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Another St. Paul Failure. St. Paul, Jan. 4.-The West Side bank closed its doors today. Capital $100,000, assets $150,000, deposits $113,000. In the three St. Paul banks that closed today the state had deposited to the amount of $50,000, the county $42,000 and the city $221,000. There was also a run on the Minnesota Savings bank, but the bank saved itself by means of the 60 day notice law."
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BANKERS STILL IN TROUBLE The Germania Bank of St. Paul Went to the Wall This Morning. LOTS OF RESOURCES, BUT NO CASH Beauties of a Steadily Appreciating Dollar with All Other Forms of Property Declining in the Form of Object Lessons. I St. Paul, Jan. 4.-The Germania bank, b a state institution, to-day announced its assignment to Peter M. Kerst, cashier. r This bank stood a run of nearly two b days after the Bank of Minnesota closed 1 on December 22. The last official statement, on December 17, gave the loans t and discounts at $975,420,56; cash on r hand, $150,000; total resources, $1,626,788.01. Among the liabilities were: Capital stock, $400,000; surplus and undivided p:ofits, $58,797; deposits subject to check, d $355,191; demand certificates of deposits, o $7,899; time certificates of deposit, P $633,019. 1 The Germania bank has been organr ized for many years, ex-Gov. Alexander i Ramsay being for a long time president and William Bickel cashier. When Gov. o t Ramsay retired, Bickle became president, but last spring Bickle retired, becoming vice-president of the newly orgainzed Allemania bank. He was succeeded by Gustav Willius. President Willius told an Associated Press reporter that the closing was the result of an unreasonable panic, and that the bank would be opened for business as soon as the people regained their usnal cool sense. The bank paid depositors a $335,000 during the last nine days. Willa ine said that he fully expected to have n the bank re-opened by the last of March. C N THE ALLEMANIA BANK ALSO CLOSED TO-DAY. b n The Allemania bank had a capital of w $400,000, and a clientage similar to that in of the Germania. The Allemania was hi organized last year, it being the successW or of the Commercial bank, William Bickel, formerly president of the Germania, joining forces with Albert Scheefer, of the Commercial, to organize the new y bank. The last official statement, made b on December 17, shows: Loans and disp counts, $806,842; undivided profits, less is expenses, $58,746; individual deposits, b $329,789; interest certificates, $187,258. ag President Scheefer, of the Allemania, said that the failure was due to withdrawp als of deposits. A crowd of depositors gathered to-day demanding their money, and at 11 o'clock it was decided to close S at once. R J HAS JUST CLOSED. A m St. Paul.-The West Side Bank has W just closed. FAILURE IN IOWA. Mason City, Iowa.-The First National City bank, of Nora Springs, has failed. h It made an assignment to Byron GamI mings. h T SUICIDE OF ANOTHER BANKER. S Baltimore, Md.-Richard Cornelius, er cashier of the Farmers' and Merchants' S bank, committed suicide to-day by al drowning. W
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Demands Made Upon Them. Expected That They Will Soon be Reorganized and Reopened. The President of One of the Institutions Makes a Statement in Which He Charges That Evil Disposed Persons Maliciously Directed the Attempt to Break the Bank Over Which He Presided. ST. PAUL, Jan. 4.-The Germania, Allemannia and West Side Banks, all doing business as State Banks, to-day closed their doors. The failure of the Bank of Minnesota December 22d caused unrest in the community, and depositors withdrew their money from these banks to such an extent that they were forced to go to the wall because they had not Lunds enough on hand to meet the demands made upon them. Any of the three, however, is solvent, and they will be re-organized as soon as the money for that purpose can be put into use. The directors of the Germania met this afternoon and appointed a committee on re-organization. The Germania is in the hands of P. M. Kerst as assignee, and the other two are in the hands of Bank Examiner Kenyon. A receiver will be appointed for the Allemannia tomorrow, and the West Side Bank will try to make arrangements with its creditors and re-open without the intervention of receiver. The last official statement of the Germania Bank showed total resources of $1,625,768, $253,847 of this being in the building and $975,420 in loans and discounts. Liabilities $1,625,768, including $400,000 capital stock and $633,019 in time certificates of deposits. The deposits subject to check are $44,551. The closing of the Germania was in pursuance of the action of the directors on Saturday night, who concluded to protect their depositors by suspending. President Willius prepared a statement in which he said: "As soon as the result of the Presidential election became known matters began to improve in a remarkable degree. and there did not seem to be any doubt on May 1st the bank would be in so strong and impregnable condition that an assessment could successfully be made on the stock. This was the condition on the 22d of December, when the suspension of the Bank of Minnesota occurred, following immediately upon the failure of the National Bank of Illinois of Chicago, which came as unexpectedly as a stroke of lightning in midwinter. Failures of other Minnesota banks increased the panicky feeling, but I did not fear any disastrous outcome until it became apparent that certain eveil disposed persons maliciously directed the attempt toward the Germania Bank, circulating false and manufactured reports regardI ing it with systematic persistency. hoped from day to day that the excitement would subside and make room for better judgment, but it grew in intensity. The attack became bolder every day. After the close of business on Saturday, the 2d of January, we found that the withdrawal of deposits had assumed such dimensions that we did not feel justified to continue receiving deposits or to pay out money beyond that day without submitting the condition of affairs to the directors. Consequently we called a special meeting of the board on said day at 7:30 p. m. We had paid off nearly $225,000 deposits in nine business days, and kept on hand and in reserve fund $70,000. which shows the unreasonableness of the attack. The directors came immediately to the conclusion that the action of the officers had been correct, and however deplorable it might be, it became their duty, for the protection of depositors and other creditors, to close the doors and place the assets of the bank in charge of an assignee." The Allemannia closed a few minutes before 11 o'clock, with a crowd of depositors clamoring at the paying telJer's window for their money. President Scheffer said: "Our suspension is due to the large number of withdrawals this morning, and the fact that most of the new depositors withheld their deposits. The news of the suspension of our neighbor, the Germania, precipitated the run here, and of course with all the deposits being withheld, and the fact that there was a steady withdrawal we could not stem the tide. When the full force of the Germania's failure burst on them the crowd seemed to become panic-stricken, and they came down upon us like a wolf on the fold. When the Bank of Minnesota failed the business men fortunately were not disturbed, and few were caught. The feeling of ease returned shortly. and might have continued had it not beeen for the failure of the four banks in Minneapolis. Then the panicky feeling came back, and was intensified by the fact that the business men caught it very badly. The feeling naturally spread over here. and the people have not been easy since then. When the Germania closed its doors this morning that was the last straw in the case, and they came down upon us like a herd of wolves." The total resources of the Allemannia, according to their report of the same day. was $1,061,009. including $706,842 of loans and discounts. Liabilities also $1,061,009. including capital stock of $400,000 and deposits of $329, 789. Speaking of the failure of the West Side Bank, President Staples said: "Our suspension was due to the Allemannia. We did all of our clearing through the Allemannia. and this morning they failed to cover our clearings, and sent them all back to us. News of the suspension of the Germania and Allemannia spread through West St. Paul, and our depositors began scram-
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THREE BANK FAILURES In St. Paul Due to the Runs Caused by the Closing of the Bank of Minnesota. ST. PAUL, Minn.. Jan. 4.-The Germania Bank, a state Institution, capital $400,000, did not open for business to-day, but announced its assignment to Peter M. Kerst, who for the past year or two has been the cashier of the bank. The announcement stated that this action was taken after full consideration of all the phases of the situation, as it was deemed best for all concerned that this action be taken. The bank stood a run for nearly two weeks, its depositors beginning to withdraw their accounts at the time the Bank of Minnesota closed on December 22. The Germania bank has been organized for many years, ex-Governor Alex Ramsey being for a long time president, and William Bickel cashier. A few years ago Governor Ramsey retired from the bank, becoming vice president of the newly organized Allemania Bank. He was succeeded by Gustav Willius, as president of the Germania: T. H. Menk being vice president, and P. M. Kerst cashier. The Allemania bank, capital $400,000 and having a clientage similar to that of the Germania, closed its doors soon after the other bank had announced its assignment. The Allemania bank was organized last year, being the successor of the Commercial bank, William Beckel, formerly president of the Germania bank, joining forces with Albert Scheffer, of the Commercial, to organize the new bank, of which Mr. Scheffer was made president, and E. D. Barnett, cashier. The Commercial had formerly been a national bank. but after its failure in the spring of 1892, it was re-organized a state bank and became merged last spring in the present Allemania bank. This bank was also a sufferer by the panicky feeling after the Bank of Minnesota had closed. President Scheffer, of the Allemania, said at noon that they had been suffering from the panic, the failure being due to the combined withholding There and withdrawing of deposits. had for some time been a gradual drain on the bank, and it seemed to gain added force as soon as the announcement of the Germania failure was announced. A crowd of depositors goon gathered, demanding their money and at 11 o'clock it was decided to close at once, State Bank Examiner Kenyon being called in and taking possession of the bank. President Willius told an Associated Press reporter to-day that the closing was the result of an unreasonable pan1c, and that the bank would be opened for business just as soon as the people regained their usual cool sense. The bank, as a result of the panicky feeling. had paid out to depositors $335,000 in the last nine days and as they saw what the continuation of this would lead to, the directors had decided to close for the present. Mr. Willius says he fully expects to have the bank re-opened and ready for business by the last of March. At a few minutes before 2 o'clock the West Side Bank organibed in 1886, with a capital of $100,000, closed its doors, The president, C. F. Staples. told the Associated Press representative that the bank cleared through the Allemania and had its clearings returned today because of the closing of the bank. This was but one of the causes that led to the closing of the West Side Bank, which had sufféred considerably from the general condition of affairs. The West Side bank has not closed finally, but in view of the panic created by the sudden closing of the Germanla and Allemania. and because of the summary return by the latter of the West Side bank's clearings It was decided to close pending action by the bank's directors. who are now in session. The bank is considered strong. though small, and loss to depositors is not thought possible.
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THREE MORE BANKS GONE TO PIECES St. Paul Is the Scene of the Crash This Time. ALL STATE CONCERNS GERMANIA, ALLEMANNIA AND WEST SIDE. Each of the Three Claim to Be Solvent and Promise to Meet All Their Obligations Dollar For DollarFailure of the Bank of Minnesota Caused a Panicky Feeling and the Panicky Feeling Did the Rest -Financial Notes.
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THREE BANKS HAVE CLOSED In St. Paul as a Result of Failure of the Bank of Minnesota. e / THE FRIGHTENED DEPOSITORS e : I Make a Lively Run for Their Money and Cause a Panic-Fight Each Other in the Lines. I I r St. Paul, January 4.-As a direct re: sult of the closing of the Bank of Minnesota two weeks ago, which created new distrust among depositors and started runs on a number of city banks that were reputed not to be as strong as depositors wished, three St. Paul r banks, the Germania, the Allemania a and the West Side, one of them nae tional institutions, all closely associat: ed, closed their doors today, one being in the hands of the state bank examiner e : and the others making assignments. . During the time that has intervened since the closing of the Bank of Minne e : sota, the Germania paid out $225,000 to i frightened depositors and early today i the directors concluded they would stop the drain and make an assignment to the cashier, Peter M. Kerst. The Allemania Bank, which like the Germania, had a large clientage among the Germans, and whose vice-president had formerly been president of the Germania, then became a target for a lively run. People crowded about the doors and fairly fought for a place in the line before the paying teller's window. The bank officials realized fully what such a run meant and promptly called on the bank examiner to take possession of the bank, and that official is now in charge. The West Side Bank, a small but possibly stronger bank, cleared through the Allemania and today its clearings were returned by the latter institution. Following this there was a decired run inaugurated on the bank and at 2 o'clock this afternoon the bank offlcials closed the doors and called a meeting of the directors to decide what action to take. Their decision was apparent late in the afternoon when they filed a deed of assignment to Cashier Staples, president of the bank. Considerable public money is tied up in the three institutions. Owing to the excitement caused by the closing of the Germania and Allemania Banks today, many depositors went after their money at one or two other banks, the Minnesota Savings Bank being the center of excitement. President William Bickel, Jr., is a son of the first vice-president of the Allemania. This bank was open for business but at 3 o'clock was taking advantage of the rule allowing sixty days' notice before allowing withdrawals of deposits. A few minutes before 2 o'clock the West Side Bank, organized in 1886, with a capital of $100,000, closed.
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formerly resident of the Germania bank joining forces with Albert Scheffer of the Commercial to organize the new bank. Its last official statement, made on December 17, showed: Loans and discounts, $62,881,40; capital stock paid in, $400,000; undivided profits, less expenses, $58,764.*0; individual deposits, $329,789.27; interest certificates, $187,253.23. President Sheffer of the Allemania said at noon that they had been suffering from the panic, the failure being due to combined hoarding, and withdrawing of deposits. A crowd of depositors soon gathered, demanding their money, and at 11 o'clock it was decided to close at once. Owing to the excitement caused by the closing of the Germania and Allemania banks today, many depositors started after their money in one or two of the other bonks, the Minnesota Savings bank being the center of excitement. The president of the 'bank, William Bickett, Jr., is the son of the first vice-president of the Allemania, and this fact seem ed to turn the minds of the people that way. This morning the bank was opened for business, but at 3 o'clock was taking advantage of the rule allowing sixty days' notice before allowing withdrawals of deposits. THEN THE WEST SIDE. At a few minutes before 2 o'clock the West Side bank, organized in 1886, with a capital of $100,000, closed its doors. The president, F. Staples, told the Associated Press representative that the bank cleared through the Allemania and had its clearings returned today because of the closing of that bank. The West Side bank from the general shaky condition of financial affairs, closed. The West Side bank has not closed its doors finally, but in view of the panic, pending action by the directors. The bank is considered a strong, though small, institution and loss to depositors is not thought possible. The official statement of the West Side bank, made to the state bank examiner on December 17, is as follows: Total assets, $217,024.17; of this $150,0000 was in loans and discounts and $28,000 in real estate. The total deposits were 113,546. The furniture and fixtures represented $2,200 and bills re-discounted, $1,500. Public funds were on deposit in all three of the closed banks. The state had $10,546.05 in the Germania; $35,302.54 in the Allemania, and $3,346.63 in the West Side bank. The county treasurer had deposited $9,635.35 in the Germania; $26,215.36 in the Allemania, and $7,564.84 in the West Side bank. City Treasurer Horst had on deposit funds in the Germania, $49,793.82; in the Allemania, $151,456.56, and in the West Side bank $21,894.50. New York, Jan. 4.-The Hanover National bank is the New York correspondent of the Germania bank of St. Paul. The latter has been in the habit of carrying a fair account here, but it is stated that whatever indebtedness may be due the Hanover bank is amply secured. FAILURES OF MINOR NOTE. Mason ity, Iowa, Jan. 4.-The First City bank of Nora Springs has failed. An assignment was made to Byron Gamming. Cincinnati, O., Jan. 4.-E. C. Bailess, commission merchant, assigned to C. W. Scott. Assets $21,000. Liabilities, $37,000. Quincy, III., Jan. 4.-The wholesale and retail crockery store of H. Ridder & Co. failed today. Assets, $40,000; liabilities, $30,000.
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Three More St. Paul Banks Close. ST. PAUL, Jan. 5.-As a direct result of the closing of the Bank of Minnesota two weeks ago, which created new distrust among bank depositors and started runs on a number of city banks that were reputed not to be as strong as depositors wished, three St. Paul banks, the Germania, the Allemania and the West Side, none of them national institutions and all closely associated, yesterday closed their doors, one being now in the hands of the state bank examiner and the others making assignments. Bank Examiner Kenyon is in charge of the Allemania.
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WEST SIDE BANK PULLED IN. Decided Best for All Parties to Suspend. Blinds on the windows of the West Side bank were drawn shortly after 1 o'clock yesterday, and the sign "Bank Closed," was hung on the door. A group of depositors were in waiting at the time, and they were informed that the bank directors had determined to suspend. The suspension of this bank was directly due to the suspension of the Allemannia bank. When the news of the suspension of the Allemannia and Germania banks reached the West side, a run began on the West side bank. The officers of the bank realizing that all the funds would soon be exhausted, determined to close the doors and if possible save the bank. The directors went into session and remained closeted in the little room back of the bank all the afternoon. No offi-
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BUSINESS TROUBLES. Frightened Depositors Force St. Paul Banks to Close, ST. PAUL, Jan. 4-As a direct result of the closing of the Bank of Minnesota two weeks ago, which created new distrust among depositors and started runs on a number of city banks that were reputed to be as strong as the depositors wished, three St. Paul banks. the Germania, the Allemania and the West Side, none of them national institutions, all closely associated. closed their doors today. one being in the hands of the state bank examiner and the others making assignments. During the time that had latervened since the closing of the Bank of Minnesota, the Germania paid out $225,000 to frightened depositors, and early today the directors concluded they would stop the drain and make an assignment to the cashier. Peter M. Kerst. The Allemania bank. which, like the Germania, had a large clientage among the Germans, and whose vice president had formerly been president of the Germania, then became the target for a lively run. People crowded, about the doors and fairly fought for a place in the
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Suspension of the Germania, the Allemania and the West-Side, the Latter a Small Concern. DEPOSITORS WERE PANICKY AND THE BANKS LACKED CASH TO MEET SUDDEN DEMANDS. Officers Confident of Reopening When Assets Are Realized On-A Devil's Lake Bank Closed. ST. PAUL, Minn., Jan. 4.-As a direct reselt of the closing of the Bank of Minnesota, two weeks ago, which created new distrust among bank depositors and started runs on a number of city banks that were reputed not to be as strong as depositors wished, three St. Paul banks-the Germania, the Allemania and the West Side, none of them national institutions, and all closely associated-to-day closed their doors, one being now in the hands of the state bank examiner and the others making assignments. During the time that has intervened since the closing of the Bank of Minnesota, the Germania Bank paid out $225,000 to frightened depositors, and early to-day the directors concluded that they would stop the drain, and made an assignment to the cashier. Peter M. Kerst. The Allemania Bank, which, like the Germania, had a large clientage among the Germans, and whose vice president had formerly been president of the Germania, then became the target for as lively a run as could be seen during panic times anywhere. People crowded about the doors and fairly fought for a place in the line before the paying teller's window. The bank officials realized fully what such a run meant, and promptly called on Bank Examiner Kenyon to take possession of the bank, and that official is now in charge. The West Side Bank. a small but possibly stronger bank, cleared through the Allemania, and to-day its clearings were returned by the latter institution. Following this there was a decided run inaugurated on the bank, and at 2 o'clock this afternoon the bank officials closed the doors and called a meeting of the directors to decide what action to take. Their decision was apparent late in the afternoon, when they filed a deed of assignment to Charles F. Staples, the president of the bank. Considerable public money is tied up in the three institutions, but there is an ample supply for all immediate needs in the other banks of the city. The assignment of the Germania and West Side banks has brought up a somewhat new question in the banking laws of the State, and the courts will be called on to settle it. The state bank examiner doubts their right to assign. holding that they should have, under the law. turned over their assets to him. The attorney general intimates that he will bring action to test the matter as soon as the papers can be prepared. During the day numerous reports of trouble among the other banks were current, and a few banks suffered runs of greater or less intensity, but the savings banks were protected by the law that allows them to require sixty days notice before paying out deposits, and the national banks are in a strong condition and have no fear of anything of the sort. THE GERMANIA BANK. The Germania Bank stood a run of nearly two weeks, its depositors beginning to withdraw their accounts at the time the Bank of Minnesota closed, on Dec. 22. The last official statement of the condition of the bank was made Dec. 17, 1896, and was as follows: -Resources
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ST. PAUL'S BROKEN BANKS. Steps Taken to Straighten Out Their Affairs. St. Paul, Minn., Jan. 5. -Maurice Auerbach, president of the Union Bank, was to-day appointed receiver of the Allemania Bank under bond of $200,000. The board of directors of the Germania held a special meeting and appointed a committee of seven stockholders to take measures for the speedy reorganization of the bank. Charles F. Staples was made assignee of the West Side Bank. Early in the day there was a slight run on a couple of banks, but everything quieted down quickly, and no further trouble is expected among the financial institutions here. St. Paul still has five national, six state and three savings banks, with deposits aggregating $20,000,000. Bad business methods wrecked the Bank of Minnesota, and the others were forced to close by panicky depositors.
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ST, PAUL BANK SITUATION. Two Small Runs-No Further Trouble Anticipated. ST. PAUL, MINN., January 5.-Maurice Auerbach, president of the Union Bank, was to-day appointed receiver of the Allemania Bank, under a bond of $200,000. The Board of Directors of the Germania held a special meeting, and appointed a committee of stockholders to take measures for the speedy reorganization of the bank. Charles F. Staples was made assignee of the Westside Bank. Early in the day there were slight runs on a couple of banks, but everything quieted down quickly, and no further trouble is expected among the financial institutions here. St. Paul still has five national, six State, and three savings banks, with deposits aggregating $20,000,000. Bad. business methods wrecked the Bank of Minnesota, and the others were forced to close by panicky depositors.
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Three St. Paul Banks Go Under. ST. Paul, Minn., Jan. 5.-As a direct result of the closing of the Bank of Minnesota two weeks ago, which created new distrust among the banks, depositors started runs on a number of city banks yesterday that were reputed not to be as strong as depositors wished. Three St. Paul banks, the Germania, the Allemania and the West Side, none of them national institutions and all closely associated, were forced to close their doors. They are in the hands of the state bank examiner
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St. Paul, Jan. 6. -As - a direct result of the closing of the Bank of Minnesota two weeks ago, which created new distrust among depositors and started runs on a number of city banks that were reputed not to be as strong as the depositors wished, three St. Paul banks, the Germania, the Allemania and the West Side, none of them national institutions, all closely associated, closed their doors today, one being in the hands of the state bank examiner and the others making assignments.
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THREE MORE ST. PAUL BANKS. Two Were Large Institutions, the Other Was Small. St. Paul, Minn., Jan. 4.-As a direct result of the closing of the Bank of Minnesota, two weeks ago, which created new distrust among depositors and started runs on a number of city banks that were reputed not to be as strong as the depositors wished, three St. Paul banks-the Germania, the Allemania and the Vest Side, none of them national institutions, all closely associated-closed their doors today, one being in the hands of the state bank examiner and the others making assignments. During the time that had intervened since the closing of the Bank of Minnesota, the Germania paid out $225,000 to frightened depositors, and early today the directors concluded they would stop the drain and make an assignment to the cashier, Peter M. Keerst. The Allemania bank, which, like the Germania, had a large clientage among the Germans, and whose vice president had formerly been vice president of the Germania, then became the target for a lively run. Crowds gathered about the doors and fairly fought for a place in the line before the paying teller's window. The bank officials realized fully what such a run meant, and promptly called on Bank Examiner Kenyon to take poss sion of the bank, and that official is now in charge. The West Side bank, a small but possibly stronger bank, cleared through the Allemania, and today its clearings were returned by the latter institution. Follows ing this there was a decided run inaugurated on the bank, and at 2 o'clock this afternoon the bank officials closed the doors and called a meeting of the directors to decide what action to take. Their decision was apparent late in the afternoon, when they filed a deed of assignment to S. H. Staples, president of the bank. Considerable public money is tied up in the three institutions, but there is an mple supply for all immodiate needs in the other banks of the city. The assignment of the Germania and West Side banks has brought up a somewhat new question in the banking laws of the state, and the courts will be called upon to settle it. The state bank examiner doubts their right to assign, holding that they should have, under the law, turned over their assets to him. The attorney general intimates that he will bring an action to test the matter as soon as papers can be issued. During the day numerous reports of trouble among the other banks were current, and a few banks suffered runs of greater or lesser intensity, but the savings banks were protected by the law that allows them to require 60 days' notice before paying out deposits; and the national banks are in strong condition, and have no fear of anything of the sort. The Germania Bank. The Germania bank was a state institution and had a capital of $400,000. The last official statement of the condition of the bank, December 21, gave loans and discounts as $975,420.53; total resources, $1,625,788. Among the liabilities were cap, ital stock, $400,000; surplus and undivided profits, $58,797; individual deposits subject to check, $345,191; demand certificates of deposit, $7899; time certificates of deposit, $633,019. The Germania bank has been organize. many years, ex-Governor Alexander Ram. say being a long time president, and William Bickell, cashier. When the governor retired, Mr. Bickell became president, but last spring Bickell retired, becoming vice president of the newly organized Alle, mania bank. He was succeeded by Gustav Willius. President Willius told an Associated Press representative that the closing was the result of an unreasonable panic, and the bank would be opened for business as soon as the people regained their usual cool sense. The bank, as a result of the panicky feeling, had paid the depositors $335,000 in the last nine days. Willius said he fully expected to have the bank reopened by the last of March. The Allemania. The Allemania bank has a capital of $400,000, and a clientage similar to that of the Germania. The Allemania was organized last year, as a successor of the Commercial, William Bickell, formerly pres. ident of the Germania, joining forces with Albert Scheffer, of the Commercial, to organize a new bank. The last official statement made, December 17, showed loans and discounts, $706,842; undivided profits, less expenses, $508,764; individual deposits, $329,789; interest certificates, $187,253. President Scheffer, of the Allemania, said the failure was due to combined withdrawal of deposits. A crowd of depositors gathered today demanding their money, and at 11 o'clock it was decided to close. f Runs on Other Banks. Owing to the excitement caused by the closing of the Germania and the Allemania banks, many depositors went after their money in one or two other banks.
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ST. BANKS STILL EST THREE AT ST.PAUL Germania, Allemanle awal Banks Class Beramo of Deposits GerSt. Paul, Minn, Jan. capimania bank, a state instituti but tal $400,000, did not open to Peter nounced its first assignment r or M. Kerst, who for the past antwo has been the cashier. ction nouncement stated that thing n of was taken after a full consider was all phases of the situation, that deemed best for all concerns ank this action should be taken. its stood a run for nearly two acdepositors beginning to with Mincounts at the time the Bank The nesota closed on December tion last official statement of the 12, of the bank was made Deca be 1896, and showed Its resource unt$1,625,788.01, with liabilities deing to $1,628,788. The indivi posits were $1,000,000. President Willius says that the closing was the result of an unreast ble panic, and that the bank would te for business just as opened usual cool soon dates. the people regained their The bank, as a result of the panicky feeling, had paid out to depositors $335,000-in the last nine days, and as they saw what the continuation of this would lead to, the directors decided to close for the present. Mr. WIIlius said he fully expected to have the bank reopened and ready for business by the last of March. At a few minutes before 2 o'clock the West Side Bank, organized in 1886, with a capital of $100,000. closed its doors. The president, C. F. Staples, told the Associated Press that the bank cleared through the Allemania, and had its clearings returned to-day before the closing of that bank. The West Side Bank has suffered considerably from the generally shaky candltion of financial affairs.
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MORE BANKS FAIL. Three Institutions in St. Paul Close Their Doors. St. Paul, Minn., Jan. 5.-The Germania, the Allemania and West Side banks, all doing business as state banks, on Monday closed their doors, every one of them being literally pulled down by their depositors. The failure of the Bank of Minnesota December 22 caused unrest in the community and depositors withdrew their money from the three banks above to such an extent that they were forced to go to the wall because they had not funds enough immediately in hand to meet the demands made upon them. Each of the three, however, is solvent, and all of them will reorganize ns soon as the machinery for that purpose can be put into use. The directors of the Germania met Monday evening and appointed a committee on reorganization. The Germania is in the hands of P. M. Kerst as assignee and the other two are in the hands of Bank Examiner Kenyon. A receiver will be appointed for the Allemania to-day and the West Side bank will try to make arrangements with its creditors and reopen without the intervention of a receiver.
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THREE BANKS CARRIED DOWN. Deposito # Force the Closing of Three St. Paul Institutions. The Gormania, the Allemania and West Side banks, of St. Paul, all State banks, closed their doors Monday. The failure of the Bank of Minnesota December 22, caused unrest, and depositors withdrew their money from the three banks named to such an extent that they were forced to the wall because they had not funds enough to meet the demands. Each of the the three, however, is solvent, and all will reorganize. The Germania is in the hands of P. M. Kerst, as assignee, and the other two are in the hands of Bank Examiner Kenyon. The closing of the Germania was in pursuance of the action of the directors on Saturday night, who concluded to protect their depositors by suspending. President Willins prepared a statement in which he attributed the suspension partly to the circulation of false reports concerning the bank by people who are "a veritable pest and deserve the contempt of the community." The bank had paid out nearly $225,000 in nine days preceding Saturday. and although it had still on hand over $100,000, the directors concluded it was wisest to suspend. The Allemania closed with a crowd of depositors clamoring at the paying teller's window for their money. President Scheffer said the failure was due to the large number of withdrawais, and the fact that most of the depositers withheld their deposits. The suspension of the Germania caused the depositors to come down like a herd of wolves. The West Side bank cleared through the Allemania, and fol owed it into colapse. Public funds were on deposit in all three of the closed banks. The State has $10,546 in the Germania, $35,302 in the Allemania, and $3,646 in the West Side bank. The county treasurer had deposited $9,935 in the Germania, $26,215 in the Allemania, and $7,564 in the West Side bank. City Treasurer Horst had on deposit city funds in the Germania to the amount of $49,193; in the Allemania $151456, and in the West Side bank $21,894. There was a considerable run on the three savings banks. but all gave depositors notice that they must give 60 days' notice before withdrawing funds. The City bank of Nora Springs, Ia., suspended. The United States court appointed William F. Fuller, of Hartford, Conn., receiver of the Iowa Mortgage company, which negotiates loans and securities and guarantees payment. The Merchants' National bank, of Devil's Lake, N. D., did not open its doors Monday morning. A number of depositors withdrew their deposits Saturday. The last statement showed: Deposits. $47,000; bills payable, $7,500; discounts, stocks and securities, $55,000; cash, $12,500.
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allow the attorneys to produce authorities, and the case was continued until today at 2 p. m. WEST SIDE BANK. The petition of the assignee of the West Side bank was similar in its character, although the conditions governing the transactions were somewhat different. Attorney Dodge appeared for the assignee and the principal testimony was that of George H. Hosmer, cashier of the bank. Mr. Hosmer stated that he did not consider that the West Side bank was insolvent until it was compelled to close at 1:10, or 1:15 p. m. on Jan. 4. At that time there was less than $500 cash on hand and the bank was unable to meet all demands made upon it. The bank opened for business with about $5,000 and he considered was solvent at that time. The run on the bank did not begin until after noon and the directors did not decide to close until after 1 o'clock. They had felt no apprehension until they learned that the Allemannia bank had closed. That was about 12:15. The case was submitted without argument and Judge Bunn took it under advisement, expressing grave doubts as to whether insolvency had been shown. The total of claims involved is $2,000, of which $1,300 represents cash deposited. WEST SIDE VS. ALLEMANNIA. The case of the West Side bank against the Allemannia bank to recover certain notes amounting to $11,595, was also set for yesterday, but was postponed indefinitely. The notes in question were deposited as collateral security by the West Side bank with the Allemannia, and the West Side bank contends they were merely to cover a possible difference in clearings. The Allemannia claims that they were to secure any indebtedness which might arise, and on that ground placed them with the Merchants' National Bank, of New York, to secure a certificaite of $10,000 of the West Side bank, which had been discounted. ADVICE FOR MR. BICKEL. St. Paul, Minn., Jan. 28, 1897.-We read with very much satisfaction the article in the Globe of yesterday, where Mr. Maurice Auerbach tried to induce Mr. William Bickel Sr. to resign as assignee, and it would seem to a good many depositors this act would be the only manly thing for him to do. Otherwise there certainly must be some very important reasons for Mr. Bickel Sr. to force himself upon the mass of depositors who are opposed to him on account of too close relationship with Mr. Bickel Jr. Certainly it would be very much more manly for Mr. Bickel Sr. to resign at once, than it is manly for Mr. Bickel Jr. to call a whole lot of depositors hounds because they are simply opposed to having the bank's affairs straightened out by the Bickel family alone, and because they had confidence enough to bring their good money, worth 100 cents on the dollar to the bank, and will now have to be satisfied in return with, highest, 50 cents on the dollar. See Mr. Bickel Jr.'s own statement In the Dispatch of 26th inst. Once more we advise Mr. Bickel Sr. to resign of his own free will. -H. Patterson, On behalf of many depositors.
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ST. PAUL'S CASH. Proof of Claims Against Insolvent Banks has Been Filed. The $257,000 of city funds tied up in the suspended banks of the city is still carried on the balance sheet of the city treasurer as funds deposited in banks. According to the reports from the corporation attorney's office, there is a possibility that $22,480.81 of this amount may be turned over to the city at an early date. When the Bank of Minnesota closed its doors the sum of $49,392.10 was on deposit, $22,480.81 of this sum being what is called the interest coupon account, and was used by the city to pay maturing obligations in New York. According to the views taken by the comptroller and the corporation attorney, this money was a special or trust fund, and an application has been made to the court asking that an order be issued compelling the receivers to return the sum to the city. The corporation attorney stated yesterday that proof of claim had been filed with the receivers of the Germania, Allemannia, West Side and Minnesota Savings banks for the monies belonging to the city which were on deposit with these institutions when they closed. In the case of the Bank of Minnesota the court had extended the time for filing claims to June 1 and consequently no proof of claim had been filed, although this would be done in the near future, and as soon as the court had rendered a decision as to the interest account fund at that bank. The claims filed with the receivers against he four banks are as follows: Allemannia $120,917 64 52.040 40 Germania 10,013 47 Minnesota Savings West Side 24,954 23 The total amount, including that on deposit In the Bank of Minnesota, is $257,318.06. Personal Injury Case. The personal injury suit of Catherin Larkins, tried before Judge Bunn, went to the Jury at 12:30 p. m. yesterday. At 5 p. m. the jury had not agreed and a sealed verdict was ordered. The personal injury suit of Mary K ng against Guiterman Bros. is on trial before Judge Bunn and a jury. The plaintiff was an operative in the factory of the defendants and sustained an injury to her hand while operating a machine. She sues to recover $5,300 damages. After Dinner Cigars.
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GRAND JURY SPENT THE AFTERNOON INQUIRING INTO THE ALLEMANNIA'S AFFAIRS. NOT THROUGH WITH OTHERS. REPORT THAT CONGRESSMAN STEVENS HAS BEEN REQUESTED TO CALL AROUND TO TELL JURY WHAT HE KNOWS. Rumor That the Germania Will Be Left Alone and Another That It Will Not. The grand jury resumed its investigation of the banks and bankers yesterday afternoon. The body was in session from 2:15 p. m. until almost 6 o'clock. Most of the time was devoted to examining into the affairs of the Allemannia bank and the transactions of its officers, though the grand jury has not finished with the Minnesota Savings bank and the Bank of Minnesota. In fact, it was reported yesterday that the grand jury had sent word to Congressman Stevens that it would like to have a talk with him about the affairs of the Minnesota Savings bank before it got through its work. The witnesses in attendance in the matter of the Allemannia bank were C. S. Bunker, the expert accountant employed by Receiver Auerbach to assist in preparing the schedules; William Hamm and Paying Teller Devitt, of the Allemannia bank. Mr. Bunker and Mr. Hamm were each before the grand jury for a considerable length of time. Mr. Bunker had with him a bundle of books. The West Side bank is also to be investigated, judging from the presence in the witness room of Charles F. Staples, the president and assignee, and George H. Hosmer, the cashier of that bank. Neither of these gentlemen, so far as could be learned, appeared before the jury yesterday. Receiver Frank A. Seymour was on hand as usual with the books of the Bank of Minnesota, but was not called in. T. D. Sheehan, one of the receivers of the Minnesota Savings bank, was also present, but did not testify yesterday. It is understood that the grand jury proposed to take a peep into the affairs of the Germania bank, and thereby hangs a tale. Rumor has it that the movement in this direction is not inspired by the county attorney, but that it has its origin among two or three members of the grand jury itself. The truth or falsity of the rumor may never be ascertained and certainly will not be known until after the grand jury is discharged. On the other hand it is reported that the Germania bank's officers have received assurance that the grand jury will not examine into its affairs. Whether this report has any foundation the future will reveal. It is likely that the grand jury will make a partial report today on the jail cases considered Wednesday afternoon, and there is a possibility that an indictment may be returned against a bank official. It is more probable, however, that the next report in the bank cases will not be submitted until Monday.
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ASSEMBLY ACCEPTS THE SETTLEMENT PROPOSITION OF THE WEST SIDE BANK. TERMS OF THE AGREEMENT. BOARD AGREES WITH THE SUGGESTION TO INVESTIGATE CITY TREASURER'S OFFICE. NAMES ITS COMMITTEE ALSO. Street Railway Question Almost Slighted, but They'll Tackle It Tuesday Again. Meetings of both branches of the council were held last night. The assembly session was a short one. The proposition of the West Side bank to the city for a settlement of the funds belonging to the city when the bank suspended was passed by a unanimous vote of the eight members present. According to the terms of the agreement the bank is to pay the $24,954.23 due the city, in five installments of 20 per cent each, payable in twelve, fifteen, eighteen, twenty-one and twenty-four months from the time the bank reorganizes and opens its doors for business. Interest is to be allowed on the amount at the rate of 2 per cent per annum. The bank expects to reorganize by cutting its capital stock from $100,000 to $50,000, and has levied an assessment of $25,000 on its stockholders. The reorganization plan is expected to be put into effect by an order of the district court on July 17. The certificates to be issued to the city will be indorsed by the bondsmen who are now held by the city for the amount. City Attorney Markham was of the opinion that the city would get its money much quicker by the proposed agreement, than by the suit started against the sureties. He saw no legal objection to the proposition being accepted. Resolutions on the death of William Banholzer were passed and are published in another column. Assemblyman Kirke, by an amendment, rectified the mistake in the smoke ordinance which the supreme court recently held invalid The ordinance passed under a suspension of the rules.
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SETTLING WITH THE CITY. West Side Bank Makes Its First Payment as Directed. The sum of $5,076.79 was paid into the city treasury yesterday by the West Side bank. When the bank suspended Jan. 4 last, the city had on deposit in the institution something like $25,000. Recently the bank reorganized and made an agreement with the city to pay the amount in five installments. One-fifth of the sum was paid yesterday and the remainder will be turned over in four equal payments at the expiration of twelve, fifteen, eighteen and twenty-one months. Interest on the entire sum at the rate of 2 per cent per annum will be paid by the bank.