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RUN ON A BANK STOPPED. DIRECTORS OF THE DIME SAVINGS INSTITUTION OF NEWARK TAKE TIMELY ACTION. A run on the Dime Savings Bank of Newark was stopped yesterday morning by the action of the Board of Directors in taking advantage of a law which permits savings banks temporarily to suspend payment in order that their securities may not have to be sacrificed to meet a sudden and extraordinary demand for deposits. The run on the bank began early in the week, when a rumor got abroad that a special examination of the accounts had been ordered by the Board of Directors in addition to the regular examination by the State Bank Commissioner, which was begun on Monday. With the news that the secretary and treasurer, Charles R. Westervelt, was alleged to be a defaulter for a large amount. hundreds of depositors presented themselves at the bank. at Broad and Bank sts., yesterday. Their deposit books were taken in order to verify the deposits, and they were told that the bank would resume business in about a month. There are more than ten thousand depositors. The bank is fully able to pay all demands, and the defalcation cannot much exceed $40,000. all of which, it is said. was appropriated In the last four years. According to the State Examiner, the assets of the bank are as follows: $39,685.56 Bonds & mortg's $278,000.00 Cash in bank 1,325.00 Checks 747,579.00 Bonds 12,838.00 Cash on hand Collateral 190,000 00 $1,269,427.56 Total The last annual statement of the bank showed that there were due depositors $1,010,592.35 and a surplus of $108,647 87 James D. Orton, the president, Is also president of the Second National Bank of Newark. Westervelt was in the bank's employ for twenty-nine years, and rose from the position of clerk. His salary was only $2,500 a year. He did not confine his operations, it is alleged. to raising withdrawal checks. Some checks he forged. It is charged. One check for $15, drawn to the order of F. Carson, he destroyed, and, it is alleged, forged another check for $2,015 and substituted It for the genuine check. Westervelt did not touch the securities, which are intact. There was between $700,000 and $800,000 of these securities in the bank. Two additional bank examiners were put on the books yesterday, and it was decided to make a complete examination of the books, going back to the date of the last thorough examination some years ago. Yesterday afternoon Westervelt's lawyer made a statement for him to the effect that Westervelt admits that there is a shortage, and says that later the affair will be cleared up, but denies that it amounts to $40,000. or anything like that sum. He also denies that he ever took a dollar of the bank's money, and says it will be shown that he has done nothing dishonest. The bonds of Westerto the surety the velt amount Surety $20,000. being American Company. He also owns some real estate, and steps have been taken to attach it for the bank. This is the only bank defalcation in Newark of any consequence since the looting of the $2,500,000 by Oscar National Bank of Baldwin, Mechanics' the cashier, in 1882. The bank was ruined and went out of existence Baldwin, like Westervelt, had the entire confidence of the bank directors. The Second National Bank had previously been the victim of its cashier, James Hedden. and after the Bank the fact came the Mechanics' out looting that of a clerk named Marchbank had plundered it of $50,000. All served terms in prison. PHELPS FOR PERMANENT CHAIRMAN, Paterson, July 13 (Special).-Sheffield Phelps, of Teaneck, it is said, will be permanent chairman of
