New-York tribune., 1900-07-14
RUN ON A BANK STOPPED.
DIRECTORS OF THE DIME SAVINGS IN
STITUTION OF NEWARK TAKE
TIMELY ACTION

A run on the Dime Savings Bank OF Newark was
stopped yesterday morning by the actoh o' '"e
BOARD OF Directors in taking advantage OF Il III"
which permits savings banks temporarily to sus-
mend payment in order that their securities may not
have 10 be sacrificed to meet a sudden and extraoI-
dinary demand for deposits. The run on the DahN
began early In the week when a rumor got ABROAD
that a special examination of the accounts hau
ordered by the Board OF Directors IN ao1C,Du %
to the regular examination by the state BANK Cot-
missioner. which was begun on honday, -o-
With the news that the secretary ana treasurer
Charles r. Westervelt was alleged 20 Los,,ors DS
fauter for a large amount, hundreds of aeposioIsS
bank sts Yesterday Their deposit books were
taken order verify the deposits. and they were
a month There are more than ten thousand de-
positors. The bank Is fully able to pay ell demands
and the defalcation cannot much exceed $4OSO, all
of which it is said. was appropriated in the last
four years. According to the State Examiner, the
assets Of the bank are as follows:
Bonds mortgs s27s900 90 Cash in bank $50 sS3 3 6
Bonds 100 SS Cs6 on hand r. S5s 90
Total ACKNOWLEDGEMENTS. ........s 81 269. 42T JG
The last annual statement of the bank showed
that there were due depositors SlVO5sZ % and sur
plus of Sl0S641 James ID. Orton the president Is
Newark. Westervelt in the banks employ for
twenty mine years, and rose from the position OF
conhne his operations. it is alleged. to raising
withdrawal checks. Some checks he forged. II is
charged. One check for SIS. drawn 70 the order of
F. Carson; he destroyed, and, IT is alleged, forged
genuine check. Westervet did not touch the secur-
tiles, which intact. There was between 500 90
and 100000 of these securities In the bank. Two
additional bank examiners were put on the books
yesterday, and 1t decided to make a complete
examination of the books, going back TO the date
or the last thorough examinat ton some years ago
Yesterday afternoon WesterveIt's lawyer made a
statement for him to the effect that WesterveIt
admits that there Is a shortage, and says that
later the affair will be cleared up but denies
II amounts to $4,000. or anything like that sum.
He also denies that he ever took dollar OF the
banks money, and says IL will be shown that he
has done nothing dishonest. The bonds Of Wester-
Welt amount to $4,000 the surety being the Amerf-
can Surety Company. He also owns some real
estate, and steps have been to attach IT for
the bank "
This Is the only bank defalcation In Newark Of
any consequence since the ooting the Mechanics
National Bank of s2.500000 by Oscar Baldwin the
cashier. In 1882 The bank ruined and went out
or existence Baldwin. like WesterveIt had rhe on
tire confidence Of the bank directors The Second
National Rank had previously been the victim Of
its cashier, James Hedden and after the ootinq Of
the Mechanics Bank the fact came out thar a
clerk named Marchbank had pIundered II Of go 0o6
All served terms in prison. '
PHELPS FOR PERMANENT CHAIRMAN
Paterson. July 70 (SpeciaD--Sheffield Phelps. OF
Teaneck. it is said will be permanent chairman of