Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1921-04-12
FEAR SUBSIDIES
At BANK HERE
Unfortunate Rumor Causes
UneasineSs at Perth Amboy
Trust Company; Dies Out
TRUE FACTS GIVEN OUT
Wrong Impression Created by
Remarks of Teacher in
High School Business Class
TRUE FACTS GIVEN OUT

An unfortunate rumor concerning
the Perth Amboy Trust Company
was started in an apparently inno-
cent manner yesterday and caused
some uneasiness among certain
classes, but as the facts become
known and the reliability of the
trust company Is understood the
trouble Is subsiding. The facts are
these as given out by the president
of the company, Isaac Alpern:
Frank Gold. Incorporated, a con-
cern which, at the time, was, as far
as known, doing a legitimate busi-
ness holding a government permit
issued by federal authorities, bor-
rowed a sum of money from the
Perth Amboy Trust Company on
two notes, one for $4,000 and the
other for $4,000. These notes are
endorsed by Sigmund Splitter. man
whose financial standing in the COM
munity is unquestioned, being the
owner of the building now occupied
by the First National Bank and the
Hotel Central building. both being
located at the corner Of State and
Smith streets. Furthermore. as ad-
ditional security, the bank holds
$4,000 in Liberty Bonds. bonds of
the Chicago, Burlington & Quincy
Railroad and other similar high class
security. These notes are not yet
due. When they do fall due the
trust company has notified the
maker that they will have to be paid
in full owing to what has happened
since the loans were made. Should
the maker fail to make good the
obligation, the trust company will
look to the endorser, Sigmund
Splitter. These loans when compared
with the total resources of the bank.
which total about $4,500,000. are
considered not excessive. The loans
were negotiated the same as any
other business transaction Is ham
died. The bank, feeling we'll Sc
cured. granted the loans.
Later the Frank Gold, Incorporat-
ed, got into trouble with the govern
ment. In certain court proceedings
which followed. the name of the
Perth Amboy Trust Company was
mentioned. 1.-The American ISSUE"
the official publication of the Anti
Saloon League, published state
ment in a recent edition intimating
that the Perth Amboy Trust Com
pany was financing bootleggers.
This article as published in THE
American Issue" was read from the
pulpit of the Simpson NJ. E. church
ness course in the high school, hear
Ing about the article as read in the
church, told her pupils about it yes
terday and said that If she had any
money in the Perth Amboy Trust
Company she would withdraw it.
She also attempted to draw a con-
trast between a trust company and
a national bank.
The scholars going home at noon
yesterday told their parents what
the teacher had said and as the re-
port passed from lip to lip 1t grew
until some were saying that the
government was going to take
charge of the trust company today.
OF course, there was not particle
of truth in such reports as were
circulated. The Perth Amboy Trust
Company Is in excellent financial
condition and was never in better
shape.
When the seriousness of what the
teacher had told her pupils was
realized a meeting of the pupils of
the high school was called by the
principal yesterday afternoon and
the teacher retracted her statement,
declaring that she knew nothing
whatever that involved the solvency
of the Perth Amboy Trust Company.
The principal explained the serious
ness of carrying such rumors and
urged all to do everything in their
power to stop them circulating as
there was absolutely no question as
to the financial condition of the
trust company. Z
AS result of the rumor however.
some people have withdrawn their
accounts. but much of the money
has been redeposited as the situation
is explained to them.
The Perth Amboy Trust Company
today is one of the strongest finan-
cial institutions in the state. It's
lates financial statement showed the
following:
Resources
Stocks and Bonds Isl ,721, 1858
Mortgages ........... 116,925.00
Loans on collaterals -. 493,961.02
Notes and bills pur-
chased ............ 1.7s3.1oo.75
Overdraft ............ 3.SS
Banking House. furni-
ture and fixtures -. 111,922.7S
Cash on hand and in
banks ............. 2ss,o27.s1
Credit granted on ac-
ceptances .......... 100000
Interest accrued ...... 29,611.61
$4.555,70S.2S
Liabilities
Capital stock .........$ 20O,o00.O0