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Hobart, Merchants And Service Banks Are Closed
(Continued from Page One) Securities Company. which was organized by Harry H. Weinberger, its deposed president, would be closed today. The banks were closed before the opening hour. and two police officers were stationed at every door. Word spread quickly, and crowds gathered, but the news was taken quietly, everyone seeming to realize that the action probably was for the best.
No Other Passaic Banks Are Affected
No other bank in Passaic in any way concerned in the situation. it was pointed out, and the Hobart has "dried up to such an extent, to use the phrase of Commissioner Smith. that relatively few persons are concerned.
Weinberger Scandal Led To Present Situation
The extent of this drying up process has been from the scandal, position the New Jersey Bankers and every with and the recent kidnsping of Willard H. then the Hobart's executive and resignation and that his the bank was responsible the act siolence combined hasten up process, that the past weeks Hodeposits have shrunk the extent of In statement Smith said that the of Hobart Service and the Merchants Bank decided upon of the covery the impairment of the institution's capital to the extent
Commissioner Smith's Statement
Commissioner Smith declined to say whether the banks would be closed under the supervision of Markley, chief of the staff, were making further today that the department would "proceed to collect and start paying depositors as soon as possible" The "drastic writeof real estate", which, in the opinion of his examiners, not worth the figures which carried on the banks Stocks bonds representing 32 per cent. of the total assets were Immesaleable, The total assets of the three banks were listed at approximately the The to close the banks was made conference in Trenyesterday. Chief Markley in charge of the banks today.
President Statement
Mayor president of the declared the closing the bank and its two came him. bank of the he "made examination the bank and still are making but the board of directors the Hobart Trust have received no report. far as depositors are protected. action of the banking while drastic, may be move to protect both the depositors and the criticism of the hope for today with the chief There has been run on the recent publicity with kidnaping has caused seepage and at. fected the standing the institution. president of the Hobart Trust Company wish to the assure depositors that there no cause for alarm and that they are amply protected have attended several conferences in an endeavor to place the in the hands very responsible within an to make that will prove very to the bank and its depositors, and of general satisfaction to our
Resources Put At $7,901,689.39
The bank in its statement as of June listed its total resources Loans and counts were liabilities. capital surplus undivided profits deposits $3,852,060.34 nue demand deposits notices other two were operated as branches the them Trust, although under different They had no presidents for work three banks this morning were Soon home without gated notices were posted on the doors of the that the and affairs" the banks were taken over by the thew among them many weeping gathered the doors the but was offered them as, to reasons for the closing.
Passaic Street Jammed
Passaic Street, all the way from First to Third vicinity the Bank, lined all morning by men and weeping had hurried the scene immediately upon learning that the institution been Particularly in front of the bank was the crowd reaching the middle of Passaic Street Three police were on duty the Passaic and Second Streets traffic. Among the first arrive at the were of their bank books in who the entrance as to force open. Most of them unable the door, ting forth that the bank had been taken by the state authorities. When come along who could read he she was immediately by the mob and made to interpret its meaning. Shortly before noon the crowd grown such utterly impossible for vehictraffic to go through Passaic from First and beyond Third. except in second gear. At noon hour when several the Eastaide mills closed down for lunch hour, the Merchants Bank most the throng flocking to the instituout crowd paid more attention metropolitan newspaper taking pictures scenes than the bank.
Scores of New York newspapermen came to Passaic this morning.
Scene at The Hobart
Employes and patrons were greeted the main office of the Hobart Company, Main Aveand Prospect Street, by the double revolving doors of the entrance, informing that order of State Department of Banking and Insurance bank property were the latter's hands. small crowd had congrefront of bank, while clerks and officers, detained in the bank, were peering out of the winOfficers Michael Blake and MatGetchius were detailed by Acting Chief De Groot maintain order at the entrance and these calm manner, informed men women that the "bank temporarily closed. not be One of the first at the Hobart entrance William Margolis, chairman of the Chamber of Commerce be held this Fall, expressed the hopes that the bank would not closed Treasurer William Walsh had made the Hobart depository for exposition funds. New Depositor Satisfied One man who just arrived Italy yesterday, that he had deposited $150 in yesterand passing the bank inquired what the crowd had congregated for. He calmed by the policeand then walked away apparently satisfied that everything would be all right. One refused to give her name tearfully informed the police her life savings the bank. She did not say how much the amount was
Examiner Peer Arrives
Shortly before 10 o'clock Bank Examiner Vernon Peer. had conducted inquiry into the Elliott kidnaping he had in conference with the latter two days before his mysterious arrived He showed his credentials was the admitted the bank by the policeman durthe morning. There was no excitement of any kind the Service branch the bank morning except called officials of that bank on the telephone
