The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-21
FARIBAULT BANK
REORGANIZATION
Depositors Committee Has q Plan
to Rehabilitate the Failed
Institution.
Eighty Gents on Dollar Proposed
in Payment - Depositors'
Meeting Postponed.

ing of the deposit0rs OF the defunct
First National bank, which was to have
until March 4, in order that the commit
tee may be in position to report to the
depositors the condition of the proper
ties in Georgia in which much Of their
money is invested. 80
Plan for Bank Reorganization.
The members Of the committee have
bank which they believe to be feasible
and which they expect to formulate and
to submit to the directors.
The depositors will be willing, they
believe, to accept 80 cents on the dollar
as full payment Of their claims, and
reasonable length Of time for their
money. In making this concession they
would cancel at once 100000 OF the
banks Indebtedness. 1t is proposed
to ask the directors. whose ability to
other claims. and reopen the bank.
Of course, before this could be done,
semS nts'' but i''i It is the opin.
lon Of the committee that this ri
obstacle could be overcome: How the
directors would regard such PROPOSE
ton is not known, but there can be no
doubt that there is not one Of them who
would not sacrifice to rehabilitate him.
self in the opinion of the public.
: Whether there is a method by which
the receiver could-vacate his office and
turn the bank over to the directors 10 a
matter which has not yet been given
much consideration, but if the claims OF
all creditors are satisfied there can pc
little doubt that some way could be
found of reopening the bank.
Want to Hear from Baird.
Mr.. Baird, the receiver, is making a
personal investigation OF the atfalrs or
.ufacturing company and Of the Mime
sofa Lumber company OF Georgia,
and is not expected to return before the
end of this week. The committee ex-
poets to avail itself of the information
he will acquire and present It to the de-
While the statement OF the condition
of the De Soto property. recently pub
lished in T h e j urn a |, has familiar-
lied the public with regard to it's af-
fairs, the committee SO far has only. Mr..
element s statement Of the business
done and the property owned ny 6y the i1e
members would prefer to have Mr..
Baird substantiate before they accept
il as authoritative, and as representing
the facts. This statement was given
the members Of the committee in an in
sterview held at Mr.. Clement's house
a day or two ago, and is Of very
sroseate character.
/ Lumber Company's Showing.
The Minnesota Lumber company
owns two "lots' near Valdosta, which
are represented as bearing a heavy
growth Of timber, mostly, pine. Each OF
these "lots' contains 4S0 acres. The
company has also purchased stumpage
shas built into these lots temporary rail:
roads for the transportation Of logs and
has equipped them with suitable rolling
stock 1t has two sawmills, a shingle
mill and planning mill. 1T was turning
out at the time when the report was
made from which Mr.. Clement quoted
to the committee, $4,000 feet Of lum.
Der day, and had more orders 9;p sn than a
good and was advancing.
The company, Mr.. Clement said, was
at that time making a net profit OF
$4,000 month. Just why, when it was
doing so well, it was necessary to send
it in December, $71 900, Mr.. Clement did
mot explain, altho he admitted that pos
Esibly some of it was used in the pur.
chase Of the outlying stumpage the
Sfesses to regard the investment as gilt
edged and to think that under proper
management the company will be able
to pay the bank all it owes.
{ What It Had Planned.
The committee has learned from Other
sources that the lumber company has
sextended, or at the time Of the bank =
failure was about to extend, its opera
Stions into Florida and to add to it,
other industries that of the construction
of railroads. 1t has not yet all thu
facts in it's possession, but the nature Of
the prospective contracts is known
The railroad was to build thru Florida
timber lands and in part payment fo1
It's work the company was to be give1
alternate sections of the timber lands
which ID traversed. Much Of this timber
land is reported to be primeval forest
and to be very valuable.
Z The chairman of the committee hal
written letters to friends in g. position
Eto inform him as to the facts Of thes'
kalleged grants and expects by March .
ito be able to make a full statement o.
them to the depositors.
H. Many Loyal to Clement.
It would be great mistake to sup
pose that any revelations Of his method
OF DONG business WHICH nave Oeen Hhu
have turned away from Mr.. Clement al
public sympathy or that he has alread,
been condemned in everybody's mine
by the ex parte statements Of tn
banks affairs which have been made
There are hundreds Of persons in thi
{ city who have repeatedly been unde
obligations to him and scores Of bushes
men whom more than once he has helpe'
. out of tight place.
8 Mr.. Clement has been a regula
godfather to me- u said one of these t
The ournal, "and want to Sc
some evidence before I believe all
d now hear about him.
Mr. Clement has done SO much TO
u.s. said the wife Of a well-know
Faribault merchant, "that we would b
the most ungrateful persons in the worl
if we now condemned him without
hearing.'
Another woman said she had know
Mr.. Clement long and knew how. syn
pathetic, kindly and generous he a
ways was.
simply can't believe that he has delil
erate1y done anything wrong" Sh