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Expect Soon to Resume. MINNEAPOLIS, June 28.-The American Exchange bank of this city has temporarily suspended payment, but it is expected to resume business in a few days.
9695. American Exchange Bank (Minneapolis, MN)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- June 28, 1893
- Location
- Minneapolis, Minnesota (44.980, -93.264)
Metadata
- Model
- gpt-5-mini
- Short Digest
a88e3ce2
Response Measures
None
Description
The American Exchange Bank temporarily suspended payments on June 28, 1893 owing to the money stringency (panic of 1893). Subsequent articles refer to an assignee/receiver and litigation (by Aug 1893 and later), indicating the bank did not resume normal independent operations and entered receivership/insolvency. No article explicitly describes a depositor run as the precipitating event — suspension is attributed to the general money stringency — so this is classified as a suspension that resulted in closure/receivership. Bank type not explicit from name; could be a private or state-chartered bank but sources do not state National or State in its formal name, so set to unknown.
Events (3)
1.
June 28, 1893
Suspension
- Cause
- Macro News
- Cause Details
- Temporarily suspended payment owing to the money stringency (monetary panic of 1893).
- Newspaper Excerpt
- MINNEAPOLIS, June 28.-The American Exchange bank of this city has temporarily suspended payment, but it is expected to resume business in a few days.
- Source
- newspapers
2.
August 30, 1893
Other
- Newspaper Excerpt
- The assignee of the American Exchange bank has begun suit to collect $3,882.37 on notes... The assignee of the American Exchange bank has begun suit against the Gun Flint Lake Iron company to collect $5,000 on a note. A second action against the same party is to collect $4,000 on the same grounds.
- Source
- newspapers
3.
August 30, 1893
Receivership
- Newspaper Excerpt
- The assignee of the American Exchange bank has begun suit ... (article refers to assignee/receiver actions).
- Source
- newspapers
Newspaper Articles (15)
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Faillites da Banques La "City National Bank" de Greenville Mich. 8 suspendu ses paiements. Est fermée également la "Ridgeway Bank" de Ridg way Pa. Passif 236000 doilars. La Todd County Bank de Long Praire Minn a fait faillite. La "St Paul & Minneapolis Trust Co" de Minnespo'is dont l'ex gouverneur A. McGill est président a déposé son bilan. L'inspecteur des banques M. Caldwele a ordonné la fermeture de la "Cty National Bank" de Greenville Mich. Passif encore inconnu. La "Queen City Bank" de Buffulo N. Y. ayant un capital de 600,000 dollars a suspendu ses paiemente. Fredman & Fredman de Chicago ont déposé leur bilan ainsi que Sherman & Byrne de New-York et Creety & Noyes de Boston. L'American Exchange Bank de Minheapolis a fermée BES portes. La "First National Bank" et la Commercial Bank" toutes deux de Santa Anna Cal. n'ont pas ouvert leuis portes samedi dernier. Les portes de la "Peoples Bink" de Pomoma Cal. sont restées her métiquement closes lundi matin. La "Bank of Commerce" de San Diego, Cal. a fait faillite. Il en est de même de la "Loan & Savinga Bank" de Tresno Cal La "State Bank" et la "Bank of New England" de Minneapolis ont suspendu leurs paiemente. MM. B iri et Bradly de Chicago ont fait faillite. Passif 400,000. Tombées également: "The Sabina Bank" of Wilmington, Ohio et la "Bank of Ness City," Kansas. Quand donc la serie sera-t-elle terminée?
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Expect Soon to Resume. MINNEAPOLIS, June 28.-The American Exchange bank of this city has temporarily suspended payment. but it is expected to resume business in a few days.
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BANKS FAIL. Several Financial Institutions in Various Places Forced to Suspend. BUFFALO, N. Y., June 27.-The Queen City bank, which was started here a little over a year ago, closed its doors shortly after noon Monday. F. M. Englehart, one of the directors, said that the suspension was due to a steady drain of money out of the bank, which has been going on for several weeks. The bank paid out all the money it had. It owes its depositors over $1,400,000. The liabilities of the bank according to the June report are $2,328,754. The assets are unknown. TOPEKA, Kan., June 27.-The bank of Ness City has closed its doors with but $85.39 in cash on hand. Deposits amount to $31,360, with other liabilities of $4,000. It has loans aggregating $74,000, mostly on real estate, from which but little can be realized. The capital of the bank is $40,000. MINNEAPOLS, Minn., June 27. The Bank of New England closed its doors yesterday. SABINA, O., June 27. The Sabina bank was forced to suspend yesterday. MINNEAPOLIS, Minn., June 28.-The American Exchange suspended temporarily owing to the money stringency. It has $500,000 authorized capital stock, with $50,000 paid up. Depositors will be paid in full.
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BY THE WAYSIDE. You will find a full line of table damasks, napkins and white goods at 228 Central Ave., O. T Swett. William Bennett has begun suit against Patrick Watson and others to quiet title to some farm property in Hennepin county. The State Bank of Minneapolie has made an assignment for the benefit of its creditors to George A. Fletcher. The affidavit of valuation places the assets at $600,000. At a meeting of the Board of County Commissioners, held Monday, John F. Walsh, of the East Side, was elected keeper for the new county morgue on the second ballot. Burglars enterered the residence of W. J. Murphy, manager of the Tribune, Tuesday morning at an early hour. They did not succeed in getting any articlea of value. The Young Ladies' Sodality of the Immaculate Conception church are making preparations for a lawn festival to be given on July 12th at Hawthorne avenue ani Thirteenth street. The American Exchange bank, located at the corner of Nicollet avenue and Sec ond street north, temporarily suspended payment Tuesday morning, but it is expected to resume business in afew days. The monthly report of Supt. Jordan, submitted at Tuesday's meeting of the Board of Education, showed a total enenrollment of 25,503 pupils for June as against 23,793 for the corresponding month of last year. Mrs. Chambers, an old and highly respected resident of South Minneapolis for many years, died at her late home, 2015 Franklin avenue, on Thursday and was buried from Holy Rosary church this morning. Interment took place at St. Mary's cemetery. Mgr. Satolli paid a visit last week to the Dominican Fathers of this city. He
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WEST AND SOUTH. THE firm of S. & G. Gump, dealers in art goods at Nan Francisco, made an assignment with liabilities of $140,000. THE death of Rev. W. W, Kone, aged 90 years, occurred at Denison, Tex. He was the oldest Baptist minister in the United States, having entered the ministry at the àge of 18, THE Bank of New England at Minneapolis, Minn, the Sabina (O.) bank and the bank of Ness City, Kan., closed their doors. The governor of Illinois has pardoned Michael Schwab, Samuel Fielden and Oscar Neebe, the anarchists sentenced to state's prison on the charge of complicity In the Haymarket massacre in Chicago May 4, 1886. Fielden and Schawb were sentenced to prison for life and Neebe for fifteen years. IN Detroit Frank Hayes, aged 20 years. was found guilty of murder and sentenced to imprisonment for life. THE Merchants' national bank at Moorhead, Minn., was entered by a masked man who covered the teller with a revolver and secured $2,600. T wo INDIANS, Kozine and Moneypenmy, were found guilty at Madison, Wis, of the murder of Boneash and his squaw last fall. At Lebanon, Ind., William Ransdell was bitten by a tarantula while handling bananas. In the bunch of bananas a bunch of 200 young tarantulas was found. Ransdell may recover, THE state liquor dispensary of South Carolina has begun business and all saloons would soon be closed. THE Savings bank at Fresno, Cal., and the Bank of Commerce at San Diego, Cal., which suspended recently, have resumed business. ON a bicycle H. H. Wyllie made the 1,000 miles from New York to Chicago in ten days and four hours. BERRY won the cowboy race to CHP began at Chadron, Neb., June 13. making the 1,040 miles in 13,days, 15 hours and 35 minutes-an average of 77 miles daily. Wine attempting to escape from the prison at Folsom, Cal., three convicts were shot dead by guards. AT Edinburg, Ill., G. P. Harrington, bankers failed for $200,000. American exchange bank of Minneapolis, Minn., and the Second national bank of Ashland, Ky., closed their doors. THE failure was reported of the Bedford (Ind.) Stone Quarries company, the largest producers of politic lime stone the world
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WEST AND SOUTH. AT Lebanon, Ind., William Ransdell was bitten by a tarantula while handling bananas. In the bunch of bananas a banch of 200 young tarantulas was found. Ransdell may recover. THE state liquor dispensary of South Carolina has begun business and all I saloons would soon be closed. THE Savings bank at Fresno, Cal., and the Bank of Commerce at San Diego, Cal., which suspended recently, have resumed business. ON a bicycle H. H. Wyllie made the 1.000 miles from New York to Chicago in ten days and four hours. BERRY won the cowboy race to Chicago which was begun at Chadron, Neb. June 13, making the 1,040 miles in 13 days, 15 hours and 35 minutes-an average of 77 miles daily. WHILE attempting to escape from the prison at Folsom. Cal., three convicts were shot dead by guards. AT Edinburg, III., G. P. Harrington, a private banker. failed for $200,000. THE American exchange bank of Minneapolis, Minn., and the Second national bank of Ashland, Ky., closed their doors. THE failure was reported of the Bedford (Ind.) Stone Quarries company, the largest producers of oolitic limestone in the world. IN Chicago the Illinois Fuel company, with assets of $150,000 and liabilities of $100,000, has been driven to the wall. THE monetary stringency caused the assignment in Cincinnati of Bennekamp Brothers, furniture manufacturers, and the Louis Snyder's Sons Paper company. A TRAIN struck a buggy in which were Mrs. Inholsen and three children in Chicago and two of the children were killed and the other fatally injured. THE lives of Mrs. Catherine Neumann and her three children, aged 20, 15 and 12 years respectively, were lost in flames that destroyed their home in Saginaw, Mich. JOHN HUDSON died near Battle Creek, Mich., aged 101 years. AT Oakley, Kan., a tornado destroyed thousands of dollars' worth of property. A strip of country 1 mile wide and 6 miles long was swept clean. every building in its path being torn into kindling wood. FIRE wiped out the business portion of Union City, Ind. BECAUSE she refused to live with him, Jacob Lyons, a farmer at Ottawa. O., fatally shot his wife and then killed himself. IN state convention at Cleveland the Ohio prohibitionists nominated the following ticket: For governor, Rev. Gideon P. Machlin, of Germantown: lieutenant governor, S. H. Ellis, of Warren county: treasurer, Abram Ludlow, of Springfield; attorney general, S. E. Young, of Portage; supreme court judge, J. A. Gallagher, of Bellaire. The platform adopted favors absolute destruction of the liquor traffic, indorses woman suffrage, the granting of liberal pensions, the revision of the immigration laws and the election of president and United States senators by direct vote of the people. ON trial at Atlanta, Ga.. for the murder of her two sisters Julia Force was declared not guilty and will be confined in an insane asylum. FLAMES swept away the principal part of the town of Lexington. O. T., and two men perished in the flames. AT Fairfield, Ia., Charles Wilson shot his wife fatally and then fatally shot himself. Domestic trouble was the cause. THE cabinet of the Epworth league of the United States adopted a resolution at a meeting in Cleveland which instructs the withdrawal of the league's exhibit at the world's fair because of Sunday opening.
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MINNEAPOLIS. MINNEAPOLIS GLOBULES. James Carter asks $6.000 from the street railway company for alleged personal injuries. The assignee of the Farmers' and Merchants' State bank has begun suit to collect $3,882.37 on notes. Alme Hunter bas begun suit against the street railway company to collect $26,488 for personal injuries. Preparations are afoot for the early reopening of the Commercial bank, on the East side, which suspended some weeks ago. T. J. Price, of the Kellogg Newspaper company, and wife jeft last night to attend the golden wedding anniversary of his parents. Next Monday evening the Wilburs will return with "The Royal Middy, which was well liked when produced in St. Paul this summer. Henry Merchant is of the opinion that the street railway company has injured him to the extent of $6,084, and he has brought suit for that amount. Mayor Eustis says he will be obliged to veto the orders for a large number of sewers, watermains, etc., presented by the council of list Friday's meeting. William Hickey. of Hopkins, was brought into the city tied hand and foo yesterday afternoon and given twenty days in the county jail for beating hi children. The Gun Flint Lake Iron company which has been sued for its indebted ness to the State bank, made an assign ment yesterday to W. H. Lynn. A1 affidavit of valuation places the asset at $10,000. The assignee of the American Ex change bank has begun suit against the Gun Flint Lake Iron company to collec $5,000 on a note. A second action agains the same party is to collect $4,000 on the same grounds. A committee of laboring men calle yesterday morning upon the mayor t ask about a proclamation for Labor Day While the mayor not promise to issu the proclamation, the committee is hope ful that he will issue it. Lars G. Lundquist asks the court fo a dissolution of the firm of James Bla don & Co. that he may secure certai sums of money paid into the partner ship, because he claims Bladon refuse to make an account of the profits. A new department at the public li brary will be opened Sept. 1, the juven ile department. It will be located i the room now devoted to the display o old coins, and will contain a very com plete collection. John Drew and his clever company were greeted by another large audienc at the Grand last night. "The Maske Ball" fills the bill for light, pleasing comedy. Same bill all the week, with Saturday matinee. William Perry, who fell from a ladde and broke his back about two month ago, while putting in screen windows a 2401 Central avenue, was taken to St Mary's hospital yesterday morning The case is said to be a remarkable on from a medical standpoint. Dr. Caine, of Stillwater, who was in jured in an accident at Lake City dur ing the state encampment, and whos life was despaired of for several weeks was in the city last night, being ao corded a hearty welcome by his man friends. The building inspector has abou found out that the New England asso ciation is the real owner of the ol Tribune building, and as soon as th city attorney comes home will probabl go into court and ask that the receive be ordered to put the old ruin in a saf condition. The first open session of the revisio committee of the city council was hel yesterday morning, and about twenty five taxpayers were on hand to argu for or against several minor permaner improvements. The committee con
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DENIES THE ALLEGATIONS. Col. Bobleter Denies Receiving Interest on State Deposits. The Tribune of the 20th says: - A Minneapolis evening paper says that an expert accountant who has been making an investigation into the three defunct banks of that city, the A merican Exchage, State, and Farmers' and Merchants, claims to have brought to light proof that State Treasurer Bobleter has been the recipient of "personal interest!" It was found, the expert asserts, that drafts bearing interest at 3 per cent had been made out payable to different persons, and that before being returned to the bank the same had been paid to Bobleter. In a few cases only were the drafts!made out to Bobleter direct, nearly all of them being made payable to some bank employe or a citizen. Col. Bobleter was seen to-night regarding the matter and he made a denial simitar to that published by the Tribune in an interview with him when the charges were first made. "The receiver stipulated," Col. Bobleter said last night, "that we had $10,000 over and above what was necessary to pay the administration, ard on the strength of that Attorney-General Childs went before the court and asked for an order for payment of the $10,000 on the ground that the state was a preferred creditor, and that other moneys be paid as they were received until the*state claim was fully justified. The case was argued before Judge Smith a week ago last Monday. He filed his order with the clerk of the court that the receiver pay the state the $10,000. The money has not yet been paid over, but I presume it will be as I presented the order to the receiver a week ago lastMonday, though I have not seen him since. He said then that he wanted to wait a few days to see if anyone wanted to appeal from that order." Col. Bobleter was of the opinion that the report that the expert had discovered evidences of fraudulently acquired interest on state deposits had become mixed. "You will remember," he said. "that in
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A MINNESOTA SENSATION. $150,000 of Public Funds Said to Have Been Misappropriated. ST. PAUL, Minn., Jan. 16.-A boom-shell was exploded in the House of Representatives this afternoon in the shape of a resolution from Henry Feig, calling for an investigation of the financial affairs of the State, and making charges of misappropriation of public funds to the amount of $150,000, while over $300,000 was asserted to be carried on books as cash, when, in fact, it was on books of banks that have failed. The preamble recites that newspapers have stated that certain public officials, State and county, have demanded or received from financial concerns, commissions or gifts for their own use, in return for the deposit of public funds in such instances; that certain checks indorsed by public officials for cash payments are in the hands of officers of the court and of the receiver or assignee of the State Bank and American Exchange Bank of Minneapolis; that "The amounts so misappropriated will approach $150,000, which sum can and should be covered into the public treasury;" that for their personal gain public officials have deposited vast amounts of the public funds in involvant, or carelessly, if not criminally managed financial concerns and are now carrying as a cash balance $302,841 in alleged banks that have long since failed, making said claim actually valueless as a cash balnce if not for all other purposes while other portions of said alleged cases balances consist of deposits in concerns that if not actually insolvant, are on the verge of ruin; that the States treasurers have carried on their books for uncollected stumpage $94,930, being practically so much loaned to lumbermen by the State without interest to the State, "however much may have been paid to any others." The resolutions then provide for the appointment of a committee to investigate the matter thoroughly.
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# SHELLING THE WOODS. ## Henry Feig's Resolution to Smoke Out All Kinds of Frauds. The shouse met at 2 o'clock, pursuant to adjournment, and immediately foilowing prayer and roll call Representative Henry Feig introduced a somewhat sensational resolution-sensational in the extent of the corrupt practices it charges. The resolution is as follows: Whereas, It has been publicly stated in the press of this state, on examination and report by a competent accountant, that certain public officials-state and county-having charge of the public funds have heretofore demanded or received from certain financial concerns private commissions, gifts or emoluments in consideration or depositing certain public funds with such financial concerns, which commissions, emoluments or gifts have been appropriated to the private use and gain of such public officials, and contrary to the statute in such case made and provided; and Whereas, It is stated that certain checks for the payment of such illegal emoluments, commissions or gifts, and bearing the indorsement of certain public officials, are now in the custody of the courts of Hennepin county, or in the hands of the receiver or assignee of the State bank and American Exchange Bank of Minneapolis; and Whereas, It is believed that this practice has been going on for many years, and that the amounts so misappropriated will approach $151,000, which sum can and should be covered into the public treasury, thus materially lessening the burdens of the taxpayers, and Whereas, By reason of the pernicious practice and desire for unlawful personal gain, public officials have deposited vast amounts of the public funds in insolvent or carelessly, if not criminally managed financial concerns, and are now carrying as a cash balance $3,2.841.02 in alleged banks that have long since failed, making said claim actually valueless as a cash balance, if not for ali other purposes, while still other portions of said alleged cash balances consist of deposits in concerns that, if not actually insolvent, are on the verge of ruin; and Whereas, It has been stated that the amount of public funds deposited in financial concerns of this state is nearly equal, if not in excess of the actual amount of cash on hand by said concerns as a whole, and it is imperative that the public funds should be held as a sacred trust for the whole people and not to be used by public officiais and financial concerns for their own unlawful gain, or unnecessarily jeopardized or wasted; and Whereas, It appears by a report of the pine land investigating committee, filed with the governor on Dec. 21, 1891, that for many years last past the state treasurers have carried on their books on overdue drafts vast sums of money, due for uncollected stumpage, amounting in October, 1898, to $91,930.55; and Whereas, In addition to such amounts it appears that the state has been engaged in loaning money for an indefinite number of years to lumbermen, for which the state has seldom, if ever, received any interest, however much may have been paid to any others, if at all; therefore, be it Resolved. That a special committee of five members of the house be appointed by the speaker with instructions to forthwith institute First-A rigid inquiry into the financial condition and business affairs of banking or other corporations in this state which now hold on deposit or otherwise any public funds whatsoever. Second-A rigid inquiry into the manner in which public officials for a series of years past have been induced to place public funds in financial concerns, and especially to ascertain whether any present or past public official has received for his own private use or gain from any such financial concern, either directly or indirectly, any commission, emolument or gift. Third To institute inquiry as to the amount of public funds deposited in financial concerns since insolvent, and at whose instance deposited, when deposited, and whether any public official received any personal consideration therefor, together with all names. Fourth To institute inquiry into the amounts now or heretofcre deposited by any public official in any financial concern, of which any such public official was, or thereafter became an officer or stockholder. Fifth To institute inquiry into the amounts of bonds given by any financial concern for the deposit of public funds, and ascertain the names of such bondsmen, as near as may be their financial condition, their connection with the public official-making, and the institution receiving any such deposit, and the validity of such bonds. Sixth-To institute any and all other inquiries in connection with the subjects under investigation by the committee as may be found necessary to serve the ends of justice. Resolved, further, That said committee shall be and it is hereby empowered to send for persons and papers, and to have authority to summon and swear witnesses: also to employ such expert accountants as may be necessary, and a stenographer. Resolved, further, That all bills consequent upon this investigation shall, upon presentation, be audited by said committee, and when approved the chief clerk of the house shall draw his order in payment of the same. A communication was read from the game and fish commission inviting members to visit the state hatchery. Mr. Buck Introduced a resolution looking to the election of E. A. Taylor as reading clerk, which was referred to the committee on legislative expenses. Mr. Knuteson renewed his resolution to provide six copies of each day's journals for members who desired them, and this also went to the committee on legislative expenses. The citizens of Lakefield presented a petition asking for legislation calculated to check the growth of Russian thistle. The following bills were introduced and referred to the committees named in connection with each: By Mr. Geissler, H. F. 21. a bill to appropiate $5,000 for the opening of Lime creek in Freborn county. Roads and bridges. By Mr. Gibbs, H. F. 22, to define the powers of safe and trust companies. Judiciary. By Mr. Johnson, H. F. 23, to require railroads to post notices of train schedules in all depots. Railroads. By Mr. Johns, H. F. 24, to constitute certain legal works competent authority. Judiciary. By Mr. Smith, H. F. 25, to amend the General Laws of 1878-89 relating to filing of chattel mortgages. Judiciary. By Mr. Dahl, H. r. 26, to amend the special act of 1887, and to provide for two additional judges in the Fourth judicial district. Judiciary. By Mr. Zeir, H. F. 27, to require a public record of unknown and unclaimed bank deposits, and the publication of the same by judges of probate. Banks and banking. By Mr. Dahl, H. F. 28, to prevent fraudulent bankruptcy; guard against losses by same. Judiciary. By Mr. McInness, H. F. 29, to provide for the organization of boards of arbitration in case of labor strikes or disagreements. Judiciary. Ru My Saburmeler HE
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# THE LEGISLATURE. The Minnesota legislature is now in full blast and thus far the corpora- tions do not seem to have secured the ascendency. In fact there seems to be a strong disposition at the outset to get such an expression of opinion that will in the end not only secure defeat of the machinations of the corporate elements, but bring about some remedial measures. Judging from those already introduced the most important measure of this or any previous session is the following: Mr. Feig introduced the following, which was unanimously adopted: Whereas, it has been publicly stated in the press of this state on examinations and reports by a competent accountant, that certain public officials-state and county- having charge of public funds have heretofore demanded or received from certain financial concerns private commissions, gifts or emoluments in consideration of depositing certain public funds with such financial concerns, which commissions, emoluments or gifts have been appropriated to the private use and gain of such public officials, and contrary to the statute in such case made and provided, and Whereas, it is stated that certain checks for the payment of such illegal emolu- ments, commissions or gifts, and bearing the indorsement of certain public officials are now in the custody of the courts of Hennejin county, or in the hands of the receiver or assignee of the State Bank and American Exchange Bank, of Minne- apolis, and Whereas, it is believed that this practice has been going on for many years and that the amounts so misappropriated will approach $150,000, which sum can and should be converted into the public treasury, thus materially lessening the bur- dens of the taxpayers, and Whereas, by reason of the pernicious practice and desire for unlawful personal gain, public officials have deposited vast amounts of the public funds in insolvent or carelessly, if not criminally, managed financial concerns, and are now carrying, as a cash balance, $302,841.02 in alleged banks that have long since failed, making such claim actually valueless as a cash balance, if not for all other purposes, while still other portions of said alleged cash balances consist of deposits in con- cerns, that, if not actually insolvent, are on the verge of ruin, and Whereeas, it has been stated that the amount of public funds deposited in finan- cial concerns of this state is nearly equal to, if not in excess, of the actual amount of cash on hand by said concerns as a whole, and it is imperative that the pub- lic funds should be held as a sacred trust for the whole people and not be used by public officials and financial concerns for their unlawful gain, or unnecessarily jeopardized or wasted, and Whereas, it appears by a report of the pine land investigation committee filed with the governor on Dec. 21, 1894, that for many years last past the state treasurers have carried on their books on overdue drafts vast sums of money, due for un- collected stumpage, amounting in October, 1893, to $94,930.55, and Whereas, In addition to such amounts it appears that the state has been engaged in loaning money for an indefinite number of years to lumbermen, for which the state has seldom, if ever, received any interest, however much may have been paid to any others, if it at all; therefore, be it Resolved, That a special committee of five members of the house be appointed by the speaker, with instructions to forthwith institute- First-A rigid inquiry into the financial condition and business affairs of banking or other corporations in this state which now hold on deposit or otherwise any public funds whatsoever. Second-A rigid inquiry into the manner in which public officials for a series of years past have been induced to place public funds in financial concerns, and es- pecially to ascertain whether any present or past public official has received for his own private use and gain from any such financial concern, either directly or indi- rectly, any commission, emolument or gift. Third-To institute inquiry as to the amount of public funds deposited in finan- cial concerns since insolvent, and at whose instance deposited, when deposited, and whether any public officials received any personal consideration therefor, together with all names. Fourth-To institute inquiry into the amounts now or hertofore deposited by any official in any financial concern, of which any such public official was, or thereafter became an officer or stockholder. Fifth-To institute inquiry into the amounts of bonds given by any financial concern for the deposit of public funds, and ascertain the names of such bonds- men; as near as may be their financial condition, their connection with the public official making and the institution receiving any such deposit and the validity of such bonds. Sixth To institute any and all other inquiries in connection with the subjects under investigation by the committee as may be found necessary to serve the ends of justice. Resolved, further, That said committee shall be and is hereby empowered to send for persons and papers, and to have authority to summon and swear witnesses; also to employ such expert accountants as may be necessary, and a stenographer. Resolved, further, That all bills consequent upon this investigation shall, upon presentation, be audited by said committee, and when approved the chief clerk of the house shall draw his order in payment of the same. Mr. Gibbs introduced a bill providing that trust companies can not act in a fiduciary capacity without giving a bond. Prohibiting them from doing banking or investing more than 20 per cent of their capital in a bank build- ing. Mr. Dahl-To prevent fraudulent bankruptcies. Mr. Zier-Relating to unclaimed deposits. Mr. Johnson-Requiring private banks to make reports, and Mr. Larson the same. Mr. Anderson-To tax railroad lands. Mr. Douglass-Revising the bank examiner laws, providing stringent du- ties and penalties. Mr. Foss-For an inheritance tax. Mr. Soule-To place certain corpora-
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But Concluded to Let Go Later On--Proposed New Board TO INVEST STATE FUNDS. Report of the Feig Investigat. ing Committee, After Three Months. About the middle of January the of representatives appointed a committee, as chairman, to Feig house special investigate with Henry cer- the tain matters that are specified in report. The was more appended taken far-reaching labor under- than any one supposed it would be. Chairman Feig assumed the management and direction of the work, and for months the has a continued three been unremittingly investigation by clerk drawing $5 per day. such a report must for itself, and but can speak Naturally, abuses little be said as to possible not or as to the feasibility of sug- of made. As to the gestions interest found treasurers matter paid to state and Jonot covered into the treasury, reseph Bobleter is found to have ceived a large sum as "a gift or After consultation with committee this money emolument." the has and been Mr. turned over to the state, is complimented on relin- He his "claim' upon quishing Bobleter it. had desired to turn it over on rebut was advised the state had the on it. After no tiring, claim retaining changed amount several months he and the state is $3,024.66 off. Mr. Bobleter is his better mind, exonerated by the committee from any sus- in picion of questionable practices securing the "gift or emolument." Perhaps the most important recis for a law to create of investment, ommendation state board the to treas- mana state funds and relieve reage of a great deal of the assponsibility urer he is compelled to recsume at present. Many other merit ommendations of more or less here will be found in the report as printed THE in REPORT full: IN DETAIL. PAUL, Minn., April 22. 1895-Hon. House ST. R. Van Sant, Speaker of the special S. Representatives-S Your committee of appointed by and pursuant adopted following resolution, to to the the house Jan. 18, beg leave make by the following report: Whereas, it has been publicly examina- stated the press of this state, on acin and reports by competent countant, tions that certain public officials, of and county, having charge demandstate funds, have heretofore financial public received from certain gifts ed or private commissions, dein such or certain public funds positing concerns, emoluments consideration commissions, with of concerns, which of gifts have of to the private use to financial emoluments priated been and contrary gain appropublic officials, and in such case made pro- that whereas, it is of such vided, the statute and, payment stated and checks for the emoluments, and bearing the in such certain gifts, illegal commissions indorsement now or public officials, are of certain custody of the courts of Hennepin county, the or in the hands of the bank receiver and assignee of the State Minneor Exchange bank, of that and whereas it is for apolis, American going believed on practice has been so this years, and that the amount $150,many misappropriated will approach should be covwhich sum can and thus ma000, ered into the public treasury, of the terially lessening the burdens reason of taxpayers, and, whereas, by desire for pernicious practice and officials unlawful the personal gain, public public deposited vast amounts of if not have funds in insolvent, or carelessly, conmanaged cash and are now carrying as a that cerns, criminally, financial banks $302,841.02 in alleged said balance long since failed, making claim have actually valueless as a cash balif not for all other purposes, said alance, while still other portions of cash balances consist of depos- are its leged that, if not actually insolvent, on the verge of ruin, and, Whereas, It has been stated that the amount of public funds deposited was in financial concerns of this state the nearly equal to, if not in excess, hand of by actual amount of cash on it is as a whole, and that the public whole sacred trust for the imperative be said held concerns as funds should public and not to be used by for and financial unlawful gain or their people, officials and, unnecessarily concerns jeopadized or wasted, Whereas, It appears by report of filed the land investigatir committee, that pine with the governor Dec. 21, 1894, state years last past books have carried on treasurers for many their the of money overdue drafts vast sums due on for uncollected stumpage, amount- and, ing in October, 1893, to $94,930.55, Whereas, In addition to such it appears that the state has an engaged in loaning indefinite amounts, been money lumber- for number of years to seldom, for which the state has received any men, if ever, interest, however othmuch may have been paid to any ers, if at all; therefore, be it Resolved, That a special committee five members of the house instruc- be appointed of by the speaker, with tions to forthwith institute: First-A rigid inquiry into the matContinued on Eighth Page.
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BLAME MR. PLEA OF BONDSMEN FOR TWO BROKEN BANKS IN MINNEAPOLIS STATE ASKED FOR RELEASES Senator Grue, Populist, of Kandiyohl, Introduces a Bill to Accept Alleged Assets in Lieu of the 280,000 Cash Which It Had Deposited in the Now Failed Banks. Minnesota was yesterday asked to pay $86,000 for one of the short comings of Moses Dibble Kenyon, who, for a long time prior to this year, was supposed to be superintending the banks of the state. The bill SO asking, which one man as characterized in private yesterday being one of the most audacious bits of legislation introduced at this session, is fathered by Senator Grue, a Populist, from Kandiyohi, county Who is Grue? A partisan of this man Kenyon. No. He is a Peoples' party senator whose postoffice, like his name, is Grue. Indeed, the postoffice shares the family name, as does the station on the Grue farm, perhaps a dozen miles northeast of Willmar, on a branch of the Great Northern He has not been in the senate before this session, but he has done pretty well already His first bill asked the state to spend $10,000 in Kandivohi county widening ditches, lest the malaria which has been thickly populating the supposed capitol site in that county should infect the public health. His second bill asks the state to accept in lieu of claims of $86,000 against two insolvent Minneapolis banks a lot of alleged assets, most of which have as little tangible worth as the last flexion of an expiring lamb's caudal appendage. GOV. LIND REFUSED Mr. Grue, perhaps, did not know that Gov. Lind had been asked to present the same claim to the legislature, and had refused for reasons that may be surmised, even if the governor has not declared them. It would be charitable to suppose that Mr. Grue had been made a cat's paw of by some experienced Republican politicians, a theory which is not controverted by the fact that he is indorsing the plaint set forth in a communication to the recent attorney general among the foremost signers of which is A. E. Rice, formerly lieutenant governor, and one of the bondsmen of one of the banks in question. The fact, too, that certain Republican officials spent considerable effort in trying to keep the negotiations from the public during the closing hours of the recent Republican administration lends color to the belief that possibly the Kandiyohi county senator has been duped. The G lobe was fortunate enough to secure the correspondence which Gov. Lind refused to send to the senate, but which the proponents of the legislation anticipated have had printed in a cute little booklet for esoteric study among those friendly to the gang in question. It is piteous plea that which was presented to Attorney General Childs, as follows: BONDSMEN TRUSTED KENYON Minneapolis Minn.. Dec. 3. 1898.-The financial cyclone which overswept this country in 1893 destroyed many of our banking institutions and wrecked the affairs large number of our public-spirited business men, who have ever since been held down by obliit gations which, by force of circumstances, is impossible for them to discharge You are well aware that in Minneapolis, among others, the State bank and the American Exchange bank. in the early part of 1893, were compelled to suspend and go into the hands of receivers. At the time of the assignment many of the leading men of our city had, from public-spirited motives, incurred liability to the state of Minnesota as sureties upon the bonds of these banks. given to secure public funds kept on deposit. These obligations were incurred at time when the consensus of business opinion in this city, together with that of the bank officers of our state, seemed to indicate that the signing of such bonds was largely mitter of form. So long as the state permitted a bank, operating under its supervision and control, do business, and the claim of the state being first lien upon all the assets of the bank was not thought likely that there ever would be any occasion to call on the bondsmen to pay any part of the state's money; but the occurrences of 1893 were exceptional. Nothing like it had occurred during the experience of the present generation, and in all probability no similar occurrence will take place in our day. Therefore the keenest and shrewdest of business men were unable to foresee and guard against the disastrous consequences of that year. At the time of the suspension of these banks we were among the unfortunate citizens who had, in good faith, signed their bonds to the state of At the time of the suspension of the banks there were, in our judgment, ample assets on hand with which to more than pay the claims of the state, if the same had been converted into cash fair valuation: yet there still remains unpaid the larger part of the claims of the state With proper and economic management of the assets on hand we believe that the state's claim against these banks can be satisfied in full. Considering the unprecedented leading up to the disastrous results of the panic of 1893 we feel that, in equity and fairness to its citizens who have been thus unfortunate, the state Minnesota ought to meet any fair proposition looking to the adjustment of these matters in the same spirit which permeates recent national legislation It upon the subject of unfortunate debtors. to is in this spirit that we wish to present you the proposition hereinafter mentioned The State bank still owes to the state of Minnesota $61,445.76. Those who are liable as sureties to the state for this amount are: K. Kortgaard, George H. Fletcher, C. Haugan, A. J. Blethen, Charles Kittleson, A. H. Henderly A. E. Rice, G. Cook, E. 01son C. B. Shove. Andrew Theralson and C. C. Dunn. All of these men, U:p to the time of the panic of 1893. were well-to-do business nien, amply able to discharge their just obligations, but now none are able to meet the numerous obligations, contracted in good faith, upon the strength of valuable assets, which have since so greatly depreciated that hardly anything is left. The assets in the hands of the assignee of the State bank, as shown in the attached schedule, are, in our judgment amply able to satisfy the claim of the state if they were the placed in the immediate possession of officers of the state. proper Exchange Bank of MinneAmerican
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# The Great Plymouth Clothing House, Sixth and Nicollet ed: That the report of the Audi- ee be accepted and the Audi- rected to set aside the sum 5 from the Bocks, etc. Fund contract. Adopted. ssioner Weingart from the ee on Claims presented the - report: To the Honorable Board of County Commissioners: Gentlemen: Your standing Com- mittee on Claims to whom was re- ferred the matter of sundry bills, have given the same careful consideration, and beg leave to report as follows: That the following bills be allowed: Respectfully submitted: P. Weingart, F. E. Barney, J. B. Johnson. Commissioner Nash offered the fol- lowing resolution: Resolved, That the report of the Committee be accepted. Adopted. Commissioner Nash offered the fol- lowing resolution: Resolved, That the County Surveyor be authorized to employ an assistant in the place of Frank Haycock, Deputy County Surveyor, resigned. Such employment not to extend be- yond two months from date and payment not to exceed $5.00 per day and traveling expenses. Same to be paid from the Salaries fixed by law Fund. Adopted. Commissioner Nash offered the fol- lowing resolution: Resolved, That the Committee on Roads and Bridges be authorized to employ Geo. Turnham to do certain repair work on road running to Casco Point in Town of Orono, not to ex- ceed the sum of $100.00. Adopted. Commissioner Smith offered the fol- lowing resolution: Resolved, That the County Surveyor be instructed to prepare specifications for opening the Mound and Zumbra road from Bridge 189 to the Boni- facius road, and that the Auditor be instructed to advertise for bids there- for to be opened Aug. 22, 1904. Adopted. Commissioner Smith offered the fol- lowing resolution: Resolved, That John Gerber be and is hereby appointed Inspector on Con- tract No. 235, and that his salary be fixed at $3 per diem, same to be paid from the Road and Bridge Fund. Adopted. Commissioner Barney from the Committee on Ways and Means pre- sented the following report: To the Honorable Board of County Commissioners: Gentlemen: Your standing com- mittee on Ways and Means, to whom was refered the matter of the assign- ment and release of W. H. Lynn as a judgment debtor in an action upon a bond given by the American Ex- change Bank to you, upon which he was a surety, have given the same careful consideration and beg leave to report as follows: That, on July 30, 1895, in an action in the District court for Hennepin County, Minnesota, to recover on said bond, a judgment was entered and docketed in your favor against W., H. Lynn and others. That W. A. Wheelock has offered to pay the sum of $500.00 for a re- lease of said Lynn only from said judgment, and to waive all rights to participate in the assigned estate of the American Exchange Bank, in- solvent, and in the proceeds of the amounts recovered from any of stockholders of said Bank on liability. Therefore, your committee rec- mends that, upon the City Counc the City of Minneapolis concur said proposition be accepted, ar release given as aforesaid. Res fully submitted. Fred E. Barney, P. Weingart W. Nash. Commissioner Johnson offered following resolution: Resolved, That the report of Ways and Means Committee be cepted and adopted and that the proposition be accepted and said lease given upon the City Counc the city of Minneapolis concur therein, and that the Chairma authorized on behalf of this E to execute and deliver such a rel and take such further steps as i judgment is necessary to carry effect this resolution. Adopted Commissioner Johnson offered following resolution: Resolved: That whereas Lawr Bencker of the city of Minneapo dependent upon the public for port, and is unable to earn a l hood in consequence of bodily in ity and old age. And whereas said Lawrence Bencker has sons are able to support said Law Bencker and whose names are as lows: Frank Bencker, 1018 Bassett p Minneapolis, Minn. Herman Bencker, 1217 Plym avenue, Minneapolis, Minn. Therefore, be it resolved that son's are required to support the Lawrence Bencker, and in de thereof, shall forfeit and pay t County Commissioners of Hen County, for the support of said rence Bencker, the sum of f ($15) dollars per month. Adopt Commissioner Smith offered following resolution: Resolved, That the Committe Poor Farm be authorized to pur groceries for the Poor Farm a list attached; also, to make nec ry repairs on the boiler at the Farm. Adopted. On motion the Board adjourne Monday, August 8, 1904, at 10 o a.m. HUGH R. SCOTT County Audi $50 to San Francisco and Retur Chicago Great Western Railwa Tickets on sale daily from Au to Sept. 2. Good returning unti 15. For stop-over privileges other information apply to Heard, General Agent, corner N lav and 5th st, Minneapolis.