The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-06-20
JUDGE0TIS TO 0.K.IT
COURT WILL ALLOW THE GER
MANIA BANK TO RE0RGANIZE
AND OPEN.
WILLIUS MAKES STATEMENT,
COVERING THE FINANCIAL C0NDI-
DTTION OF THE INSTITUTION
AT THIS TINE.
Which. Il Is Expected, the Judge
Asil Sign at Next Special
Term.

Judge Otis will sign an order next
. Saturday approving the plan of reor-
ganization of the Germania bank, sub
mitted 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 depCsitors whose ag-
gregate claims against the bank do
not exceed $1,000. They were repre-
scented by Attorney Austin, of Mime
apol 5, who talked much and persistent
ly. although he was informed by I. Il.
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.
r Al IdSl the court, NedilSu with toOlh
from the Minneapolis barrister, asked
him:
f What are you here for? You have
been told that the claims Of your
clients would be paid in full"
Q Mr. Austin did not know what ne
was there for. but he did know that be
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?"
2 The court thought that, if the petit
TONERS expressly promised to pay
claims of Directing creditors, prom
Used as a condition precedent, he, the
court, would be in a position to see
that the promise was carried out.
Z Mr. Austin wanted interest on the
claims of his clients.
g Judge Otis. with his hand in his right
hand pocket, said that payment in full
meant payment with interest.
Mr.. Willius, on the stand teSuhed
that there were now on file written con-
sents from 1875 creditors of the bank.
The entire number Of creditors was
2.700 or $500, many off:Easm creditors
to very small amou4zt5 The unse-
cured Indebtedness of the bank was
1851 900. and of this amount the total
Indebtedness represented by consenting
tcreditors was 1888 900. Directing cred
tiers have withdrawn until they now
represent only about $4,000. The di-
rectOrs of the bank now number thlr-
teen, and of these about one-half we're
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
=,
one before the court had been con-
eemplated. The total value of the pres
ent assets of the bank was $S23, 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, ST. OF the to-
tai of 1902 900 he would place the true
value at S514, 495. More that 100000
of the liabilities had been charged off
as worthless. OF this amount so
charged off something would be real
ssed, 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 S1G2, 900 cash. The state had
been paid in full and the rediscounts
had been taken care Of The bank
owed the city $51, S74.59 and the county
$10,042 and those amounts were in
Cluded as a secured indebtedness.
These obligations had been secured
by bonds and by collateral in the shape
. Of his receivable TO the amount of
4 $115, 900, of which about $4,000 had
been paid. The $115, 900 was included in
the total Ct the assets. Witness
thought there would be more than
$500 600 on the opening of the bank,
but he had put it at a low and safe
figure.
The unsecured debts would be re-
duced by stock subscriptions to about
$40, 900. From two to three weeks would
the court allowed it to open. The as
July s.
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
order, did not release the stockholders
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
be drawn and submitted to those
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 OF the bank.