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Banking Department Orders Vineland Trust Doors
Commissioner Frank H. Smith Takes Over Property and Business Of Bank For Protection Of Depositors; Will Begin Immediate Liquidation Of Assets; Bank Examiner Robert Minch and Five Assistants Placed In Charge.
The Vineland Trust Company, under orders from Frank Smith, State Banking Commissiondid not open for business today. notice posted on the entrance to the bank stated simply that the State Banking Department had taken over the property and business. The notice was signed by Commissioner Smith. The affairs of the Vineland Trust Company are in charge of Robert Minch, of Bridgeton, Banking Examiner representing the State Department of Banking, and corps of five assistants. State Senator Albert R. McAllister, of Bridgeton, is counsel for the department. The bank is now open only to those who have safe deposit boxes, or to those who are required to pay loans. Checks which have been drawn on the bank since the closing order will not be honored. Mr. Minch stated this morning that all obligations will be called when payable, and that such obligations, unpaid, will be protestHe referred number of questions to Commissioner Smith, and the latter, it is believed, will issue formal statement shortly. The task at hand is to liquidate the assets of the bank. If this is suecessful, depositors will paid such amounts as the banking commissioner may designate. organization the bank wholly within the power of the banking state this time not such action will be taken. Protect Depositors It is also impossible state when the bank will open again for regular form of business. Conservation of assets, together with quidation of loans, for the protection of depositors, is the purpose in the present action. The closing of the doors of the Vineland Trust Company was rumored about the streets for the past ten days, although the source of such rumors could not be traced. The closing capped strenuous and gallant effort the part the bank officers and directors, together with business men, to stave off the closing. The first break that finally sulted in the closing of the bank came late in February and in March, when disquieting rumors brought on run. This run assumed serious proportions, and for three days group of citizens fought to induce depositors to low their funds to remain. They succeeded in stopping the run, but only for time, as persistent rumors continued to spread throughout the section. Run Continues On Bank Instead of thinning out, these rumors gained even wider scope and continuous sapping of the bank's funds continued. On Monday, the withdrawals again started in somewhat greater force, as the whisperings of the enforced closing became an open secret. The directors of the bank were not notified the Banking Commissioner's action until late yesterday afternoon. few weeks after the first break, statement was issued to the effect that Charles Barraelough had resigned as treasurer, and his resignation had been accepted by the directors. He was succeeded by William Hoagland. Pierson Reed, president of the bank, was succeeded in active work by William E. Jenkins, first vice president. Mr. Minch would make no statement this morning as to the actual condition of the bank, the amount that depositors could expect to receive, or the length of time which will elapse before any ayments will be made. These and other questions he referred to Commissioner Smith.
Optimistic Tone Prevails It is believed, however, that the depositors will be repaid in full in the course of time, depending entirely on the nature of the assets and the ability of the department to liquidate the loans. An optimistic tone prevailed this morning that the affairs of the bank will be out without loss the depositors. The entire borough police force called to duty this morning, having been secretly received last night and confidential orders issued. A detail of police, led by Chief James Florentino, was stationed at the bank entrance this morning. No violence was reportThe word of the closing spread like wildfire, and at nine o'clock crowd had gathered in front of the bank, increasing in size the morning wore Groups of men and women stood about, discussing the latest turn in affairs which has astounded residents here, many of whom believed that the bank would work itself out of its reported difficulties. The closing of the Vineland Trust Company, even temporarily, means hardship to local business. Firms must now seek immediate assistance elsewhere and the problem must be shouldered by Vineland's other banks, The Tradesmens Bank & Trust Company and The National Bank & Trust Company. It was said this morning that some preparations have been made for just such contingency. Under New Jersey banking laws, stockholders are not liable assessment for any possible loss. The Vineland Trust Company the youngest of the Vineland banks. It was founded about twenty-six years ago by the late William Chambers, occupying tiny quarters in the rear of the NationBank. Its progress was steady (Continued on Page 3rd Col.) fresh Vineland eggs 25c doz. Kotok's Produce Market, 6th and Landis. (adv.)
Shoe dye and shoe dressing of Tuso Blaisevery description.
Commencing Monday, June The Western Union Telegraph office will be open for business, week from to 10.30 days Sundays and holidays from M. and Moriarty, manager. (adv.)
