Seacoast Trust Company (Asbury Park, NJ)

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STATE WOULD COMPEL PLANT

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Irom which a revenue could be derived and that the return would barely pay the interest on the cost of making the extension. He said that would be necessary to celve at least 10 per cent return on the principal invested. We are quite willing. said Mayor Wyckoff, "to water at a profit and if you can show us a guarantee that will warrant making the extension the proposition will be considered. It was suggested that the Matawan Township Committee submit to the Borough Council a statement of what would Councilman Smith chairman of the Water Committee, in reporting on the feasibility of rebuilding and extending water mains on a portion of Fulton and Eighth Streets sug. gested that the Council as whole look over the situation and It was decided that this would be done Councilman Van Pelt reported progress on the matter of introducing ordinances providing for merchantile licenses and prohibiting the distribution of circulars The introduction of such ordinances had been requested by the Keyport Chamber of Commerce Mayor Wye. koff suggested that the Council have a conference with the Cham ber of Commerce on the matter and that the merchants of Keyport be invited to attend a meeting of the Council and express their individual opinions of the needs of such ordinances

The matter of a compromise of tax liens on the George Crawford property was presented by Borough Attorney Howard W. Roberts The property was bid in at tax sale by Attorney Ezra W. Karkus for the benefit of the heirs to the estate Allen Poling represented the heirs at the meeting Monday night. The matter was referred to a committee consisting of Councilmen Camp. Smith and Van Pelt The financial statement of Collector Charles R. Davison showed that there was a balance of $8,896.71 in the general fund. $437.03 in the water account and $834.14 in the capital and trust account Bills to the aggregate sum of $7.977 45 were approved for payment. By resolution, an emergency appropriation of $284.20 was made for the care of the poor A water anticipation note for $1,300 was authorized. This note, given for three months. is payable at the Peoples National Bank An unexpended balance of the street appropriation of $843.62 the sum of $446.02 was transferred to the police appropriation and $397.60 to the sewer appropriation. accounts All excitement has entirely subsided. Many deposits were made to express confidence in the institution and a cial confidence was manifest in large private deposit made the first the Hon, Henry E. Ackerson, president of The Peoples National Bank when interviewed said, "We are deeply appreciative of the splendid confidence manifested at this time by the people of the community in the integrity and stability of the Borough's financial institutions The Matawan Bank is the eighth Lanking institution to close Monmouth County in less than week. The Seacoast Trust Company of Asbury Park was the first to close on Tuesday afternoon last week. The following day the Merchants Trust Company of Red Bank the New Jersey Trust Company and the Citizens National Bank both of Long Branch, were closed The fifth bank to suspend business was the Asbury Park and Ocean Grove Bank of Asbury Park and the following notice signed by George Compton a bank examiner was posted on the The of Banking and Insurance has taken of the business and property of the Asbury Park and Ocean Grove Bank The bank is state institution and is the largest in Monmouth County in the matter of resources which total more than $12,000,000 The combined resources of the other four banks according to the financial statements filed with the State Department of Banking and and Insurance on September 29 last amounted to $11,361,326 Bank depositors continuing their heavy withdrawals from Monmouth County banks forced two more of the institutions in the Asbury Park district to close immediately after the Asbury Park and Ocean Grove bank suspened business These were the First National Bank of Bradley Beach and the Ocean Grove National Bank The officers and directors of these banks said the institutions were sound. that the closings were necessary to conserve assets and that the banks would be reorganized at once and pay all demands in full They attributed the heavy withdrawals to the failure of the Seacoast Trust Company and the withdrawals from other banks that resulted. The general unrest was probably largely responsible for the closing of all the banks. along with the inability to realize on loans due to the depression and that business was suspended in the interest of depositors

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RUMORS CAUSE OF BANK'S SUSPENSION

(Continued from page one) phone calls from friends and strangers from all over the county expressing their confidence in his bank these times of stress and be was no small satisfaction to be able to look back upon the safe and conservative policy always followed with view of safeguarding the interests of the depositors happenings

"The bank. established over 102 years ago, has for that long period been under the management of three generations of the same family and for over hundred years has had the same correspondto The First National Bank of New York; unquestionably the strongest bank in the world During the last 25 or 30 years its policy has been largely guided by James L. former president of The First National Bank of Red Bank, pronounced by the late George G. Baker. president of the First National Bank of New York. as the ablest financier in New Jersey, also by John Terhune, president of the Long Branch Trust unquestionably the strongest and most successful banking institution in the county and by its present president. The closing of The Matawan Bank caused small flurry at The Farmers and Merchants National Bank Saturday and Monday. largely by women, many of whom drew from their savings account and called for their safety deposit boxes This timidity did not take hold of the business men, of whom it was said the bank, every merchant from Bailey's store to the station made their customary Monday morning deposits There were not half the number demands that were expected, and for which large preparation had been made were registered. Instead of the anticipated many new accounts were opened by people throughout the county some of whom lived at considerable distance. Tuesday's payments were made in gold but there were few takers

Keyport was not without some actions. but as in Matawan, these were not by the business men where was reported at both banks usual business deposits were made of very substantial nature. showing that the purchases must have had been largely made with the Keyport merchants No Keyport business man withdrew his account in either of their bankinstitutions Palmer Armstrong. president of the Keyport Banking Company. said the excitement in his bank was mainly among depositors who did not understand conditions and among some others who drew their savings accounts All excitement has entirely subsided. Many deposits were made to express confidence in the institution and sp # cial confidence was manifest in large private deposit made the first of the

Hon Henry E. Ackerson. president of The Peoples National Bank. when interviewed We are deeply appreciative of the splendid confidence manifested at this time by the people of the community the integrity and stability of the Borough's financial institutions

The Matawan Bank is the eighth banking institution to close Monmouth County in less than week. The Seacoast Trust Company of Asbury Park was the first close on Tuesday afternoon last week The following day the Merchants Trust Company of Red Bank, the New Jersey Trust Company and the Citizens National Bank both of Long were

The fifth bank to suspend business was the Asbury Park and Ocean Grove Bank of Asbury Park and the following notice signed by George bank was posted on the bank Commissioner of Banking and Insurance has taken of the business and property of the Asbury Park and Ocean Grove Bank The bank is state institution and the largest in Monmouth County the matter of which total more than $12,000,000 The combined resources of the other four banks according to the financial statements filed with the Department of Banking and and Insurance September amounted to Bank depositors continuing their heavy withdrawals from Monmouth banks forced more institutions in the Asbury Park district to close immediately after the Asbury Park and Ocean Grove suspened These the First National Bank of Beach and the Ocean Grove Bank

The officers and directors of these said the institutions were that the were necesassets and that and all demands full attributed with. the failure of the Trust Company and the from other banks that

The general unrest was probably largely responsible for the closing banks with the

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ATTACK

(Continued from Page closed banks their the He went source The obtained grand jurors favored certain board rectors Asbury Ocean Grove and the deposits time closed month print the letter. which full recent vicious attack upon me cannot be permitted to pass by noticed "On Monday evening Oct 10. Republican meeting Branch called attention those that you the program the Republican particularly regard banking this state for the depositors. that my opinon the Park had unfair the given political that also that my the the legislative and those people Monmouth much greatextent Asbury Park your official with dent from the date and which the was first in county. doors Take Megill "On you took the liberty denying the accusations which laid against publish your paper malicious and editorial personally you this been very policies the United States you cising and but mighty You attack my courage and indulging which would intelligence than probably flattered that chosen piece remarks that carried my the Mr deny the truthfulness the stateyou made informed your readers that merciful editors many occasions given publicity which have failed offer anything more than paragraph interest the admit that many editors very generous with space their papers: the interest public prefer leave that their judgment rather than yours Asbury Park Press that been recall vividly within the past few that least two first page and not due any of one the and the other the you paper carefully the recent which judgment justifies which Mr Kinmonth, you been space the first page your paper you had opportunity that space in detrimental few you possible give me any favorable publicity the first other page Kinmonth my talk facts accumulated over long period time Mr Kinmonth in speaking mouthpieces, really think undisclosed principal? whom? Do you answer that The remarks made were based facts. readily provable assure Mr not been prompted primed cocked anyone. very Mr. Kinfor that the sympathy your paper cratic trines, your editorial express the partisan suspected that the Mr his my inability digest ments not quite thank that lacked the courage and ability fight. Mr. Kinmonth wouldn't low you neither charge you with ability Let that pubdoubt are ligent enough to form their own

Refers To Congressional Candidacy should taken seriously Did you make seriously did the people of Middlesex take Mr. few ago. Mr Stewart Appleby was elected. "These few questions would like Mr Kinmonth intellectual genius who wrote the editorial peared columns Oct which viclously that did not express intelligence sense fair did in your editorial Oct. answer the letter written Mr Raabe your the record the two presidential didates instead the ments these gentlemen? Raabe did dare conception the record challenged publish accomplishthat lenge. Are you afraid publish the of the presidential candidates that fair comparison can The public would like have that formation that they make their Please accomplishknow what the word many times your editorial comments How much stock of the Sea. Trust purchased value money, when you became president the Trust and how stock purchased for own you How did you deposit the when you became money deposit the Seacoast Trust company when What have you contributed. energy toward reopening the closed banks what tributed any manner whatsoever toward the unfortunate depositors these banks? Asks Facts About publish the condiaffairs Seacoast Trust which you complete detail you did the condition affairs the Asbury Park and Ocean Grove giving complete information activities of board direcSeacoast Trust comamount respecborrowings. the amount the closing of the bank? when? what from did the the grand jury the county the certain board directors Asbury Park and Ocean Grove what from whom. did you the amount deposit the credit board directors Asbury Ocean question please not hide behind the newspapers seldom informabecause answer this question marked effect upon justice in the county Monmouth "The people the county of Monmouth the depositors the Asbury Park and Ocean Groye bank the Seacoast Trust company are deeply interested having questions my campaign talks Asbury Park and elsewhere thruout the requested answer number these you have not seen and now you attack me apto lay smoke the that the fairs the Trust company like you publish truthful all of the questions falsehood the just words. Mr month. editorial Seacoast the Asbury Park Evening Press of Aug would you think the that vote the power your daily toward the side toward the building Asbury Park Monmouth county toward extolling virtues of Asbury Park Monmouth county people been generous where have come thru the graciousness generosity of your trust you are possessed of that essential attribute known charge you and will display that you, endowed that may published in the columns per.

Yours very truly JOSEPH should be added to the board of directors the and the James Marformer Seacoast bank had severed their disagreement with its policies: Walter Clayton and Harvey Jones representing Asbury Ocean Lyle Kinmonth William Winans, representing Asbury Park National and Six incumbent rectors the Seacoast bank resigned the board for directors Arthur Steinbach former president the bank. transferred each six rectors shares the order might qualify board was and Lyle named the board directors Fought Against "Silent Run"

"These directors about the the bank's and the took office until the closed doors December they worked dilligently the stitution realizing its closing would severe the financial fabric Monmouth county steady seepage silvent run depleted the bank's cash point where business could longer transacted and banking department no alternative but the joined the board of directors effort the Sea. bank did not receive one cent for did anticipate remuneration for their efforts volunteered their matter duty realizing the treimportance making every effort the bank Since the these men charge the affairs two Republican Democratadministered the New banking neither has offered word the manner which the directors managed the view of the that the had and. further the fact that had from their to the and they dollar for their labors for the good feel that the public entitled this statement order rumors and which being directthe management the closed affairs may

Ridiculous." Says Quinn

Mr to Mr. Frankel's Mr sought gain the leadership of the Democratic too the fact month turned the Asbury Park for the of Oct after the Friends Franklin Roosevelt for that night

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DEFENDS OF SEACOAST

(Continued from Page One indicated that they the charges the year Hetrick the effort division in the party Defends Board Mr. replyFrankel named Dr Harvey Walter William Kinmonth and himself the citizens drafted the Federal Reserve, other Asbury Park banks last August handle the affairs the Trust company effort the avert closing other financial stitutions Bamman his reply signed end the rumors and which are being directmanagement the closed bank's affairs' from August Decem-

Mr. Bamman's statement follows misstatements circulated concerning the administraclosed Bank and company that the undersigned should public may just what part these men played effort year prevent the closing this Drafted Directors the latter August the affairs the Seacoast Bank and had reached company was held by the the Bank Trust deputy of banking tive Reserve system. the Asbury tional Bank and Trust and representatives the Asbury and Ocean Crove this decided public had brought about critical state the affairs the Bank and Trust company change of that stitution was gested and agreed that new names

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Kiwanis Endorses Plan For Seacoast

Endorsement of the plan of Banking William Kelly for the reopening the Trust company has been given the Kiwanis of The endorsement, signed by Dr. MacKenzie Arthur Carr, Isalah Matlack and Fetter. "The public of the Kiwanis investigation of the plan now profor the the Seacoast Trust heartily said plan and approve the efforts of those its adoption. that nothing but good for Asbury can result the to usefulness of this long institution that members the Kiwanis club, who can possibly do lend efforts the commitwhich has undertaken the task of securing deposits according to the reopening plan."

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FORMER BANK BOARD ARE HELD LIABLE

Seacoast Trust Company Directors, Asbury Park, Declared Responsible For Certificates' Drop By Special Master

A decision of interest to all creditors of the old Seacoast Trust company, Asbury Park, which closed its doors on Dec. 22, 1931, was made public in the Court of Chancery in Trenton, recently. The ruling holds that six directors, including the president, J. Lyle Kinmonth, of the defunct institution must make good any losses sustained by holders of mortgage participation certificates issued through the bank prior to its closing.

have to be replaced, he said, adding that the truck may be out of service for several weeks.

The pumper belongs to Goodwill Fire company and was purchased about a year ago.

The minor blaze, which the apparatus was hastening to at the time of the mishap, was at the home of John Adamsky, Stonehill road, two miles out of town. A chemical car which preceded the pumper reached the scene and extinguished the chimney fire without damage.

A short time later, the same truck put out another chimney blaze at the home of Meyer Neintzow, Ward avenue.

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Seacoast Trust Company Directors, Asbury Park, Declared Responsible For Certificates' Drop By Special Master

A decision of interest to all creditors of the old Seacoast Trust company, Asbury Park, which closed its doors on Dec. 22, 1931, was made public in the Court of Chancery in Trenton, recently. The ruling holds that six directors, including the president, J. Lyle Kinmonth, of the defunct institution must make good any losses sustained by holders of mortgage participation certificates issued through the bank prior to its closing.

Others named were: W. Harvey Jones, Dr. James F. Ackerman, Samuel H. Calvert, Dr. James A. Fischer and Arthur C. Steinbach. The group were trustees in a mortgage participation plan controlled by the bank.

The institution has since reopened with Edward H. Mitchell as president and a new directorate, under a financial set-up approved by state and federal authorities.

Special Master Nichol W. Bindsal, who took testimony in the suit brought by Mrs. Katie Tannenbaum, Bradley Beach, certificate holder against the six defendants, pointed out in his report filed with the court that "the trustees should have demanded greater security from time to time on 18 mortgages against which more than $200,000 of participation certificates were issued to the public."

The amount of liability which the defendants must assume will not be known, the master observed, until the mortgages are all foreclosed and the exact losses determined.

A discrepancy of $346,000 in the valuations of mortgaged properties fixed by the bank, and later by a private appraising firm, was cited by the master. Where the bank valued them at $763,000, the firm of Appleby and Smock appraised them a few years later at $417,300.

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SEACOAST TRUST PLEA IS RENEWED

Depositors Ask Accounting by Officers of $500,000 of Bank's Assets

NEWARK, May 1.—(AP)—Depositors in the Seacoast Trust Company of Asbury Park renewed before Vice Chancellor Buchanan today their demand for an accounting by officers and directors of $500,000 of the bank's assets.

The vice chancellor at a hearing Monday raised a question of the plaintiffs' right to bring the action and instructed Harry H. Weinberger, attorney for the depositors, that he would have to establish the actionable nature of the case.

A witness Monday was Col. William Kelly, former state commissioner of banking and insurance, who said he had turned over all the evidence in the case secured by his examiners to the Monmouth County grand jury which returned no indictments.

G. Hayes Markley, former deputy banking commissioner, testified that when he examined the bank's accounts in 1931 he found that officers and directors of the bank had borrowed from its assets beyond their capacity to pay. Markley declared it "self-evident" that Arthur C. Steinbach, president, had "borrowed too much" but that Steinbach had offered to resign as president and turn in his own stock to aid rehabilitation of the bank when the state took it over.