The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-06-20
VIGOROUS PROTEST MADE AGAINST
NAMING HAMM, KUHL AND
P0TTGTESER.
COURT TAKES UNDER ADJUSTMENT.
Several Creditors Represented by
Attorneys Who Want Others
Than These Selected.

matter of the resignation Of Receiver
Auerbach came on for hearing in the
forenoon before Judge Kelly, Attorney
Briggs appearing for the receiver and
presenting his final account. The re-
ceiver's fees were placed at So 600, and
attorneys fees at $500, covering five
months of the receivership.
The hearing in the matter of the
appointing of a successor to Mr. Auer-
! bach was continued to p. m. The
court room was filled with attorneys
at that hour, John D. O'Brien repre-
senting 512 out of 1000 creditors, whose
deposits amount to $210, 900, presented
petition signed by the 512 creditors
asking for the appointment as receiv-
ers of William Hamm, Bernard Kuhl
and ]. NJ. Pottgieser
Fred G. Ingersoll, representing a
number of Directing creditors, there
upon presented a petition signed by
some thirty-five creditors and repre-
senting $21 900, protesting against the
appointment as receivers OF any officer,
stakeholder or debtor of the bank, or
| relative of any such officer, stockhold-
er or debtO.. Mr.. Ingersou said that his
clients did not consider Messrs. Hamm,
kuhl and POttgieser proper persons to
be appointed as receivers, inasmuch as
they were more or less affiliated with
the interests Of the bank and were I'M
til quite recently stockholders thereof.
Mr.. Ingersoll was not prepared, how
ever, to suggest the names of any per
sons for the position.
Stan Donnelly here arose and stated
hot D,Ntt rriC no
stakeholder in the Allemannia bank
since 1893
Humphrey Barton, on behalf of other
! objecting creditors, cOntended that
justice required the appointment of
some entirely disinterested person as
receiver. There was no reason for ap-
pointing more than one receiver who
would prove just as efficient and less
expensive. Mr.. Barton was opposed
TO the appointment of a banker as re-
ceiver, inasmuch as the receiver, who
ever he might be, was not employed to
do banking business; experience had
shown that bankers were not the most
| successful business men. Mr.. Barton
urged the appointment of a fearless
man in no wise connected with any
of the banks In conclusion, he hoped
that it would not be deemed presumpt-
uOus if he mentioned or suggested the
name of Arthur G. Otis, an honOred
| holder. officer or debtor of the bank
E. S. Durment, representing other
objecting creditors, read to the court
the affidavit of Catherine Jungmann,
who has a deposit of $500 in the Allie
MAMMA bank, protesting against the
appointment of MessrS. Hamm, Kuhl
and Pottgieser as receivers. The af-
fdavit alleged that the stockholders
of the bank are using their influence
and every means in their power 10
avoid enforcement of their liability,
and are trying to secure the appoint
ment of receivers who will not enforce
such liability. The affiant further al
leges that Albert Scheffer is in debt
to the bank in the sum Of S166000, and
that he and J. NJ. Pottgieser have
opened an office in the Ryan hotel from
which they have sent out circulars
urging the appointment of Messrs.
Hamm, kuhl and Pottgieser as re-
| ceivers. The affiant alleged that
Messrs Hamm, Kuhl and Pottgieser are
directors of the bank and were, until
recently, stockholders thereof, but that
they unloaded their stock shortly be-
/ fore the bank suspended. In conclu-
sion the affiant asked that disinterested
| parties be appointed as receivers. Mr..
| Durment, as representative of other
stockholders, also asked that the court
! appint disinterested parties.
Stiles Burr and S. c. Olmstead made
| similar reueStS in behalf of their
! clients.
In behalf Of the creditors urging the
| appointment Of Messrs. Hamm, Kuhl
and Pottgieser as receivers as we'll as
| on behalf of Albert Scheffer, G. M.
Nelson in reply to the objecting credi-
! tors, contended that there was no force
| in the argument that they had been
connected with the bank. AS for the
| affidavit read by Mr.. Durment, it was
| based simply on information and be-
| lief. There could be no justifiable OBJ
| lection to the three men named. Mr..
| Nelson cited the instance of the Bank
| Of Minnesota where one of the re-
| ceiverS is a stockhOlder and the other
| a debtor Of the bank. The question
was who was the best qualified to
| convert the assets into cash. A suit
| to enforce the liability of the stock
| holders must be begun when directed
| by the court. There was no sense in
the argument that these three men, if
| appointed receivers, would refuse or
| delay to bring such suit. These three
| gentlemen offered their time, energies
| and abilities for nothing. They were
entirely competent because perfectly
familiar with the affairs Of the institu-
| ton. No one had or could impugn
their motives. It was to their interest
| to realize all possible from the assets,
and it was therefore only right, reason
! appointed.
! M. D. Mum, representing other OBJ
| jecttng creditors, said that the feeling
certainly existed that these three gen
! tle1nen were not sufficiently disinter-
| ested; whether that feeling was well
founded or not, made no difference,
inasmuch as it existed. 1t appeared to
| him that the court should appoint some
one who could satisfy all parties, and
| he trusted that the person appointed
| would go to work in practical man
ner to collect the assets without ruin
ing anybody. In conclusion Mr.. Mum
said that he trusted the court would
not make the appointment at the i'm
mediate conclusion OF the hearing.
Judge Kelly replied that he would
not, and announced that he would take
the matter under advisement. This
closed the hearing.
The final account submitted by Re-
ceiver Auerbach Is as follows: Receipts
SCI, 799.07, and disbursements, $48,-
| 150.75: balance on hand, $13,64S32. OF
the receipts, $18,33129 Is in cash and
cash items; $5,818.47 is collections, bills
receivable, $22,145; overdrafts, collater-
ais, $389.17. The total amount paid by
voucher Is $36.914.76, Of which $4,000 70
| Is for expense account and $9,735.59 for
deposits returned. The preferred claim
by the state for $4,000 was duly paid,
also life insurance premiums to the
amount Of $1,28703.
BY the M. & st. L. r.. r.,
The official route, special Chris
49, H. -