Article Text
THE Rahway, New Jersey, Savings Bank is said to be embarrassed, and will apply to the Chancellor for an order to suspend business. Its liabilities are $709,209, and its assets, at their face value, $753,856,
Rahway Savings Institution (Rahway, NJ)
Episode Information
- Episode UID
55025070938- Episode Type
- Suspension → Reopening
- Bank Type
- savings
- Bank ID
-
5502507routing - Routing Number
55-0250- Start Date
- February 22, 1878
- Location
- Rahway, New Jersey (40.608, -74.278)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
c3901b1eea9bd7fa
Response Measures
None
Description
Bank applied to Chancellor to carry on business under court supervision, suggesting temporary suspension with intent to continue; final disposition not shown.
Events (2)
1.
February 22, 1878
Other
- Newspaper Excerpt
- THE Rahway, New Jersey, Savings Bank is said to be embarrassed, and will apply to the Chancellor for an order to suspend business. Its liabilities are $709,209, and its assets, at their face value, $753,856,
- Source
- newspapers
2.
April 27, 1878
Suspension
- Cause
- Government Action
- Cause Details
- Managers petitioned Chancellor for injunction and authority to continue under court supervision due to depositors' suits and heavy demands
- Newspaper Excerpt
- applied to the Chancellor of New Jersey for permission to carry on business under his authority and protection
- Source
- newspapers
Newspaper Articles (4)
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Article Text
A new definition of the word surplus is required for the benefit of some of the managers of savings banks. In the cases of the Rahway and Plainfield savings banks that recently stopped. the January reports showed a fair surplus. In ordinary language this would indicate that a bank had enough assets to pay its debts and something over. But the surplus meant something that existed chiefly in the imagination, and could not be found even by the most assiduous receiver.
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Article Text
CRIPPLED NEW-JERSEY SAVINGS BANKS. EMBARRASSMENTS OF INSTITUTIONS IN RAHWAY, PLAINFIELD AND HUDSON CITY. Application was made to Chancellor Runyon by ex-Senator Stone, counsel of the Rahway Savings Institution, in Rahway, N. J., on Thursday evening, for an order to carry on the business under his supervision, as provided for by an act of the late Legislature. The petition sets forth that there was due to depositors on January 1, 1877, $798,535 81, and on January 1. 1878, $709,209 48, and that between the latter date and April 1 the demands of depositors were 80 constant that, although $200,000 had been paid, leaving $496,236 10, there still remained unpaid demands, of which the sixty days' notice had been given, of more than $75,000. The petition further sets forth that during the SIX months ended January 1. 1878, after paying $2,780 95 for taxes and expenses, and $16,581 63 in a dividend, there still remained a profit of $9,655 01, and although a loss of $3,200 occurred by shrinkage* of Government bonds, there yet remained a net profit of $6,455 01. The bank recently disposed of its manicipal bonds at par among the depositors, and it was expected that there would be no more trouble, but five of the depositors, a few days ago, brought suits on their deposit books. The petition further sets forth that paying the five depositors who have begun suits would be an invitation for others to sue the bank, and would work an injustice to others. Therefore a majority of the managers applied to the Chancellor to enjoin the suits and protect the depositors. Chancellor Runyon issued an injunction on Thursday evening, and appointed William Silas Whitehead special master, to examine the condition of the bank and report to the court as soon as practicable. Appended to the petition were schedules exhibiting the condition of the bank on January 1, 1877, and January 1, 1878. and also on April 1, 1878. The last statement shows the following:
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Article Text
THE RAHWAY SAVINGS INSTITUTION. The Rahway Savings Institution, which has for some time past been shaking and shivering in the financial gale, has followed the example of the suspended Newark savings banks and applied to the Chancellor of New Jersey for permission to carry on business under his authority and protection. The immediate cause of this, as alleged, is that some of the depositors were making a desperate effort to overreach others, and through legal process to compel the bank to pay them individual moneys. Accordingly the Chancellor has granted an injunction, as prayed for, restraining the bank from making any payments not specified by the Court. William Silas Whitehead was appointed a special examiner to inquire into and fuily examine the condition of the bank, his report to be submitted to the Court as early as possible. The petition of the managers set forth that on January 1, 1877, there was due to depositors $798,535 81; on January 1, 1878. $709,209 48, and that between that date and April 1 succeeding the demands of a large numoor of depositors were so constant that altbough over $200,000 were paid to them during that time, leaving due $496,236 10, there still remained unpaid demands wherein sixty days' notice had been given of over $75,000. The managers further show that during the SIX months ending the first day of last January, after paying $2,778 95 for expenses and taxes and a dividend of over $16,500, there still remained a profit of nearly $50,000. Despite a shrinkage in the price of government bonds, causing a loss of $3,200, there was still a net protit 01 $6,455 01. Aspended to the petition was a schedule, showing the financial condition of the institution on April 1, as follows:$227,525 Bonds and mortgages 47,250 Real ostate 11,275 Hazlewood Cemetery bonds 13,920 Rahway Gastight Company stock 188,237 Rahway water bonds 2,200 Rahway improvement bonds Loans on collaterols 9,000 Cash 22,573 Dues from rents and other sources 1,172 Total $523,753 496,236 Due depositors. Surplus $27,517