The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-02-17
Mrs. Joel P. Heatwole Is One
Of the Plaintiffs.
To Recover the Sum Of $780,
600 Left in Trust.
Some Very Interesting Develop
ments Expected Now.


ton has been instituted against T. b.
Clement, the president of the defunct
First National bank, DR.. A. C. Rogers,
the superintendent of the institution
for the feeble minded, and John Hutch
inson, the president of the Faribault
Furniture company, by Mrs. Frances NJ.
Ehle, of Minneapolis, and Mrs. Joel P.
Heatwole, of Mortified, daughters and
heirs of the late, George Robinson, of
Faribault.
In the complaint it is alleged that
Clement who was the trustee of Mr..
Robinson's estate, disposed of the per-
sonal property and appropriated 100000
of the proceeds to his own use.
1t is further alleged that, in order to
conceal the misappropriation no state
men of the funds of the, estate was
made to the probate court or to the
heirs as required in the will.
Hutchinson, who was eo-trustee, is
not charged with having any part in the
transportation of the moneys left in
his care, but it is alleged that he took
no steps to discover Clements acts, but
neglected his trust and allowed Glenn
ent to have complete control; and that
he signed petition to the probate court
with an incomplete statement purport-
ing to show the income from the estate
without attempting to discover its real
condition which led the court and plain
tiffs to believe the estate was intact.
Hutchinson is son-in-law of Clement.
DR.. Rogers is in an affidavit filed with
the complaint relieved from any respon-
sibility for the alleged misrepresentation
of funds as it appears he did not quail
fly as trustee. His being made a party
to the suit was merely to comply with
legal forms.
The plaintiffs in the action demand
that the defendants be adjudged to have
held the property in trust; that they be
required to account for all the property
placed in their hands as trustees and
that pending the action an injunction be
issued preventing the defendants from
disposing of the property belonging to
the estate and that an officer be APP
pointed to take charge of the estate and
collect all due it. The court is also
asked to remove Rogers and Clement
and appoint other trustees. The order is
returnable Feb. Is.
Washington, Feb. 9.-Controller Ridg-
ley has revived policy by which d.
rectors of national banks will be kept
more closely in touch with the affairs
of their institutions. Mrs. Chadwick s
operations with the Oberlin bank and
other instances, like that at Faribault,
Mimi, have convinced Mr.. Ridgley that
many banks have been wrecked or
brought dangerously near disaster
through the ignorance of the directors as
to the actual condition. Hereafter,
when bank examiner finds anything to
criticize in the management of a bank,
he will report to the directors as well as
to the president and cashier, and the
formal notices which the controller sends
out will call for an acknowledgment
from the directors over their individual
signatures.
The failcre of the First National bank
of Faribault was not the direct cause
of the revival of this practice, but condi-
tions found there by examiners when
they made their last examination justi-
fly the controllers decision to make this
practice permanent and prominent fea-
ture of the policy of his office.
"The purpose of sending out such let
tiers is to make the directors of bank
actually directors, said Mr.. Ridgley.
'aWhen we find that directors are not
in touch with the affairs of their bank,
as they could not have been in Fari-
bault, with meetings at such wide in
tervals, we warn them with one of
these directors letters. In ninety mine
cases out of hundred the affairs of a
particular bank are in such condition
that the directors themselves can take
hold and right them. When the shaky
conditions have gone too far, failure fol-
lows, as was the case at Faribault."