The New York herald., 1878-12-04
ALARMED DEPOSrTORS.

THE RUN on THE PRovIDENr INSTITUTION For
PLANT AGAINST THE MECHANICS AND La
BoRERs' BANK.
The excitement attending the arrest Of the directors
of the Mechanics and Laborers Bank of Jersey City.
has been such as to seriously alarm the bank de-
positors in that and the result is that large
bers of the poorer depositors making demands on
all the banks in the city for their money. The
on tie Provident Institution for Savings, corner
OF Plymouth and Washington streets which was
begun Monday. continued yesterday, and
was larger than the previous day
The bank has been in operation for thirty five
years and through its economical and close manage
ment always rated be the safest in the State
When the of run on the institution was first
heard it laughed at ridiculous; yet crowd be
gan to gather about its doors and yesterday long be-
fore the doors were opened. the stoop and street in
front Of the building were thronged with depositors
the majority OF them being women. When the doors
opened the throng rushed in and presented their
books for payment. Several directors sat in the
back room smoking, and all the money that
the desks in front Of the clerks. County
Collector L. w. Kngsand. the secretary and treas
urer OF the institution, walked about behind the
desks watching tho clerks they rapidly made up
the different accounts and paid out the full amount
to each depositor. Many Of the depositors. they
the clerks paying ont without a word. began to
grow confident and left without drawing their money.
On Saturday last S33 900 We're drawn and on Monday
about 40 oDO; yesterday the amount drawn reached
over $50 900 Many depositors were anxious to have
their books made mp with interest to January but
this the directors refused to do Interest was com
saves Ave months interest on the amount drawn.
Secretary of State Henry O. Kelsey, having heard OF
depositors that they needlessly alarmed. He
said that Bank Examiner Van Camp, who recently
made examination Of the affairs OF the institution,
reported that the management was excellent. the
bonds and securities of the safest and that over
81 could be realized within twentyfour hours
on the bonds and government securities. He
sdered the bank able 20 pay every dollar and have
handsome surplus left The profits Of the institution
at present averaged nearly S600O0 annually. While
the surplus amounted to nearly S2OO000 The re-
port of the bank to the State department in January
last shows the assets at that time to have been
$4 S2O, go and liabilities S4.652075.
THE MECHANICS LABoRERs' BANK.
No decision has yet been rendered by Chancellor
Rnnyon on the application OF the directors OF the
Mechanics and Laborers Bank to be allowed to con-
tnue business and the request of several depositors
for the appointment of receiver. Secretary of
State Kelsey said yesterday that the bank since its
organization, had never filed any report with the
State of it's condition and it only through
cident that he became aware that such bank was in
operation Bank Examiner Van Camp sent at
once to make examination Of their books and on
reporting its embarrassed condition to Mr.. Kelsey
the latter began proceedings for the appointment of
receiver. One would have been appointed ere this
but for the application of the directors
and their statement that if they allowed to con-
tinue they would i'll a short time be able to meet
their entire liabilities 1t because of this propo
stion that Chancellor held the matter in abey
ance.
Yesterday another complaint made against the
directors OF the institution by james Chester of Ho
boken. who in his affidavit alleges that Secretary
Donelan resorted false pretences and fasehood to
get him to deposit his money i'll the bank, knowing
at the time that the bank was insolvent. Although
the directors were arrested and gave bail before
Judge Meehan for alleged conspiracy Monday
they WILL it is thought. be resrrested to-day on Chess
ters complaint,