New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-04-20
LOCAL MISCELLANY.
BANK IRREGULARITIES.

PARTICULARS OF THE TRANSACTIONS OF THE LATE
PRESIDENT or THE GERMAN-& ERIcAN BANK.
The irregularities in the German American
Bank continued to be the sensation in financial circles
Saturday, where all the persons Interested well
known. The Directors OF the Bank Chauncey T.
Bowen OF Chicago, Adoph Enger, George Gravenhorst
Marceus Hartley, Joshua Hendricks Gerhard Jansen,
Frederick Kuhne Alexander KlingenberR, NJ. H. Levin
Frederick Meissner Emil Magnus. Francis Moran,
John Pupke, Thomas j. Pope, David Saomon, Joseph
Seligman, Jonas sonneborn, Frederick yinar, and
Frederick Won Bernuth.
They feel keeny discreditabe notoriety which at
taehes 10 the Institution by of Mr.. Sauers opera
tiOns and pledge their honor that the bank not af
fected pecunarily beyond the extent Of about $OOO
which is one-half OF their surplus
Emu Sauer the late President. before his connection
with the German American Bank. a member of the
trm OF Kamah. sauer Il Co., German bankers, No. 45
Exchange place He asoi,identifed in a reputable
manner with politics, having been q member of the
Committee OF Seventy and other organizations He
engaged Saturday in arranging his papers, prepare
tory to removing them from the bank
Mr. David Salomon the acting President OF the bank
said in response to the inquiries Of TRIBUNE reporter
that Mr. sauers statement published in THE TRIBUNE
correct with the exception of that portion which
related to jealousy combination for the purpose
of getting Mr. sauer out OF the bank. There no
jealousy and effort to get rid Of Mr. sauer until his
own acts compelled the Board to dismiss him.
Mr. Solomon said that the direct Of embarrass-
ment was as follows Mr.. sauer purchased warehouse
sites Gowanus Bay, in Brooklyn, last Summer, for
which he made part payment IN cash out Of his own per
sOna property expecting mat 10 would prove pfOnt-
Investment The panic deprecated his purchase 10
such extent, however that he was unable 10 RAISE
upon IL the subsequent instaimens OF the purchase
/ money, and he therefore used his connection win
| the bank to supply the difference. lie raised
/ $4,000 by drawing the banks exchange on its
foreign correspondents and then selling the bills SO
obtained All this occurred within the last four mouths
but none the officers of the institution had been
OF the abstraction of the bank funds with the
exception of single clerk, who supposed his superior
officer was acting with knowledge and assent of the
| directors The CLERK had been suspended, but would
probably restored IN view of his only being guilty
pecuatlOns became known last Monday through
comparison OF the banks accounts WITH those or ITS
| foreign correspondents. Mr. Solomon held council
| with the directors, having first bound them
10 allow Sluer time 70 MAKE restltu-
ton aud Tuesday he transferred 10 the bank as security
the property GOwanus Bay mortgage on MS house
hold furniture and silver and his life insurance policies
which have cash value OF between 5000 ana
$1,000 As this failed to make mp the necessary amount,
the directors Friday resolved unanimously that Mr.
Sauer should no longer be President, and sent MIN
notice that effect. Whether the loss OF the bank
should he greater less depended upon the condition
Of real estate market, which at present was very
exceed $4,000. In answer TO inquiries, Mr.. sal0mons
SAID would be taken to prosecute Sauer
Ii was learned that valuing the property offered by
Sauer S35 000 that persons friends had
that he should be retained in his position President
OF the Bank, but this proposition was rejected An
election till the caused by the ulslnssal OF
President Sauer viii soon be held.