46a8ff94Accommodated withdrawals, Full suspension
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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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mania bank showed total resou $1,625,768, $253,847 of this being building and $975,420 in loans a counts; liabilities, $1,625,768, in $400,000 capital stock and $633 time certificates of deposits; d subject to check are $345,191. THE PRESIDENT'S STOR The closing of the Germania pursuance of the action of the ors on Saturday night, who con to protect their depositors by su ing. President Willius prepa statement, in which he said: "As soon as the result of the dential election became known ters began to improve in a rema degree, and there did not seem any doubt that on May 1 the would be in SO strong and impre a condition that an assessment successfully be made on stock. was the situation on the 22nd cember, when the suspension Bank of Minnesota occurred, ing immediately upon the fail the Bank of Illinois of Chicago, came as unexpectedly as a str lightning in midwinter. and general alarm. The four Minn bank failures increased the p feeling. but I did not fear any trous outcome until it became ap that certain evil-disposed perso diciously directed an attack 1 the Germania bank, circulating and maufactured reports regard from one end of the city to the with systematic persistency. I from day to day that the excit would subside and make room f ter judgment, but it grew in int The attack became bolder ever After the close of business on day, Jan. 2. we found that the drawal of deposits had assume dimensions that we did not feel fied to continue receiving depos to pay out money beyond tha without having submitted the tion of affairs to the directors quently we called a special meeti the board on the same day at 7 that purpose. We paid off $225,000 deposits in nine business and kept on hand and in reserve thing over $100,000 cash means, shows the unreasonableness o panic. The directors, after weighed the matter in all its bea came unanimously to the cono that the action of the officer been correct, and that, howeve plorable it might be, it became duty for the protection of all itors and other creditors, to clo doors and to place the assets bank in charge of an assignee. A CLAMORING CROWD. The Allemannia closed a few utes before 11 o'clock with a cro depositors clamoring at the payin er's window for their money. dent Scheffer said: "Our suspension is due to the number of withdrawals this mo and the fact that most of our de ors withheld their deposits. The of the suspension of our neighbo Germania, precipitated the run and of course with all the deposi ing withheld and the fact that was a steady withdrawal, we cou stem the tide. When the full fo the Germania's failure burst on they seemed to become panic-st and they came down on us like on the fold. When the Bank of nesota failed the business mer tunately were not much disturbe few were caught. The feeling o returned shortly, and might have tinued had it not been for the f of the four banks in Minneapolis. the panicky feeling came back an intensified by the fact that the ness men then caught it very The feeling naturally spread over and the people have not been since then. When the Germania its doors this morning that wa last straw in the case, and they down on us like a herd of wolves The total resources of the Alle nia, according to their report o same day, was $1,061,009, including 842 of loans and discounts. Liabi $1,081,009, including capital sto $400,000 and deposits of $329,789. THE WEST SIDE. Speaking of the failure of the Side bank, President Staples said "Our suspension was due to the mannia. We did all of our cle through the Allemannia and this 1 ing they failed to cover our clea and sent them all back on us. I meantime the news of the suspe of the Germania and the Allem spread through West St. Paul an depositors began scrambling in t tain their money We could not
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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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FIELD, SCHLICK & CO. 217.24 Due from sundry banks employes were discussing the mattter of Receiver's account (cash on hand) 16,617.17 whether the ghost would walk for December salaries on Jan. 15. City Treasurer Horst, Total $145,499.79 however, says there is still enough on hand Liabilitiesto make good the pay rolls for last month. Capital stock $25,000.00 The amounts belonging to the city in the 300.00 Surplus banks that suspended yesterday are as follows: Allemannia 88,209.50 Deposits subject to check $104,793.82 Germania 1,948.50 Demand certificates of deposit 49,793.82 West Side 24,132.06 Time certificates of deposit 21,894.50 Certified checks 1,263.26 Total 4,626.45 Undivided profits $176,144.88
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SAVINGS BANKS SAFE. Protect All Depositors by Requiring Withdrawal Notices. The suspension of the Germania and Allemannia banks caused something of a run, as it is always the case, on the savings banks. It is a needless alarm. At the State Savings Bank of St. Paul those desiring their money were allowed to draw until after 3 o'clock, the close of banking hours. The board of trustees then held a meeting and passed the following resolution: Resolved, That the state of public feeling is such that the board of trustees of the State Savings bank of St. Paul deems it expedient and in the true interests of the depositors of the bank to and it does hereby require the sixty and ninety days' notice of withdrawals of deposits provided in section 24 of the bylaws. The Savings Bank of St. Paul, at Sixth and Cedar streets, paid all depositors until 2 o'clock, but while the institution is in shape to stand a run, the bank officials thought it wise to take advantage of the sixty and ninety days' clause of the by-laws, and informed depositors that the notice of withdrawals would have to be given. The Minnesota Savings bank at Seventh and Wabasha streets, also served depositors with the same notice. The officers of each of the three institutions, said there was no need of alarm on the part of depositors, but in the state of the public feeling, it was thought wise, if not necessary, to require the notice to be given.
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WEAK BANKS CLOSE THREE OF THE SMALLER INSTITUTIONS OF ST. PAUL SHUT THEIR DOORS, ONE GOES, OTHERS FOLLOW. AND ALLEMANNIA GERMANIA, WEST SIDE SUSPEND IN THAT ORDER. COULDN'T STAND WITHDRAWALS. Maurice Auerbach Appointed Receiver of the Allemannia-The Others Assign. St. Paul banks were put to the test yesterday. Three comparatively unimportant ones went to the wall. The others were impregnable. In fact, public confidence was shown in all the others by the fact that a larger number of deposits than usual were made in those institutions. Of the three that failed, two were understood to be under a strain really before the opening of business today, one carrying the other down; the third was embarrassed by one of the others, and was caught in the maelstrom. The Germania bank, whose condition has been common gossip for about two weeks, did not open its doors yesterday at all. One hour before the usual banking hour, there was filed in the office of Clerk of the Court Rogers a deed of assignment to Peter M. Kerst, who has been the cashier of the bank. When 10 o'clock came and the doors of the Germania were not opened to the bank customers, the news spread like wild fire. The expected had happened. The Allemannia bank was soon in the throes of a lively "run." The morning deposits were not coming in, and it became apparent that the contest was an unequal one. The officers of the bank decided to protect their depositors by suspending payment, so that all would be on an equal footing. The savings banks were afterwards drawn upon by depositors to such an extent that most of them claimed the 60 days' notice for savings deposits, which the law allows them, and the other savings banks will do so today. About noon the West side bank succumbed to the pressure. This bank cleared through the Allemannia and its suspension was due directly to the going down of the Allemannia. The other banks, as told heretofore, took care of their customers all day, with the exception of the precautions taken by the savings banks to protect their depositors. Reassuring advices were received from Chicago and New York last night after the close of business, and there will be no dearth of money today with which to pay off any claims, even if they are presented, which is considered unlikely. Bankers last night agreed that there was no possibility of any more local banks suspending. In fact, a large number of the depositors in the banks from which withdrawals were made yesterday. hurried to the other banks of the city to re-entrust their savings.
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# NO CAUSE FOR ALARM. As far as the closing of three comparatively small banks in this city yesterday is concerned, it is a reason for confidence in the future rather than for alarm. There is not the slightest foundation for the senseless agitation that exhibited itself in the minds of a few of our people; and we hope, both for the credit and the prosperity of the city, that there will be no more of it. The facts are perfectly evident on their fact, and there is no reason to conceal, deny, distort or misrepresent them. The closing of the Bank of Minnesota, together with recent bank failures in Minneapolis, had filled the public mind with apprehensions that were groundless. These were the cause of wild rumors without foundation, and of an alarm that the events themselves could not have created. The failures yesterday would not, but for these preceding events, have caused a ripple on the surface. It is utterly absurd that they should be regarded now as serious. That the business of the Germania has for some time been unsatisfactory was a matter of general knowledge. The same has been true lately of the Allemannia; a fact which was brought sharply to the public notice rather than relieved by heavy deposits of public moneys. In ordinary times, neither of these institutions would have experienced difficulty in weathering the storm. But with the distrust created by other failures, withdrawals became frequent and deposits fell off. To this there is but one end in the banking business; just as the cessation of purchases will speedily end the career of any merchant. The West Side bank is a small institution, apparently perfectly solvent, which had to yield to the accident that it cleared through the Allemannia. This formal connection required its suspension to protect its own interests. And this is all that there is of the little flurry yesterday. We cannot reprehend too strongly the folly of those who began to draw their deposits out of the vaults of other banks. It is not only without reason, it is suicidal. The depositors can break any bank in the world if they all demand their money. No such institution keeps or can keep enough cash on hand to pay all depositors on demand. The savings banks, which are above reproach, have very properly taken advantage of the law requiring sixty days' notice before deposits can be withdrawn. Although amply able to meet every demand upon them, the sight of people taking out their funds has an alarming effect upon the minds of those who know nothing of the circumstances. As to the other banks, they are as proof against attack as any other in the country. The statement which we print from the comptroller of the currency at Washington shows the senselessness of wild rumors that find credence in such times. Nowhere are the national banks better fortified. And those that are still doing business under the state law are impregnable. The fact is that every weak banking institution has been weeded out, and some that are able to pay in full have been foreed to suspend. Now the thing to do is for the people to understand that all that are left are secure against any attack, and to realize that their money is safer where it now is than it would be in their own hands. We assure every reader that there exists no longer the least cause for disturbance or doubt in any quarter; that the storm has wholly passed; and that the man who draws any money out of any institution hereafter, except for legitimate needs and business purposes, is guilty not only of outrageous folly, but of a crime against the interests of St. Paul, and especially against his own. "A BURLY HATRED OF CANT." The death of Joseph McCullagh, the virile editor of the St. Louis Globe.
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IS LITTLE TO LEARN SITUATION IN REGARD TO THE SUSPENDED BANKS REMAINS ABOUT THE SAME. TALK WITH FRANK SEYMOUR. HE WILL NOT SAY ANYTHING UNTIL THE FIGURES ARE MADE UP. GERMANIA ISSUES ITS LETTER. C. F. Bundy, Eau Claire, Appointed Ancillary Receiver of the Allemannia. Judge Bunn yesterday appointed C. F. Bundy, of Eau Claire, ancillary receiver of the Allemannia bank of this city. Mr. Bundy is attorney for the receivers of the Commercial bank of Eau Claire, which was carried down by the Allemannia suspension. The bank situation would appear to be still unchanged, judging from statements made yesterday by those gentlemen having in charge the affairs of the different institutions which recently closed their doors. Reorganization seems to be the watchword, but it is impossible to obtain any tangible news of the work which is being done in that direction. Receiver Frank Seymour, of the Bank of Minnesota, was seen yesterday afternoon, but said he could disclose but little information concerning the progress made. "You hear the clicking of those typewriters," he said to a reporter for the Globe. "Well, there are being prepared schedules which will probably be completed within a short time. While we are not required by law to file a report, there ought to be something put on record Until the figures are made up, and carefully gone over, I, as receiver, can say nothing. "The directors committee and the depositors' committee have both asked for and have been given considerable information about the affairs of the bank. They are entitled to it as is every individual depositor, if he invokes the aid of the law to obtain it, and from what has been said it appears that there is a feeling that the bank will be reorganized. Of course, it is a slow process. I will say that I am hopeful that the institution will be reorganized." The only apparent progress made regarding the affairs of the Germania bank, yesterday, was the letter referred to in the Glob e of yesterday, which was sent the many depositors, to show them exactly what has been done and suggested by the bank officials, who are quite hopeful of reorganization. Cashier Kerst, seen yesterday, gave it as his opinion that a majority of the creditors favored some feasible plan of reorganization, and that the present step was to crystalize the various suggestions already made into some practical method of ting the bank again on its feet. The letter is as follows: To the Stockholders and Creditors of the Germania Bank: Owing to a scare among the depositors of this bank, brought about by the suspension of the Bank of Minnesota here, and the failure of four banks in Minneapolis, which resulted in a continuous withdrawal of deposits, the board of directors considered It its duty for the protection of depositors and other creditors to place the assets of the bank in charge of an assignee. This course was decided upon at a special meeting of the bank held Jan. 2, at 7:30 p. m., and carried into effect the following Monday. On the same day, Jan. 4, the directors met again and passed the following resolution: That a committee of seven stockholders, of which the president shall be ex-officio chairman, be appointed by him for the purpose of taking measures for the speedy reorganization of the Germania bank, of St. Paul, Minn. The president named the undersigned directors as such committee on reorganization. We deem it proper to advise you at this early moment that we have commenced our labors and are busy making careful estimates with a view of formulating a plan of reconstruction. which will be submitted as soon as possible. It affords us great satisfaction to be able to say that we meet with every encouragement. and that the action of the officers and directors during the crisis seems to have general approval, which inspires us with a feeling of confidence that we shall succeed. Very fully, Gustave Willius, Chairman. E. F. Berrisford, W. H. Harries, C. L. Horst, Joseph Haag, John B. Herrman. Theodore H. Menk. St. Paul, Jan. 8, 1897.
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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: $120,917 64 Allemannia 52.040 40 Germania 10,013 47 Minnesota Savings 24,954 23 West Side 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 Eng 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. Go to Adam Fetsch's for your fine Key West and Domestic Cigars.
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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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AUERBACH WILL ACT ALLEMANNIA'S RECEIVER GOING TO BEGIN TO ENFORCE STOCKHOLEDRS' LIABILITY. ad WITH THE CONSENT OF COURT. 1.G EFANNOYED AT THE PERSISTENT FORTS TO HAVE HIM REMOVED FROM POSITION. n8 or by T ANOTHER PETPTION CIRCULATING N of This One Requests the Naming Hamm, Kuhl and PottgieserSome Allemannia History. Within the next few days Allemannia Receiver Maurice Auerbach, of the Asa will through his atorney, for Briggs, bank, apply to the district enforce court the order directing him to of an double liability of the stockholders statethat defunct institution. This and ment will be news to the depositors to say creditors of the fallen bank themnothing of the stockholders undone selves, who have left nothing inevitable stave off this apparently receiver. to action on the part of the As has been already published, institution the actual indebtedness of the as about $550,000, while the assets are is figured in the receiver's schedules if all $237,673.32 The liability, if the set collectible at would be $400,000, enforce and the of being able to matter double liability is decided in favor course of The $800,000. the receiver then the amount liability of on the stock will be is, in the opinion of those who the examined the bank's affairs, of a have asset avilable, the prospect conreturn best on the enforcement being of events sidered very good. The chain the part leading up to this action on with conthe receiver will be noted who have siderable of interest by those bank and followed the closing of the of subsequent moves with any degree closeness. It will be recalled that lately a asking petiwas submitted to the court Auerbach, tion the removal of Receiver Wilfor the appointment of Messrs. Edand Hamm, Bernhard Kuhl and petiliam Yanish in his place. This past ward the court denied. Within the been few tion days a second petition of has securing, circulated for the purpose number and possible, a majority in liabilities if of the creditors and that amount bank, and which sets forth Bernof the wish William Hamm, the signers Kuhl and Joseph M. Pottgieser Auerbach. hard receivers, vice Mr. is as named The- last part of the document Wilfollows: petitioners further represent and Joseph that M. ilam These Hamm, Bernhard of Kuhl them reputable citi Pottgieser and electors are each of and Ramsey is located county and zens Minnesota wherein said bank and they have ofhas its place of business, receivers of said bank and of direction fered administer to act its as affairs compensation under the for their this court, without evers, and give such of such rece faithful perfor ance their services as securities for the as this bonds and duties as such receivers court may prescribe. petitioners do hereby nomin Kuhi Wherefore your William, Hamm, receivers.of Bernhard said ate the said as receivers.c said and Joseph M. Pottgleser, respectfully pray as insol vent bank, said Maurice Auerbach to remove such terms court of said bank upon and appoint said so-nominated receiver may seem just, and if for to this court in his stead, shall nominated persons reason said persons. receivers; then any unable to act as such stead of said Maurice appoint be in the place and person or persons as Auerbach such other seem proper. to this cour shall petition reached the of this yesterday, and A of copy Mr Auerbach annoyed and eye was half efforts that gentleman the continued to half vexed at ousted. His wish was the to have him of his office to it. fulfill the duties ability and, as he saw best of his was to turn the assets earliest his duty now into cash at the mantime of the and bank in the ;most satisfactory Mr. 'that he was ner. Auerbach declined to make a servant any such statement, save and while he ntinued ac- as any the action of the would court, continue the work court or might his postquiesce making in any change in calm extake this seemingly temtion. Beneath is said, there is a small is much terior, it and that there should best raging, opinion as to what receiver. difference of done by the worried, Naturally and will be the stock relishing holders the are idea en- of having not especially the liability on The their statement stock is forced at made this that, time if the named, court the should prosappoint bluntly the three.men enforcement of liability All of any into thin air. pect would fade away gentlemen named in now the three of the been and are bank. petition have in the Allemannia to the stockholders a stockholder Mr. Hamm $23,800: was Mr Kuhl held shares $1,900, or all tran have amount Mr. of Pottgeiser reported held ten that they taken a within while $1,000 It is ferred also their holdings, but year, that such action provided was in the not statutes, remove the has and it is transfer does expired: of liability the mere until a year by the court these the The three appointment mén would, management it is argued, affairs amount to placing of the bank is in the the leading hands of the Albert Scheffer, number who of concerns which, some spirit of agregate, a owe the bank Among the thing like are the in the $200,000 more North St. companies named B. & T. Tobacco Twin comPaul companies Local Investment company Hauser Maltcompany. pany City Packing company, National Plate Glass of company ing and contended others. that the to bank's place the Some liquidation the hands expensive, of Mr. affairs in be quite as Mr. Auerduties Scheffer would than to allow as he has if not more so, complete his stockholders do bach to them; but the at the prosbegun to be pleased with the not appear...to having come up and the inpect of their liability, two in this connor amount of the next week or be wholly cidents of ection bid fair to interesting. Hailt ia News of the Army.
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CORPORATION ATTORNEY BEGINS ACTION AGAINST FUNCT BANKS' BONDSMEN. PAPERS SERVED YESTER TO RECOVER THE AMOUNT OF "ILSNI NI ACINOM 'SNOLLAL ONIONVH TILLS and OML Sudden Move of the City's Legal SI SI 11 Spoil Grand Jury Thunder. The corporation attorney's office awakened to the fact that there something like $260,000 of the funds tied up in suspended Something over five months ago five banks in which the city had posit the amount of funds mentio closed their doors. Resolutions passed by the council requesting corporation attorney to take secure the return of the money ei by the commencement of suits the sureties on the bonds given by banks or otherwise. Nothing, however, was done in matter, but yesterday it was that action had been commer against the bondsmen of three of five suspended banks. This sudden tivity on the part of the legal ment has been laid to several It is suspected that the forthcom report of the grand jury. now completed, has a few words to this important question and that inkling of what the grand jury will has reached the present administra officers. For this reason, it is mated, the city officials and more cially the legal department desired head off the thunder of the grand or at any rate take the edge off forthcoming report in this particu Whether this is the strength of present move remains to be seen, yesterday deputy sheriffs were hust around with copies of summons complaints in actions brought by city on account of funds deposited the Allemannia, Minnesota Savings West Side banks. It is the inten of the corporation attorney's proceed against the sureties on bonds given by the Bank of sota and Germania bank, but the tions will not be commenced imm ately against the bonds given by two institutions. In the case of Bank of Minnesota the city had on posit when the doors closed $49,39 of which amount $22,480.81 was wha known as coupon interest account. point was raised by the comptro that this last mentioned amount special trust fund, and, as the given by the bank did not cover account, it was the duty of the ceivers of the bank to hand the city the $22,480.81 without any gument. The receivers, howe couldn't hear Mr. McCardy, though his proposition was backed by a decision in a Missouri case, it was claimed was identcal with of the present one. The corporat attorney thought SO well of the raised by the comptroller that he into court with the case, and as the judge has not filed a decision. leaves the corporation attorney doubt as to how much the city ask the bondsmen for and
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# TROUBLE FOR SEVEN GRAND JURY MAKES PARTIAL REPORT RETURNING A BUNCH OF INDICTMENTS. ALL OF THEM JAIL CASES. MORE MATTERS ON HAND FOR CONSIDERATION AT THIS TIME. ZSCHAU'S CASE BEING CONSIDERED. Impression Is That the Jury Will Not Return a Bill Against Jackson. The grand jury made a partial report to the court yesterday afternoon. Seven indictments were returned, all of which are against those who are inmates of the county jail. Among them are Thomas Mullen, charged with highway robbery; Joseph Carlson and Arnold Schneider, criminal assault; Frank Moore, indecent assault, and Peter Larson, assault in the second degree. The grand jury spent the greater part of the afternoon investigating the affairs of the Minnesota Savings bank. The witnesses called into the grand jury room were: Receiver T. D. Sheehan, Receiving Teller Ed Heinlein and Jacob H. Hammer, who was formerly an officer and trustee of the bank. Among others who were on hand to testify, but were not called upon, were Receiver Auerbach, of the Allemannia; C. S. Bunker, the accountant employed by Mr. Auerbach, and William Hamm. These three were notified to attend before the grand jury today. L. A. Dion, T. F. Couroy and H. D. Wallace were also present, but were not called into the grand jury room. One of the first witnesses examined yesterday was Miss Pauline Zschau, sister of Charley Zschau.
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AKES A HAND, T00 SEMBLY THINKS IT TIME IT DID A LITTLE INVESTIGATING ITSELF. ORST AND THE ALLEMANNIA. MMITTEE APPOINTED TO INQUIRE INTO THE BIG DEPOSIT IN THAT BANK. ARKHAM WRITES ON BANKING. bmits a Contract Between the City and Treasurer Horst Which He Wants Approved. The assembly last evening listened a lengthy communication from CorAttorney Markham as to the of the city deposited in suspendbanks. In connection with the letfrom the corporation attorney, a solution was presented together with agreement entered into between the and the sureties on the bond given City Treasurer Horst. The agreeallowed the city to appear in oceedings against the insolvent banks the bondsmen without prejudice to rights it might have to recover the treasurer and those liable him on his official bond. It was by C. L. Horst, J. W. Lusk, H. Weed, Maurice Auerbach, Spangenberg, William Porten, illiam Hamm, Moses S. Clapp, F. Welz, Joseph Haag, Peter M. Kerst Thomas B. Scott, who are sureties City Treasurer Horst's bond in the of $500,000. The resolution provided the council, the mayor, city clerk comptroller execute and approve agreement. Mr. Arogin was in favor the matter being referred to the mmittee on ways and means. Markham thought it would be inecessary to have it referred to the mmittee. He wanted the contract proved by the council as soon as ossible. Mr. Arosin thought it was an impormatter and should be considered a committee. A special meeting be called and the contract ap. after Ft had been duly conAs he understood from the ading, one of the parties of the first had not signed the contract. Mr. eardon was of the opinion that there no particular rush, and seconded motion of Mr. Arosin that the matgo to the committee on ways and Mr. Albrecht wanted the agreement but Mr. Arosin objected to any publicity until all the persons terested had signed the contract or greement. On the roll call to have the atter referred to the committee, there six votes for and two against Messrs. Albrecht and Mabon voting rainst the reference. The letter of the corporation attorwas as follows: the matter of funds deposited by the treasurer in certain banks of the city have become insolvent, some serious mplications are presented. In the fall of a resolution was adopted by the common designating these same banks as desitories of city funds and requiring that each case a proper bond should be given approved by the common council. The of Minnesota, Germania, Allemannia, Side and certain other banks of the in compliance with this resolution. exbonds to the city, conditioned for the upon the order of the treasurer of sums which might be deposited from time time pursuant to such resolutions. Again November. 1896, pursuant to advertisement proposals received, the common council a resolution designating these same as depositories of the city's funds, and oviding that before any money should be posited in any such designated banks purto said resolutions. each of said banks execute and deliver a bond to the city good and sufficient sureties, in the count named conditioned for the payment the city upon the order of the treasurer such sums as might be deposited in said Subsequent to the passage of this solution, the treasurer continued to dethe funds of the city and each of the above named. and at the time of suspension. each of these banks had on a considerable amount of city funds. bond was given by the Allemannia bank by the Bank of Minnesota subsequent to passage of the resolution of November and the bond given by the Germania subsequent to that resolution was not proved by the common council until after suspension of the bank in January 1897. Under these circumstances, the question as to how far the sureties on bonds in 1895 in these various banks are liable moneys deposited by the treasurer and the testion is also presented as to whether easurer, by continuing to deposit the funds the the city in banks which either gave at all or the bonds of which had no approved by the council subsequent not to resolution of November 1896 is not. with sureties unon his official bond liable to city for the sum 80 deposited. It will be seen that It might be imprudent unsafe for the city to take the position It is a creditor of these banks to the amount of funds deposited by the city easurer there'n lest by taking such postthe city might be said to admit the city of the in these treasurer banka to deposit the funds of