Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-04-07
B0R0UGH, SECOND
BROOKLYN BANK
TO CLOSE DOORS
State Superintendent Takes
Possession to Make Ex-
animation.

NEW YORK, April THE Borough
day. and the superintendent of banks
has taken possession of the institu-
tons business. The bank has a capital
OF s2oo, n0g. with deposits a-ggregating
over 81. 900, 0oa. B. r. Shears is presi-
dent OF the institution. This is the
second bank failure in Brooklyn within
q week. the first being tins Union Bank
OF Erooklyn.
At the office OF the State superin-
tendent Of banks the following state
ment was given out today.
"A meeting of the board of directors
OF the Borough Eank of, Brooklyn was
held at the office Of the banking de-
partment, 80 Broadway, at $50 o'clock
last night, the meeting having been
called by President Shears.
After "a confere nee with the super
intendent Of banks regarding the un-
usual demands being made upon the
Institution at its Eighth ward branch.
and considering the character of the
dSStlS. IO} WIKI liC PACoNhl htoiipeC-
mtnf is not responsible, the board d.
cided to request the superintendent to
take possession, and thus preserve the
best interests of all depositors.
Pursuant to the request and the
provisions of the banking law, the
superintendent has taken possession OF
the property and business of the cor
poration.
49, f.rthAr -fafan1anf paHl ri lly tho
condition of the bank will be made
until the inventories have been COM
pleted.
There has been no withdrawal of
deposits from any other institution.
Superintendent Cheney said that the
conditions attending the closing of the
bahk were almost Identical with those
(Which led to the closing of the Union
Bank. As was the case with the Union
Bank, the Borough was obliged to sus-
pend during the panic of 1907. and was
reorganized after the panic was over.
The new management was obliged to
assume liabilities which have been a
heavy load. and the suspension of the
Union Bank had "A bad effect on the
Borough, which was known to be in
the same position.
SUPERINTENDENT Cheney would not
venture an opinion as to the condition
of the bank or as to the position of the
depositors until the examiners who are
working on the banks books, have
finished their work.
The Borough Bank closed its doors
In October. 1907. as a result of the panic
OF 1907. when stories that were told of
how the institutions funds had been
misappropriated caused the indictmene
Of it's president. Howard Maxwell, and
It's cashier. Arthur D. Campbell.
President Maxwell committed suicide
q few days later by cutting his throat.
President Shears. of the Borough
Bank, said:
THE effect of the closing of the Union
Bank has been severely felt by the
borough Bank during the last few days.
and showed itself in a quiet but IN
slant withdrawal of deposits, which re-
suited In ~exhausting the banks ready
cash.
THE banks assets, which. it is be-
lieved. are more than adequate to pay
all Gepositors and stockholders in full.
were to a great extent Inherited from
the former management, which caused
it's suspension two years ago. The as
\sets are 20 q considerable extent In real
! property. 10th In the borough Of
Brooklyn and in the suburbs. a largo
portion Of which is unimproved.
"The banks inability to market this
property, which it held at the time of
resumption and exhaustion of its cast
supply resulting from the closing of the
Union Bank on Monday. explain the
suspension