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THE RUN ON THE PROVIDENT INSTITUTION FOR SAVINGS IN JERSEY CITY-ANOTHER COMPLAINT AGAINST THE MECHANICS AND LABORERS' BANK. The excitement attending the arrest of the directors of the Mechanics and Laborers' Bank, of Jersey City, has been such as to seriously alarm the bank depositors in that city, and the result is that large numbers of the poorer depositors are making demands on all the banks in the city for their money. The run on the Provident Institution for Savings, corner of Plymouth and Washington streets, which was begun on Monday, continued yesterday, and was even larger than on the previous day. The bank has been in operation for thirty-five years, and through its economical and close management was always rated to be the safest in the State. When the rumor of a run on the institution was first heard it was laughed at as ridiculous; yet a crowd be gan to gather about its doors, and yesterday, long before the doors were opened, the stoop and street in front of the building were thronged with depositors, the majority of them being women. When the doors were opened the throng rushed in and presented their books for payment. Several directors sat in the back room smoking, and all the money that could be paid out in a day was placed on the desks in front of the clerks. County Collector E. W. Kingsland, the secretary and treasurer of the institution, walked about behind the desks watching the clerks as they rapidly made up the different accounts and paid out the full amount to each depositor. Many of the depositors, as they saw the clerks paying out without a word, began to grow confident and left without drawing their money. On Saturday last $33,000 were drawn and on Monday about $40,000; yesterday the amount drawn reached over $50,000. Many depositors were anxious to have their books made up with interest to January 1, but this the directors refused to do. Interest was computed up to July 1 only. Thus by the run the bank saves five months' interest on the amount drawn. Secretary of State Henry C. Kelsey, having heard of the run, visited the bank yesterday, and assured the depositors that they were needlessly alarmed. He said that Bank Examiner Van Camp, who recently made an examination of the affairs of the institution, reported that the management was excellent, the bonds and securities of the safest and that over $1,000,000 could be realized within twenty-four hours on the bonds and government securities. He considered the bank able to pay every dollar. and have a handsome surplus left. The profits of the institution at present averaged nearly $60,000 annually, while the surplus amounted to nearly $200,000. The report of the bank to the State department in January last shows the assets at that time to have been $4,820,679 and liabilities $4,652,075. THE MECHANICS AND LABORERS' BANK. No decision has yet been rendered by Chancellor Runyon on the application of the directors of the Mechanics and Laborers' Bank to be allowed to continue business and the request of several depositors for the appointment of a receiver. Secretary of State Kelsey said yesterday that the bank, since its organization, had never filed any report with the State of its condition, and it was only through an accident that he became aware that such a bank was in operation. Bank Examiner Van Camp was sent at once to make an examination of their books and on reporting its embarrassed condition to Mr. Kelsey the latter began proceedings for the appointment of a receiver. One would have been appointed 'ere this but for the application of the directors and their statement that if they were allowed to continue they would in a short time be able to meet their entire liabilities. It was because of this proposition that the Chancellor has held the matter in abeyance. Yesterday another complaint was made against the directors of the institution by James Chester, of Hoboken, who in his affidavit alleges that Secretary Donelan resorted to false pretences and falsehood to get him to deposit his money in the bank, knowing at the time that the bank was insolvent. Although the directors were arrested and gave bail before Judge Meehan for alleged conspiracy on Monday they will, it is thought, be rearrested to-day on Chester's complaint.
