The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-12-13
A BANK SCARE In NEWARK.
ALiRMED DErOsITORs 7ITRONGTN0 TO
WITHDR1W THEIR MONEY.
The Newark Savings Is.titution Restrained
from Paying Over Eighteen Per Cent. on
Deposits-Fears OF Ioss to the Depositor-.

Tho Newark Savings Institution, the
largest and Oldest In Newark. issued n notice at
noon yesterday that II had been restrained by
the Court Of Chanccry from paying more than
1s per cent. to any dcpoeitor. besides a January
dividend OF per cent on tho total amount Of
deposits then in the bank. The dcpositors
imagined that the bnnk had failed and
they began to withdraw their deposits as
rapidly as possible. The news spread like
wildnre through tho city. and by o'clock sew
eral hundred men and women were assembled
in front of the bank. waiting their turn 10 get
inside. The clerks were kent busy in comput-
ing tho amounts due to each depositor under
tho Chancellors order. and in paying the same
to depostors. Tho managers Of the institution
held conference in the private rooms and
gave instructions to the clerks when necessary.
The throng outside increased rapidly that
Chief Of Police Mills and several officers had
difficulty in keeping them In limo.
Tho majority OF the dcpositors are mechanics
and small shop kocpcrs and they were very
anxious about their little savings. Mon and
women with pallid faces eagerly questioned
each other as to the probability Of over recover
ing more than eighteen per cent. Of their money.
No one could give n satisfactory answer, and 50
the run upon the bank continued all through
the afternoon. Some women were 80 fearful of
losing even tho eighteen per cent. that they ran
In the middle Of the streets on their way to the
bank
reporter for the THE Sun found Mr. Daniel
Dodd. President Of tho bank. in the directors
room. with n number Of Newark fnancicrs.
Mr.. Dodd said that in 1873 tho deposits in
the bank exceeded tl3.Ooo.Oo0. and the de-
positors numbered 25Oo0 The depreciation Of
tho value OF al forms Of security during md
after the panic brought disorder upon the bank,
and som" persons had lately circulated reports
about liz condition. which created grent run.
AMI from s3popu to 10000 "a day had been paid
9ui Tor some time past. The deposits had thus
been reduced to about $40 100000 while tho
assets are about tl2.uOOOoD The managers
iearcd that tn" lars" depositors might draw out
all of tho cash assets and they r.srIy,.I tn an
ply 10 the Chancellor for the purpose OF pro-
venting Injustice. ana securing an equal di-tri-
button ~ the ass Is among all Of the depo-ltors
Mr.. Dodd said that he could say thnt there
WIS, noihing wrong IN the management: no
wildcat or ill-adN-ed spsculutiun-: no defnl-
ration ,,l, OF rmisappr3priat9n OF innds; He could
not say now much would b" ultimately paid to
depos tors; hut the bank could have pulled
through. II not molcst"d. until the securities
advanced in value Tho investments had al
ways been made after consultation with the
= =, and most careful finanriers in Newark and
New York. He could not give tho statement in
full Of the present condition of the securities
held by IN" hank. The Chancellor he said
would DO that after he had made an investiga.
ton. lhe thanccllur had not appointed a re- |
ceiy"r. Slr. Dodd said. but had left the conduct
OF the bank with the present managers until
az lf llutl lut IN tnplI
hhllity AMI chara ter. Quit" a number o. peo- |
pie who had drawn thor Is per cent in the |
morning had. Mr.. Dodd said, returned their |
m"n'y IN IN" AFTERNOON. and had expressed |
comiidenre In the MANAGEMENT of the bank.
. The Newark Savings Institution was organ
iz"d in lsi7. and II prospcred for Twenty-Five |
years. IT, was considrrcd one Of the soundest |
banks IN Newark. and the mechanics and shop |
Keepers had great confidence In the managers. |
Pr"sident; Mm Person. Vice President; VIM. |
-; Carter. Treasmrer; Managers. Isaac Van |
Whg"n"n. Daniel Price, Peter \. Duryec, John |
G. B'ar,isley. VIM. Person. John Kennedy, |
Henry q, Darcy. /.nas \. Crane. A. S. Huhbell. |
c.r. and Daniel Dodd The nano of Joseph i. |
Irnilry appears or the list Of managers pub |
! shed ia the Newark Business u rnctory but |
,lr. ID odd SAYS that since Mr. Bradley became |
Associate Justice lac has not acted as "A manager |
Of the hank.
In the report Of Stat Comptroller Runyon TO
the Legislature. made ON March l. 1877 the nu. |
nual statement of the Newark Savings Institu- |
ton. dated Newark. Jan. /. 1877, Is IA. follows: