ae888a77Partial suspension
Other: Trust company (Fidelity Trust) later agreed to act as receiver without compensation.
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A Quiet Run. Buffalo, N. Y., June 28.-As the result of a quiet run on the Empire State Savings bank yesterday, the officials of the institution have decided to require thirty days' notice from depositors wishing to withdraw. In a statment the officers declare the bank is solvent and that there is no cause for alarm.
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RUN ON BUFFALO BANK. Officials Will Require Legal Notice by Savings Depositors. BUFFALO, N. Y., June 28.-As the result of a quiet run on the Empire State Savings Bank yesterday the officials of the institution have decided to require thirty days' notice from depositors wishing to withdraw. In a public statement the officers say they are satisfied that through the circulation of a false rumor pertaining to the solvency of the bank certain of its depositors have become alarmed, and the indications are there will be a disposition on the part of many to make large withdrawals from the bank. They feel that in justice to all it would be unfair to permit those withdrawals, and, therefore, decided to require thirty days' notice under a rule of the bank. The bank, they declare, is solvent, and there is no cause for alarm.
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TO STOP RUN ON BANK Legal 30 days Notice Will be Re. quired from depositors. The Doors Were Opened This Morning as Usual and the Trustees Say the Bank is Solvent-A False Rumor in Regard to the Condition of the Bank Started the RunBuffalo, N. Y., June 28.-While the doors of the Empire State Savings bank were opened as usual this morning, no money will be paid out, the trustees having decided at a meeting held yesterday, following a quiet run on the bank, to require 30 days' notice under a rule of the bank. A statement has been addressed to the public by the trustees, in which they say their action is due to the -circulation of a false rumor pertaining to the solvency of the bank, as a result of which certain of its depositors have become alarmed and show a disposition to make large withdrawals. The board believes that there is no cause for uneasiness and that the bank is solvent. The trustees have also caused to be posted a copy of the last report of the state banking department showing a surplus of $12,579. There was due depositors $1,250,566. Among the assets were bonds and mortgages to the value of $1,089,913 and $100,034 in cash. Buffalo, N. Y., June 28.-There was no excitement at the bank when the doors opened and no attempt at a run on the bank.
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THE BANK SOLVENT. Empire Savings Bank Will Require Thirty Days' Notice. Buffalo, June 28.-As a result of a quiet run on the Empire State Savings bank yesterday the officials of the institution decided to require thirty days' notice form depositors wishing to withdray. The bank officers declare the bank solvent. There is no cause far alarm.
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REQUIRE NOTICE. Action of Buffalo Bank Directors Towards Depositors. Buffalo, June 23.-While the doors of the Empire State Savings bank are open as usual today no money will be paid out, the trustees having decided at a meeting yesterday following a quiet run on the bank, to require 30 days' notice. A statement addressed to the public by the trustees says the action is due to the circulation of a false rumor pertaining to the solvency of the bank. The board believes that there is no cause for uneasiness and that the bank is solvent. A copy of the last report of the state banking department shows a surplus of $12,579. There was due depositors $1,250,566.
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QUIET RUN ON BUFFALO BANK. Compels Institution to Demand Notice of Withdrawals. Buffalo, N. Y., June 28.-As the result of a quiet run on the Empire State Savings Bank yesterday the officials of the institution have decided to require thirty days' notice from depositors wishing to withdraw. In a public statement the officers say they are satisfied that, through the circulation of a false rumor pertaining to the solvency of the bank. certain of its depositors have been alarmed, and indications are that there will be a disposition on the part of many to make large withdrawals from the bank. They feel that, in justice to all, it would be unfair to permit those withdrawals, and. therefore. decided to require thirty days' notice under the rules of the bank. The bank, they declare, is solvent, and there is no cause for alarm.
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RUN ON A BUFFALO BANK Directors Say it is Solvent and Require Depositors to Give Thirty Days' Notice. | BUFFALO, N. Y., June 28.-As the result of a quiet run on the Empire State Savings bank yesterday the officials of the institution. have decided to require thirty days' notice from depositors wishing to withdraw. In a public statement the officers say they are satisfied that through the circulation of a false rumor pertaining to the solvency of the bank certain of its depositors have been alarmed and indications are there will be a disposition on the part of many to make large withdrawals from the bank. They feel that in justice to all it would be unfair to permit those withdrawals and therefore decided to require thirty days' notice under a rule of the bank. The bank, they declare, is solvent and there is no cause for alarm.
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BUFFALO BANK'S RULING. EMPIRE STATE ASKS FOR THIRTY DAYS NOTICE ON WITHDRAWALS. Buffalo, June S.While the doors of the Empire State Savings Bank were opened as usual this morning, no money was paid out, the trustees having decided at a meeting yesterday, following a quiet run on the bank, to require thirty days' notice under the rule. The following statement has been addressed to the public by the trustees: "The trustees of the Empire State Savings Bank have become satisfied that through the circulation of a false rumor pertaining to the solvency of this bank certain of its depositors have become alarmed, and the indications are there will be a disposition on the part of many to make large withdrawals from this bank. We feel that, in justice to all, it would be unfair to allow those withdrawals, and have, therefore, directed our secretary to post the following notice in the bank this morning: "Money can be withdrawn by depositors only quarter yearly (except to the extent of $500, hereinafter mentioned), on the first Monday of January, April, July and October and on one month's previous notice to the treasurer of the bank; but moneys may be voluntarily paid by the bank at any time without such notice and without waiving the right of the bank to such notice and time of payment. Any amount or amounts not exceeding in all $500 between any two of the said quarter yearly days will be paid at any time to any depositor on sixty days' notice. "This board believes that there is no cause for uneasiness, and believes that the bank is solvent. Our opinion is reinforced by the statement of the State Banking Department, which was made to us upon a recent examination. Feeling that the publication of this statement will satisfy the public and restore confidence to the depositors, we think best to submit a copy of the same: "Following is the statement of the Empire State Savings Bank of Buffalo on May 16, 1902:
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RUN CRIPPLES BANK. Leads Directors to Require Notice of Withdrawal. Buffalo, June 28.-As the result of a quiet run on the Empire State Savings bank yesterday the officials of that institution have decided to require thirty days notice from depositors wishing to withdraw./ The bank officials declare the bank is solvent and there is no cause*for alarm.
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CONSULS ARE UNDER FIRE CITY OF CAPE HAYTIAN BEING BOMBARDED Large Amount Subscribed for Gymnasium-Insane Man Shoots to Kill-Paper Read on Irrigation Engineering-Run on Buffalo Bank-Health of Troops in the Philippines The treasurer of Princeton's new gymnasium fund has issued a statement, which shows that over $200,000 has already been subscribed. At a meeting of the Yale corporation Thursday, appointment of professor of mining engineer was made and accepted by John Hays Hammond. Daniel McClinton, a porter at Surgeon's Hall Edinburg Scotland, in a fit of insanity, shot and killed Dr. Ivison MacAdam professor of chemistry, and James Forbes, the professor's assistant. Elwood Meade of the University of California read a paper on "Courses of Instruction in Irrigation Engineering," before the Society for the Promotion of Engineering Education at Pittsburg Friday. As the result of a quiet run on the Empire State Savings Bank of Buffalo, N. Y., Friday, the officers of the institution have decided to require thirty day's notice from depositors wishing to withdraw. The officers declare the bank is solvent and that there is no cause for alarm.
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BUFFALO BANK IN RECEIVER'S HANDS. Buffalo, July 11-The Empire State Savings Bank, which recently took advantage of the sixty day clause in the State banking law to compel all depositors to give sixty days' notice of Intention to withdraw deposits, is to go into the hands of the Fidelity Trust Company of this city, as receiver. The depositors of the Empire State Savings Bank will receive 80 per cent of their deposits from the Fidelity company at once. The remainder of the deposits will be paid as fast as the assets of the defunct bank are realized upon. The contract between the Fidelity Trust Company and the trustees of the Empire State Savings Bank was signed to-day. The Fidelity company has agreed to act as receiver absolutely without compensation.
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CONDITION OF BANKS. MR. KILBURN'S REPORT. Danger, He Says, in the Methods of Some Trust Companies. Albany, Jan, 4 (Special).- his annual report to the legislature F. D. Kilburn, State Superintendent of Banks, says that fifteen trust companies, having a combined capital of $7,900, 000, and nearly an equal amount of paid-in surplus, were organized during the year ended September 30 last, and in the same time previously authorized trust companies increased their capital in the sum of $4,100,000. Besides this, one company. with a capital and paid-in surplus aggregating $2,000,000, was authorized in October, two companies are at present proceeding to increase their capital. and a dozen or more applications to establish trust companies have been submitted. either tentatively or formally, several of which have been denied, while others remain under consideration This was the neteworthy feature in the business of the department for the year. From July 1, 1901, to July 1. 1902, the increase in capital was nearly $6,000,000, in surplus and undivided profits over $15,000,000. and in total resources over $100,000,000. Prosperity was enjoyed by the companies generally for the entire year, and still continues. Mr. Kilburn says: In this respect there seems to be no ground for apprehension in any quarter, but that all of the companies of recent organization are presecuting business along lines which consist with dignity and that non -interference with other institution particularly savings banks which ought to obtain, is not so sure. I refer particularly to an unseemly striving by a small number of trust companies of comparatively recent organization to gain deposits of a char acter belonging properly to savings banks only Not only should trust companies not have these accounts, but the methods employed in some instances to attract them reflect upon the institutions by reason of having a tendency to cheapen them in the public estimation. Theoretically, at least, trust companies are established mainly to fill a field within which banks cannot act. and their transactions are naturally expected to be on a large scale. For them, then, of to betray an anxiety to multiply accounts only a dollar or two, or even of five or ten dollars each. and almost to canvass from house to house for them, is sort of business that must humiliate, and which, if the law gave power to me in the premises, I would certainly require to be discontinued. In nearly every city, except New-York, where a trust company has been organized of late, and which contains savings bank the withdrawals of money from the savings banks in the few months following the beginning of business by the trust company have exceeded the deposits In some cases this showing results undoubtedly from a transfer of investr ent accounts from the savings banks to the trust companies, which is not only quite legitimate but altogether desirable Accounts of this character ought never to have been taken by sa wings banks, and I have endeavored throughout my administration to bring about their elimination But for trust companies to solicit deposits that are savings, and to bid against the savings banks for them, violates the spirit of the law certainly and in degree discredits the trust company and constitutes possible danger to it. The depositors who open such accounts are peculiarly susceptible to alarm and panic, and when their fears are once aroused it becomes impossible soon to allay them They are incalculably more liable than the average business men to start a run, and, having started it, will continue it longer and with more violent demonstrations. The savings banks have abundant means of protection against such demonstrations, by reason of their power to require a sixty days notice of intention to withdraw deposit: but let crowd of wild and excited men and women present themselves at the doors of trust mpany, and it would be marvellous If it were able to escape suspension. The record of banks of deposit and discount, the report continues, has been quite different from that of trust companies. This difference has not been as regards safety and prosperity, but a variety of causes has contributed to a decrease in their number, and also to an ap parent reduction in their total assets Three were taken over by national banks, three were absorbed by trust companies which were organized to succeed them. five were merged in other State banks, and four went into the national system by conversion. Two of the latter were the largest State banks in the State outside of New-York City, having an aggregate of resources considerably exceeding $20,000,000. The understanding is that they made the change solely that they might receive money from the United States Treasury on deposit Besides these changes, three other banks were formally entered in the list of closed banks. Thirteen State banks were organized during the fiscal year, six of which are in New-York City. Their combined capital is $975,000. The number of discount banks which reported to the department in September, under the final call in the fiscal year, was 194, which, however, included four that had some time before ceased to do active business and two that closed before the end of the month, while one that had not then begun business is not included. The aggregate capital of the banks reporting was $26,715.700. their combined surplus and undivided profits $29,811,018, and their aggregate resources $351, 716,184 which is almost exactly the amount shown by the reports of corresponding date in 1900, but is $52,000,000 below the aggregate in September 1901, when it was the largest, with one exception, that had been reported in thirtysix years. Allowing for the assets of the banks that went out of the system in the year, the condition of those remaining approximates very closely to that reported by them the year before. One hundred and twenty-seven savings banks reported July 1, 1902, a reduction of one from the number reporting six months before. Onethe Empire State Savings Bank, Buffalohas gone into liquidation with arrangements to pay its depositors in full. According to the reports of the remaining savings banks as of July 1. 1902, the amount due depositors had apparently increased in one year by the sum of $64,067,378 to $1,051,689,186, but since the Empire State Savings Bank is not included the real increase was $65,428,825. Only twice in the history of the savings banks of this State has a larger growth been made in one year. BUILDING LOAN ASSOCIATIONS. In the fiscal year four of the so-called national building and loan associations of this State were placed in the hands of receivers at the instance of the Superintendent of Banks, and a receiver was appointed for a fifth by the United States court. Few of the associations of the State now do business on the expense fund plan, and the officers of almost all these have promised to discontinue the practice at an early date, and to amend their articles of association accordingly. Any increase in the number o second mortgage institutions is now