The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-30
JERSEY CIrY'S BROKEN BANK.
HOW THE NEW SYSTEM OF BANKING WA
NIPPED IN THE EUD Ky AN HONEST PREsL.

HOW THE NEW SYSTEM OF BANKING Wal
NIppEp IN YHE BUD BY AN HONEST PREsI
DEGT.
Mr.. Sanford, tho nowy appointed receiver OF the
Jersey City Savings Bank, says that lie viii not ba
ablc to ascertain the amount actual assets for
days TO come. Some OF them, The larger portion
are In hands oi Mcssrs Freeso, at Trenton; por
ton the Groccrs' Bank, New York, In the name
OF Edward b. Nowbern the secretary; small amount
is on hand considerable sum Is out private Loan
aud the Is down The furniture
and gas fixtures tho ollce. 1t IL considered veri
fortunate that the total amount OF deposits 81
small.
The bank organ xed under u special act OF III,
Legislature CT New Jersey, passed April ., 1875,
titled IAN act to incorporate the Jersey City Savings
Bank oi Jersey city, The following were the man.
ugcrs:-Jacob H. Froesc, Isaac NJ. Frecse, Theodore
W. Fieese, William d. Livingston, Edward d. New.
bern, Richard u. Cook, Samuc. D. Tcmrkins, Henry
Wild. R,chard Grant and stephen b. Ransom.
About FIRST week In last July opera.
tious were commenced by Isaac ST. Frccsc, Iheo.
doro w. Frccso Jacob X Frcesc tue latter being
Yice President ana Treasurer Of tho Stato Savings
Bank OF Trenton. They fret cast line baitcd with
seven per cent all deposits under 5000, and this
so alluring that they had quito u haul Tor lew
weeks They nookcd only snAah Ash, however, but
the prospects were encouraging. meeting OF the
managers was called, ana stephen Ransom OF Jer.
sey CITY was elected president; jacob IL. Frcosc, Of
Trenton, temporary treasurer, and Edward IS New.
bern, Hxcd residence, secretary. Mr. Ransom
10 work earnestly and discovered hrst VI
ull that tho bank had boon in operation Tor long
time previous TO his election. lie called on the sec
rotary TO convene meeting OF the managers bui tho
call was not complied WITH The concern accordingly
remained under the control OF Isaac 81 Frccsc Thco.
dorc w. Frcese and EDWARD u. NewDcrn, without tho
knowledge approval OF the directors, nuti Scptcm
Der II. Then came u minute examination oi the
books by Mr Ransom. The amount due dopositors
was about ST. 600 aud the assets only $4,000. In
Groccrs' Bank, OF Ncw York, was deposit OF
tnrv
post and draw on ms own check. Mr.
Ransom thcrcupon npihcd the Grocers' Bank OF New
| YORK TO pay no more money unless the checks
couHtersigncd Ivy him us president Ihis resulted IN
chickering's and dlsatnslons on the part OF tho man
ayers WHO had tho copccr0 previously IN their CONTROL
ANA ON Dir. Ransom threatening rupture, watch
! would OK. ose what seemed 10 hIm little less than
fraud, the managers held meeting on the 3lh OF Oc
tober ami salemeni was submitted showing the as
sets to be 5000 and the amount due deposiiors
S7,2l5, leaving q deficiency Of s125. SowDcrn
planned this by stating that tue dcncit went TO tho
cfedlt OF rent and ircdeDia,s.
Mossrs. W.ld and Iompkins therefore resigned, and
before tho meeting aJJournedJacoD H. froese also
signed. Mr. Ransom moved that Tho vacancies ia
llcd by men Of good standing In Jersey Guy, but on
motion OF lsaac N. freeso tho question was laid
tn. table, and was never aitarward taken up Mr..
Ransom then rendered his resignation, bu, il was
cced and lsaac 81 Frccse was elected treasurer. Tho
noxt meeting hold on tho LIST OF November, at
which Isaac nnd Theodore Frecsc, Livingston and
Newborn were present, ana taking sdvan-
resignation accepted, aud no did not
learn OF ii for four weeks aitcrward. He then
went TO the bank ana made a thorough examination
OF The accounts up 70 the 10th oi November. Inc
amount due to dopostors was 1920 Il. Tue assets
on deposit IN Groccrs' Bank, New YORK, si,ale ~;
amount III the hands OF jacob X. Frccse, late
urcr, 80 0Ol Newbcrn stated that he had $2-5 Ia
curities for personal oans aud that the fixtures and
furniture tn this Office we're worth $500 Mr. RAN
asked to tho bond Of Isaac VI. Frecsc
treasurer. IL In the sum OF $40, coo,
sgncd by Jacob II. Frecsc, with Isaac
NJ Frecsc as security. The lattcr's affairs
were inquired into AM IL was found he was bank
rupt, ms liabilities Now Jersey Stock Yard and
Abattoir Company alone beng IS, 900. sir. Ransom
mado an AFFIDAVIT setting forth that tho bank was
operated by Isaac VI. Frecsc and Edward D. Newborn
without Tho consent OF the president the Board OK
Managers; that the minute book and personal ledger
have been muatcd by the cutting out OF the leaves,
ana lnat hc believed that the entries wore rewritten.
THIS affidavit submitted 10 the Governor aud
Secretary OF state VINO acted promptly and had tho
bank placed IA tbs hands u receiver. No arrests
had boon made up to u late hour last night