The New York herald., 1921-04-13
MANHATTAN CASH
HALTS BANK RUN
$500,000 Sent to Perth AM
boy Restores Faith in
Trust Company.
SERMON STARTS ACTION
Officials Blame Attack by
Official Organ of n. j.
Anti-Saloon League.
$4,000 LOAN CRITICISED
Bank Has 10,400 Depositors
and Assets Are Entirely
Unimpaired.
SERMON STARTS ACTION
$4,000 LOAN CRITICISED

BY making two hurried trips TO
Manhattan and taking back with him
In handbag on each trip s250,000 in
cash. Isaac Alpern, president Of the
Perth Aipboy Trust Company, y. j.,
succeeded yesterday in stopping two
day run on his bank in which 300 ac-
counts, totalling s161, 900. were closed
out. The news that the president OF
the bank had obtained half million
dollars in cash from the big banks OF
New York caused such renewed con-
fdence In his institution, however. that
up to late yesterday afternoon sS1. 600
of the funds withdrawn By depositors
had been redeposited.
Mr.. Alpern said last night that the
run was caused by the circulation BY
the American Issue. the official organ OF
the Anti-Saloon League OF New Jersey,
OF reports that the trust company had
loaned 100000 to Frank Gold. who has
been convicted and sentenced to serve
Fix months for violation of the Volstead
act.
The alleged loan was also the subject
of sermon last Sunday by the Rev.
Wilbert Westcott. pastor of the Simpson
Methodist Church of Perth Amboy. who
denounced the bank for lending money
20 a convicted bootlegger. The matter
then became the talk of the whole town
and caused such unrest among the de-
positors, most of whom are foreigners,
that the run began.
The bank president said last night
that what really happened was that
gorne time ago the trust company made
n loan of $4,000 to Frank Gold. Inc.
which firm had Government permit as
a wholesale dealer in liquor. The money
was obtained by Sigmund Spitzer. ano
was amply secured by Liberty bonds
and bonds of the Chicago. Burlington
4 Quincy Railroad Company. Since the
Joan was made Gold has been arrested.
convicted on a plea Of guilty and SEN
fenced TO six months, but Mr.. Alpern
said that this in no way affected the
collateral furnished to the bank to Sc
cure the loan to the Gold corporation
The matter, however. Mr.. Alpern said,
was seized upon by the Anti-Saloon
League, and several editorials appeared
In the American Issue, published in
Newark, the result being that the de-
poSitors became alarmed over the re-
ports that the bank was making large
loans to bootleggers.
Run Began on Monday.
The trouble began on Monday, when
there were an unusual number Of ac-
counts withdrawn. Late in the after
noon OF that day Mr.. Alpern came to New
York and obtained s250,000 In cash.
which he took home and placed in the
trust company's vaults. Yesterday
morning the run continued, and by noon
the line of people at the paying teller's
window stretched far into the street.
Before noon Mr.. Alpern came again to
New York and obtained another $780,
000 With this half million in the
vaults. together with the usual large
amount of cash kept on hand. Mr.. Alpern
said last night that the trust company
was prepared to weather any storm.
In order to accommodate depositors
who wished to withdraw their accounts
the bank remained open beyond the
usual hour of closing yesterday. and to-
day ever facility will be offered to any
one who desires his money. Mr. Alpern
gaid that the bank had total of 10, 400
accounts totalling s4.s00.o00, and was
entirely solvent