The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-05-25
ratification Of the agreement by the
city council.
ALLEMANNIA AFFAIRS.
New Plan of Reorganization Pre-
scented to Judge Kelly.

New Plan of Reorganization Pre-
scented to Judge Kelly.
When Judge Kelly took his seat upon
the bench in Court Room No. yes
terday forenoon, his honor expected to
hear arguments in support OF ana
against a petition for the reorganiza-
tion of the AIlemannia bank. But what
the court actually heard was an ap-
plication quite different from the petit
ton for reorganization filed In court
by Albert Scheffer
Instead of applying for a reOrganiza-
ton embodying plan for the pay
ment of all unsecured depositors IN five
equal annual installments. J. d.
O'Brien, representing the petitioners.
submitted a new plan, which, 1T was
claimed, would ultimately lead to re-
organization. 1t was that committee
Of three be appointed by the court to
act in the capacity Of receivers. vice
the present receiver, who should be
discharged. These receivers were to
act without pay and collect the debts
of the bank as speedily as possible. He
believed that the appointment Of such
a committee was for the best interests
of all concerned. and he could not
think of any possible objection to the
scheme. His estimate of the assets of
the bank was $42S381, and he believes
there could be collected under the
stockholders liability $175,000, making
the total assets $603,000. The total La
bilities were $524,S47, and under this
showing the assets should pay dollar
for dollar; that is, If the same were
carefully nursed, as they would be un.s
der the committee of three.
Mr. O'Brien said this would be the
preliminary step looking towards re-
organization, and that at the proper
time the officers of the bank would
move, that the affairs of the bank be
transferred from the committee to
themselves. 80 -.
Mr. Mum rather favored the idea
of the appoiE tment of three receivers,
but doubted whether this could be
done under the petition presented He
thought the receiver could only be
ousted under the insolvent laws. The
petition made no reference to the plan
in question.
Mr.. Briggs, representing Receiver
AIerbach, said the receiver would re-
main neutral in this proceeding.
Mr.. Mum stated that he opposed
turning the affairs over to the bank
officers again. He inquired as to the
personnel of this committee.
Mr.. OBrien had in mind Edward
Vanish, Bernard Kuhl and William
Hamm. However, he said the court
could appoint these gentlemen or any
others.
Mr.. Taylor remarked that, as the
original petition seemed to have been
abandoned, it was only right that the
same be withdrawn.
Mr.. Clapp said that, as a creditor
and debtor, he wanted to see re-
ceivers appointed more in sympathy
with the general interest of creditors.
1t was long ago declared that no man
could serve two masters, and that It
was impossible for the president of
a going bank to act fairly as the re-
ceiver Of a suspended bank No attor-
ney would think Of acting in the dual
capacity, such as the receiver of the
Allemannia was doing. He intimated
that the assets of the bank had been
belittIed and the liabilities swelled by
the receiver for a purpose.
Mr. Ingersoll thought the petitioners
were getting the cart before the horse.
A plan of reorganization should first
have been proposed, SO that all could
act iaDtelligently.
After some further argument, Judge
Kelly announced that he would take the
matter under advisement and render a
decision this morning.