The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-29

PROMPT ACTION OF THE JERSEY AUTHORITIES
SAVES DEPosIToRs FROM RUIN.
Some time in last Juno the building at tho south
east corner Montgomery and Greene streets Jersey
City, was engaged by parties almost unknown TO
tho citizens to be used as public -oilco
The first floor neatly lifted up, and soon u
sign was displayed announcing to the public that
,hcrc they would lind tho Jersey City Savings Bank
INQUIRIES mado and was found that not single
Jersey City had anything to do with It. Tho
Treasurer was Jacob r. Frsese, OF Trenton, whose
bondsman a relative Isaac Frecss recently
connected with tho stock yards aud abatto in Jersey
City, bankrupt and nonresident evoa ut the time
he signed tho bond. The secretary was man giving
tho simple name OF sNewburn," and he, too, was a
nonresident There were only Two directors, named
Livingston, and these were brothers-in-law OF Mr.
Freese. the treasurer. In TO questions to
tho sounness OF tho institution this junta exhibited
charter dated 1875 which appesred IT'S face legal
and sufficient Finding that the concern could take
no root where tho strangers the lat,or
induce S. u. Ransom, lawyer, long resident In
Jersey City, anu Who has boon an active worker IN
the State temperance organization with Freese, TO
become us pfee ident. Mr.. Ransoin on assuming the
Office, called meeting oil the directors, but the Board
responded not. further Investigation taught HIM
that the conccrn managed that quorum Of Ill
rcctors had been elected. He examined the books
and found them mutiiated ~ several places 20 suit
tho Grocrrs' Bank, oil New York, ON check in his
own name; thut he drew tho moneys OF Tho bank on
his own check without keeping any account oil the
transactions except memory, and that all the
Of the bank except the furniture and what was lett Of
tho books, were in Newburn's possession and con.
sisted merely oil cash items less than the liabilities
More than TINS. Newburn, IT Is SAID has been IN Pata
gonna or New Zealand, SO lar as NJ Ransom knows
since he became connected with the bank.
Finding that he was placed In the concern as pres,-
dent only ngurcncad and for the purpose of In
spring confidence In tho community Mr.. Ransom re-
signed called the attention oil Governor Bedle ana
Secretary OF state Kelsey 10 the matter Alter brief
Investigation the statements OF Mr.. Ransom were
fully verified. An appreciation was made 10 Chai-
cellur Runyon, who appointed Mr. Michael Sandford
receiver. 10 take elect Immediately. Secretary OF
State Kelsey came TO Jersey City yesterday
ana placed the bank In Mr.. Sandforu's hands Tho
Cnnncecrs injunction was at the same time served
those until ihcn in possession restraining them
from disposing OF the assets 81 the bank. ina tnves
gntion and action oil tho state authorities was SO ex
pedilious That the parties who conducted tho bank
were taken ny surprise. Mr. Ransom says hat hay-
ing been convinced II was illegal concern, he took
the sudden step against tho bank TO prevent
the production OF fraudulent assets or tho
possibility that such as existed might he carried
away Ii will, accordingly, be some consolation to
the dcIosiiors TO Know that out oil The aggregate de-
poais OF about $1,000 rs lar rs can DC ascertaincd
the deficiency VIII not exceed 81 zoo The smallness
OF the cunt deposit Is accounted Tor by the dis
trust which prevailed rom tho beginning concerning
the management OF the bank.
The State authorities de il to be understood that
tins is not ailurc but simply the taking possession
by the authorities OF unlawful bank, which Will be
wound up III proper legal iorm The Authorities de-
clare their intention oil hunting up Frecsc the bonds
man, whose surety IL set down at 000 Detectives
already on his track but no arrest WAS made up
TO late hour evening The officers of tho saving s
banks throughout the city, WHO were interviewed by
a HERALD representative, wero highly indignant that
such coucer should DO established In their midst,
and they expressed q nope that swift punishment