The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-05-12
SKARDA BROS. AELEGE IMPROPER
TRANSFER OF CERTAIN BILLS
RECEIVABLE
BY THE GERMANlA BANK.
PLACED TO SECURE THEODORE
HAMM FOR SERVING ON A
BOND OF THE BANK.
AMOUNT SOMETHING OVER $4,000
Action Begulf In the District Court
to Have Them Placed as As
sets Of the Bank.


partners as Skarda Bros. the West
Seventh street grocers began an action
in the district court yesterday. through
their attorney, Frank A. Hutson,
against the Germania bank, P. M.
Kerst, as assignee Of the bank, Gustave
Willis. p. M. Kerst, Theodore Hamm,
William Hamm the National German
American bank and J. w. Lusk, to have
replaced among the assets OF the Ger
mania collateral to the amount OF $4z,-
491, alleged to have been given by the
Germania to secure Theodore Hamm
for serving as a. surety on an indemnity
bond. -
The complaint alleges that May %,
1896, Gustave Willis and P. M. Kerst
entered into an agreement whereby Ger
tain bills receivable, then the property
of the Germanda, were delivered 10
William HanDm in trust for Theodore
Hamm to secure and Indemnify Theo-
dore Hamm and save him harmless
against any liability under certain
bonds later described in the complaint.
The complaint further recites that
previous to February, 1896, Theodore
Hamm was director in the German1a
and that while a director he became
a surety in certain indemnity BONDS
given to Ramsey county and st. Paul
to secure payment Of moneys deposited
with the Gern1ania bank. During Feb
ruary, 1895, the complaint continues,
Mr.. Hamn resigned as a director of the
bank, and his resignation was accepted.
Some months after, May %, the COM
plant says, the contract referred to
was made and certain property men
toned later was wrongfully and I'M
lawfully delivered by the, Germania
bank to William Hamm for securing
the pre-existing liability of Theodore
Hamm on bonds with the intent to give
him unlawful preference over other
creditors It is further alleged that the
contract was made without any valid
consideration and, is therefore an TN
lawful preferment to Theodore Hamm.
That all the bills receivable transferred
and all the moneys are lawful assets
and creditors of the Germania are en-
titled to have the proceeds applied to
the payment Of their claims.
The complaint goes on to say that
soon after the bills receivable had
been delivered to Mr.. Hamm. he de-
livered the same to the National Ger
nan-Amefican bank, or j.. w. Lusk,
for collection, and that about $4,000
have been collected out of the, total
of $42, 491. The complaint says that,
as Assignee KeTst would not proceed
to secure the return of this money and
paper for the benefit of the creditors
of the bank, the plaintiffs on behalf
of themselves. and as many other credi-
tors as may care to join in the action,
began this suit. I'm conclusion the COM
plant asks that the contract, sale and
transfer of the bills receivable be de-
clared unlawful by the court, but that
they be constituted as a part of the
Germania banks assets and asks
further that somebody be appointed
to collect the balance and turn it all
over to the receiver of the bank.
The contract referred to, copy Of
which has been made an exhibit of the
complaint, says that when Mr.. Hamm
had resigned from the directorate Of the
bank he had desired to be released
from the bond given to the county and
city, but the bank did not want to give
secure Mr.. Hamm against any possible
liability that might OCCUR. This it
did in the manner mentioned It was
further understood thar Theodore
Hamm should collect the bills given
him and apply to the payment Of any
sums he might be required to pay on
account of any liability. The bills re-
ceivabIe mentioned in the exhibit
which, as heretofore stated, purports
to be- a copy of the agreement entered
into between the Germania bank and