The Saint Paul globe., 1897-01-06
ALBERT SCHEFFER SAYS THERE
is A MOVEMENT LOOKING TO
REORGANIZATION.
COunctImen Begin to Look Up the
Matter of Bonds After It's All
Over.

considered strong enough to stand the
test should such be necessary, which
is not probable.
Maurice Auerbach, Of the Union bank,
who has been appointed receiver for
the Alemannia, expects to formally
take charge Of the affairs today. He
had no idea, he said, of the condition
OF the bank, and only knew of the
state OF affairs by what he had Seen
IN the press. Speaking of the run on
the banks, Mr.. -Auerbach said:
cannot blame people for withdraw
ing their deposits If they feel uneasy
about their money. Many times these
people ask me what is best to be done.
tell them to get their money if they
are scared and fear they will lose it.
Ihe failure of the banks yesterday has
proved harvest for the other banks,
where the depOsitors are transferring
tnelr accounts. The safety deposit
vaults are olsa being used to a large
extent look for the excitement to
suoslde quickly. The occurrences of
the past few weeks have been enough
to cause public disquietude."
Albert Scheffer stated last evening
that the bank would be reorganized
ana that movement was already en-
foot to that end. Everything credited
upon Monday would be returned. The
rumor that there had been any i'll feel
ing between the officers of the Allie
MAMMA and Germania banks was with
out foundation. There was the kindliest
feelings between the officers Of the two
banks, for it was felt their interests
were mutual. Mr. Scheffer said the
clerks were busy getting out a state
ment, and he did not think the de-
positors need worry about getting their
money in full, as the suspension was
made primarily for their interest ard
protection.
Mr. kerst, the assignee of the Ger
mania, informed number of deposit-
ofs VINO called yesterday that, so far
as he could judge, there was no fear
out what they would ultimately get
their money. Asked as to matters per
'a!Llhg 10 the bank affairs, Mr.. Kerst
said .G..
The clerks are checking up certifi
Gates and the bookkeepers are hal
ancing accounts. IAN enormous mail
mas piled up here within the nast
tWelVe hours, and have been so busy
tnat L .haYeR been safia ableIto- look into
eHs.r II all goeSE we'll, 5 will have a
statement Tor the public and press in
ABOUT week. The. standing of this
pank Is all right, and it can only be
question of a few months till if is
on its feet again. You will readily
understand our financial status when
L tell you that when the bank closed
we had over 100000 in cash and
money due from banks. We have been
Crltlclsed in some quarters for not
closing up sooner, and thereby eft
co vino fn,,
could not tell just how long the with
/ draWals were going to continue The
bank was in first-class shape, and we
hoped to weather the storm and pull
through all right. Everything looked
favorable until the crash came at Min
neapolis. This tended to stimulate the
Withdrawals. Naturally we thought
that there would be some let-up at
the holidays, and that the people would
turn their thoughts in other channels,
but such was not the case. The drain
was slow butse steady and effective,
so there was nothing to do but close
UP, and thereby protect the entire body
of depOSitors.'
1t is understood that there is not
the slightest chance for the state Of
ficials to make any effort to have Peter
M Kerst, the assignee, removed and
receiver appointed The bank exam
iner, it is claimed, is fully acquaint-
ed with the affairs of the institution
and knows as well as the officers that
the assignee ean-3'handle the affairs
better than could a receiver
It is stated on good authority that
the assets of the bank are 81 500, 600,
which is only about $400 900 less than
the liabilities. r This showing would
enable the bank to pay nearly dollar
for dollar on the reorganization, the
small balance being easily made up
-
G.. F. Staples, was in consultation with
John V. I. Dodd, the attorney of the
bank, yesterday. Mr. Dood stated that
the bank had been run on pretty heav-
ily during the past two months, when
more than one-half Of it's deposits were
drawn out The bank was in good
condition. and he was satisfied that
Dodd took the bond Of Assignee Staples
before one Of the Judges Of the dis
trict court for approval
The bond of Maurice Auerbach, as
receiver of the Allemannia bank, in the
sum Of $3.50 900, was approved yester-
day afternoon. The bond is signed by
National Surety company, by w. B.
Joyce, resident vice president, and
American Surety company, by Thomas
r Scott resident vice president.
Among the bonds approved at the
meeting of the board of aldermen last
night was that Of the Commercial bank.
rhe bond was dated June %, 1895, and
was in the sum of $3.50, 900, with the
| following persons as sureties: Henry
| Ahnemann, William Hamm, Bernard
Kuhl. Haskell G.. Fischbein, Russell G.
Munger, Arthur e. Whitney, F. r,
WeIz. E. Yanish,i Henry A. Castle,
M Loses E. Clappband Timothy Reardon.
On the outside of the bond was a
note stating that the bond had been
approved as to form by E. ]. Darragh
Sept. 8, 1895. The committee on ways
and means Of the board of aldermen
Aid. Bigelow chairman of the commit
tee having hunted up the bond. 1t
was read by the city clerk last evening
by it's title andapproved by the alder
men. This is the only bond which. the
city has to indemnify it for the de-
posit of $1O4, 1855 which is now tied up
in the AllemanTia. City Attorney
Phillips holds 10 the opinion that the
fact that the Allemannia bank sue
| ceeded the Com7nereial bank makes the
| bond all right He also claims that
| the fact that the bond had not been
approved by the council does not make
any particular difference, as it was
made to the city and by the arrange
ment the city deposited funds in the
| institution. This, he says, is sufficient
| to bind the bondsmen for the amount
| now on deposit in the Allemannia
| A New York Associated Press tele-
| gram SAYS: "The sheriff today received
| two attachments against the Germania
| Bank of ST. Paul, one for $4,000. in
| favor of H. M. Sadler Jr., on a draft
| dated December 20, and the other for
1 II C-Jl