The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-10-19
BIG BANK CLOSED.
German National Of Pfttsburg.
Pa, in Hands of Examiner.

Pittsburg, Oct 19-Notwithstandin
the rumors that have been afoat for
some time concerning the financial
straits Of the German National bank Of
this city, The announcement this morn
ing that the bank had gone into voIun-
tary liquidation, caused great surprise
and many depositors hurried TO the
bank to find the doors closed. Outside
a small crowd Assem- blad, but there was
no excitement
The suspension OF the bank can be
traced directly to two reasons: the car
rying OF too many securities Of the
Natalie Coal s. Coke company and
large loans on insufficient collateral
The beginning Of the difficulty was near
" a year ago when the Natalie com
pany's paper became the object Of much
intricate litigation, in which the Ger
man National bank figured This was
followed a few weeks ago by the sud
den retirement of Otto Bargdorn as
cashier The final stroke was the con-
fession Of heavy judgments by Adolf
plus, William c. and o. H Groetsinger
and a. GrOetsinger & Sons to Edward
Groetsinger and the issuance yester-
day OF executions.
A GrOetsinger was president Of the
bank and his financial troubles, IT is
said, were caused principally by the
failure OF the MunsOn Betting company,
in Chicago, last week Other heavy
losses are SAID 10 have been sustained.
but it was supposed the large personal
wealth Of the family would enable the
firm 90 tide over the difficulty. It is
said that some time ago the Goetsing-
ers were awarded q contract for many
thousand shoe sOleS by an eastern firm,
but through a misunderstanding Of or
ders, singles instead OF pairs were made
and on this transaction alone $4,000
was lost
The German National bank was or
gained in 1864 and reOrganized in 1884
At the beginning Of the present year,
$500, 600 and undivided profits $2-20s-I7
Last year it was paying dividends at
the rate OF y per cent per annun and
since its organization has paid nearly
a million dollars in dividends
About the middle Of September there
were rumOrs of the banks weakness
caused by the resignation of Otto Barg-
dOrff, for long time cashier Of the in
stiLutiOu- September 2, when the last
statement Of the bank was published
these rumOrs were revived, as it was
seen that the banks surplus had been
reduced from $500 coo to $3.50. 600 This
reduction was explained by President
Groetsinger at the time as being caused
by the interest carried by the bank in
the Natalie Coal company The bank
examiner had ordered the paper OF the
plus and it had to be done Since Mr..
Bargdorf first resigned Lhfe former as
sfstant caShier.J. H z " essler-has acted
as cashier. The gossip about the banks
a fairs never subsided and IL was claim
ed today that many Of the most wary
depositOrs have been Withdrawing their
money Others have been content 70
await the next report, TO see If the
surplus would be still further reduced,
If that were legal
The last statement showed Individual
deposits Of g 65e 0O0- loans and discounts
81 5S. OOO. Capital stock paid in $3.50. 600;
surplus fund $3.50. 900
II was rumored that the state treas
urer had $50 600 on deposit in the bank
but this was denied by the directors
They stated that the deposit had been
reduced. # not entirely eliminated since
lanes S. Beacon became state treas
urer.
Bank Examiner Young is now IN
charge. He says the securities held by
the bank are ample TO pay all deposit
ors dollar for dollar.