St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-03-18
HOW TO DO BANKING.
A Difference of Opinion Among the
Officials of the National Ger
man American Bank.
A Report That the President Has Been
Asked to Resign.

| 0-N "ao NAlduEtu W lut -NdllOustA
German American bank and the
capital increased to two million dollars, max
ing it the largest banking institution in the
state. Inc officers and directors were chos-
en- to continue until last January and at that
time were reelected and stand TODAY as
| follows:
| Walter Mann, Pres, Gustav WiIlius Cash
| Is. T. Howes, V. Pres, Joseph Jockey. 4. Cash.
DIRECTORS
F. Wilius, John B. Sanborn.
r. r. l.. Hardenberg, Joseph Jockey.
| Adolph Paar, Henry NJ. Knor
| F. Knauft, Walter Mann
Jas. II. Weed W. 5. CuIbertso,
Genl Alfred H. Terry, DR.. f. X. smith.
Conrad Gotzian, Alex. Sternberg'
| VIM. Lindeke, Claiming Seabury
| Gnstav Willius, Alex. NJ. Drake
| B. C. Howes.
The bank has done large and profitable
business and the statement of December 81,
last showed in addition to dividends sur.
plus of $4,000, and undivided
profits amounting to s2S,12369. Some
losses had been made, as would naturally
be expected, only one of which
| (the Raymond failure at Fargo) attracted
much attention and that attention was not
so much owing to the amount involved-the
loss being perhaps S25, 000-as to the fact
that it was evidently a deliberate swindle
and the bank had been a victim Of fraud in
! stead OF business mirfOrtuue of a customer.
1t was reported about town yesterday that
| diversity of opinion had arisen among the
| directors and officers relative to the methods
OF transacting the business. While the entire
! losfes of the bank were a mere trife for an in
stitution of such capital, not az
gregating over one and half
or two per cent. of the capital, some
of the more conservative element thought
even that should have been greatly reduced,
and hence, though the dividends are regular,
there is not entire harmony as to the
proper manner of doing banking
business. The president, Mr.. Wal
! ter Mann, is said to favor keeping
the funds of the bank in active use, while
the other element prefer to keep n large
amount idle rather than incur any possible
chance of bad deal and loss. 1t was also
given out on the street that the directors had
asked Mr.. Mann to resign.
GUSTAV wILLIUs.
| representative of the GLOBE called at the
bank after business hours yesterday and
found the cashier, Mr.. Gustav Wiius, at his
desk. He was told the street report and
asked to verify it.
II do not think 1 ought to say anything"
was his reply. ''You had better see Mr..
Mann and if anything goes to the public let
it be his version. AS you put it, the state
ment is not correct but it is matter do not
want to talk about.n
! Upon being pressed further Mr.. Willius
admitted that some action had been taken
by the directors, at a meeting held last
Thursday, relative to Mr. Mann's presidency
and the general methods of conducting the
business of the bank, but he preferred to
have Mr.. Mann heard from instead of him
self.
GEN. JOHN b. sANBoRN.
This gentleman was found at his office
over the bank, and on being inquired of in
regard to the report that Mr.. Mann had been
requested to resign, declared that it was not
| true; that he had not been requested to re-
sign at all, and further, that Mr.. Mann had
stated to him that if he was requested to re-
sign he would refuse to do so. When
asked what action the directors
had taken, Gen. Sanborn said
that the board had appointed a committee on
discounts who were to have control of them.
! When asked what the difficulty was with
Mr.. Mann, that is, just what was the cause of
complaint, Gen Sanborn said that it was
simply difference of opinion as to how
| banking business should be done. Mr..
Mann's idea was, in short to keep the money
in active operation, and not have large ac-
emulation on hand inactive. He
thinks it best to take unmatured business
paper offered and discount it, and claims
that on that principle, though the bank
should occasionally lose something, the ag-
gregate business will in the end show a per
cent. semi-annual dividend, and at the same
time will carry large amount to surplus ac-
count, whereas the principle of other
bankers, that large surplus of money
must be always kept on
| hand would not give more than per cent.
semi-annually, though no money was lost il
it would that. In this connection Gen.
Sanborn said that Mr.. Mann referred to his
record as banker and declared his willingness
to stand by that. He first started in the
banking business in an interior town in In
diana, the name of which Gen. Sanborn
could not then call to mind, with the stock
at rs cents on the dollar, and
after running the bank for nine years
sold out with the stock at 51.50, and in the
meantime paid ten per cent. dividends. In
1861 he started in New Albany Indiana,
with the stock at par, and sold out in 1871
with the stock at S1.75, and in the meantime
| paid five per cent. semi-annual dividedds. In
| 1871 he went into the Merchants National
bank in st. Paul with the stock at par, and
in 1882 it was S1.52, and in the
meantime paid five per cent. semi-annual
dividend except where one dividend was
passed. Mr.. Mann claims that he is good
banker, and that his policy of keeping the
money of the bank actively engaged, even
though some losses may follow, is the most
profitable way to do banking business, and
| that it is not the way to conduct such busi-
ness by keeping large surplus on hand in
| idleness.
The trouble, Gen. Sanborn stated, grew
out of some losses up at Fargo and other
| places In the northwest, and referred par
ticularly to the Raymond S25, 900 case. The
paper In this case was taken as current BUSH
ness paper, and proved to be fictitious. The
paper was not business paper at all, but a
swindle and fraud throughout.
The only other loss of consequence was
through the clearinghouse of Kenneth Moore
at Morris, and that would not be over $780,
600, if it was that.
WALTER MANN.
A GLOBE representative called at the pleas
ant residence of Mr.. Mann, on the corner OF
Laurel avenue and Arundel street last even
ing and found that gentleman at
home. He was evidently prepared
for reportorial call as he forestalled the
searcher for news with the announcement
that he had nothing to say for publication,
without waiting TO have the pumping process
applied. From this resolve he did not change
beyond making this statement:
II am perfectly willing to have my record
and reputation as business man and bank
er in st. Paul for the past twelve years put
! to the test, and have no fears of the verdict