Omaha daily bee., 1899-01-12
FINANCES OF GERMAN BANK
Dspositors Demanding that the Assets
Of Institution Be Sold.
MATTER COMES UP IN DISTRICT COURT
Contention that Concern IL Becoming
More and More ~Insolvent Each
Day and hat value Of Prop
erty IL Shrinking.

Argument began in the German Savings
bank case before Judge Fawcett Wednes-
day morning. At noon the side OF
Messrs. Strickler, Burbank and An
drews, on benalf of the depositors,
was all in, but Messrs. West and
Dufie had not yet had an opportunity to
be heard. Ralph Breckenridge, represent
ing Receiver McCague. says his client 10
really in an attitude Of Indifference as to
whichever way the controversy goes; that
the contention Is really between the de-
positors and the stockholders.
Judge Fawcett observed that 1t might be
a bad business policy to force a sale OF
the assets. The depositors are demanding
an order Of sale with a thirty-day limit.
In the courts opinion a forced sale might
cause the assets to depreciate greatly in
price.
Mr.. Stricken took the position in reply
to this that the stockholders would buy
in the assets anyway, so that there would
not really be any loss to them. To illus
trate this he said: "Mr. Battelle, a young
clerk in the Office Of the McCague Invest
ment company, recently admitted that he
had bought in a bulk lot Of $40, 900 OF tax
certificates on a bid of about 81, 100" Then
NNh' "Shb INV thS hSuiSS Va uAD
tabulated showing to convince the court
that the assets have been reduced from
$47S,000 to about $213, 900, while only $780,
900 has been realized, and of this SAC, 900
$4,000 has been applied to the item of TAX
ing up "rediscounts," a mere matter Of
bookkeeping in which not a dollar has
passed through the receivers hands. He
said the amount, $47S, 900, given as assets
at the outset included the 500, 900 capital
stock.
Mr.. Burbank commended for an immediate
sale, his logic being that the bank is be-
coming more and more insolvent, the
shrinkage OF assets being greatly out Of
proportion to the money realized for the
benefit of the depositors.
The counsel representing the stockhold-
ers will take the position that fixed charges,
such as taxes, ETC., should not be included
In the general expense account, inasmuch
as they represent property charges that
have been imperative, whatever the banks
condition has been.
McCague's Good Showing.
The argument lasted all day. Mr.. West
said that, taking the very figures of Messrs.
Andrews, Burbank and Strickler themselves,
1t had been demonstrated that Receiver Nc
Cague had practiced the best business econ
omy. Out Of a possible volume Of assets
amounting to $216, 900 he had succeeded in
collecting about $155 900. 1t had been stated
by the other side that to collect SAG, 900 dur
ing the last year 1t had been necessary to
reduce the assets SCI, 900. This showed that
as high as 20 per cent had been realized,
which Mr.. West thought a good showing
under the circumstances
Ex-Governor Lorenzo Crounse, who is
heavily interested in the bank, both as a
stakeholder and a deposition, asked the court
TO consider the business aspect Of the mat
ter. To force the assets upon the market
now would surely result in a great loss to
both stockholders and depositors. He be-
lieved, with Mr.. West, that with a little
time the thirty or more pieces Of real estate
the city held by the bank could be
sold at an advantageous price II a little pa
thence Is exercised, whereas to throw them
on the market now would, In midwinter,
mean a forced sale and a low price. As to
what Mr.. Strickler said about the stockhold-
eTs buying In the assets, he for one, he said,
was not In a position to do much buying in.
He believed the bank had been conducted
In the best manner possible, both before the
receiver was appointed and since, but its in
vestments, when. supposed to be solvent, had
not proved as safe as they were supposed to
be. On the whole he thought a little more
time would be for the best interests of all
concerned.
Mr.. West suggested that the receiver
might be given until the May term, at least. |
and then be asked to make a report. Then
II the court does not feel justified in pro-
longing the receivership further an order di- |
the sale Of the assets can be made. |
Judge Fawcett took the matter under ad- |
until Friday morning.