The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-19
TIE GERMAN-AMERICAN BANK.

Irregularities DiscOvercd-The President,
Mr.. Emil Sauer, Asked to Resign
Statements of the Vice President and
Cashier.
The irregularities, which were recently discov-
cred IN the foreign exchange department. OF the
German American Bank becoming known to the
public yesterday, many wild rumors were IN
circulation regarding the condition OF that
institution. There appeared to be no grounds
whatever for these reports, as investigation DEM
onstrated; for, although Mr.. Sauer, the President
had on ms own account drawn $65. 900 against the
foreign correspondents OF the bank, he deposited
as collateral security the deeds to his property
in Brooklyn and hts life insurance policies, the
nominal value OF which was greatly in excess OF
the debt. This deficit was discovered early in this
month by a comparison OF the balance sheet OF the
foreign correspondents. The directors were at
once called together, and under . pledge ol
President Il was deemed best to give Mr. Sauer
an opportunity 10 make good his drafts, and on
the following day ne conveyed TO the bank his
Brooklyn real estate, together with mort
gage on his household furniture and silver
and his life insurance policies for $4,000,
the cash value OF which is estimated at 50, 900. Mr.
Sauer then declared that he believed tins would
more imam cover the amount OF his Deficiencies,
put, ha wing failed 10 make good the lacking funds
on Friday the directors again met and unani-
mousy voted that his connection with the bank
should cease. note 10 this enect was handed
Vice President was empowered to act as his sue
cessOr.
WHAT THE ACTING PRESIDENT SAYS.
There did not appear TO be any disposition to
reticence about the matter at the bank. aud the
officers were readily reached Mr.. David SalomoD,
Vice President stated the case very clearly to
HERALD reporter. 1T would seem.'' he said,
that during last summer Mr.. Saner purchased
some real estate in South Brooklyn, on Gowanus
Bay, occupied by warehouses, on winch he hoped
10 realize largely. The panic and consequent
shrinkage OF vaiues reduced Mr.. sauer TO serious
INST Ia "a
OF the purchase money as they ieil due.
In this dilemma Mr.. Sauer had drawn
respondents, sold the bills aud employed the pro-
ceeds toward The payment on the brooklyn prop
erty. The money SO obtained amounted IN all TO
about $4,000. These transactions occurred during
period OF l0ur months past, and were made WITH
out tie knowledge OF the otner officers of the
bank. one OF the clerks. who although he acted
under the orders OF ms President, Mr. sauer) was
aware that the transaction Was not regular. has
been suspended. Mi. Sauer undoubtedly consid-
cred tnis as a loan to himself rom the bank. which
he would be able 10 replace without inquiry. us
reputation Tor business Integrity and capacity mas
always been Of the Desl.'
THE CASHIER.
Mr. Almond H. SchreIner, the Cashier, says that
the deficiency is mere Dagateie TO bank with a
surplus OF $4,000. The deficit would in way
effect the capital and did not cause the slightest
uncaslness among the directory. Regarding the
cause Mr.. Schreiner could only say that IL had
CURED IN the foreign exchange department., winch
under the especial charge oil Mr.. Sauei. He
also denies that il was contemplated that he
should succeed Mr.. Sauer The bank had ON hand
yesterday sz7l3,af7 81 IN cash. The Dank was or
gained Jour wears ago, with x20O0,0O0 capital
and mas paid dividend TO Its stockholders every
year since
Mr.. Emil sauer was. IL wil he remembered,
Treasurer oil the Committee OF seventy, and was
one the electors OF tins state at the last Presl-
dental election.
the following is the present list OF directors Of
the bank. In which vacancy exists through Mr..
Ssuer's removal: Chauncey L. Bowen, OF Chicago !;
AdOlpn Engler, George GraYenhorsr Marcelius
Hartley Joshua Hendricks, Gerhard Jansen,
Frederick Kuhnc. Alexander kimgenberg, NJ ii.
Levin. Frederick Meissner, Emil Magnus, Francis
Moran John r. Pupke. THOMAS J. Pope. David
saiomon, Joseph ,eiigman, Jonas sonneborn,
Frederick VIimar, Frederick Won lie rnuth.