9934. Germania Bank (St Paul, MN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
July 17, 1899
Location
St Paul, Minnesota (44.944, -93.093)

Metadata

Model
gpt-5-mini
Short Digest
2149ae5b

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Description

Depositors made heavy withdrawals triggered by the closing of the Savings Bank of St. Paul, causing Germania to pay out for a few hours and then close at the request of its officers; the directors then asked to go into voluntary liquidation and the examiner/receiver (Gustave/Gustav Willius) administered winding up. Permanent closure followed (receiver actions and dividends reported in subsequent years).

Events (4)
1. July 17, 1899 Suspension
Cause
Local Banks
Cause Details
Officials closed the bank after sustained heavy withdrawals (run) following the closing of another local savings bank
Newspaper Excerpt
At the request of the bank officials Public Examiner Pope, yesterday morning, assumed charge of the affairs of the Germania bank, and the doors of the institution were closed.
Source
newspapers
2. July 18, 1899 Run
Cause
Local Banks
Cause Details
Run followed the closing of the Savings Bank of St. Paul; heavy withdrawals depleted cash on hand
Measures
Paid out money for a few hours, then closed doors and placed the bank under the public examiner's charge
Newspaper Excerpt
The cause of the suspension was an unprecedented run by the depositors, who thronged the counting room yesterday morning. The withdrawals were so heavy and sustained that the officials notified Gen. Pope that their cash on hand was liable to be exhausted
Source
newspapers
3. July 21, 1899 Other
Newspaper Excerpt
A meeting of the directors of the Germania bank was held yesterday and it was decided to ask Gen. Pope to permit the bank to go into voluntary liquidation to wind up its affairs for the benefit of the creditors. The report of the directors, with the request, was submitted to the bank examiner yesterday afternoon and granted. The process of liquidation will be directly in charge of Gustave Willius.
Source
newspapers
4. September 6, 1899 Receivership
Newspaper Excerpt
A. H. Rogers and Edward R. Bryant have commenced suit against the city of St. Paul and Gustave Willius, as receiver of the Germania bank, to quiet title to lots ...
Source
newspapers

Newspaper Articles (18)
1. July 17, 1899 Evening Star Washington, DC
Article from Evening Star, July 17, 1899

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St. Paul Bank Closed. ST. PAUL, Minn., July 17.-The Germania Bank, a state institution, with $200,000 capital, has been closed at the request of its board of directors, and the state bank examiner is in charge. After sustaining a heavy run two and a half years ago, the bank was closed in January, 1897. However, with new capital the Institution was reorganized. and has been doing 1 moderate business for two years. The last statement showed deposits of $499,000; cash on hand, $61,000; total assets, $821,406.

2. July 18, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 18, 1899

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remaining of the 2,000 shares are held by 700 stockholders, some having only one share, while the largest holding by any of the 700 is six shares. WHAT GOV. LIND SAYS. Gov. Lind was seen last evening at his home on Fairmount avenue by the Globe and said regarding the closing of the Germania bank: "I do not think there will be any occasion for the appointment of a receiver, and from what I know of the circumstances surrounding the closing of the bank I can say with considerable assurance that I believe the result of the investigation of the bank accounts and assets by Gen. Pope will enable him to have the bank put in the hands of the officers for liquidation. A receivership would be very expensive, and through voluntary liquidation the creditors, other than the stockholders, will get the greatest returns from the assets. "If the officers are able to realize even a fair cash value upon the assets they will be able to pay 100 cents on the dollar. Application will have to be made to have the bank go into liquidation just as soon as Gen. Pope completes his examination, if the conditions warrant, and there is every reason to believe they will, as the condition of the bank is almost the same today as when the last examination was made by Gen. Pope May 2, with the exception of the liability to depositors, which has been somewhat decreased by the heavy withdrawals. "The closing of the bank was not a surprise to me, as has been stated. The officers of the bank have met with Gen. Pope and myself, and two examinations have been made by the public examiner's department during the last few months. The bank examiner would have recommended an assessment upon the capital stock had such a thing been possible, but owing to the way the stock was placed after the reorganization it was found impossible to bridge the difficulty in that way. "When the Savings Bank of St. Paul was closed there was a run on the Germania bank and each day the withdrawals have been large. The officers of the bank came to my office this morning and the bank was closed with the mutual consent of all concerned. I regard voluntary liquidation as the very best way in which to wind up its affairs for the benefit of the creditors, as It does not seem possible that the institution will reorganize for business again. S od "When the first examination was made the capital stock was considerably impaired, and this condition has not been improved. Affairs moved along, the bank officials hoping that their realty values would be repaired, and when the run came it was decided to close and make an equitable distribution among all interested." 96710

3. July 18, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 18, 1899

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FORCED TO CLOSE UP GERMANIA BANK VOLUNTARILY TURNS ITS BUSINESS OVER TO THE EXAMINER COULDNT STAND THE RUN Paid Out Money for a Few Hours and Then Decided the Better Plan Was to Suspend-Supt. Pope Hopes That a Receiver Will Not Be Necessary in Winding Up the Institution. At the request of the bank officials Public Examiner Pope, yesterday morning, assumed charge of the affairs of the Germania bank, and the doors of the institution were closed. The cause of the suspension was an unprecedented run by the depositors, who thronged the counting room yesterday morning. The withdrawals were SO heavy and sustained that the officials notified Gen. Pope that their cash on hand was liable to be exhausted, and at 11 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 institution to go into voluntary liquidation, and avoid the necessity of a receivership. The suspension of the bank caused wide distress among the depositors, who, according to a statement made yesterday by an officer of the bank, number over 1,100. The Germania bank commenced business on May 20, 1884, with a capitalization of $400,000. On Jan. 4, 1897, it was forced to make an assignment for the benefit of the creditors, owing to the heavy withdrawals of funds immediately prior to the date of the suspension and to the failure 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 estimated by the public examiner at $860,000 each. A short time after the assignment a meeting of the creditors was held, and a committee of seven was appointed to examine into the condition of affairs. Gustave Willius, as president of the bank and chairman of the committee, reported a plan of reorganization, which was assented 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 issuance of certificates of indebtedness payable to the order of the unsecured creditors of the bank in 9, 15, 21 and 24 months from the time of the reopening of the bank with interest upon each of the deferred 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. 3. An assessment of 75 per cent upon the stockholders pro rata, $200,000 at least to be raised, and the capital stock to be reduced to an amount equal to the payments made upon such accounts. 4. The execution of the plan of reorganization under the supervision of the superintendent of banks, the discharge of the assignee and the return to the bank of all the property and assets remaining in the hands of the assignee. The committee found that all the property 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 assessment on the stockholders would leave a substantially unimpaired capital stock of $200,000. 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 $10,572.92, Ramsey county for $11,753.08, and the city for $52,283.08. STRUGGLE OF THE BANK. Since the resumption, the bank has struggled against the difficulties presented by the reorganization incumbrances, and practically all have been settled except the fourth or twenty. four

4. July 18, 1899 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, July 18, 1899

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Another St. Paul Bank Closed. Sr. PAUL, July 18.-The Germania bank, which suspended in the early part of 1897, and. after being under a receivership for many months, was reorganized and allowed to reopen, has been closed by order of State Bank Examiner Pope.

5. July 20, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 20, 1899

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# GERMANIA BANK DIRECTORS Will Ask Gen. Pope for Permission to Go Into Liquidation. A meeting of the directors of the Ger- mania bank was held yesterday after- noon, but nothing further than to dis- cuss the situation in general was accom- plished. The board will meet again this morning, when Gen. Pope will have com- pleted his examination, and plans for the future made. The officers will un- questionably ask the public examiner to permit the bank to go into voluntary liquidation. Gen. Pope will undoubtedly concede this. He said to the Globe yesterday relative to the matter: "Everything is in perfect order. The bank has been well managed, and from the examination which I have just about completed, I find there is little change in the condition of the bank since the examination made in February by this department. There does not seem to be any necessity for a re- ceiver, and I shall raise no objection

6. July 20, 1899 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, July 20, 1899

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Another St. Paul Bank Closed. Sr. PAUL, July 18.-The Germania bank, which suspended in the early part of 1897, and, after being under a receivership for many months, was reor ganized and allowed to reopen, has been closed by order of State Bank Examiner Pope.

7. July 21, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 21, 1899

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# VOLUNTARY LIQUIDATION. Germania Bank's Affairs Will Be Closed Up by Its Officers. A meeting of the directors of the Ger- mania bank was held yesterday and it was decided to ask Gen. Pope to permit the bank to go into voluntary liquidation to wind up its affairs for the benefit of the creditors. The report of the direct- ors, with the request, was submitted to the bank examiner yesterday afternoon and granted. The process of liquidation will be directly in charge of Gustave Willius. This action obviates the necessity of the appointment of a receiver.

8. July 22, 1899 The Diamond Drill Crystal Falls, MI
Article from The Diamond Drill, July 22, 1899

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The population of Minneapolis, based on the new directory, is 220,000. In a battle near Las Vegas, N. M., with outlaws who held up a Colorado & Southern passenger train Sheriff Farr was killed, two deputies were seriously wounded, and one of the desperadoes was shot to death. The Peerless flour mill at Mount Vernon, Ind., the property of Kauffman Brothers, was destroyed by fire, the loss being $110,000. As the result of a renewal of the Howard-Baker feud in Manchester, Ky., five men were killed and three wounded. Five masked robbers broke into the home of Daniel Miller, a wealthy farmer near Mansfield, O., and stole more than $1,000. A fire in the Brooklyn navy yard caused a loss of $315,000 in clothing and other supplies stored in the building. The Germania bank of St. Paul closed its doors with liabilities of $499,000. Residents of American Falls, Idaho, were driven from their homes to the mountains by mosquitoes. Henri Fournier, the noted long-dis. tance bicycle rider, was run down by a team in New York and killed. At a cabinet meeting in Washington it was decided to ignore the complaint of the newspaper correspondents in Manila against Gen. Otis. It was intimated that very encouraging news had been received from the Philippines and that thesituation was much better than had been generally believed. James L. Onderdonk, a resident of Evanston, III., and former lieutenant governor of Idaho, died in the Klondike, aged 45 years. Municipal ownership of Detroit's street railways was given a final uietus by the common council. Striking street railway men in Brooklyn, N. Y., blew up with dynamite a building owned by the Rapid Transit company, and surrounding property was badly damaged by the explosion. In a railway collision at Haverhill, O., Engineer George Sloan, Fireman George Egbert and Flagman Perfinger were killed and several passengers were injured. The Ramsey street car barns of the Twin City Electric railway were burned in St. Paul, the loss being $125,000. Miss Clara Barton, of the Red Cross society, arrived in New York from Havana. She says Red Cross affairs in Cuba are in excellent condition. Thomas McDougal, a famous Cincinnati lawyer, was found dead in his bed at his summer house near South 5alem, O. The casting plant at the Addyston pipe and steel foundry in Cincinnati was gutted by fire, the loss being $400,000. Fire destroyed the Grace hotel in Milwaukee and 21 firemen were injured, of whom four may die. Twelve members of the steamer Elk expedition to Kotzebue sound in Alaska died on the way. A. W. Blades and his wife and eight children while en route to Minnesota in an emigrant wagon were drowned in northwestern Iowa by a cloudburst. A large party of scientists left Omaha for Laramie on a 40-days' exploration of the fossil fields of Wyoming. William A. S. Graham, ex-school agent and secretary of the board of education in Chicago, is a self-confessed defaulter to the extent of $34,500 and a fugitive from justice. The Pressed Steel Car company has made a contract with the Carnegie Steel company in Pittsburgh for the delivery of 1,000 ions of steel plates per day for ten years at a cost of $150,000,000. This is the largest private contract ever made. A national convention of the United Christian party will be held at Chicago

9. July 28, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 28, 1899

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# A GOOD RECORD. The obligation imposed on the management of the Germania bank to go into liquidation is one which disinterested opinion will accept as an unfortunate one. The bank was doing well. It had paid all its matured obligations arising from its failure of a few years ago. It presented a reasonable prospect of being able to meet those still outstanding. In order to do so it might have found it necessary to secure the aid of the other banks; but the probabilities were rather against than in favor of seeking any extension of these obligations, however brief. But, whether or no, the outlook for the bank was good, and the work of its management had been hard, intelligent and conscientious in the direction of retrieving past losses and fulfilling all its obligations to the business public and its former creditors alike. It was the unexpected closing of the savings bank which crippled the Germania. The run which followed that closing depleted the cash on hand and made the suspension a necessary proceeding. It is worthy of note that the steps taken to wind up the affairs of the Germania are of the same general character, bespeaking business prudence and a profound sense of official obligation, which has distinguished the entire management of that concern under the direction of Mr. Willius. His selection by the court to supervise the closing up of the affairs of the bank is the wisest that could have been made. There will be no fear that the assets of the bank will be assailed by big legal fees. But on the contrary the entire record of Mr. Willius' connection with that institution establishes the probability that the affairs of the bank will be so administered as to realize the last dollar for the creditors, and avoid all occasions for delay and expense.

10. July 29, 1899 The L'anse Sentinel L'anse, MI
Article from The L'anse Sentinel, July 29, 1899

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1 WEEK'S RECORD All the News of the Past Seven Days Condensed. HOME AND FOREIGN ITEMS News of the Industrial Field, Personal and Political Items, Happenings at Home and Abroad. THE NEWS FROM ALL THE WORLD DOMESTIC. The exchanges at the leading clearing houses in the United States during the week ended on the 14th aggregated $1,933,946,835, against $1,652,204,237 the previous week. The increase compared with the corresponding week of 1898 was 60.9. The visible supply of grain in the United States on the 17th was: Wheat, 34,552,000 bushels; corn, 12,634,000 bushels; oats, 4,793,000 bushels; rye, 731,000 bushels; barley, 698,000 bushels. The Colorado supreme court affirmed the validity of the law establishing The new county of Teller, which embraces the Cripple Creek district. The next annual reunion of the Army of the Cumberland will be held at Detroit, Mich., September 26 and 27. In a battle near Las Vegas, N. M., with outlaws who held up a Colorado & Southern passenger train Sheriff Farr was killed, two deputies were seriously wounded, and one of the desperadoes was shot to death. A fire in the Brooklyn navy yard caused a loss of $315,000 in clothing and other supplies stored in the building. As the result of a renewal of the Howard-Baker feud in Manchester, Ky., five men were killed and three wounded. The Peérless flour mill at Mount Vernon, Ind., the property of Kauffman Brothers, was destroyed by fire, the loss being $110,000. Five masked robbers broke into the home of Daniel Miller, a wealthy farmer near Mansfield, O., and stole more than $1,000. The Germania bank of St. Paul closed its doors with liabilities of $499,000. Residents of American Falls, Idaho, were driven from their homes to the mountains by mosquitoes. Henri Fournier. the noted long-distance bicycle rider, was run down by a team in New York and killed. At a cabinet meeting in Washington it was decided to ignore the complaint of the newspaper correspondents in Manila against Gen. Otis. It was intimated that very encouraging news had been received from the Philippines and that the situation was much better than had been generally believed. James L. Onderdonk, a resident of Eranston 111. and former leutenant

11. September 6, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, September 6, 1899

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# SUIT AGAINST THE CITY. Action of A. H. Rogers and Edward R. Bryant to Quiet Title. A. H. Rogers and Edward R. Bryant have commenced suit against the city of St. Paul and Gustave Willius, as receiver of the Germania bank, to quiet title to lots in block 14, Smith's subdivision of block 14, of Stinson's's Frances Street addition, and E. R. Bryant's subdivision of blocks 15 and 16, of the same addition. The city sold certificates for non-payment of assessments for grading East Third street and afterwards transferred the same to the Germania bank. The improvement was never completed, and now the plaintiff wants the sale and judgment set aside and the title adjudged in the owners, free and clean of any liens on the said defendants.

12. June 15, 1900 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, June 15, 1900

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Sues City to Recover $542. A suit begun by Gustav Willius, as receiver for the Germania bank, against the city of St. Paul, is being heard by Judge Kelly. The action is brought to recover $542.50, paid the city by the bank for a special assessment deed to a piece of property on Mohawk avenue. Suit brought to take possession of the property failed, and plaintiff sues under the charter to recover the purchase price of the property.

13. March 3, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, March 3, 1901

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# GERMANIA BANK AFFAIRS. Depositors Protest Against Hasty Distribution of Assets. Postponement was ordered for one week yesterday by Judge Bunn in the application of the receiver of the Germania bank to be permitted to pay a dividend of 20 per cent to all creditors of the insolvent concern. The postponement was made on application of a large number of the depositors, who fear that they will be shut out of the distribution. When the bank was reorganized after its first suspension, a large number of the stockholders were compelled to take stock as part payment of their claims. They now feel that the distribution should include them. A meeting of stockholders will be held Tuesday evening in Assembly hall to discuss the matter.

14. March 22, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, March 22, 1901

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THE SOCIAL WORLD. The Women's Work Society of the Central Prespyterian Church held an all day meeting yesterday in the parlors of the church. In the afternoon officers were elected as follows: President, Mrs. T. D. Simonton: vice presidents, Mrs. Wm. M. Campbell, Mrs. A. B. Meldrum, Mis Dixon, Mrs. Barrett, Mrs. Webb and Mrs. Upham; secretary, Mrs. Watson P. Davidson: treasurer, Mrs. E. 0. Duncan. The work was in charge of Mrs. W. F. Mason and the luncheon was served by Mrs. Bishop H Schriber, Mrs. Leach, Miss Huff and Mrs. Thomas Shawe. The People's church industrial school closes this month. Saturday is exhibition day, at which time the work of the school will be ready for inspection from 2:30 to 4:30 p. m., while the children are at work. The public is cordially invited to visit the school during this session, to see the system pursued. Mrs O, S. Deringer, of St. Peter street, attended the wedding of her sister, Laura Horst, to Mr. Henry Lips, at Le Sueur, on Wednesday. Two prominent weddings are anmounced for Easter week. Miss Ray Lamprey, daughter of Mrs. J. B. Tarbox, of Summit avenue, will be married Easter Monday to Dr. A. C. Heath. The marriage of Miss Alice Rhodes, daughter of Mr. and Mrs. J. J. Rhodes, of Holly avenue, to Frank C. Bancroft, will take place the same day. Mr. and Mrs. S. W. Vanderwarker entertained a few friends informally at cards Wednesday evening at their home on Marshall avenue. Miss Margaret Simmons, of Goodrich avenue, entertained a company of twelve Minneapolis young women at luncheon Wednesday. Euchre was played in the afternoon, favors being won by Miss Milder and Miss Cavanaugh. The engagement is announced of Louis Bigelow, son of Mrs. H. R. Bigelow, to Miss Russell, of Boston, Mass. The executive committee of the Arts and Crafts exhibit will meet this afternoon with Mrs. George B. Young, of Summit avenue. About 175 members of the Woman's Civic league, representing the Seventh and Fourth ward branches, met yesterday at the Commercial club for the purpose of organizing under the amendment to the league's constitution which provides that a ward having a membership equal to the number of its precincts, plus its three ward officers, shall be entitled to organization and to elect ward ofOcers. The following officers were elected yesterday: Chairman, Mrs. Archibald McLaren; vice chairman, Mrs. Joseph A. Wheelock; secretary, Miss Clara Sommers. The marriage of Rev, Huston Taylor, assistant pastor of the House of Hope church, to Miss Helen Schofield. of Rochester. N. Y., took place last evening at the bride's home in Rochester. Mr. and Mrs. Schofield will return to St. Paul tomorrow and will be at home at 137 Western avenue. Myrtle Temple No. 2, Rathbone Sisters, will celebrate its tenth anniversary by giving a card party this evening in Bowlby hall. Mrs. C. A. Severance, of Summit avenue, will leave this week for Montana. Upon her return she will go to Buffalo, N. Y. to confer with the exposition general committee, of which she is a member. Mrs. F. R. Simpson, of the Buckingham, is entertaining Mrs. G. T. Simpson, Miss Muriel Simpson, of New York: Miss Anna Fry. of Milwaukee, and Warren E. Fry, of Breckenridge. Mrs. Charles Bernard, of Chicago, is the guest of Mrs. Alfred Dufresne, of Ashland avenue. Mrs. O. W. Greenleaf. of West Seventh street, is entertaining Mrs. J. B. Rhodes, of Savannah, Ga. Miss Marion Smith, of Mankato, is the guest of Miss Perkins, of Western avenue. Mr. and Mrs. William Lamb, of Milwaukee, are the guests of Mr. and Mrs. Price, of Goodrich avenue. The Young People's Card club met Tuesday evening with Miss MacMillan, of the Colonnade. Favors were won by Miss Foster, Miss Mead and W. Souden. Mrs. Philip Reade, of the Aberdeen, is in the East. Mrs. F. A. McFarland, of Carroll street, is in the East. Mr. and Mrs. Allan Black, of Lincoln avenue, have returned from California. The members of the Delta Tau Delta fraternity in St. Paul will give a social and banquet Tuesday evening, April 2, at the Albion. Mr. and Mrs. W. J. Dyer, of Grand avenue, are in the East. Miss Nelson, who has been visiting Miss Crawford. of Goodrich avenue, has returned to Litchfield. Mrs. J. M. Lichtenberger, of Jackson street, is entertaining Miss Cepha Cole, of Black River Falls. Mrs. J. C. Norton, of Holly avenue, is entertaining her niece, Miss Egert, of Ogsdensburg, N. Y. Dr. and Mrs. J. O. Cavanaugh will be the guests of honor at a dinner party given this evening by Mr. and Mrs. Hiscoock, of Minneapolis. The Entre Nous club met Tuesday afternoon with Mrs. J. F. Dilley, of Granite street. Favors were won by Mrs. Custer, Mrs. J. C. Heron, Mrs. P. Floody and Mrs. Batke. The Germania Bank Dividend Is now payable at the receiver's office.

15. June 16, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, June 16, 1901

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# BIDS FOR BANK BUILDING. Receiver Offered $125,000 for That of Germania Bank. Judge Bunn, in the district court, at special term, yesterday, continued the hearing on the application of Gustav Willius, receiver of the Germania bank, to sell the bank building, for another week. Mr. Willius explained to the court that he had received a bid of $125,000 flat, but that he expected to realize even more. P. T. Kavanaugh's bid of $135,000, less a commission of 2 per cent, is still before the court.

16. December 5, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, December 5, 1901

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# Germania Bank Dividend. The third report of Gustav Willius, as receiver of the defunct Germania bank, was filed in the district court yesterday. The receiver will ask that he be allowed to declare a dividend of 25 per cent in addition to the 15 per cent that has already been paid. Willius also announced his intention of commencing suits to recover on stockholders' liability.

17. April 26, 1902 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, April 26, 1902

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# Confirms Receiver's Report. Judge Lewis in the district court yesterday filed an order confirming the second annual report of Gustaf Willius as receiver of the Germania bank, and allowing Benjamin J. Shipman the sum of $75 as his compensation for services as referee.

18. February 12, 1904 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, February 12, 1904

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CITY NEWS OLD STOCKHOLDERS ARE HELD LIABLE Can't Claim Exemption on the Ground That They Didn't Join in Reorganization. In a decision handed down yesterday the supreme court discriminates as to the respective liability of the original stockholders of the Germania bank and the stockholders of the reorganized bank, with particular reference to those who were stockholders of the old bank and did not enter into the reorganization. The decision arises in the suit of Gustave Willius, receiver, respondent, vs. Frederick F. Mann, Amanda L. Moss and Mina Fetzhold; but it is of broad interest because of cases more or less analagous. The opinion is written by Justice Brown, and the syllabus says: The Germania Bank of St. Paul became insolvent and made a general assignment for the benefit of its creditors. Subsequently, at the instance of creditors, a reorganization of the bank was effected under the provisions of chapter 89, General Laws 1897. The capital stock was reduced to $200,000, which was subscribed; and the assignee turned over and delivered to the officers of the new bank all property and effects of the old. New certificates of deposit were issued and delivered to the creditors for the amounts due them respectively; and the bank was reopened and thereafter engaged in a general banking business. A number of stockholders in the old bank took no part in the reorganization proceedings and did not become stockholders in the new bank. Subsequent to the reorganization the bank again became insolvent, and a receiver was appointed by the court to take charge Df its affairs, who thereafter duly qualIfied and entered upon the duties of his trust. The assets being insufficient to pay the outstanding indebtedness of the bank, an application of the receiver the court made an order assessing all stockholders, both in the old and the new bank, 100 per cent of the amount of their holdings. It is held: 1. That the issuance and delivery by the reorganized bank of new certificates of deposit to the creditors for the amounts due them was not a payment of their claims and did not operate to release and discharge the stockholders who did not become members of the new bank from their statutory liability as such. 2. That, as the new bank received all the property and effects of the old bank, and used and employed the same in its business. the stockholders thereof are primarily liable for all debts of the old bank, and all remedies against them should be exhausted before resorting to the stockholders who did not become members of the new concern, and who are secondarily liable only. 3. The judgment of the court adopting and effectuating the reorganization provided that the reorganization should not operate to release any of the stockholders in any way, or to any extent, from their liability theretofore existing. Held Ineffectual as against stockholders who were not parties to such proceedings and did not become members of the new bank. 4. Stockholders are bound by a judgment against a corporation entered in proceedings to which they are not a party, only So far as it concerns the affairs and liability of the corporation itself; such a Judgment does not conclude them upon questions respecting their personal or individual liability as stockholders. Order modified. -Brown, J.