New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-17
AFFAIRS or THE BANKS.
A NEWARK BANK GOES UNDER.

HATCH-A RECEIVER APPOINTED.
The Newark Savings Institution, winch since It's
suspension IN 1877 has been under the control OF
the Chancellor of New-Jersey. closed its doors
yesterday morning by order of the Chancellor
notice posted on the door announcing this fact
caused excitement in the street, and news OF the
suspension becoming noised throughout the city,
MANY depositors In the Howard and Dime Savings
Banks and the North Ward Bank, fastened to
Withdraw their deposits the largest run beng on
the Howard stable institution fully prepared Ior
the emergency. 1t soon became known that the
trouble at the Savings Institution arose from the
failure Of the banking firm of Fisk ~ Hatch, VINO
have always had close business relations with the
institution. The order of the Chancellor Tor the
| closing of the bank is dated Thursday, ana says
that part of the assets had been loaned deposited
without the KNOWLEDGE of the Chancellor, and con-
trary to the direction he would have given If he
had been applied to. The order directs that the
functions of the bank should cease, pending an in
vestigation under the direction of the court and
the appointment of receiver. The treasurer OF the
bank was also ordered to report forthwith TO the
Chancellor the financial condition of the trust Later
in the dav the Chancellor appointed George Wllkln-
son receiver.
COMPLICATIONS WITH FITCH HATCH.
Fisk g. Hatch acted as agents in New-York for
the Savings Institution. The bank aud firm held
close business relations prior to the banks failure
in 1877 which was precipitated by the purchase
from Fisk &z Hatch of over three millions of Ches-
apeake and Ohio bonds which in 1877 were practi-
cally not marketable he bank has had a box in
the vault of Fisk q Hatch. which contained two
millions of Government bonds. An officer OF the
hank visited the vault about month ago and
looked over the securities, finding them all right
A duplicate key of the box held by Fisk "
Hatch and whenever it became necessary to sell
any of the securities in it teegraphic order to that
effect was sent to the firm, who carried out the
order At noon on Thursday the firm teleglaphed
to President Daniel DOdd, of the bank, that they
were in difficulty. Mr. Dodd Immediately went TO
New-York Francis Mackin, manager of the
bank stated yesterday that the substance of the
telegram was to the effect that the Government
bonds of the bank had been disposed Of. Mr.. Dodd
said Mr. Mackin Informed Fisk 4 Hatch that they
would have to make the securities good by replac-
ing them with other securities, when a number Of
railroad aud other bonds were handed to him.
amounting altogether IN par valne to over one mil
lion dollars. Mr.. DOdd placed the securities III
carriage and drove away from the office, returning
to Newark. The Chancellor was then informed OF
what had occurred
WHAT THE BANKS COUNSEL SAYS.
The statement Of the failure by Cortlandt Parker,
the counsel for the bank was prepared for publica
tion early IN the day. The statement attributes
the suspension of the bank to the failure of Fisk q
Hatch II refers to the payment of 80 per cent of
the deposits of the bank made prior to 1877, and
the security of the additional five per cent on this
account 1t explains that Fisk & Hatch had been
intrusted with the purchase and surrender when
called in of Government bonds the firm agreeing to
pay interest pending investments of what were IN
their bands. In reference to the substitution OF
| securities the statement says:
f1a EaFf hy firm
them, which ought to hold Governments only, has, III
their stead persona roH nP' & 3 eq % Ha9 Sad ha nor g 50
so far The agreement or nOn-obecOn OF the banks
officers could give it to them borrow and these
securities substituting them bonds OF different value.
| The officers of the bank do not seem charge
the integrity and solyency OF these brokers seemed to
these eir IamsScons were without the knowledge Of the
Chancellor and contrary to his order :. Inc iall-
| seventy five per cent may be expected
! President Dodd was IN his private office yester-
! dav, and declined to make any statement. lie said,
| however that the banks securities had been used
by Fisk d HATCH and securities of less value placed
! IN the box and added " received 30 personal ben
| eGt and the object of putting the funds there was
! TO get five per cent" Chancellor Runyon was re-
served in his statements to reporters lie sad That he
| had entertained the belief. until otherwise informed
on Thursday night, that the managers Of the bank
had complied with his orders. He was himselfa de-
violated their trusts, and 1t was a question yet to
be determined whether they were not personally re-
sponsible for the loss the bank and whether any
| conspiracy existed. The Chancellor announced his
| intention to have the affairs of the bank wound
up lie stated that on Thursday night he made
personal examination of the accounts of the Dime
| Savings Institution, which is also ward Of
Chancery and found it had 100000 10 start with
IN the morning.
THE BANKS CONDITION
The condition of the Newark Savings Institution
as reported ON December IL last showed tie 1olIoW-
K5al estate uuencumbered. ............... $500 90
Bonds gage and interest due....-. I,3OO011 el
3nSns seemed NV coiiatcrais 2o034Gj ~
Cash and accrued nlerest.............-. 20l3.l y
Actual vaue of o4!So1S -
6.3l6O53 a
surplus W W
DsbITsemenis during s3............. s,7s5,345 50
President Dodd is a member of the Sinking Fund
! Commission OF Newark, which holds over tllee
| millions of bonds of various kinds belonging to the
city of Newark The Commission consists 01 Robert
| f. Ballantine Daniel hodd, Mayor Haynes ana
| Controller Quinn. When the suspension of the
| hank was announced, the Mayor went TO Mr.. Dodd
| and was informed that the funds OF the city were
| intact IL was decided afterward by members OF
| the Commission and OF the Common Gouncil
| Finance Committee to hold meeting ana count
tbe securities belonging 10 the Sinking Fund, and
the meeting was held late IN the afternoon al the
| bank The examination showed that the securities
weIe all right
| HISTORY OF EnE BANK.
| 6, The Newark Savings Institution was incorporated
February -, 1917 Under conservative manage
ment ITS business increased until the depOsltoIS
numbered between %, 300 and 30 900, representing
all parts of the State Ii was regarded rs the
soundest financial institution in New-Jersey. On
December H. 1877, when 1t suspended payment
the aggregate deposits were about thirteen million
dollars. The institution went into the hands oi the
Chancellor, who ordered that all new deposits
shnnld he lent senarale and invested only IN Gov