The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-02-10

Tor caTeIul cXalilHaIloH. Inc result
was the closing of the bank.
The movement was so sudden that the
directors themselves were unprepared
for it. One of the directors had $50, 900
deposited in the bank. He had also
Just purchased several ranches, paying
for them by check. These have now
come back to him protested, so that he
loses several thousand dollars more than
his deposit. As bank directors claims
against his bank are not paid, this di-
rector is likely to lose most of his claim
against the bank, unless it pays more
than those on the inside believe it will.
One of the directors had $4,000 on
deposit.
Mr.. Clement has been in business in
Faribault for more than thirty years,
1t is astonishing the confidence the peo-
pie had in him. They seemed to have
carried money to him by. the handful
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. Heatwole OF
Mortified. Mr. Robinson practically left
his estate in the lands of Mr.. Clement
1t is valued at from $4,000 to $4,000
The estate is now believed to be in an
almost hopeless tangle and Mrs. Heat
wole is not secured against loss, as hei
father required no bonds of Mr.. Glenn.
ent.
Another case is that of woman who
received $4,000 insurance on the life OF
her husband. Report said that she was
offered the notes of two of Faribault's
responsible men for the use of this
money at good rate of interest. She
declined and placed the money in the
hands of Mr.. Clement, taking as Sc.
curity it is said, bonds of a certain
cereal company which it is now said
are worthless. 1t is said that Mr. Glenn
ent will be sued for this money.
Another heavy loser is A. w. Me
Kinstry, of the Faribault Republican
Mr.. McKinstry went on the bonds of the
bank to secure city deposit. Unless
these deposits are paid, Mr.. McKinstry
will be drawn on heavily to meet the
bonds.
Despite the almost UNIVERSAL faith in
MIR. CIemcnt', honesty,- rumors are rife
of very serious irregularities in his
methods. There is some very bitter talk
about him.
Mr.. Clement lives in one of the best
houses in Faribault and is surrounded
by all the comforts of life. The con.
trast between his condition and that c.
many of the depositors is striking Many
poor people have lost all their savings
and are left destitute.
The directors of the bank say that
they are not responsible for the fail
ure. They say that they met frequent
ly, though all the meetings were not
formal, and looked after the interests
of 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 supposed
that the bank examiners were appointed
to discover just such conditions, where
as the directors themselves first discov.
cred that everything was not all right
in the banks condition.
The depositors number more thar
1900.
The failure of the bank caught al
classes in Faribault and vicinity, but
chiefly farmers and persons of small
means who were not engaged in active
business. The collapse came like g
thunderbolt to the community. Farmers
who had used the bank as saving;
institution We're among the hardest hit
There was great indignation among
| them
1t is reported that short distance
west of Faribault the day after the
bank was closed there was talk even Of
lynching among some of the farmers
who had gathered to discuss the failure
This was upon the first receipt of the
news and of course nothing came of it
1t shows, however, how deeply stirred
the people around here have been.
Laboring men as well as farmers
were caught by the failure. Some losse:
: if not so pitiful would be decidedly
amusing. One case is that of an old
washerwoman. She had something ovel
$40 in the suspended bank, and it was
all her savings. She understood that Mr.
Clement was well off, so she decided to
get her money back from him. She
went to his house and stated her case
to the banker. He is said to have told