Article Text
BANK FAILURE IN ELIZABETH. The directors of the Dime Savings Bank of Elizabeth, N. J., yesterday applied to Chancellor Runyon for an order prohibiting payment of money to depositors, and to have charge of the bank's business.
12478. Dime Savings Institution (Elizabeth, NJ)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- savings bank
- Start Date
- January 7, 1880
- Location
- Elizabeth, New Jersey (40.664, -74.211)
Metadata
- Model
- gpt-5-mini
- Short Digest
f672898ce96c0a39
Response Measures
None
Description
The articles (Jan 7–8, 1880 and Apr 24, 1880) describe the Dime Savings Institution of Elizabeth being placed under the control of the Court of Chancery because of insolvency driven by depreciation of local real estate. There is no mention of a depositor run; the bank was taken into court control (effectively suspended) and wound up, with a committee appointed and instructions about paying special deposits. April article permits payment of certain special deposits but does not indicate full resumption of normal operations. Bank is a state-chartered savings institution (charter from the State). OCR quirks corrected (e.g., Dime Savings Bank / Dime Savings Institution used interchangeably in articles).
Events (3)
1.
January 7, 1880
Suspension
- Cause
- Government Action
- Cause Details
- Directors applied to Chancellor Runyon for court control/prohibition on payments; bank effectively suspended under Court of Chancery due to insolvency from depressed Elizabeth real estate.
- Newspaper Excerpt
- The directors of the Dime Savings Bank of Elizabeth, N. J., yesterday applied to Chancellor Runyon for an order prohibiting payment of money to depositors, and to have charge of the bank's business.
- Source
- newspapers
2.
January 8, 1880
Receivership
- Newspaper Excerpt
- THE DIME SAVINGS BANK OF ELIZABETH IN THE CONTROL OF THE COURT OF CHANCERY... The application ... was granted yesterday. A committee ... was also appointed by the Chancellor to ascertain the cash value of the assets of the bank. ... the bank had become seriously crippled in consequence of the depreciation in real estate, the great majority of the mortgages being held on Elizabeth property. (New-York Tribune, 1880-01-08).
- Source
- newspapers
3.
April 24, 1880
Other
- Newspaper Excerpt
- The Chancellor has made an order that the managers of the Dime Savings Institution may pay out the special deposits now held for depositors. This order affects only those who made their deposits just before the bank suspended ... (New-York Tribune, 1880-04-24).
- Source
- newspapers
Newspaper Articles (3)
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Article Text
LOCAL MISCELLANY. AN INSOLVENT SAVINGS BANK. THE DIME SAVINGS BANK OF ELIZABETH IN THE CONTROL OF THE COURT OF CHANCERY-CARRIED DOWN BY THE FALL OF ELIZABETH REAL ESTATE. The application made to Chancellor Runyon, in Newark, Tuesday, foran order placing the Dime Savings Bank of Elizabeth, N.J., under the control of the Court of Chancery, was granted yesterday. A committee, consisting of Jacob Davis, president of the bank, Vice-President Samuel L. Moore and Director Edward G. Brown, was also appointed by the Chancellor to ascertain the cash value of the assets of the bank. The conclusion on the part of the Board of Managers to adopt this method of winding up the affairs of the bank was reached at a meeting held Monday afternoon. The officers of the bank are: Jacob Davis, president, who 18 also president of the First National Bank of Elizabeth and of the Elizabeth and Newark Horse Railroad Company; Samuel L. Moore and Samuel Bonnel, jr.. vice-presidents; and John N. Earl, treasurer. Among the members of the Board of Managers are some of the best-known citizens of Elizabeth. Mr. Earl was at his place in the bank as usual yesterday, but his duties were limited to answering the inquiries of depositors. He said to a TRIBUNE reporter yesterday: "The bank was established in May, 1867, under a charter from the State as a savings institution, without any capital stock. The money accumulated by deposits was from time to time invested in bonds, mortgages and other securities. About a year and a half ago it was found that the bank had become seriously crippied in consequence of the depreciation in real estate, the great majority of the mortgages being held on Elizabeth property. The matter was discussed by the directors, and it was decided that the interests of the creditors would be best subserved by continuing business. There had been no effort to conceal the condition of the bank from the creditors. In fact, several months ago a resolution was passed, which gave depositors the privilege of taking securities in exchange for their loans. They were allowed to take Rahway bonds-the market value of which is 30c., at 50 per cent of their par value. A number availed themselves of this offer to the amount of $110,000. Since last July no money has been received at all in trust. Special deposits have been made not drawing interest and have been kept separate from the other funds of the bank. The entire number of deposits will reach nearly 100,000, most of which is in small sums. The largest deposit is something under $2,000. Several of the managers are on the list of creditors: William Jeukins has a deposit of $1,211.69; Henry J. Wood. $204; and members of my own family, $451 08. Three or four other directors have trust funds deposited. Dividends were paid without interruption intil April 1, 1878, since which time one semi-annual dividend of 2 per cent has been paid." The following IS the statement of the present condition of the bank:
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Article Text
nearly all are reported prosperous. One "brother" was refused admission by the Bishop because of his having two wives living, though be explained that be had been legally divorced from his first wife. NEW-JERSEY. ELIZABETH.-The Chancellor has made an order that the managers of the Dime Savings Institution may pay out the special deposita now held for depositors. This order affects only those who made their deposits just before the bank suspended under agreement that they should have the privilegs of withdsawing them at any time. MILBURN.-Thieves broke into the Episcopal parsonage a few days age and robbed it of clothing and other valuables articles. They failed to find the silver Communion service. This is the second At a meettime the house has been plundered ing of the Common Council last evening the Finance Committee was instructed to negotiate for the purchase of the remainder of the outstanding Woodside bonds. HOBOKEN.-The body of the man who committed suicide in Busch's Hotel, Hoboken, last Tuesday night by shooting himself through the head, was identified yesterday as that of Minturn H. Dean. He was seventy-three years of age, and had shown symptoms of insanity servant in a family in Hudson-st. was on the roof of the house vesterday and saw a skeleton bleaching in the sun. It had been placed on the roof by Dr. A. E. Lowenthal. The woman in her fright started to run and fell through a skvlight into the hallway below. She was only slightly injured. STATEN ISLAND. TOMPKINSVILLE.-James Farrelly and William Raynor were before Justice Kullman, at Tompkinsville yesterday, charged with assault on George Hitchcock. chief clerk in the Richmond County Police Department. Farrelly was fined $25, and Ryan was sentenced to two months in the county jail. STAPLETON.-Andreas Kleiber, an old German seventy years old, was arrested vesterday by Officer Romer and arraigned before Justice Taylor, at Stapleton. charged with assaulting Louisa Hipp, age nine years. The aged prisoner denied the charge, but he was committed to jail in default of $2,000 bail.