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& THE SAVINGS INSTITUTION INVOLVED WITH FISK HATCH-A RECEIVER APPOINTED. The Newark Savings Institution, which since its saspension in 1877 has been under the control of the Chancellor of New-Jersey. closed its doors yesterday morning by order of the Chancellor. A notice posted on the door announcing this fact caused excitement in the street, and news of the suspension becoming noised throughout the city, many depositors in the Howard and Dime Savings Banks, and the North Ward Bank, hastened to withdraw their deposits, the largest run being on the Howard, a stable institution fully prepared for the emergency. It soon became known that the trouble at the Savings Institution arose from the failure of the banking firm of Fisk & Hatch. who have always had close business relations with the institution. The order of the Chancellor for the closing of the bank is dated Thursday, and says that part of the assets had been loaned or deposited without the knowledge of the Chancellor, and contrary to the direction he would have given if he had been applied to, The order directs that the functions of the bank should cease, pending an investigation under the direction of the court and the appointment of a receiver. The treasurer of the bank was also ordered to report forthwith to the Chancellor the financial condition of the trust. Later in the day the Chancellor appointed George Wilkinson receiver. COMPLICATIONS WITH FITCH & HATCH. Fisk & Hatch acted as agents in New-York for the Savings Institution. The bank and firm held close business relations prior to the bank's failure in 1877, which was precipitated by the purchase from Fisk & Hatch of over three millions of Chesapeake and Ohio bonds, which in 1877 were practically not marketable. The bank has had a box in the vault of Fisk & Hatch, which contained two millions of Government bonds. An officer of the bank visited the vault about a month ago and looked over the securities, finding them all right. A duplicate key of the box was held by Fisk & Hatch, and whenever it became necessary to sell any of the securities in it a telegraphic order to that effect was sent to the firm, who carried out the order. At noon on Thursday the firm telegraphed to President Daniel Dodd, of the bank, that they were difficulty. Mr. Dodd immediately went to New-York. Francis Mackin, a manager of the bank. stated yesterday that the substance of the telegram was to the effect that the Government bonds of the bank had been disposed of. Mr. Dodd, said Mr. Mackin, Informed Fisk & Hatch that they would have to make the securities good by replacing them with other securities, when a number of railroad and other bonds were handed to him, amounting altogether in par value to over one million dollars. Mr. Dodd placed the securities in a carriage and drove away from the office, returning to Newark. The Chancellor was then informed of what had occurred. WHAT THE BANK'S COUNSEL SAYS, The statement of the failure by Cortlandt Parker, the counsel for the bank, was prepared for publication early in the day. The statement attributes the suspension of the bank to the failure of Fisk & Hatch. It refers to the payment of 95 percent of the deposits of the bank made prior to 1877, and the security of the additional five per cent on this account. It explains that Fisk & Hatch had been intrusted with the purchase and surrender when called in of Government bonds, the firm agreeing to pay interest pending investments of what were in their bands. In reference to the substitution of securities the statement says: The box of securities of the bank kept by the firm for them, which ought to hold Governments only, has, in their stead, personal property not equal value nor so readily salable. It is said that the firm had the right, bank's of or the as non-objection agreement officers could give it to them, to borrow and use these securities, substituting for them bonds of different value. The officers of the bank do not seem chargeable with any moral wrong. An excess confidence the integrity and solvency of these brokers scemed be their only fault needless to s that all these transactions were without the knowledge of the Chancellor and contrary to his order. The failure will not be ajbad one we learn: that is. seventy or seventy-five percent may be expected. President Dodd was in his private office vesterday, and declined to make any statement. He said, however, that the bank's securities had been used by Fisk & Hatch, and securities of less value placed in the box, and added: I received no personal ben efit, and the object of putting the funds there was to get five per cent." Chancellor Runyon was reserved in hisstatements to reporters. Hesaid that he had entertained the belief, until otherw ise informed on Thursday night, that the managers of the bank had complied with his orders. He was himself a depositor 111 the bank. The managers and officers had violated their trusts, and it was a question yet to be determined whether they were not personally responsible for the loss to the bank, and whether any conspiracy existed The Chancellor announced his intention to have the affairs of the bank wound up. He stated that on Thursday night he made a personal examination of the accounts of the Dime Savings Institution, which is also a ward of Chancery, and found it had $400,000 to ,start with in the morning. THE BANK'S CONDITION. The condition of the Newark Savings Institution as reported on December 12 last showed the following: $2.500 00 Real estate, uneneumbered 1,300,997 Bonds, mortgages and interest due 2,874,875 bonds, Stocks, 2,093,403 Loans secured by collaterals 201,371 Cash and accrued interest. 6,473,058.45 Actual value of assets. 6,316,053.44 Liabilities 157,005 01 Surplus. 8,871,421 65 Receipts during 1883 8,785,345 83 Disbursements during 1883 President Dodd is a member of the Sinking Fund Commission of Newark, which holds over three millions of bonds of various kinds, belonging to the city of Newark. The Commission consists of Robert T. Ballantine, Daniel Dodd. Mayor Haynes and Controller Quinn. When the suspension of the bank announced, the Mayor went to Mr. Dodd and was informed that the funds of the city were intact. It was decided afterward by members of the Commission and of the Common Council Finance Committee to hold a meeting, and count the securities belonging to the Sinking Fund, and the meeting was held late in the afternoon at the bank. The examination showed that the securities were all right. HISTORY OF THE BANK. in The Newark Savings Institution was incorporated February 24, 1847. Under conservative management its business increased until the depositors numbered between 25,000 and 30,000, representing all parts of the State. It was regarded as the soundest financial institution in New-Jersey. On December 12, 1877, when it suspended payment. the aggregate deposits were about thirteen million dollars. The institution went into the hands of the Chancellor, who ordered that all new deposits should be kept separate and invested only in Gov-
