The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-01-03

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IA Richmond MAN Teaches New Jersey
a Lesson I'm Ranking.
From the New York Herald, 3otn.I
JERSEY crTY's BROKEN BlNK-How THE NEW
SYSTEM OF. BANKING WAS NIppED in THE
BUD BY AN HONEST PRESIDENT.
| Mr. sandford, the newly-appointed re.
ceiyer Of the Jersey-City Savings Bunk. says
that he will not be able to ascertain the
amount of actua! assets for some days to
come. Some OF them, aud the larger por-
ton. are in the hands OF Messrs: Freese, at
Trenton; a portion is In the Grocers Bank,
New York, in the name OF Edacdrd B. Neu.
bern, the secretary small amount is on
hand: considerable sum is out on private
loan, and the residue is set down to the ac-
count OF furniture and eas-fxtures in the
Office. It is considered very fortunate that
the total amount Of deposits was so SMALL
Thebank was organized under special
act Of the Legislature OF New Jersey,
passed April 8, 1876, entitled can act to
Incorporate the jersey City Savings Bank Of
Jersey City, The following were the
managers Jacob r. Freese, Isaac NJ.
Freese, Theodore w. Freese, William B.
Livingston, Ed,oard B. NeNbern, Richard
EB. Cook, Samuel D. Tompkins, Henry
wild, Richard Grant, and Stephen B. Ran
som. About the first week in last july
operations were commenced BIZ Isaac Al.
Freese, Theodore w. Freese, and Jacob r.
Freese, the latter being yice-president and
treasurer of the State Savings Bank OF
Trenton. They first cast line baited with
n seven per cent. on all deposits under
$500, and this was SO alluring that they
had quite haul for few weeks. They
hooked only small fish, however, but
the prospects were encouraging. A meet
ing OF the managers was called, and Stephen
B. Ransom, OF Jersey City, was elected
temporary treasurer; and EG1oard B. Ne,c-
bern, no .fGed residence, secretary, Mr..
Ransom set to work earnestly, and discov-
cred first Of all that the bank had been in
operation for long time previous to his
election He called on the secretary to con-
yene meeting Of the managers, but the
call was not complied with. The concern
accordingly remained under the control OF
Isaac NJ. Frecse, Theodore W. Frcese, and
.Ed,oard B. Ne,cJern, without the knOwl-
edge or approval Of the directors, until
September 81. Then came a minute
examination OF the books by Mr.. Ran
som. The amount due depOsitors was about
81, 900, and the assets only $4,000. In the
Grocers Bank OF New York was deposit
OF 81, 1,730, payabie TO the order Of Ne1cbern,
The secretary. who had been accustomed to
deposit and draw on his own check. Mr..
Ransom thereupon notified the Grocers
Bank OF New York to pay no more money
unless the checks were countersigned by
him as president. This resulted in bicker-
inas and dissensions on the part OF the
managers, who had the concern previously
in their control, and on Mr.. Ransom threat
ening rupture, which would expose what
seemed TO him little less than Il fraud, the
managers held 4 meeting on the 4th OF Octo-
ber and statement was submitted showing
the assests to be ,450 and the amount due
depositors S7,215, leaving deficiency Of
S725. INewbern explained this by stating
that the deficit went to the credit OF rent
and incdentals.l
Messrs. wild and Tompkins therefore
resigned, and before the meeting adjourned
Jacob r. Freese also resigned. Mr.. RAM
som moved that the vacancies be filled by
men of good standing in Jersey City; but
on motion OF Isaac NJ. Freese the question
was laid on the table, and was never after
ward taken up. Mr.. Ransom then rendered
his resignation. but it was rejected, and
Isaac M. Freese was elected treasurer. The
next meeting was held on the '1st OF No
yember, at which Isaac and Theodore
Freese. Livingston, and Newbern, were
nresnnt and, tuktns advantage Of MI Ram.
SONS absence, the latter's resignation was
accepted, and he did not learn OF it for
four weeks afterward. He then went to the
bank and made a thorough examination OF
the accounts up to the 26th Of November.
The amount due to depositors was
S7,240.21. The assets were as follows:
Cash in savings bank. 81, ,491.5S; on deposit
in Grocers Bank, New York, $I,219.59;
amount in the hands Of Jacob r. Freese,
late treasurer, $4,000. Neaobetn stated that
he had 1925 IN securities for personal loans,
and that the .f1tures and furniture in the
office ,oere aoorth S2,355. Mr.. Ransom
asked to see the bond OF Isaac NJ. Freese as
treasurer, It was in the sum of $4,000,
signed by Jacob R. Freese, with Isaac M.
Freese as security. The latter's' affairs were
inquired into, and it was found he was
bankrupt, his liabilities to the New Jersey
being $4,000. Mr.. Ransom made an aftida-
Wit setting forth that the bank was operated
by Isaac NJ. Freese and Edward 3. New
bern without the consent OF the president
or the Board Of Managers: that the min
ute-book and personalle ledger have been mu-
tilated by the cutting out OF the leaves, and
that he believed that the entries were re-
written. This affidavit was submitted to
the Governor and Secretary OF State, who
acted promptly and bad the bank placed in
the hands OF receiver. No arrests had
been made UP to late hour last night.