Article Text
RUN ON A NEWARK SAVINGS BANK. PAYMENTS PROMPTLY MADE-EXPRESSIONS OF CONFIDENCE BY BUSINESS MEN. The failure of the Newark banking-house of A. M. Reynolds & Co. on Tuesday evening has caused a run to be made on the Newark Dime Savings Institution, of which Mr. Reynolds was a manager. The bank had scarcely opened its doors yesterday morning when the depositors began to gather in the neighborhood and flock to the disbursing counters. The bank promptly paid every applicant, paying out upward of $60,000 within a few hours, without availing themselves of their right to require 30 days' notice, which they are allowed by their charter. Their last statement to the Secretary of State showed their deposite to be $2,649,377 06, distributed among 24,803 accounts of depositors, and the funds were stated to be invested in State and municipal bonds and mortgages on real estate. Their surplas was $90,810 11. Although Mr. Reynolds was a manager of the institution, he was not a debtor to it, the charter of the bank prohibiting the loaning of its money to any of its managers. Instead of closing their doors at 4 p. in. yes terday, the esual hour, the doors were kept wide open, and disbursements were freely made until 6 p. m., the crowd in the mean time increasing as the shop women and working men returned from their day's employ ment. When the doors of the bank were closed at 6 p. m., those inside at the time were paid off, the last disbursement being made at 8:45. The bank will be opened this morning at 9 a. m., an hour earlier than customary, and will be kept open until 8 o'clock this evening. Five banks tendered financial assistance to the Institution yesterday. Deposits were made by 20 persons, and three new aecounts were opened yesterday. President McGregor stated to a TRIBUNE reporter last nightthat the bank had disbursed over $100,000 to 578 depositors, and was fully prepared to pay dollar for dollar to all depositors. Mr. Albort Headley addressed the crowd in front of the bank, and stated that he represented $40,000 in the institution, and that be would not draw out a dollar of it. Toward night Arthur Derme, a real estate and insurance broker on Broad-st., bought up a number of the accounts of depositors at a discount of ten per cent, but the excitement abated to a great degree before 9 o'clock, and more confidence began to manifest itself in the stability of the bank. President McGregor and leading bankers with whom THE TRIBU reporter conversed exprese their assurance that the Dime Savings Bank 18 a perfectly sound institution; and that the run upon it is senseless. As yet no unusually large number of depositers have asked for their money in the other banks, or in the truet companies. It is understood that the banking institutions will stand by each other in case of a panic.
