The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-03-01
CLOSING A SAVINGS BANK.
"NO PAYMENTS MADE ~ THE BANK
UNTIL FURTHER NOTICE"
Disappointed Depositors In the German Saw
inps Bank of NJ orrisania-The Rank Sue
cumbs amer n Long and Hard Struggle.

'u"us tttf " LUNG tthru
or about two thousand persons who, n few
months ago. had deposits in the German Saw
ings Bank of Morrisania, n largo portion have
withdrawn IN 'ir money and the rest would II
they could. All last week the bank. which for
months past hns been in n precarious condition,
WIS subjected to a run that WIS rapidly empty
ing its treasury; and on Monday morning the
assembled throng found the doors closed. and
thSno,ili alton conspicuously posted. No pay
menis made 10y this bank until further notice."
The further notice" hus not yet been given. nor
Is There any prospect Of the bank rrsuming busi-
moss. The trustees hive applied for receiver.
who viii probably be appointed within n few
days and il IL hoped that the claims Of the de-
rosltors may bc paid nearly in full A long
time must clapse. however before this can bc
done. for most Of the assets ara mortgages on
real estate which, IL forn.losed in the nres.ut
depressed condition Of values, would bring hut "a
tthn Oi their former value. The nominal nssrts
ON Janunry w,rr S35O 400 and IN" nnhilti,s
sl3S 237. including t299.237 Of dcpositor's
money. show M an apparent surplus of sl2Up2.
Tue bank has, for the most nnrt. enjoyed tue
confidence Of the residents of Morrsnniu. who
regard inc trustees MS unfortunate. hut '"no~t
II began business IN 1868. and iorH g.. WIS
very prosperous. Two years ago It met with Is
FIRST misfortune its then President Mr.. Gus
bive ili"icr lending large amount Of money
on Now Jersey Midland bands Whon the
Mldlund was thrown into the hands ~ "A re-
rcivrr, Mr. Pfrlcr quoted the fears OF the trus-
toes by telling them that the line w1s 10 he sold
aud ia" money. 100000. would be- all recovered
But us tim" passed IL became ovid nj that un-
less something WIS don" to avert tho calamity,
this niudicioua loan was going 10 seriously
crippl" the bank and the trustees finally gave
notes or money Ia cover the d efficiency. To do
this many Of them were compelled to mortgage
NOR property: hut public confidence WIS r.
stored and husin' - again wis flourish ing. Mr..
Incirr WIS superseded M President bv Mr..
Jacob Held. and thrents are now made hv the
| 9Ir' r. ana trust oil SUNG tue former Presi-
dent Tor tho amount lent hy him without any
| authority from the trustee =. on IN" bonds Of the
| MniiHnd. The noNt embarrassment Of the bank
WITS due Ia an inIudicious real estate traneac-
ton: Inc trustees were renting small build
lng for sl.2JO ayear. and owned larg" lot in
| Morrisanin. Local politician persuaded
them To put M u large and expensive building
| on their ground. promis nv that they could rent
| Police Court. But when the edificc, which *
one Of the handsomcst in Morrisania, ut Third
avenue ana lJNtE street. WIS erected, the Police
Court was established at FordhHm.
II was the loss Of 40 SINAI a sum as 400 that
| WOmrn's Benevolent Association had that
amount on deposit whcn.a division occurred in
III" ranks oi the society. Two asso cations were
| formed AMI each claimed the 500. One of the
| conflicting bodies sued out an injunction 10 re-
strain the trustees Of the bank from paying the
amount 70 the oth"r ana. under IN" advice of
! the banks couns" the money WIS paid to the
assocntion that Ind obtained the Injunction.
! Then the other section 81 the society sued the
! bank for 300. aud the counsel for the defence
! n"slwting To attend judgment was rendered
| for thu plaintiffs hy default ENtrnvagnnt rti-
1
| OF the judgment. a. well il- exaggerated reports
| Of the magnitude of the judgment itself. began
| e. nont about Morrisnnia, hoing ndustriously
or ulhtNd by IN" women of both sections Of the
| Women Brnovol, mt Association. and tho re-
! suit was run. The trustees published cards
| and posted notices assuring tn" duuoritors that
| th"innk had Hnp" funds to -dtis' y all demands
| on II y i was not pushed but would be- unable
| a. sustain "A prrtriltei run. THIS served only
/ 10 intensity IN" fears ot the drpositors. and
/ IN" trustees finally were compelled to put
J into operation the thirty and sixty day
/ notice rule. the panic subs dcd tor u time and
! business went ON ~ usual Tor seV"rtsmonths.
! nut at ia" beginning oi last week. from an un-
explained cau-e. the anxiety Of the depo-itors
was ugain aroused. MANY Of the smaller de-
psltor- wrr" paid. and II was proposed 10 fall
back upon the rule of notice OF withdrawal 10y
thps" having lnrgcr amounts. But il was soon
evident that the institution was past saving.
aud the trustees thought II best to close the
doors ana divid" the rc-idu" OF the funds.
| III W. ar" given time Ia recover the full value
| OF our mortgages" said an officer. Yesterday.
| W" snail be able To pay every drpositor Il hun
| dred cents on the dollar: hut II we ar" Obliged
| L. fOreclose-" shrug of the shoulders.