New-York tribune., 1912-03-05
CHAIN OF BANKS FAIL
RosettS Declared InSolvent After
Run at Perth AmbOy.
MOB CLAM0RS FOR MONEY
Same Receiver Named IN New
Jersey and New York
Proceedings.
1Rv releerapr to Tho Tribune :

fBy Telegraph n lne lIlbuH''I
Perth Amboy, n. J.. March 4.-Followlng
P run on local bank the chain OF banks
operated bv Moritz e. Max Rosett. and in
cluding branches at Wilkes Barre, Perm :
Youngstown. Ohio: Jersey City, Perth Am
boy and New York. were declared insoiVeht
ic-day by the Court of Chancery at Tren-
ton. Joseph Conklin. examiner of the De
psrtment OF Banking and Insurance, was
appointed receiver by Judge Holz. The run
on the local bank amounted To $4,000, and
this caused the crash.
At II O'Clock to-day Armin Tomaschon'
manager of a local institution, following
out instructions from the New York ONCE
closed the place here in the face of two
hundred foreigners who clamored for their
savings Police Chief Burke sent patrol
men to the bank to prevent a repetition OF
the outbreak of several days ago when one
OF the doors was battered in Mr.. Conklin.
during the last two DAYS. has examined the
condition of the Perth Amboy office and
decided il necessary to close ii.
Last Wednesday morning crowd OF
seven hundred from this section OF New
Jersey was paid off personally by Moritz
and Max Rosett. They worked all
night to get the books in condition. Thurs
day, Friday and Saturday money was paid
out while patrolmen kept guard A rumor
that Armin Tomaschoff. the manager, had
skipped away with the money is said TO
have started the run. The local officials
declare it to be the work of a clerk dis
charged from the New York office. re-
ward has been offered in Perth Amboy for
the arrest and conviction Of the guilty per
sons
Application to the Court Of Chancery to
day stated that the liabilities were N5ol6,
while the assets totalled SO5,975 Rosett and
officials had direct control Of the money
of the foreigners from this section from
Railway TO South River, New Brunswick
and surrounding towns Tonight the place
was besieged by people from the neighbor-
ing towns, as we'll as from Perth Amboy
who demanded their money Some threat
ened vengeance All Of the iron gratings of
the windows have been lowered and the
doors barricaded to prevent any one from
gaining admittance, and the place was
strongly guarded.
The private banking firm of NJ. Rosett,
with Offices at No. ia Liberty street and
No. 197 Stanton street. was put into bank
ruptcy yesterday through a petition filed by
three depositors with aggregate claims OF
$1.535. The petition in bankruptcy alleged
preferential payments and that the firm
vas about 10 consent TO the appointment OF
receiver for its branch at Perth Amboy
Judge Holt thereupon appointed Joseph NJ.
Conklin as receiver. The petition gave the
liabilities Of NJ Rosett at S2O0,00O and said
that the assets exceeded $4,000
The following statement was issued on
behalf of NJ. Rosett by Newman e. Newgas.
attorneys for the firm:
The financial troubles Of NJ. Rosett are
brought about by a run on the Perth Am
boy branch of the barking house which
started a week ago. and which resulted IN
the commissioner Of that state procuring
an order restraining NJ. Rosett from con
tnuing his business. This precipitated the
ling Of an involuntary petition in bank
rUptCy. our investigation shows that NJ
Rcsctt have forwarded 10 Europe every dol
Ian which was delivered TO them for this
pmpose. According TO their own Iigures
surplus of about $50 000 Had they been
permitted to liquidate their assets In their
own way. we feel certain that Mr.. ROsett
would have overcome the demands made
unon his resources ny the run at Perth
Anboy without any great difficulty.
eign banker. There is 100000 on deposit
with the State of New York as a guarantD
fund, besides which the real estate, stocks
and bonds owned by NJ. Rosett, II properly
couser rved. ought to pay all depositors IN
full.
The street in front Of the uptown banking
offices, at No. 197 Stanton street. was the
scene of wild excitement last evening. when
Homecoming depositors heard the an
nouncement of the failure Dozens came
running straight from their homes and col
lected in front of the institution, shouting
and crowding around the doors.
As soon as the mob began TO collect in
such numbers call was rung in for the
police. and four patrolmen were sent over
10 the bank to prevent violence. The big
windows are on a level with the street and
guarded only by an iron railing. The
officers ranged along in front of these win
dows and held the crowd back.
For two hours men, women and children
elbowed and pushed one another about. dis
Cussing their losses, shouting for Rosett
and fighting their way forward from time
TO time to get peek into the banking
rooms, in the rear of which two lights
burned dimly. Some of the men wept and
stood wringing their hands, angrily de-
nouncing the banker in various dialects, but
for the most part the crowd was peaceful
and gradually melted away.