losse
: if not so pitiful would be decidedl
Q amusing. One case is%that of an oil
Q washerwoman. She had something owe
$40 in the suspended bank, and it wa
t all her. savings. She understood that MI
Clement was well off, so she decided t
get her money back from him. sh
+ went to his house and stated her cas-
her that she would have to take he
s chances with the other creditors. Sh
+ protested that the money was all sh
had and that if he could not pay he
she would stay at. his house and board
9 out. Thereupon she is said to- hav
taken oil her wraps to carry out he
r purpose. MI. Clement then went to hi
wife to get money to pay the womal
Supposed Pauper Exposed.
Another amusing case is that Of
man who has been supported by the cit
. Of .Faribau1t. The failure disclose
the fact he had $1,000 in the bank.
n Another creditor whose plans are III
\ set by the bank failure is a Faribau'
barber. He is said to have $4,000 j
the bank, the result Of years of savin
and the recent sale of his home. He ii
tended to use the money to start b
J. son in business. This son is now a dru
clerk in st. Paul. The bank failure til
up the money and the young man wi
probably have to start in business Fl
himself.
Teachers Lost.
= Every teacher in the. Shattuck scho
" is said to have had money in this ban
y also teachers of st. Mary's acaden
L Il and Seabury Divinity school. I'll
- schools themselves kept their deposi
Z elsewhere.
y BAIRD DIRECTING CASE
Clement Arrest Made Independent
III Washington Office.
e From The Journal Bureau, Colorado Buildin
Washington.
Washington, Feb. 7.-Controller
= Currency Ridgely said today he had n,