Omaha daily bee., 1897-01-19
STOCKHOLDERS NAY CONTROL
Proposition Made to the State officials in
This Direction.
MOVE IN The GERMAN SAVINGS AFFAIRS
state nnnging Bonrd Asked to Re-
move the Receiver and Allow
the Stockholders to Wind
Up the Business.

LINCOLN, Jan. 1s.-(speclal Telegram.)-
Ex-Governor Crounse and Attorney j. w.
West of Omaha are in consultation with the
State Banking Board over a proposition to
take the German Savings bank out Of the
hands of a receiver and place it again under
control of its stockholders. They propose
to give a bond for nearly Sl.000,00O and
obligate themselves to pay off every dollar
of the banks liabilities within four years.
question arose as to whether the Banking
Board had a right to move in this matter
without permission of the court Pending
the investigation OF this point the applica-
tion of the bank was left open, and action
will be taken later by the board.
The case will be presented tomorrow to the
supreme court. Attorney Sheehan appears
for Receiver McCague and Attorney West
for the bank. There are some peculiar fea-
lures presented. Whereas the banking law
OF 1895 provides that the stockholders of a
broken bank may give a bond to pay de-
positors in full, 1t is not certain that it con-
templated taking TIE banks affairs out of
the hands Of receiver after receiver had
been appointed by the district court. The
case raises a point never before presented
Receiver McCague is now in possession, and
the question raised ie, can he be ousted by
the State Banking board without regard to
the district court of Douglas county?
The official bonds of John f. Coad, Jr..
and Reuben Sipp bank examiners, for
S25,OOO each, and the bonds of the three
new secretaries of the State Board of Trans
portation, Gilbert l.. Laws, Joseph Edger-
ton and j. c. Dahlman, for 81, 600 EACH were
filed today with the secretary of state.
Thomas McCague, receiver of the bank
knew nothing of the move until apprised of
III hN neNA
stated that it was taken entirely without
consultation with him. Therefore he was
not In position to say much. He thought,
however, that the action was a move on the
part OF Attorney West which is to be used
in his case that is to be heard tomorrow be-
fore the supreme court. When the order
was issued by Judge Koysor of the district
court ordering an so per cent assessment on
the stock, the proceeds to go to making
payments to depostors, Attorney West ap-
peared in court in behalf of the corporation,
asking permission to argue. Judge KeysOr
refused his request, and the attorney then
carried the case to the supreme court. This
is the matter that is to be heard tomorrow
Receiver MeCaguer thought that the latest
move was a scheme whereby the attorney
might be put in a position to have a proper
standing before the court.
It is the receivers opinion that the propo-
sition OF the attorney and Governor Crounse
cannot be accepted. He bases this belief
on the fact that when application was made
for receiver by the attorney general none
of the stockholders, not even those whom
Attorney West represents, made objection
although service was had upon them. Now
that the bank has gone under the care of
the district court the receiver believes that
it has passed out of the jurisdiction of the
State Banking board Whatever is done,
however, will be done slowly in order that
the interests of all parties will be pro-
tected. ,r.-..
Receiver McCague went to Lincoln last
night to be on hand when the case of At
torney West is heard before the supreme
court .-,o