The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-10
CLEMENTS PLEA q.
" IN BANKS CASE
=.
Aged Banker Expected to Allege
that He Was Mentally "
Incapacitated.
FOE ALONE RESPONSIBLE
FOR BANK CONDITION
Poor Health and the Enfeeblement
Of Years Relied Upon to
Save Him.
Special to The Journal.

Special to The Journal.
Faribault, Mimi, March 10.-There is
much speculation as to the line of de-
Tense which will be set up on behalf of
II. B: Clement, who is held under bail, to
await the action of the federal grand
jury, on charge which substantially
amounts to the 1ooting Of the funds of
the First National bank.
The banks funds have been dis
slpated no one attempts to deny, nor is
there any question that, altho the bank
had It's directors, cashier and other Off
GERS, Mr.. Clement was the real manager
of it's affairs and directed all it's trans.
actions. Whether the directors can di-
vest themselvest Of their responsibility
by merely acting as tho they had no du-
ties to perform is another matter, but in
point of fact that is what they did. Mr.
Clement was the manager of the bank,
the directors simply respectable figure
heads, and the cashier mere clerk. If
bad Investments were made he made
them; if the money Of depositors was
used Tor purposes not contemplated by
the banking law, it was used at his di-
rection. He is the man whom the
public and the directors alike regard as
primarily responsible for the bank 8
failure.
Mental Incapacity.
uC1 . 10 ledsOu W DclloV0 CudG GUS
plea that will be set up by this man
whom Faribault has for years been ac-
customed to look up to as one of the
most conservative Of fnanciers and in
whose integrity and capacity Judges,
lawyers, capitalists and hard headed
business men alike. reposed a blind, un-
reasoning faith, will amount to con-
fession that he was mentally incapable
of transacting business. '','.
The journal correspondent has it
from unquestioned authority that
this is the defense that will be made on
his behalf IN an action against him to
recover trust funds committed to his
care, and there is reason to believe that
in the criminal action il will be al
legged that because Of i'll health and The
enfeeblement incident to old age, he
was incapable Of transacting business
and was not responsible for what he
did.
Value Of Robinson Estate.
The Robinson estate, of which Mr..
Clement was executor and trustee, will
figure largely in the bank g embarrass-
ments and may furnish the key to the
whole situation. This estate, consisting
largely Of securities which were readi.
1y convertible into money, is repre-
sented to have amounted to between
$4,000 and $4,000. =, -
l.
Robinson 8 affairs, however, are very
10th to believe that this was all MI.
Robinson was worth at the time of his
death. They are established in this
opinion by the reticence Mr.. Robinson
maintained in his will with regard to
his possessions and by the precautions
taken in that instrument to prevent
anyone except those directly interested
from acquiring knowledge Of the
value of his estate.
In his will it was expressly provided
that no inventory of his personal es-
tate should be filed with the Judge of
probate, altho Mr.. Clement was re-
CURED to make such a report to the
heirs.
It is not difficult to imagine why a
cautious and conservative man who
had accumulated wealth by his own ex.
ertions should prefer to have the Off
Gals at the courthouse obtain thru
some other source than from the sworn
statement Of his executor the actual
amount subject to taxation Of which he
died seized. At all events Til e
Journa is in position to state on
excellent authority that the personal
his daughters has never fully appeared
in print. From the Information &C
quired, it believes it to have been I'M.
derstated by not less than $4,000.
Bank Embarrassed Long Ago.
When Mr.. Robinson died and his es
tate was entrusted to T. B. Clement anc
John Hutchinson, as executors, the
country was passing thru period of I'm
usual, financial stringency incident tt
the free silver agitation. 1t was Z
perilous time for banks and other finan
cial institutions and it was specially
important then that the general publ,
should have confidence in them and thai
men with money should never have any
suspicion of their ability to meet al
their obligations.
That even at that time the First Ma
tional bank of Faribault was in sore
straits is now apparent. But of thi:
there was not then the slightest sus
picion. Indeed, Mr.. Clement was al
great pains to create the impression
that the opposite was the fact, as were
the other banks Of the city.
= Care, was. taken to show every mar
who came into the bank in those days
the heaps of gold which were held il
reserve to pay deposltors who demand
ed it. The editors Of the local papers
were invited in to gaze on the unac
customed sight and local capitalist:
to inspect, weigh and if they wished tt
count their treasures ..-s.
The question is now raised whethe,
all this money really belonged to the
bank or whether 1t is not possible tina
Mr.. Clement was able to make. his i'm
pressive showing by utilizing funds en-
trusted to his care as private citizen
From making use of moneys for display
to making use of them to bolster up tn,
bank 8 credit in other ways was per
haps an easy descent into devious
ways.
Schemes to Recoup.
Then came the scheme to develo1
mineral lands on the Oronoco, for which
a concession had been granted by tn
government of Venezuela, which at on
time promised to make scores Of Fari
bault people rich. Indeed, for TIL
Oronoco concession S., 100000 at on
time and $4,000,000 at another wa
actually offered, but each time som
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