9970. St Paul Trust Company (St Paul, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
January 4, 1902
Location
St Paul, Minnesota (44.944, -93.093)

Metadata

Model
gpt-5-mini
Short Digest
b283e0d1

Response Measures

None

Description

The St. Paul Trust Company voted to go into voluntary liquidation in early January 1902 after an adverse Supreme Court decision (the Strong case). No bank run on this institution is described in the articles; the closing is voluntary liquidation rather than a regulatory receivership. Dates taken from Jan. 3–4, 1902 reports. OCR errors in some syndicated summaries were corrected (e.g., references to other banks/runs concern Cleveland's Dime Savings & Banking Co., not St. Paul Trust).

Events (1)
1. January 4, 1902 Suspension
Cause
Voluntary Liquidation
Cause Details
Board voted to go into voluntary liquidation because of a large supreme court judgment (the Strong case) making the company liable for roughly $78,000 plus interest (nearly $125,000), and business had been unprofitable; company will liquidate and accept no new business.
Newspaper Excerpt
The St. Paul Trust company, after a commercial existence of eighteen years in this city, yesterday notified the bank examiner that it was going into voluntary liquidation.
Source
newspapers

Newspaper Articles (6)
1. January 3, 1902 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, January 3, 1902

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Article Text

St. Paul Trust Company Goes Into Liquidation. TROUBLE CLEVELAND Everett-Moore Syndicate Finds It Hard to Obtain Finances. St. Paul, Jan. 3.-The St. Paul Trust company, with capital of $200,000 has voted to go into liquidation. The chief cause is the supreme court decision making the trust company liable for judgment of $100,000 in the estate of C.D. Strong, which has been in charge of the company the last decade. Creditors will probably be paid in full, but stockholders will receive an amount. is made by a ment uncertain public The has announce- examiner. been The company's business very extensive. Jan. 3.-When the doors Cleveland, the Saving Banking of Dime and comwhich the run was started as a result pany, yesterday upon of troubles the annoancement of the financial of Everett & Moore, who are members of the board of directors of the institution, opened today, there was a big crowd of depositors waiting. Each person was presented with a slip saying the bank would require GO days' notice of all withdrawals, in accordance with the by-laws. The assets of the bank are more than sufficient to pay all liabilities. O., Jan. 3.-The financial of the Everett-Moore affairs Cleveland, number syndicate, of uror controlling a interurban electric and extensive system of owning ban an and local railways and long-distance telephone lines in Ohio and Michigan, passed Into the control of a committee composed of seven prominent bankers of this city yester- it Vis This action was taken, as the result of embarrassment on stated, day. financial temporary the part of which time been affected by the past syndicate, has the The for string- some comency in the money market. mittee chosen has been at work investigating the affairs of the syndicate, and expresses the firm belief that and the concern is entirely solvent, that its embarrassment will be only temporary. Properties Controlled by the Syndicate. The Everett-Moore syndicate is accredited with controlling more than 1.200 miles of urban and interurban electric lines in Ohio and Michigan, in with many new extensions still course of construction. Among the telephone properties owned outright or controlled by the syndicate are the Cuyahoga Telephone company, of this city, with upward of 10,000 subscribthe United States Telephone comers: (long distance), the Federal Telepany phone company, the Stark County (O.) Telephone company, the Columbiana the County (O.) Telephone company; DePeople's Telephone company, of troit: the Wood County (O.) Telephone in company, and a number of others which the Federal Telephone company is the controlling factor. Street Railway Property Solvent. Among the more important electric the street railroad properties in which syndicate is largely interested are the Cleveland Electric Railway company, the Detroit United Railway company, the Toledo Railway and Light comthe Northern Ohio Traction com- and pany, the Cleveland. Painesville Eastern pany, Railway company, the Detroit and Toledo Shore Line Railroad comand the Lake Shore Electric pany, Railroad company. All of these lines be. are declared by the committee to with scarcely an exception, in good physical condition. perfectly solvent agand in no wise embarrassed. The gregate capitalization of all the various properties owned or controlled $130.- by the syndicate is said to be about 000,000. Expert accountants have been employed by the committee in charge conto examine and report upon the dition of all the constituent companies. No statement has as yet been given the out. indicating the liabilities of syndicate.

2. January 4, 1902 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, January 4, 1902

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DECIDES TO CLOSE ST. PAUL TRUST COMPANY GOES INTO VOLUNTARY LIQUIDATION BUSINESS IS UNPROFITABLE Supreme Court Decision in the Strong Case Causes Board of Directors to Take This Step. The St. Paul Trust company, after a commercial existence of eighteen years in this city, yesterday notified the bank examiner that it was going into voluntary liquidation. This decision was arrived at after a lengthy meeting of the board of directors, who say that within the next two years all the business affairs of the company will be settled dollar for dollar, and the company will go out of existence, It is expected that it will be reorganiz. ed within a short time, and all the present officers will resign their positions. The immediate cause for this decision on the part of the stockholders of the concern is the judgment handed down by the supreme court, Dec. 13, making the company liable to the heirs of C. D. Strong to the amount of $78,000, with interest for the past ten years, making the total amount nearly $125,000. In the decision the court exonerates the trust company completely, but the judgment is SO large that it will seriously affect all the stockholders, and this added to the fact that the business of the company for the past year has not been particularly profitable, decided the directors to wind up its affairs. President J. W. Bishop, of the Trust company, issued the following letters, setting forth the reasons for the action taken by the directors of the company: J. W. Bishop's Statement. Referring to misleading announcements published in the noon editions of our city papers, I beg to say that the public examiner is not. and has not been, in charge of the office or business of the St. Paul Trust company, that it has not made any assignment, that no receiver has been appointed, and that none of these things is likely to be true in the future. After an experience of some eighteen years, the St. Paul Trust company has found that the conduct of trust business under conditions and restrictions existing here has been unprofitable, and has decided to liquidate its affairs, to accept no new business, and within the next two years to retire from the field entirely. All of the funds to the credit of trust accounts, including all agency business, have long been set aside as required by law, in deposits separate and apart from our own moneys, SO that any or all of them can be paid on demand at any time. With its other creditors it has arranged to go into voluntary liquidation, and undertakes within two years to convert its assets, which are largely real estate, now beginning to be salable, and to satisfy all claims against it, and expects to thus wind up its affairs full, amicably and honorably. In the recent decision in the so-called "Strong case' the supreme court says, it assumes to be the fact. "as believed by the trial court, that the company exercised good faith in each of these transactions, and with a conviction that it was complying strictly with the law in respect to the investment of the trust funds." Yet this decision makes the company liable to refund, in cash, with legal interest from their date, a large amount of investments, made ten years ago, in mortgage loans, which, by the depreciation of real estate in this city, have necessarily been foreclosed. The company assumes the responsibility of meeting those conditions, but requires, and has obtained, the time necessary for the conversion of its assets, and for the preservation of the interests of all parties, including its stockholders There need be no excitement or sensation about the matter: all will be conducted and consummated in an orderly and businesslike manner, and to the satisfaction of all persons having accounts or trust relations with the company. -J. W. Bishop, President. The St. Paul Trust company has a capital stock of $200,000. Up until last summer it was $250,000, when the amount was reduced. Under the will of the late Freeman P. Strong the St. Paul Trust company was trustee, and had invested a large sum of money in mortgages on city property which were owned by the company. The value of the property depreciated, although at the time the investment was made, it was considered to be good. The estate objected to a settlement with the trust company based on the depreciated values, and the matter was brought into court where the estate presented the claim that the trust company had no right to dispose of the trust fund by selling it to its mortgagees. The court sustained the claim of the estate, and handed down the decision mentioned above. Will Be No Loss. The officials of the company all state that the creditors of the company will not suffer any loss whatever, and that all will be paid dollar for dollar. The outstanding obligations of the company exclusive of the amount due to the Strong estate is estimated to be about $30,000. It is said that the creditors of the company have asked the present officials to resign their positions, which they have agreed to do. Gen. Bishop, it is said, will soon retire and allow the affairs of the company to be wound up without his assistance. Hayden S. Cole, of the law firm of Stevens. o Brien, Cole & Albrecht, is supposed to be slated to succeeded Gen. Bishop. The following is the report of the St. Paul Trust company to Public Examiner

3. January 9, 1902 The Fulton County News McConnellsburg, PA
Article from The Fulton County News, January 9, 1902

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SUMMARY OF THE LATEST NEWS. Domestic. The St. Paul Trust Company, capital $200,000, has voted to go into liquidation. The chief cause is a recent supreme court decision making the trust company liable for a judgment for $100,000 in the estate of C. D. Strong, which had been in charge of the company. The circuit court of Toledo, Ohio, af firmed a decision of lower courts giving Mrs. Adelaide Smith, of Fremont. Ohio, judgment of $5,400 against the estate of the late President Hayes. Mrs. Smith was bitten by a dog that belonged to Mr. Hayes. Four robbers entered the town of St. Joseph, Mo., and blew up the vault of the Bank of Camden Point with dynamite. The explosion aroused the citizens and a pitched battle with the robbers the robbers The ensued, Chicago Northwestern getting University away. proposes to abandon the woman's medical department, and James H. Raymond, a trustee of the university, declares that it is impossible to make a doctor of a woman. The trials of the cases growing out of the postoffice emebzzlements in Cuba are scheduled to begin in Havana today. The attorneys for Rathbone will ask for a suspension of trial. Three men were scalded to death as the result of an explosion at the South Penn Oil Company's pumping station, in Doddridge county, West Virginia. A run was started on the Dime Savings and Banking Company in Cleveland. and the bank officials took advantage of the 60 days' notice rule. Bernard Michael. aged 67 years. was found in his office, in St. Paul, Minn. with his throat cut. He was in the real estate business and wealthy. John G. Thomas. cashier of the WellsFargo Express Company in Cincinnati, has been missing since Monday. His accounts are all straight. Experiments are being made at Memphis Medical College with an embalming fluid said to be better than that used by the Egyptians. President Lynn, of the levy court, put an end to all difficulties by sending his resignation to Governor Hunn, of Delaware. Governor Hunt, in his message to the Porto Rico legislature, suggests the repeal of the old law under which Iglesias, the representative of the American Federation of Labor, was sentenced to imprisonment, as a law unworthy the American government. The NortHern Pacific Railway Company has given notice that it has redeemed all the preferred stock, and that it would require holders of 4 per cent. convertible certificates to exchange them for common stock. There is some talk in New York as to Mahan will be called to for the account whether Captain violating comment naval regula- the tions in making public on decision of the Schley court of inquiry. A committee of Cleveland bankers was appointed to take charge of the properties of the Everett-Moore syndicate, which controls many trolley and telephone lines in Michigan and Ohio. The body of Robert Lee Johnson. of the Twenty-third Regiment. United States Signal Corps, who died in the Philippines, was brought to Harper's Ferry for interment. Charges of perjury and larceny were brought against William C. Wakefield, promoter of the international copper syndicate, in South Framingham, Mass. the manager of the in Searchlight Mrs. Bullock, Hotel, Searchlight, Nev., chilwas burned to death, with her two dren, in a fire which broke out in the hotel. By the explosion of a locomotive boiler in the shops of the Georgia Central Railway, at Macon, Ga., 5 men were killed and 12 injured. Miss Lizzie Miller, a Wisconsin girl, has sued Henry J. Huening. of Chicago, for $5,000, alleging breach of promise of marriage. H. Murray Crane was sworn in to serve his third term as Governor of Massachusetts. Small-pox broke out in the Hudson county, N. J., jail and in the almshouse.

4. January 10, 1902 Highland Recorder Monterey, VA
Article from Highland Recorder, January 10, 1902

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SUMMARY OF THE LATEST NEWS. Domestic. The St. Paul Trust Company, capital $200,000, has voted to go into liquidation. The chief cause is a recent supreme court decision making the trust company liable for a judgment for $100,000 in the estate of C. D. Strong, which had been in charge of the company. The circuit court of Toledo, Ohio, affirmed a decision of lower courts giving Mrs. Adelaide Smith, of Fremont, Ohio, judgment of $5,400 against the estate of the late President Hayes. Mrs. Smith was bitten by a dog that belonged to Mr. Hayes. Four robbers entered the town of St. Joseph, Mo., and blew up the vault of the Bank of Camden Point with dynamite. The explosion aroused the citizens and a pitched battle with the robbers ensued, the robbers getting away. The Chicago Northwestern University proposes to abandon the woman's medical department, and James H. Raymond, a trustee of the university, declares that it is impossible to make a doctor of a woman. The trials of the cases growing out of the postoffice emebzzlements in Cuba are scheduled to begin in Havana today. The attorneys for Rathbone will ask for a suspension of trial. Three men were scalded to death as the result of an explosion at the South Penn Oil Company's pumping station, in Doddridge county, West Virginia. A run was started on the Dime Savings and Banking Company in Cleveland, and the bank officials took advantage of the 60 days' notice rule. Bernard Michael, aged 67 years, was found in his office, in St. Paul, Minn., with his throat cut. He was in the real estate business and wealthy. John G. Thomas, cashier of the WellsFargo Express Company in Cincinnati, has been missing since Monday. His accounts are all straight. Experiments are being made at Memphis Medical College with an embalming fluid said to be better than that used by the Egyptians. President Lynn, of the levy court, put an end to all difficulties by sending his resignation to Governor Hunn, of Delaware. Governor Hunt, in his message to the Porto Rico legislature, suggests the repeal of the old law under which Iglesias, the representative of the American Federation of Labor, was sentenced to imprisonment, as a law unworthy the American government. The Northern Pacific Railway Company has given notice that it has redeemed all the preferred stock, and that it would require holders of 4 per cent. convertible certificates to exchange them for common stock. There is some talk in New York as to whether Captain Mahan will be called to account for violating the naval regulations in making public comment on the decision of the Schley court of inquiry. A committee of Cleveland bankers was appointed to take charge of the properties of the Everett-Moore syndicate, which controls many trolley and telephone lines in Michigan and Ohio. The body of Robert Lee Johnson, of the Twenty-third Regiment, United States Signal Corps, who died in the Philippines, was brought to Harper's Ferry for interment. Charges of perjury and larceny were brought against William C. Wakefield, promoter of the international copper syndicate, in South Framingham, Mass. Mrs. Bullock, the manager of the Searchlight Hotel, in Searchlight, Nev., was burned to death, with her two children, in a fire which broke out in the hotel. By the explosion of a locomotive boiler in the shops of the Georgia Central Railway, at Macon, Ga., 5 men were killed and I2 injured. Miss Lizzie Miller, a Wisconsin girl, has sued Henry J. Huening, of Chicago, for $5,000, alleging breach of promise of marriage. H. Murray Crane was sworn in to serve his third term as Governor of Massachusetts. Small-pox broke out in the Hudson county, N. J., jail and in the almshouse.

5. September 5, 1902 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, September 5, 1902

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# Trustee Asks to Be Discharged. Freeman P. Strong began a suit in the St. Paul courts yesterday in which he asks to be discharged as trustee of his father's estate. Originally the St. Paul Trust company was made trustee. Then the company suspended and there is still a considerable balance due. The trust, under the will, was to continue only during the lifetime of Mrs. Strong, who is now dead, and for that reason suit has been begun. So far as the Strong heirs are concerned the matter is a friendly action. The balance due the estate from the trust company is about $77,000.

6. January 21, 1903 The Redwood Gazette Redwood Falls, MN
Article from The Redwood Gazette, January 21, 1903

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# THE GILFILLAN WILL. The Redwood Falls Library Fund Not Mentioned in the Document. The will of the late C. D. Gilfillan was admitted to probate in the Ramsey county probate court on Thursday afternoon of last week. The minimum value of the estate is placed at $368,400. Prior to his demise Mr. Gilfillan deeded a great deal of his property to prospective heirs, and as a result the amount of property admitted for probate was a great deal less than what Mr. Gilfillan was worth a year or two prior to his demise. Three or four weeks before his death a business man of this city was informed that Mr. Gilfillan was desirous of doing something toward the erection and equipment of a public library for Redwood Falls. The matter was laid before two or three men of this city with the view of formulating a plan for receiving the donation, and after considerable of time spent in searching for a law that would permit of the acceptance in a legal matter a meeting of the city council was called for the purpose of establishing a library and selecting a library board. This was done on the Friday evening before the demise of Mr. Gilfillan. The party to whom the matter was first laid gave the details to the members of the council, and the board was selected. The next morning a copy of the ordinance, together with a resolution appointing the board was sent to Mr. Gilfillan's attorney, but the latter did not get the matter before Mr. Gilfillan before he passed away on the following Thursday. C. N. Bell, the attorney, hopes that something will yet be done to carry out Mr. Gilfillan's ante-mortem wish. The estate is divided up among the immediate members of the family, a widow, two sons and two daughters. At the time of the making of the will, Nov. 15, 1897, the St. Paul Trust company was doing an active business and the testator made that company his executor and trustee. But after the trust company went into liquidation the testator added a codicil to his will, annuling the appointment and naming E. H. Bailey, Charles O. Gilfillan, his son, and John Caulfield, his friend, of the water board, as executors and trustees. The testator leaves in trust to Charles O. Gilfillan the following farms: Robinson, 160 acres: Carlisle, 80 acres; Cook and Nelson, 320 acres; Satta farm, 160 acres; Dripps, 160 acres; Andrews, 80 acres; Eli House 160 acres; Jensen, 429 acres; total of 1,440 acres. Charles O. Gilfillan has plenary powers in managing and disposing of these farms, but the income or avails are to be turned over to the executors as trustees, and they shall divide the sums so paid in int tree parts or trustfunds-one each for Mrs. Gilfillan, wife of the testator; for his daughter, Emma C. Gilfillan, and his daughter Fanny (Mrs. Kingland Smith.) These funds are to be invested in United States bonds, such bonds as have the longest terms to run. The testator leaves to his son Charles O. Gilfillan any and all other real estate in Redwood county and all furniture, fixtures, implements, etc., employed in the conduct of the home farm and all no'es, accounts and the like arising from the management of the home farm. Also the stock in the bank at Redwood Falls. Also the stock in the Sleepy Eye Milling company. To his son, Frederick J. Gilfillan, the testator leaves the seven dwelling houses and the realty appurtenant thereto in block 1, Kittson's addition. Also the stock in the Stillwater Water company and the stock in the C. N. Nelson lumber company. Also realestate in Minnesota not otherwise disposed of. To the executors as trustees the