The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-04
STATE CLOSES TWO
BANKS ON EAST SIDE
Private Institutions Fail to
Meet New Law-Deposits
Total S8,6OO,OO0.
SMALL RUNS QUICKLY MET
Williamsburg and Brownsville
Depositors Paid without
80 Days Notice.

Two East side banks. with deposits
amounting to q, SOC, 600. we're taken over by
the state Banking Department yesterday
and closed. The action was taken because
the institutions had failed TO apply for per
mission to continue business under the new
banking Law and not because Of the war
The two institutions are NJ. h l.. Jarmu-
lowsky Of 1856 East Broadway, with deposits
of 81 SOC. 600. and Adolf Mandel of 1855 Mv-
ington street, with deposits of 8, Ooo. 900. II
Is figured that more than 10000 depositors
are concerned In the closing OF both institu-
tions, for while few depositors may have
had as much "a 200 the majority Of &C
counts ranged from $50 to $500.
Charles A. Horne, a bank examiner, was
appointed as a special deputy banking SUI
perintendent in charge of~M 4 T.. Jar
mulowsky. while J. J. Kennedy. another
bank examiner, was made a special deputy
in charge OF the Adolf Mandel concern.
Both private banks will be liauidated.
All the other private banks Of which a cur
sorry examination has been made by the
State Banking Department under authority
vested In II by the new banking law are re
ported TO be In excellent shape.
Eugene Lamb Richards. State Bankin z
Superintendent. took charge OF the Affairs
Of the two banks about 5 o'clock. at which
hour they had been ordered TO close.
large crowd gathered in front OF Man
del's bank last night. Tho majority were
depositors carrying their bank books and
consoling one another. There was a run
on the bank in February. 1912. but plenty OF
ready money soon allayed the fears Of the
depositors.
small crowd gathered last night IN front
OF the Jarmulowsky bank, but several
policemen we're on hand TO preserve order
The bank was founded in 1897 with head
quarters in i73 East Broadway. but II moved
IN 1908 10 its present building. a snowy six
story affair. Meyer Jarmulowsky. who
lives at II East Ninety-ffth street, Is
the head man in tho concern. lie would
make no statement last night.
Much Of the withdra walls from savings
and private banks on tho East Side were
made by reservists who want TO go back &c
Europe to night for their native lands
Other foreigners Of the moro ignorant type
worked ZIP by stories OF the war printed In
their native languaH es, got uneasy and de.
cided TO withdraw their savings. As d
result more money was paid out yesterday
than Is customary on Mondays.
The closing of the banks on the East Sid,
caused runs on the private bank of A. !,
kass. 81 Graham avenue. Williamsburg. anc
the Williamsburg branch of the State Banl
Of Manhattan. at 90 Graham avenue. Abou
SEQ foreigners called for thier money at tn,
Kass bank and twelve policemen were called
from the Stasg street station to preserve
order. At the State Bank holders OF 40
counts deposited money on the first moo,
while some foreigners stricken with base
less panic drew out their money in the base
ment. All demands were met by boti
banks Tn. war ia believed not to be thu
cause OF the scare.
Depositors stood in line AT the Brownsville,
Branch OF the State Bank at Stone anc
Ptkin avenues yesterday. They we're paiC
without any disorder. and at o'clock Las
night when the bank closed the manage
said about 1000 had passed over tn
counters Some OF II went out In silver
necessitating women carrying II home II
aprons and handkerchief.
The Brownsville branches Of Max Krobet
private bank and OF the Public Bank a
Pitkn avenue and Watkins street also paiC
out TO depositors more than was their Gus
tom. All three banks were said TO be in
sound condition. They are in a congestec
Italian neighborhood.