Matawan Bank (Matawan, NJ)

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MATAWAN BANK CASH EXHAUSTED

Officers Call In State Department After Heavy Withdrawals Cut Into Funds on Hand.

ACTION IS TAKEN TO PROTECT BANK'S ASSETS

Press) Dec. available funds exhausted by heavy withdrawals following the closing of seven banks Monmouth county last the Matawan bank closed its doors this morning after its directors asked the state commissioner of banking and surance to take notice posted underneath the the bank the had taken move order bank's assets for the benefit of its positors. The bank opened usual but the board special meeting decided ous continue operation. and passed resolution asking the department over the business. Hayes Trenton. deputy commissioner banking and surance, today the closing the "result exhaustion available cash funds after the heavy withdrawals the last two three days.' Heuser President The president the Matawan bank was Christian Heuser. mayor MataBaird vice president cashier. Herman Ellis, Thompson and H. Ward were also vice presidents. The board of directors included these officers Elmer Geran. Gordan. Max Jonas, Ludi. Munning, Van Brakle. statement last Sept. 29 the gave total assets posits were listed with and Altho there was when the oponed for business this mornthe decided the institucould not stand the strain of furheavy John Connelly, bank examiner, after the doors closed about and posted the notice "The of banking and insurance New Jersey has taken the property and business of the bank of Mata-

Normal At Other Bank The and bank the only other banking said be prepared for officials that bank varied very little from normal. despite the runs other county banks. Heuser questioned last night rumors that bank close, but said at that time he had "nothing to

Conferences On and Officers and directors of the Asbury Park Ocean Grove bank today tended conferences designed cuss possibility of reopening the Efforts secure statement regarding the possibility reopening officers pointing out that Continued On Page

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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) upon the safe and conservative policy always followed with a view of safeguarding the interests of the depositors against any unforseen 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 a hundred years has had the same correspondent, to wit: 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. Terhune, 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 Jer. sey. also by John Terhune, president of the Long Branch Trust Company unquestionably the strongest and most successful bank. ing 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 at the bank, every merchant from Balley's store to the station made their customary Monday morning deposits There were not half the number of demands that were expected, and for which large preparation had been made, were registered Instead of the anticipated withdrawals, 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 Keyport was not without some reactions. but as in Matawan, these were not expressed by the business men where it was reported at both banks usual business deposits were made of a very substantial nature, showing that the Christmas purchases must have had been largely made with the Keyport merchants No Keyport business man withdrew his account in either of their bankF. 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 OLIVE who drew their

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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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Depositors Ask Accounting Of Closed Matawan Bank

Press) six months comparative silence concernthe disposition of their positors the Matawan bank yesterday asked for accounting the closed institution. requested that legal punishment meted out those sponsible for the bank's present condi-

In petition sent to William former vice the Seacoast Trust Asbury and assistant banking comcharge liquidation the the depositors' charged their were being "unrighteously withheld from

The petition. signed by Louis chairman the and members follows: undersigned, depositors the Matawan in liquidation. having waited more months disposition our funds unavailable due suspension payments depositors destitute: life-savings unrighteouswithheld from us, hereby respectkindly arrange that accounting be made that the parties responsible the existing conditions legally punished. Other signers on the petition Mevill James Bushnell, Victor Fredda. Mrs. Annie Grace James Woodie Burlew, Leon Burlew, Francis Hartle, George Burlew, Emil Heiser, Howard Heiser. Bertha Burlew. Suzanne Burlew, Nathan Cressman. George Burlew, James Burlew, Leroy Woolley, Peter Bennett, Mary BenFrom other sources was learned effort being put forth reopen bank. understood that towards this end may be forthcoming any time.

HIGHWAY GROUP ELECTS elected vice president the Atlantic Coastal ciation its Norfolk, in the Lindbergh kidnaping case, was reelected chaplain.

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Open for Business

The following banks in Middlesex county were open for business today: First National Bank of Cranbury. Carteret Bank and Trust Company. First National Bank Dunellen. Peoples Trust Company, Dunellen. First National Bank of Highland Park. First National Bank of Milltown. National Bank of New Jersey, New Brunswick. New Brunswick Savings Institution. New Brunswick Trust Company. Peoples National Bank, New Brunswick. The Liberty Bank, New Brunswick. Perth Amboy National Bank. Perth Amboy Savings Institution. First National Bank of South Amboy. South Amboy Trust Company. First National Bank of Sayreville. First National Bank of South Plainfield. First National Bank of South River

Other banking institutions open for business today in this vicinity are: First National Bank, Bound Brook. Bound Brook Trust Company. Bound Brook. Somerville Second National Bank, Somerville. Somerville Tru Company, Somerville. Somerville Savings Bank, Somerville. Raritan Savings Bank, Raritan. Raritan State Bank. Raritan. Peapack-Gladstone Bank, Peapack. Princeton Bank and Trust Company, Princeton. Princeton Savings Bank, Princeton. First National Bank, Princeton. First National Bank, Hightstown. Hightstown Trust Company, Hightstown. First National Bank, Plainfield. Mid-City Trust Company, Plainfield. Plainfield National Bank, Plainfield. Plainfield Savings Bank, Plainfield Plainfield Trust Company, Plainfield. State Trust Company, Plainfield. Rahway Trust Company, Rahway. Rahway National Bank, Rahway. Savings Institution, Rahway. Keyport Banking Company, Keyport. The Matawan Bank, Matawan. First National Bank of Englishtown. Manville National Bank, Manville.