New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-08
BOROUGH BANK SUSPENDS
Failure Blamed to Collapse of
the Union on tuesday.
CITYS MONEY ON DEPOSIT
Superintendent Holds Present
Management Not Response
BILE for the Crash.

The Borough Bank OF Brooklyn. on ac-
count OF heavy Withdrawals by frightened
sepositors following the suspension Of the
Union Bank OF Brooklyn on Tuesday. ana
because OF slow assets Inherited from the
former nanaEement. on which the new
management had been unable 10 realize
closed its doors Yesterday. The decision 10
close was reached at a conference o. the
directors with the State Superintendent OF
Banks held in the latter's Office on Meones-
cav night. and ". NJ Hutchins. chief hank
examiner. was placed in charge o. the IN
stitution yesterday morning
When Il closed its doors the Borough
Bank had on deposit Ss5. 755 10 from the city
or that amount $4,000 was from the CITY
Chamberlain. but he had required bond,
and soon after the bank closed The People
Surety Company turned over the S-9'vN 10
CITY Chamberlain Hyde.
When Controller Prendergast took once
the Department Of Finance had the follow
ing deposits In the Borough Bank: Public
school teachers retirement fund, SZi.SV'
rand transit security deposit, $500; oiher
security deposits. Ss5 755 10: making a total
OF SlO0.755 10. The security deposits now
ever. since then were reduced 20 the extent
o. S30,ea0. leaving balance Of Se'''5 ~.
The Finance Department has $4,000 on
which was closed several days ago-
Banks Second Failure.
This IS the second time that the Borough
bank has suspended. On October 3, 1877,
during the panic il closed its doors, ano
did NOT resume business until April u, 1913.
proc. Il shears. who has been president
since the reorganization. said yesterday:
1.-THE effect % the closing Of the Union
Bank has been severely felt by the Borough
Bank during the last few days. II mas
shown itself IN q quiet but constant
withdrawal Of deposits AZ both the main
Office and the Eighth Ward branch. but
more particularly az the Eighth Ward
branch. and resulted in eNhausting the
banks ready cash.
AT a meeting OF the board Of directors
Of the bank al the Office OF the Superin-
sendent of Banks last night the situation
was fully considered by the board and by
the Superintendent. and il was decided best
not 20 open the bank this morning. April :.
The Borough Banks assets which it is
believed are more than adequate 70 pay all
depositors and the stockholders IN full were
70 a great extent inherited from The for
rler management Of the bank, which caused
It's SUSPENSION two wears agO. The assets
ere 10 considerable extent in real prop
erry both in the Borough OF Brooklyn and
st. suburbs, a large portion of which is
s.ninuroved. The banks inability TO mar
ket this property. which Il held Al the time
OF resumption. and the exhaustion Of its
cash supply resulting from the closing Of
the Union Bank on Monday explain the
suspension.
Was Making Good Progress.
The bank resumed April H. 1905, and
met its last deferred payment April a,
1904 and since that time has gradually re-
duced its outstanding obligations, an
achievement which the officers and direc-
tors look ar with no little pride.
The closing a. this time is very IN
fortunate as every indication pointed 20
e rapid and healthy growth
S,-perinte1Ident Cheney gave the present
raauaeemout a clean bill Of health. The
suspension was due, he said. 10 the unusual
demands made upon the institution follow
3ng the failure 81 the Union Bank and the
character Of the assets. for which, he add
&c the present management was not re-
tponsible.
The report Of the condition % the Bor-
ouCh Bank al the close Of business on
March .. when the last call for a state
Ynent Of condition was issued by the State
Superintendent Of Banks, was follows:
ResouI ces-Loans and discounts sl,0se. 81;
overdrafts. SIS: due from trust companies.
banks and bankers not included IN next
stem. So, 1Ol; due from reserve repositories.
less amount Of Offsets Sis, So; real estate.
Sis. 255; mortgages owned, So, Sj6; stocks
and bonds. viz, public securities 6book
value s. seO, market value. $500; other
securities tbook value. $65S.55c). market
value sos $50; specie. sl5.4lS: legal tender
notes and notes Of national banks, Sl02, Jos.
cash items. s7.7s3; other assets viz, furni-
1ure and fixtures. Sl5,365; accrued interest
entered. Sissy; accrued interest not en-
tereG. IS l26. total, S2.20s,764.
Liabi.iues-Cap ital stock. S2o0o 900: surplus.