New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-19
THE CONDITION OF NEWARK BANKS.

WHAT FOLLOWED TIE FAILURE IN lS77-CHAS-
CILLOR RCNYON's VIEWS.
When the Newark Savings Bank suspended in
1877 the securities owned by the bank included
over SIS 100000 of bonds and stocks Of only nomi-
nal value. Most Of them were not marketable.
The Chancellor declined to appoint receiver, but
ordered that there should be reorganization of the
Board of Managers, aud that the bank should re-
sumo business, keeping the accounts separate
from the old accounts; and that the Investment of
the new accounts should be made only in Govern
rrept bonds or other fTst-class security.
In the winter of 1875 the bank
declared dividend. The nominal assets appre-
ciated in value The bank owned over two millions
of Chesapeake Il Ohio first and second mortgage
bonds bought from Fisk & Hatch. and the apprecia-
ten in these alone was worth over million dollars
to the bank ami with other fortunate causes
enabled the managers 10 pay altogether nlney-iiye
pei cent OF the principal OF the debt due to deposit
tors Only week ago If was announced that the
balance of five per cent would soon be paid and
that there was a good prospect that the depostors
would receive also this interest due since 1877.
The confidence felt in the bank is shown IN the
fact that the great majority Of the old depositors
reurcseuted in the new accounts. his confidence
was i'm "a large measure due t0 the impression gen.
orally held that theInsutuOn being IN charge OF the
Cbaucerv Court the state guaranteed the depOslt0r
against lose. Many dcpOstOT, were greatly surprised
y er the bank failed On Friday, TO learn that this
u,r,r-s,ion was erroneous that the State assumed
no responsibility whatever in lis dealings with the
bank When Chancellor RunyOn learned from the
rcpresentatiyes of the bank on Thursday night
thar his orders had been dlsObcyed by the removal
of the assets out Of the jurisdiction OF his
court and that his confidence had been
imposed on by the stock tran actlOns OF the ocers,
he peremptOnly decided to wind up the bank
affairs and 10 punish any wrong doing that might
he shown in the invest igatiOn ordered by bra. In
reply 10 a question whether the bank would be per-
mified 20 resume business If II made a good show
ing he said " Twice Is enough
lie exhibited "A statement of tho Dime Savings
Bank which is also III charge of the Chancery
Court &" Here is an excellent showing ne re-
marked. " Il owes depOsItOrs 100000 and has
assets Of S7l2, 900. among whieh are Governments;
300, 600: Newark City bonds. $4,000; bonds ana
mortgages 500 600; and $40 IN cash. The
Howard Savings Bank has IN its wants available
securities amounting to SO,367 900, consist
ing Of Governments, S4.5OOOOO gold, SZoO,1
600; bonds and mortgages. Sl,3OO,0OO; ana
On SATURDAY So 900 was paid 10 depOsit0rs. repre-
senting net profit to the bank of about $1,000 IN
interest due this week. The assets were examined
by "A commit of the directors on Saturday even
ing aud were displayed III the bank vaults. Iheie
Is bett feeling among dcpOstOrs of both saNlngs
banks and II il believed that the run on them VIII
end to-day or tomorrow.
1t l. stated that negotiations are on foot win
strong promise Of for the settlement OF Al
matters IN difference between Fisk ~ Hatch ana
the Newark savings Institution, and that II THESE
negotiations can be carried through the hIm VIII
shortly resume.