Los Angeles herald., 1908-01-31
BANK STANDS
EXTREME RUN
NEW YORK HOUSE PUTS IN A DAY
OF DRAINS
GREAT CROWDS SWARM BUILD
ING FOR MONEY
Desperate Effort to Ward of InsoIv-
ency Proves Successful and Off,
clals Expect to Resume
Business Today
BY Associated Press.


NEW YORK, Jan. 9O.-The Oriental
bank, a state institution. withstood a
severe run today, and President Kelly
gave out a statement about midnight
tonight that he believed the bank
would open tomorrow morning for
business, although there is some doubt
of it.
meeting of the directors will be
held at 9 o'clock tomorrow morning,
he added, at which the question of
opening will be definitely determined.
The announcement was made after q
meeting of the president and several of
the directors of the Oriental bank at
the formers home.
Following the closing last night OF
the New Amsterdam National and
the Mechanics and Traders bank, a
state institution there was a run on
the Oriental during today, which 1t
successfully withstood.
All depositors were paid promptly
during the day and 1t was given out
at the close that the bank would be
able to secure all the assistance neces-
sary to tide it over the run, as it was
understood that friends of President
Kelly had come to his aid with $1,000,
900, and that he would be able to Sc
cure further assistance, If needed, from
the clearing house.
Loans Are Protected
"Of course these banks" said Pres
ident Kelley, "while offering to ad-
vance us $1,000,000, sought to protect
themselves, and as a provision of their
offer they asked our directors to in
dlvidually guarantee a proportionate
share Of the sum agreed upon.
when this offer came to us over
the telephone our directors were In
session. and I insisted that under nc
other conditions would the kindly Of
fer be accepted. The proposition was
then put to the directors, and seven OF
eight acquiesced in the plan, but we
found that two or three of the direc-
tors were hampered by partnership
agreements which prevented them
from Immediately acquiescing in the
plan.
These directors were not pressed
upon the point during the day, but
will declare their position at the meet
ing tomorrow morning.
ST am unable to state tonight Other
than my personal belief, which is that
l think the bank will open tomorrow
morning for business as usual, but the
meeting of the directors before bank
ing hours will decide the matter one
way or another. Much will depend
upon the banks clearing house debit
tomorrow.
"If the debit is comparatively small
it will be favorable to the institution
but if on the other hand the debi
proves large-well, that's another mat
ter. The clearing house phase of tht
situation is of prime importance at thi.
juncture of the banks existence"
Several depositors who had not beer
paid off at the close of banking hours
had representatives waiting in lin
outside the banks doors Throughout
the night tonight to keep their place
for them. The temperature hovere,
around degrees above zero, and tn
walters suffered severely from th
cold.
The Oriental bank is capitalized a
$750.000 and previous to the panic las
fall carried individual deposits of ST..
$4,000, but this has been largely re-
duced since the panic.
Bank examiners took active charge
today OF the affairs of the New Am
sterdam National bank and the Me-
chanics and Traders bank, which
closed their doors yesterday. Both OF
these banks were included in the
Morse -Henize- Thomas chain of banks
and after the closing of the National
Bank of North America a few days
ago, there had been what practically
amounted to a run upon them.