Barre evening telegram. (Barre, Vt.) 1898-19??, 1898-10-20
GERMAN BANK FAILURE
Causes Of the Collapse Of PittSburg
Institution.
LOANSON POOR COLLATERAL.
Cank Examiner In Charge Says De.
pOHitOrs VIII BE Paid Dollar
For Dollnr-R umOrs of Weak.
ness Long Current.

Pittsburg, Oct. 2O.-Notwithstandine
| the rumors that have been afioat fol
| some time concerning the fnancia
straits of the German National bank OF
this city, the announcement that the
| bank had gone into voluntary liquida.
ton caused great surprise, and many
depostors hurried to the bank to find
the doors closed. Outside small crowd
assembled, but there was no excite
ment. The suspension Of the bank can
be traced directly to two causes, the
carrying of too many securities of the
Natalie Coal and Coke company and
large loans on insufficient collateral.
The beginning Of the difficulty was
nearly O year ago, when the Natalie
companys paper became the object OF
much intricate litigation, in which the
German National bank figured. This
was followed a few weeks ago by the
sudden retirement of o. G. Burgdorf as
cashier. The final stroke was the con-
fession of heavy judgments by Adolf
plus, William c. and o. H. Groetzinger
and A. Groetzinger & Sons to Edward
Groetzinger and the issuance Tuesday
of executions.
A. Groetzinger was president of the
bank, and his financial troubles. 1t is
said, were caused principally by the
failure of the Munson Betting company,
in Chicago, last week. Other heavy
losses are said to have been sustained.
but 1t was supposed the large personal
wealth of the family would enable the
firm to tide over the difficulty. The bank
was organized in 1864 and reorganized
in 1884. At the beginning of the present
year its capital stock was $250,00O; sur
plus. 100000, and undivided profits.
$2.20S.17 Last year it was paying divi-
dends at the rate Of II per cent per an
mum, and since its organization has
paid nearly $1,0OO,0O0 in dividends.
RumOrs of Weakness.
About the middle of September there
were rumors of the banks weakness,
caused by the resignation at that time
of o. C. Burgdorf for long time CASH
Ter of the institution. Sept. q. when
the statement of the bank was pub
lished, these rumors were revived. as it
was seen that the banks surplus had
been reduced from $500, 900 to $3.50, 900.
This reduction was explained by Pres
ident Groetzinger 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 coal company deducted from the
surplus, and it had to be done.
Since Mr.. Burgdorfs resignation the
assistant cashier, j. H. f. Wessler, has
acted as cashier. The gossip about the
banks affairs never subsidized, and it is
now claimed that many of the most
wary depostcrs have been withdrawing
their money Others have been content
to 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 Sl.650oOO; loans and dis
counts, $1,1ES0OO; capital stock paid in,
$3.50, 900; surplus fund. $2500OO. 1t was
rumored that the state treasurer had
S450,000 on deposit in the bank. but this
was denied by the directors. The Y stat
ed that the deposit had been reduced, If
not entirely eliminated, since James S.
Beacon became state treasurer. Bank
Examiner Young is now in charge. He
says the securities held by the bank
are ample to pay all depositors dollar
for dollar.