Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1898-10-20
IsIy rivANcIaL STRAITS.
The German National Bank of Pitfsburg
Has Gone Into Voluntary Liquidation.

Has Gone Into Voluntary Liquidation.
Associated Press Dispatch by Special Wires.
Pittsburg, Pa, Oct. 10. -Notwith-
standing the rnmors that have been
afioat for some time, concerning the
financial straits of the German National
Bank of this city, the announcement,
this morning, that the bank had gone
into voluntary liquidation caused great
surprise, and many depositors hurried
to the bank to find the doors closed.
Outside, a small crowd assembled, but
there was no excitement.
The suspension of the bank can be
traced directly to two causes carrying
of too many securities of the Natalie
Coal and Coke Co. and large loans in
insufficient collateral. The beginning
of the difficulty was nearly year ago,
when the Natalie company's paper be-
came the object Of much intricate liti-
cation, in which the German National
Bank figured. This was followed, a
few weeks ago, by the sudden retire
ment of Charles Burgdorf. as cashier.
The final stroke was the confession of
heavy judgments by Adolphus, William
G. and o. Fl. Groetzinger and A.
Groetzinger & Sons to Edward Groet-
zlnger, and to the issuance, yesterday,
Of executions. A. Groetzinger was
president Of the bank, and his financial
troubles, it is said, were caused princi-
pally by the failure of the Munson
Betting Co. of Chicago last week.
Other heavy losses are said to have
been sustained, but it was supposed
the large personal wealth Of the family
would enable the firm to tide over the
difficulty. 1t is said that, some time
ago, the Groetzingers were awarded q
contract for many thousand shoe soles
by an eastern firm, but, through mis-
understanding of orders, singles, in
stead of pairs, were made, and on this
transaction alone 800, 900 were lost.
The German National Bank was
organized in 1864, and reorganized in
1884. At the beginning of the present
year, its capital stock was $3.50, 600,
surplus, $500, 600 and undivided profits
81, 208. II. Last year, it was paying di-
vidends at the rate Of u per cent per
annum, and, since its organization,
About the middle of September, there
were rumors of the banks weakness,
caused by the resignation, at that
time. of Otto Burgdorf, for a long time
cashier of the institution. On Septem-
Der 9th, when the statement of the
bank was published, these rumors
were revived, as it was seen that the
banks surplus had been reduced from
$500, 900 to S250,000 This reduction
was explained by President Groet-
Finger, at the time, as being caused by
the interest carried by the bank in the
Natalie Coal Co. The bank examiner
had endorsed the paper of the coal
company deduced from the surplus, and
it had to be done. Since Mr.. Burg
DORIS resignation, the former assistant
cashier, j. Il. H. Wessler, has acted as
cashier. The gossip about the banks
affairs never subsidized, and it was
claimed today that many Of the most
wary depositors have been Withdrawing
their money. Others have been con-
tent to wait for the next report, to see
if the surplus would be still further
reduced, if that were legal. The last
statement showed individual deposits
of S1.650, 600; loans and discounts,
81, 1853, 600; capital stock paid in,
$3.50, GOO; surplus fund, $3.50, 200.
1t was rumored that tho State treas
urer had $3.50, 900 on deposit in the
bank, but this is denied by the direc-
tors. They state that the deposit has
been reduced, If not entirely eliminated,
since james s. Beacon became State
treasurer. Bank Examiner Young is
in charge. He says the securities held
by the bank are ample to pay all de-
positors dollar for dollar.