The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-18
FORCED TO CLOSE Up
GERHIANIA BANK VOLUNTARILY
TURNS IT'S BUSINESS OVER TO
THE EXAMINER
COULDN'T STAND THE RUN

Paid Out Money for a Few Hours
and Then Decided the Better
Plan Was to Suspend-Supt. Pope
Hopes That 81 Receiver Will Not
Be Necessary in Winding Up the
Institution.
At the request of the bank officials
| Public Examiner Pope, yesterday morn
! ing, assumed charge Of the affairs of the
Germania bank, and the doors of the in
stitutiOn were closed. The cause of the
suspension was an unprecedented run by
the depositors. who thronged the counting
room yesterday morning. The withdraw
ais were so heavy and sustained that the
officials notified Gen. Pope that their cash
/ on hand was liable to be exhausted, and
at II a. m. the doors were closed. Gen.
Pope stated last evening that he believed
an examination will show that the bank
is in good enough shape to permit the in
! stitution to go into voluntary liquidation,
] and avoid the necessity of a receivership.
| The suspension of the bank caused wide
distress among the depositors, who, ac-
cording to a statement made yesterday
! by an officer of the bank, number over
1,10O.
The Germania bank commenced bust
ness on May 20, 1884, with a capitalization
of $4O0 900. On Jan. 4, 1897, it was forced
! to make an assignment for the benefit
of the creditors, owing to the heavy with
drawals Of funds Immediately prior to the
! date Of the suspension and to the fail
ure of other banks, more particularly the
Bank of Minnesota. Peter M. Kerst was
! appointed assignee by the district court,
and the liabilities and assets were esti-
mated by the public examiner at $S60,00
each.
A short time after the assignment a
meeting of the creditors was held, and
committee of seven was appointed to ex-
anime into the condition Of affairs. Gus
tave Willius, as president Of the bank and
chairman Of the committee, reported
plan of reorganiza ton, which was assent
ed to by more than a majority of the
creditors in number and amount. The
reorganization was on the following
| terms:
1. The payment of all debts for which
a lien existed upon the property of the
bank and the payment of all demands in
favor OF the secured creditors.
2. The payment of all other debts of
the said bank when reorganized by the is
suance of certificates of Indebtedness pay
| able to the order of the unsecured credit
| tors of the bank in g. 15 q and "a months
from the time of the reopening of the
bank with interest upon each of the de-
1erred payments at the rate of 3 per cent
per annum, the certificates to be payable
| IN -FOUR equal amounts and to be accepted
by the creditors in full settlement Of all
claims
8. An assessment of 10 per cent unon tba
stockholders pro rata, 5000, 900 at least to
| be raised. and the capital stock to be re-
duced to an amount equal to the pay
| ments made upon such accounts
4. The execution of the plan Of reor-
gan1zat1on under the supervision Of the
superintendent of banks, the discharge of
| the assignee and the return to the hank
of all the property and assets remaining
in the hands of the assignee.
The committee found that all the prop
! erty and assets remaining in the hands
| of the assignee were of sufficient value
| to pay in full all the obligations and
liabilities Of the bank, and with the as
sessment on the stockholders would leave
| substantially unimpaired capital stock
of 100000 Three-fourths of the creditors
| assented to the plan, and it was carried
into execution with the approval of Judge
Otis, Of the district court. At the time of
! the assignment the state was a creditor
to the amount of S10,57292 Ramsey coun-
ty for $l1, 753.OS, and the city for $52, 2S3 o.
STRUGGLE OF THE BANK.
Since the resumption, the bank has
sented by the reorganization incum-
! hrances, and practically all have been
! settled except the fourth, or twenty-four
months certificates, which would be-
come due on Aug. 16. The amount orig
inally payable under each of the four
certificate obligations was approximately
$4,000, or a total Of about $3.50, 900. On these
! payments have been made, leaving the
| balance due as follows: Certificates,
Glass A, $1,273,35; Glass B, $216O.5O; Glass
| G, $14,615.S4; Glass D, ST, 0O0
The officers of the bank were Gustav
Willius, president; T. H Menk, vice presi-
dent; Peter NJ Kerst, cashier, and Gustave
Willius, T. H. Menk, o. E. Holman, ]. B.
! Wakefield, John Klein, VIM. Schornstein.
Joseph Haag, G. L. Horst, Albert Span
genberg, Peter NJ. Kerst, J. B. Hermann
and John Douglas, directors. In their
view of the situation the bank would
| have tided over it's difficulties had it not
| been for unforeseen circumstances. Yes
terday morning when the bank opened
| for some reason the lobby was crowded
| with depOsitorS all eager to make with
| draWals. The CASH on hand was grad
| ually being depleted and there was no
! prospect of let-up in the Withdrawals.
A meeting of the officers was hurriedly
| called by President Willius, and after
a consultation Gen. Pope was sent for
and the affairs of the bank turned over
| to him. AS q result of the continuous
run that had been made on the deposits
the $780, of cash on hand as shown in
the statement made on July 10 had dwin-
| died to about $50, 00O
Gen. Pope Immediately closed the doors
| of the institution and placed Maj. James
Compton, assistant public examiner, tenn
porarily in charge. Late in the afternoon
the examiner gave out the following per-
functory statement of the condition Of
the bank at the close Of business:
RESOURCES.
Loans and discounts $3n, 105. 0S