1.
January 3, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
FARIBAULT BANK CLOSES ITS DOORS Inability to Realize on Securities Given as Reason for First National's Failure. Special to The Journal. Faribault, Minn., Jan. 3. The First National bank of Faribault has closed its doors and suspended payment, and the controller of the currency has appointed Bank Examiner Lyman D. Baird of Austin, Minn., receiver. The crisis in the affairs of the bank culminated yesterday afternoon when the board of directors adopted the following resolution: Whereas the lawful reserve fund of the First National bank of Faribault has fallen below the limit fixed by law and with its other assets there is a considerable amount of securities which cannot be readily converted in to ready money. Therefore Resolved, That the bank remain temporarily closed and the controller of the currency be at once notified with a view to an official examination of the actual condition of the bank and such action thereafter as may be directed by said controller. J. B. Clement is president of the bank and T. M. Whitney is cashier. The following is a statement of its resources and liabilities at the close of business on Nov. 10, 1904, the date of the last report to the controller:
2.
January 3, 1905
Rock Island Argus
Rock Island, IL
Click image to open full size in new tab
Article Text
CLOSES FARIBAULT BANK Examiner Takes Action But Gives No Reason For lt. Washington, Jan. 3.-The First National bank of Faribault, Minn., has been closed by the bank examiner. Lyman B. Baired was appointed receiver. The comptroller of the currency stated no reason was given for the closing.
3.
January 4, 1905
Los Angeles Herald
Los Angeles, CA
Click image to open full size in new tab
Article Text
Minnesota Bank in Trouble WASHINGTON, Jan. 3.-The First National bank of Faribault, Minn., has been closed and a bank examiner has been appointed receiver.
4.
January 4, 1905
Evening Journal
Wilmington, DE
Click image to open full size in new tab
Article Text
TAF WORLD'S NEWS WASHINGTON. HE PRESIDENT has selected Seth T Low for Ambassador to France, to succeed General Horace Porter. The Navy Department issued an official statement of deductions from events of the Russian-Japanese war, asserting the superiority of the battleship in naval conflict. It was announced that President Roosevelt has accepted several invitations for occasions on which he will make notable speeches. The Supreme Court reversed two Iowa cases involving the enforcement of the State prohibition law, holding that packages of liquors shipped from another State are interstate commerce and cannot be interfered with. The First National Bank of Faribault, Minn., was closed and a bank examiner appointed receiver. S. A. D. Puter, one of the withesses against Senator Mitchell in the land frauds, reiterated the charge that he paid Mitchell $2000 to influence Hermann. More indictments are expected. LEGISLATURES. The Pennsylvania Legislature received Governor Pennypacker's message; elected W. C. Sproul, of Delaware, President pro tem. of the Senate, and H. F. Walton, of Philadelphia; Speaker of the House. P. C. Knox was nominated for Senator. The Legislature agreed to adjourn April 13 next. FOREIGN. The Chief of Police of Romny, Russia, ordered all typewriters in possession of private persons confiscated, because typewritten revolutionary proclamations were being circulated. The Porte notified the American and British Governments that street sales of Bibles will not be allowed in Turkey. The Hungarian Parliament was dissolved after scenes of disorder. Aurel Batonyi the noted whip and man of fashion, fought a duel on the Austrian frontier with Count Szchenji, and was wounded in the arm. MISCELLANEOUS. Several societies in New York attacked the city administration for lax enforcement of laws against Sunday liquor selling and gambling. United States Marshal Chanler declined to permit a private interview between Doctor Chadwick and his wife. A writ of habeas corpus was secured for Nan Patterson, and a motion for bail will be heard today.
5.
January 5, 1905
The Saint Paul Globe
Saint Paul, MN
Click image to open full size in new tab
Article Text
by the report of the temporary receiver in deciding whether the First National Bank of Faribault shall be permitted to reopen. Receiver Baird will consult stockholders and report in a week or ten days. -Walter E. Clark.
6.
January 6, 1905
The Mankato Free Press
Mankato, MN
Click image to open full size in new tab
Article Text
FARIBAULT BANK CLOSED. The First National of That City Fails to Realize on Securities. The First National Bank of Faribault has closed its doors and suspended operations. The controller of the currency has appointed Bank Examiner Lyman D. Baird of Austin, receiver. J. B. Clement is president of the bank and T. M. Whitney is cashier. Officers of the bank hope to be able to open the bank again in a few days. The bank was the óldest one in the city and its suspension has caused a sensation. The failure of the bank is believed to be due to injudicious investments in stocks. The amount of bonds and securities in the bank is $128,575, or more than double its capital and reserve fund of $10,000. Those familiar with the situation believe the depositors will eventually be paid, basing their conviction on the character of the bank's directorate. Judge Buckham, who is said to be a millionaire and the richest man in Rice county, is its vice president, and other prominent stockholders are K. D. Chase, G. W. Batchelder, T. B. Clement, H. C. Theopold, Donald Grant and A. W. McKinstry.
7.
January 11, 1905
The Saint Paul Globe
Saint Paul, MN
Click image to open full size in new tab
Article Text
Looks Bad for Bank Special to The Globe FARIBAULT, Minn., Jan. 10.-No statement has yet been made of the condition of the First National bank, recently suspended. However, there is reported to be reason to fear that affairs are more involved than was at first supposed. Among the enterprises in which this banking institution was interested were orange farms in Florida, mineral lands in Orinoco, a local electric light company, and it had invested besides in mill property and other real estate which at the present is not marketable. It is stated that at the last meeting of the directors immediately prior to the suspension, the president of the bank, T..B. Clement, turned over to the bank all his property except his homestead.
8.
January 14, 1905
The L'anse Sentinel
L'anse, MI
Click image to open full size in new tab
Article Text
'SHOHNVTTHOSIW One man was killed and half a dozen persons were seriously injured in a rearend collision, in which three trains crashed together on the Ninth Avenue Elevated railroad structure in New York. The First national bank of Faribault, Minn., has been closed and Bank Examiner Lyman D. Baird appointed receiver. Capt. Dąvid B. Mulliken, of the Twenty-seventh infantry is on trial before a court martial at Fort Sheridan charged with denying his marriage to a Filipino maiden. The total appraised value of merchandise imported at the port of New York in 1904 was $552,709,359, against $553,225,905 in 1903. Four soldiers in the guardhouse at Fort Hamilton, N. Y., escaped and three were drowned in the ocean in an attempt to swim to safety. The other was caught.
9.
February 7, 1905
The Madison Daily Leader
Madison, SD
Click image to open full size in new tab
Article Text
MISAPPROPRIATION CHARGED. President of Defunct Minnesota Bank Under Arrest. Faribault, Minn., Feb. 7.-T. B. Clement, president of the suspended First National bank of this city, has been arrested on the charge of misappropriating the funds of the bank. The arrest of Mr. Clement was made by Deputy United States Marshal William Grimshaw, Jr., and the prisoner was taken to St. Paul and arraigned before United States Commissioner Spencer. He pleaded not guilty. His bond was fixed at $5,000 and was furnished. Mr. Clement, who is seventy-one years of age, is charged with three separate violations of the national banking act.
10.
February 16, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
READY TO SUE BANK DIRECTORS Committee of Depositors of Failed Faribault Bank Will Recommend Actions. Special to The Journal. Faribault, Minn., Feb. 16.-Troubles appear to be accumulating for the directors of the First National bank. It has always been felt by a large number of the depositors that if the directors had exercised a reasonable and proper supervision of the affairs of the bank it would never have failed. It is urged that, inasmuch as its suspension is due to their negligence or the unwarranted trust they reposed in the president, they should be compelled to make up any loss that may accrue to the depositors. It is learned that this view is shared by a majority if not all of the committee men recently appointed to look after the interests of the depositors. They have at all events been inquiring into the legal aspects of the case with a view to enforcing the claims of the depositors and it is said that they have found that in the more recent decisions of the United States courts, it is held that where directors fail to supervise properly a bank's affairs, they can be held personally responsible for any loss that may result from their negligence. It is said that in their report, to be made at the meeting on the 25th, the committeemen will advise that, if the assets of the bank are not sufficient to pay dollar for dollar of the depositor's claims, action be taken to collect from the directors a sum sufficient to make up the total amount. Whether such an action can be maintained will, of course, depend upon the evidence adduced at the trial. Invested on Clement's Request. There is one director at least on whom such an action if successful would seem to entail a great hardship. His connection with the bank came about in an unusual way. He never intended to become a permanent stockholder and consequently was never at any trouble to inform himself as to the bank condition when he bought the stock that stands in his name. K. D. Chase took un D. W. Grant' stock, only a few months ago and then at the personal solicitation of Mr. Clement, and on his assurance that he only wanted him to carry it for a short time until he himself was in a position to buy it. Mr. Clement represented to Mr. Chase that the stock was worth at least $175, that he could get it for $150 and urged him to take it as a personal accommodation and to relieve him of the necessity of putting it upon the market, which he was extremely unwilling to do at that time. Mr. Chase expressed a reluctance to do 80 as banking was not in his line and he knew nothing about the business. Being further urged, and on Mr. Clement's repeated assurance that he would soon relieve him of it, Mr. Chase as a personal favor to his friend consented to carry the stock for a short time, and it was transferred to him. Afterwards when Mr. Chase reminded Mr. Clement of his promise to take the stock off his hands that gentleman was for one reason or another never in a position to do so, and Mr. Chase was still in its possession with all the responsibility that involved when the bank closed its doors. Two Doubly Involved. But a double liability attaches to at least two of the priectors for a part of the bank's deposits, namely, the funds deposited in it by the city of Faribault. These amount to $8,571.10. Primarily, the city treasurer, C. A. Hill, is responsible for the moneys committed to his care, but as he is a poor man, the loss will fall upon his bondsmen, who, it is said, consented to share
11.
February 16, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
Incident to the Faribault Failure. To the Editor of The Journal. In your comments on the failure of the First National bank of this city you have several times referred to certain notes purchased by me from that bank, and a supposed controversy between me and their makers over the amount to be paid. You stated very fairly that these notes were purchased long before there was any question as to the solvency of the bank. at the request of its president and solely for the accommodation of the bank, and that I paid their full face value, principal and interest, and, of course, they were negotiable paper. As their makers received full value from the bank, and had made no payment or deposited no money in the bank when I purchased, there could be no question of "innocent purchaser," as that term is used in the law, and no occasion to discuss my right to collect the notes. But there never has been the slightest controversy between me and these three men whose notes I hold, and who did, in fact, have money in the bank when it suspended. They had not been told by Mr. Clement that the bank had disposed of their notes, and supposed that they were still held by the bank, and were at once informed by me that under the circumstances their deposits ought to be, and would be, considered as payment on their notes; not because they could, in my opinion, enforce such credit, but because, having failed to see that they had notice of the purchase, I thought the loss should of right fall on me, rather than on them. They fully understood this fact from the beginning, and there has never been a word of misunderstanding between us about it, and no one has lost, or been asked to lose, one cent by the fact that I had purchased these notes. Whatever loss there is to be falls wholly on me. I have no doubt you made your comments in good faith, but you were certainly misinformed. These parties have never had any uneasiness over the law of their case, or any doubt as to just what they are expected to pay. And there are only three of them, and no one of them is a "farmer," but all are well-known city business men. There are unfortunate complications enough growing out of this failure without creating imaginary ones. -Thomas S. Buckham. Faribault, Feb. 14.
12.
February 21, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
FARIBAULT BANK REORGANIZATION Depositors' Committee Has a Plan to Rehabilitate the Failed Institution. Eighty Cents on Dollar Proposed in Payment - Depositors' Meeting Postponed. Special to The Journal. Faribault, Minn., Feb. 21.-The meeting of the depositors of the defunct First National bank, which was to have been held Feb. 25, has been postponed until March 4, in order that the committee may be in a position to report to the depositors the condition of the properties in Georgia in which much of their money is invested. Plan for Bank Reorganization. The members of the committee have a plan for the reorganization of the 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 they will also be willing to wait any reasonable length of time for their money. In making this concession they would cancel at once $100,000 of the bank indebtedness. It is proposed to ask the directors, whose ability to finance the business is not questioned, to agree to pay this 80 per cent, and all other claims. and reopen the bank. Of course, before this could be done, all depositors would have to agree in a some legal form to such settlement, but it is the opinion of the committee that this obstacle could be overcome. How the directors would regard such a proposition is not known, but there can be no doubt that there is not one of them who would not sacrifice to rehabilitate himself 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 is 8 matter which has not vet been given much consideration, but if the claims of all creditors are satisfied there can be 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 affairs of the De Soto Fruit, Agricultural & Man ufacturing company and of the Minne sota Lumber company of Georgia and is not expected to return before the end of this week. The committee ex pects to avail itself of the information he will acquire and present it to the de positors at the meeting on March 4. While the statement of the condition of the De Soto property, recently pub lished in T h J ur n al, has familiar ized the public with regard to its af fairs, the committee so far has only Mr Clement's statement of the business done and the property owned by the Minnesota Lumber company. This it members would prefer to have Mr Baird substantiate before they accept it as authoritative, and as representing the facts. This statement was givei the members of the committee in an in terview held at Mr. Clement's hous a day or two ago, and is of a very roseate character. Lumber Company's Showing. The Minnesota Lumber company owns two "lots" near Valdosta, which are represented as bearing a heav growth of timber, mostly pine. Each 0 these 'lots' centains 480 acres. Th company has also purchased stumpag besides that on its own property. has built into these lots temporary rail roads for the transportation of logs an has equipped them with suitable rolling stock. It has two sawmills, a shingl mill and a planing mill. It was turnin out at the time when the report wa made from which Mr. Clement quote to the committee, 25,000 feet of lum ber a day, and had more orders that it could fill. The price of lumber wa good and was advancing. The company, Mr. Clement said, wa at that time making a net profit 0 $2,000 a month. Just why, when it wa doing so well, it was necessary to sen it in December, $71,000, Mr. Clement di not explain, altho he admitted that pos sibly some of it was used in the pur chase of the outlying stumpage th company has acquired. He still pro fesses to regard the investment as gilt edged and to think that under prope management the company will be abl to pay the bank all it owes. What It Had Planned. The committee has learned from othe sources that the lumber company ha extended, or at the time of the bank failure was about to extend, its opera tions into Florida and to add to it other industries that of the constructio of railroads. It has not yet all th facts in its possession, but the nature o the prospective contracts is known The railroad was to build thru Florid timber lands and in part payment fo its work the company was to be give alternate sections of the timber land which is traversed. Much of this timbe land is reported to be primeval fores and to be very valuable. The chairman of the committee ha written letters to friends in a positio to inform him as to the facts of thes alleged grants and expects by March to be able to make a full statement o them to the depositors. Many Loyal to Clement. It would be a great mistake to sur pose that any revelations of his method of doing business which have been mad have turned away from Mr. Clement a public sympathy or that he has alread been condemned in everybody' min by the ex parte statements of th
13.
March 3, 1905
Bismarck Daily Tribune
Bismarck, ND
Click image to open full size in new tab
Article Text
Calumet
Baking
Powder
Health-
Economy.
# LUMBER COMPANY FAILS.
Receiver Appointed at Request of Faribault, Minn., Bank Receiver.
Valdosta, Ga., March 2.-Judge Emery Speer of the United States district court has appointed W. J. Butler of Macon and J. P. Coffee of Olympia joint receivers for the Minnesota Lumber company, which has large milling plants in Cloquitt and Clinch counties.
The receivers were appointed upon petitions of the receiver of the First National bank of Faribault, Minn., which holds claims of $110,000 against the lumber company. The company's assets are put down at $160,000 and liabilities at $140,000.
14.
March 3, 1905
The Pensacola Journal
Pensacola, FL
Click image to open full size in new tab
Article Text
# Receivers of Lumber Company.
Valdosta, Ga., March 2.-Judge Emory Spear, of the United States district court, has appointed W. J. Butler, of Macon, and J. P. Coffee, of Olympia, joint receivers for the Minnesota Lumber Company, which has large milling plants in Colquitt and Clinch counties. The receivers were appointed upon petition of the receiver of the First National Bank of Faribault, Minn., which holds claims of $110,000 against the lumber company. The company's assets are given at $160,000 and liabilities at $140,000.
15.
March 9, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
A LAW TO SAVE BANK DEPOSITORS NEW SYSTEM SUGGESTED BY THE FAILURE AT FARIBAULT. Assessments Would Be Levied on All State Banks and an Insurance Fund Created for Payment of Losses-National Banks Expected in Time to Make Similar Arrangements. Special to The Journal. Faribault, Minn., March 9.-The failure of the First National bank has resulted, for one thing, in a demand for the creation of some system by which depositors will be insured against loss when similar failures occur. A bill embodying this principle has been prepared and will be submitted to next Saturday's meeting of the depositors of the bank for their approval. In the event that it is indorsed by them, Senator Buck, who heartily approves the measure, will introduce it in the senate. The bill provides that an assessment shall be levied on all state banks, the amount derived from the assessment to form a fund from which losses shall be paid. When this fund has reached $1,000,000 or $1,500,000, the assessments will cease until a failure occurs, in which event another assessment will be made to cover the deficit in the fund. The money belonging to the fund may be invested in municipal or school bonds or other first-class securities. It will be in charge of the state, which will be the guardian of the fund. When a state bank fails, the state will appoint a receiver, as is now done with national banks, who will settle its affairs, and, after realizing all he can on the bank's assets, if they prove insufficient, will draw on this insurance fund to pay the depositors their claims in full. "If this bill, or a bill similar to it, becomes the law," said a prominent Faribault capitalist interested in the measure, "we believe that it will not only insure depositors in state banks against loss, and force private banks to become incorporated under the state law, but it will be a strong influence to compel national banks to make similar arrangements. It stands to reason that where a depositor is absolutely assured against loss, he will generally choose the state bank, and that if the national bank wishes to remain in business at all, it will have to make similar provision for the safety of the deposits which it solicits. "We had at first thought of having this bill introduced in the federal legislature to apply to national banks, but Washington is a good way off and we are not in as close touch with our representatives there as here at home. They have a system of bank insurance with some such provisions as we have incorporated in our bill in force in Canada, and there a bank failure is unknown. I see no reason why the government should not afford our people similar protection."
16.
March 9, 1905
The Caucasian
Raleigh, Goldsboro, Clinton, NC
Click image to open full size in new tab
Article Text
Receiver for Lumber Company.
Valdosta, Ga., Special.-Judge Emory Spear, of the United States District Court, has appointed W. J. Butler, of Macon, and J. P. Coffee, of Olympia, joint receivers for the Minnesota Lumber Company, which has large milling plants in Colquitt and Clinch counties. The receivers were appointed upon petition of the receiver of the First National Bank, of Faribault, Minn., which holds claims of $110,000 against the lumber company. The company's assets are given at $160,000 and liabilities at $140,900.
17.
March 27, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
Judge F. E. Oldham, attorney of the controller of the currency, has returned to Washington from Faribault, Minn., where he consulted with Receiver Bird of the defunct First National bank and the stockholders' committee regarding the condition of the bank. Judge Oldham said there was no development of public importance as a result of his trip, but he might have something to give out in the course of a month.
18.
May 13, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
BANK DIRECTORS' OFFER DECLINED DEPOSITORS OF FARIBAULT BANK REFUSE 10 PER CENT. All Efforts at a Compromise of the Claims Against Directorate Fall Thru and Long Litigation Will FollowDirectors Still Maintain That They Exercised Due Care. Special to The Journal. Faribault, Minn., May 13.-The offer of the directors of the First National bank to pay a dividend of 10 per cent, in addition to their liability as stockholders and what may be realized from the bank's assets in settlement of all claims, has been declined by the depositors' committee. A subsequent offer to pay 121/2 per cent was also declined, altho Judge Oldham, counsel for the department at Washington, advised its acceptance on the ground that any other course would involve years of expensive litigation. The directors have refused to make any further or better offer. They will pay what the law compels them to and no more. All negotiations looking to a compromise are off. Such is the net result of a series of conferences this week between the directors, Receiver Baird, Judge Oldham and the depositors' committee. The depositors, while they believe the losses are due largely to the failure of the directors to give to the bank's affairs proper oversight, say they are not disposed to be unreasonable. They would probably accept from the directors 25 or 30 cents on the dollar. But they think 10 cents altogether too low. The contention of the directors is that they give to the bank's affairs a proper supervision, but that no ordinary scrutiny would have resulted in the detection of the fraudulent transactions. One of the directors says that in point of fact the existence of some of the frauds have been discovered only since Mr. Baird, the receiver, begun to enforce collections. Moreover, the bank books show charges for large amounts that the bank never loaned, as for instance, where the Georgia Fruit Farm company is charged with $110,000, when it actually owes $67,000, and there is a similar discrepancy between the n sums charged the Minnesota Lumber company and what money it actually received. The compromise having failed, Receiver Baird must sue the directors.
19.
May 24, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
# BANKERS ASK FOR
# UP-TO-DATE LAW
NATIONAL ACT NEEDS AMENDING
IN MANY PARTICULARS.
Second District Group Men Meet at
Faribault and Discuss Vital Phases of
Business and Law-System of Exam-
inations Held Up by Some Speakers
as a "Mere Formality."
Special to The Journal.
Faribault, Minn., May 24. -The second annual
meeting of the third district group of the Minne-
sota Bankers' association was held here yester-
day, the delegates being the guests of the Citi-
zens' National bank and the Security State
bank.
The subject of the first paper read at the af-
ternoon session was "Bank Examinations and Re-
ceiverships," by Lyman D. Baird, receiver of the
First National bank of Faribault. To the di-
vision of his subject relating to the receiverships
he gave but small attention, merely enumerating
some of the duties an official acting in his ca-
pacity has to discharge. He had more to say,
however, about bank examinations.
In his opinion the present system of paying
the examiners by fees is not calculated to pro-
duce the best results. The office of bank exam-
iner should, he said, be a salaried one. To exam-
ine properly a bank with $500,000 deposits will
take at least two days. It is not enough for
the examiner to count the cash and see that the
books balance. It is even more important that
he should carefully scrutinize the paper which
represents its loans and discounts. He should
as far as possible assure himself that the signa-
tures on notes are those of responsible persons.
Mr. Baird advocated the establishment of a
system of insurance for the benefit of depositors.
Fifty cents on the $1,000 of deposits would cover
all losses by bank failures in the past forty
years. On this basis a bank having $500,000 de-
posits would be required to pay $250 annually,
which is small in comparison to the benefits re-
ceived.
20.
June 8, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
RETURNS TRUE BILLS Federal Grand Jury After Land Grafters-Clement's Case Up. The federal grand jury in St. Paul today reported true bills against William T. Horsnell of St. Paul and Royal B. Stearns of Pierre, S. D., who are accused of conspiracy to defraud the United States out of about 18,000 acres of homestead lands in North Dakota thru fraudulent homestead entries. This afternoon the grand jury took up the case of Thomas B. Clement, president of the defunct First National bank of Faribault, who is accused of making false entries, and the embezzlement of the bank funds. The principal witness for the state is Receiver Lyman D. Baird. Presentation of the case is expected to occupy the remainder of the week.
21.
June 15, 1905
The Bemidji Daily Pioneer
Bemidji, MN
Click image to open full size in new tab
Article Text
# TRIAL OF BANKER CLEMENT.
Case of Faribault Financier Set for June 21.
St. Paul, June 15. -Thomas B. Clement, president of the suspended First National bank of Faribault, will be tried on charges of embezzlement and maladministration of the bank's business before the United States district court June 21.
His counsel, George N. Baxter, made a gallant fight to induce the court to continue the case until the December term, but failed.
The aged banker was arraigned in the district court at 10 a. m. To seventeen of the counts he pleaded not guilty in a firm tone. To the other ten he demurred on the ground that each of them specified more than one offense. This demurrer was overruled and Mr. Clement then pleaded not guilty to the ten counts.
22.
June 15, 1905
The Bemidji Daily Pioneer
Bemidji, MN
Click image to open full size in new tab
Article Text
# TRIAL OF BANKER CLEMENT.
Case of Faribault Financier Set for June 21.
St. Paul, June 15. - Thomas B. Clement, president of the suspended First National bank of Faribault, will be tried on charges of embezzlement and maladministration of the bank's business before the United States district court June 21.
His counsel, George N. Baxter, made a gallant fight to induce the court to continue the case until the December term, but failed.
The aged banker was arraigned in the district court at 10 a. m. To seventeen of the counts he pleaded not guilty in a firm tone. To the other ten he demurred on the ground that each of them specified more than one offense. This demurrer was overruled and Mr. Clement then pleaded not guilty to the ten counts.
23.
June 23, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
# A QUESTION OF ASSETS
ATTORNEYS GO THRU TEDIOUS
SIEGE OF QUESTIONING IN THE
CLEMENT CASE.
There were no particularly interesting developments in St. Paul today, in the trial of Thomas B. Clement, president of the suspended First National bank of Faribault. The prosecution tediously examined various witnesses, endeavoring to prove the making of a false entry, by Clement, in the bank's books, Oct. 23, 1904, by listing a piece of land entered as a "Barton farm" as a bank asset, when it was simply a security for a note of $3,000 of Charles S. White.
In November, 1902, L. A. Northrop contracted to buy the land and gave notes of $500 and $2,850 in payment White was present at the sale. M. S. Tolman of Walker later assumed the Northrop contract, giving new notes. For some reason the Northrop notes were allowed to remain in the bank and the Tolman notes were never entered on the bank books. Tolman eventually paid his notes and received title. The testimony tended to prove the Northrop notes and also the farm were listed as assets of the bank.
Clement seems to stand the strain of the trial well, remaining most of the time as yesterday, with his face resting in one hand and his eyes closed.
24.
June 24, 1905
The Minneapolis Journal
Minneapolis, MN
Click image to open full size in new tab
Article Text
# CASHIER CHANGED FIGURES
He Declares, Tho, that He Did It on Clement's Orders.
Charles M. Whitney, cashier of the suspended First National bank of Fari-
bault, testified yesterday afternoon in St. Paul at the trial of Thomas B. Clem-
ent, that he had changed the figures in the teller's cashbook, from which the
amount of cash on hand was reported to the controller of the currency, and
that this was done under the express direction of the bank's president, Mr.
Clement.
This testimony was given under the fourth count in the indictment, charg-
ing Mr. Clement with havng made a false return to the controller.
25.
January 5, 1906
Omaha Daily Bee
Omaha, NE
Click image to open full size in new tab
Article Text
BANK DIRECTORS PAY UP Officials of Fairbault, Minn., Bank Forced to Atone for Neglect of Duty. ST. PAUL, Minn. Jan. 4.-The suit of Lyman D. Baird, as receiver of the First National bank of Fairbault, Minn., against the eight directors of the bank for alleged neglect in their official conduct was settled in the United States circuit court today upon the agreement of four of the directors to pay $100,000 in full of all claims. The First National bank of Faribault failed in January, 1904, and the president, Thomas B. Clement, a short time after the failure was arrested and later indicted by the federal grand jury on charges of embezzlement and misapplication of the bank's funds and with making false entries in the reports to the comptroller of the currency. He was convicted and sentenced to serve eight years in the state prison. At the time the affairs of the bank came into the hands of the receiver it is alleged the assets were $619,883. of which $328,770 is alleged to be of a doubtful character and $203,882 is alleged to be absolutely worthless. The debts and liabilities. It is alleged, exceed the assets and resources by $400,000. including in the assets the liability of the stockholders.