The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-06-20
JUDGE0TIS TO O.K.IT
COURT WILL ALLOW THE GER
MANIA BANK TO REoRGANIZE
AND OPEN
WILLIUS MAKES STATEMENT,
COVERING THE FINANCIAL CONDI-
DITION OF THE INSTITUTION
AT THIS TIME.
ORDER WILL BE PREPARED,
WhiCli, II Is Expected, the Judge
N.ilI Sign at Next Special
Term.

Judge Otis will sign an order next
Saturday approving the plan of reor-
ganization of the Germania bank, sub
nitted by President Willius and per-
hitting the bank to reopen. Such was
the decision of the court yesterday
after listening to the argument on the
merits in the matter of the applica-
ton to reorganize the Germania bank,
The. order follows the decision OF
Judge Otis. holding that the law of
1897. providing for the reorganization
of banks is constitutional
The DIRECTORS to the reorganization
were few in number and their de-
posits small in amount They were
four Minneapolis depOstors whose ag-
gregate claims against the bank do
not exceed 81, 500 They were repre-
sented by Attorney Austin, of Minnie
APPEL s, who talked much and persistent
1y although he was informed by T R.
Palmer, counsel for the petitioners, be
fore he began, that the claims of
clients would be paid in full the in
slant the bank reopened. But MIR.
Austin insisted on cross examining
Gustave Willius, who was on the stand.
At last the court, wearied with talk
from the Minneapolis barrisIter, asked
him:
What are you here for? You have
been told that the claims of your
clients would be paid in full"
Mr. Austin did not know what he
was there for. but he did know that he
wanted to talk, and he proceeded to
indulge himself.
) How did the court know that the
claims would be paid? Where was the
money coming from?"
The court thought that, if the petit
TONERS expressly promised to pay
claims Of objeCting creditors, prom
Used as a condition precedent, he, the
court, would be in position to see
that the promise was carried out.
Mr.. Austin wanted interest on the
claims of his clients.
!, Judge Otis, with his hand in his right
hand pocket said that payment in full
meant payment with interest.
Mr.. Willius, on the stand, testified
that there were now on file written con-
/ SCENTS from ISIS creditors Of the bank.
The entire number of creditors was
! 200 or $500, many of them creditors
| to very small amounts. The unse-
cured Indebtedness of the bank was
/ $761 900, and of this amount the total
Indebtedness represented by consenting
creditors was $5SS, 900. Directing cred
tiers have withdrawn until they now
represent only about 81, 600. The di-
TeCtOrs of the bank now number thir
teen, and of these about One-half were
creditors of the bank. There were two
! vacancies on the board Of directors.
From the board of directors a COM
mittee consisting of seven was ap
pointed to undertake the plan Of reor
/ ganiZatiOn.
OF the creditors consenting many
had called and others had been seen
or written to. No other plan than the
one before the court had been con-
eemplated The total value of the pres
ent assets of the bank was 1923, 959.75,
and these assets were good. With the
real estate omitted the total face value
of all evidences of indebtedness to the
bank amounted to 1902, SIT. Of the to-
tai of 1902, 900 he would place the true
value at $514 495. More that $780,
of the liabilities had been charged off
as worthless. Of this amount so
charged off something would be real
tged, but it could not now be stated as
an asset. The new capital stock would
amount to 100000 already subscribed,
and would be cash or secured paper.
In the hands of the assignee there
was now $102, 900 cash. The state had
been paid in full and the rediscounts
had been taken care Of. The bank
owed the city sol, S74.59 and the county
$10042, and those amounts were in
CIuded as secured Indebtedness.
These obligations had been secured
by bonds and by collateral in the shape
of bills receivable to the amount Of
Sis, 900. of which abOTt $4,000 had
been paid. The $4,000 was included in
the total ST the assets. Witness
thought there would be more than
$500, 900 on the opening of the bank,
but he had put it at low and safe
figure.
The unsecured debts would be re-
duced by stock subscriptions to about
SIG, 1000 From two to three weeks would
be required to get the bank open if
the court allowed it to open. The as
sessment on the stock was payable
July G.
MIR. Willius stated that stockholders,
who did not come forward to pay their
assessments, would not be proceeded
against; their stock would be sold.
Counselor McDermott said that he
would, on behalf of his clients, as
sent willingly to the plan Of reorgani-
cation, provided that the court, in its
from liability, for two years, at least.
The court could not see how it
could order such release, even if dis
posed.
Judge Otis said that an order should
parties and attorneys interested, and
presented to him at special term Sat-
urday next.
The court directed T. r. Palmer to
draw up an introductory order to be
presented to the court Saturday next
at special term, consenting to the open
ing nj the hank