44237461Full suspension, Books examined
Other: Later legal proceedings and dividend payments; reopening effort abandoned and partial dividend ordered by court in 1932.
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BANK AT SOUTH RIVER IS CLOSED AFTER RUN Trenton, State Department of Banking and Insurance today had closed the South River Trust Company South county, after run on the bank Benjamin F. Gregg departmental examiner of the state department. was placed in charge of the affairs of the institution. He said he would no report on the of the until he had completed his investigation. The capital stock the bank reported to be $100,000 with surplus of $50,000
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S. TRUST CARDS USED TO OBTAIN TRUE PICTURE' Lyons Explains He Cards Printed As Result Of Conference DIVIDEND PAID TO THOSE DESIRING IT Explaining that had the cards to permit depositors of the South River Trust Company repudiate their pledge to go along plans reopening bank, they Lyons, for the State and declared this the action result that George Burton, counsel for Malcolm Bubelieve that depositors who to pledge should be provided with opportunity said Mr. Lyons. Burton disagrees with the form repudiation, but my opinion picture should the hearing for State Department ordered the printed bill will be present the South River Company for payment for the printcontinued Lyons. Burton desired that only names of ate their pledge be taken, but only way picture the situation bank give the depositors opportunity either stand pledge to repudiate the they will their pledge and will signify having the dividend paid. the other hand, they sign card will show by their action that they favor the reopening bank under plans of the depositors' Not Solicited see no harm in the form the Lyons. employes bank have instructed not solicit signatures the cards. They have the bank any wishes sign the he can conveniently without any solicitation by any employe of the State Banking was also stated by Mr. Lyons checks are ready for distribution any person desires dividend may at the and payment made representatives of the State DepartMr. Lyons further asserted that telegram had sent Department against the action taken by and that cards printed and placed bank the capacity counsel to the State Department. While the cards can be had bank, Mr. Lyons declared that bank also instructed that the event any depositor the for the reopenof the bank, they to them to William Allgair, forGeorge Burton, Price other member of the committee.
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S. Trust Co. Dividend, Releasing $300,000 in Borough, Ordered Today STORMY SESSION HELD BY BANK DEPOSITORS OF TRUST COMPANY Three Members of Depositors' Committee Headed by Cabot Quit After Discussions at Borough Hall; Statements Made at Meeting Denied by Stockholder SOUTH March the depositors' committee of the closed South River Trust after stormy session last night which charged that Cabot, his mouth only to slander members who announced their withdrawal from comwere Briedermoser, Robert and George The the Chairman Cabot announced that scheduled committee meeting not be on count the absence of several When few members of the committee put appearance stated that was the desire those present meeting would be held. however, that nothing decided an official meeting either the the Walter manufacturand second largest the closed trust company, was to speak. Mr. first denied the that Mr. Cabot made the depositors committee that the fixed possible $50,000. That true. Former Judge John Kirkpatrick and set the possible at statement Cabot's that certain clique could obtain loans easily little no security untrue. Cabot mentioned the South River Investment Company and that money to purchase knowing that would through property. was purchase years before possible that section ever was considThe Investment Company from other Not only that but connected bank $45,000 in cash to the keep bank open, Explains Bank Closing Mr. declared that frozen cause closing the run the bank and the heavy that close. No bank could have stood (Continued from Page Nine)
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Buchanan Authorizes Onethird Payment to Balance Of Depositors DEPOSITORS' COUNSEL ASK FEE PAYMENTS Action Today Writes Ending of Fight to Have Bank Reopened (Special to The Home News) March Chancellor Buchanan today the State Depart, ment Banking and Insurance to pay dividends cent depositors of the South River Company who have already will be paid out as sult the The vice cision the application counsel the committee for fees connection their veritable of for counsel fee. withheld tion of deposits Raymond Lyons, counsel, the court differentiate creditors' and "unknown deposiThe order was signed by Vice mond explained that positors' Sunday abandoned idea reopening the bank that posible losses bank would total $300,000. Differ Decision George of the for with Lyons to the for He asserted that the reason for drawing to the order was due changed survey made He that since bank had lost $750,000 which made reopening inadvisable. when made June, termined the losses totaled only $144,000 but today there different picture of the condition the said the depositthis not opposed the Attorney Lyons informed court reopen bank had been cause of the inability the positors' committee raise suffunds to make the reopenadvisable. Fees for Counsel It was Fred Lorentz of the law Merritt Lane special the positors committee vanced the proposal to allow fees for opposing counsel. He said Mr. Lane not wish precedent,' and did know the practice obtaining fee the favorably court inquired to what Mr. Lane believed reasonable fee' and Lorentz replied he know he would Mr. Lane during the Attorney application counsel fee clared precedent whereby counsel fees could be lowed attorneys nearest case, he Trust He that lawyers fees by Vivian M Lewis, which later withheld when opposed the depositors' group. array of legal talent made request for counsel fees they the they that they entitled to paid their services. The counsel made such plication included George Bur- (Continued on Page Two)