Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-25
READY TO ACT IN
BANK COLLAPSE,
SAYS PROSECUTOR
RoseviIIe Trust Co. LOoting to
Go to Grand Jury Next
Week.
ONLY HALF THE STORY HAS
BEEN TOLD, SAYS HOOD
Fifty Depositors Today File
Approval of Proposed Re-
organization Plan.

Prosecutor Louis Hood said today
that he was now ready to take up
the prosecution Of Raymond E. Smith
and any others who might be re-
sponsible for the wholesale plunder-
ing Of the Reseville Trust Company.
He will present the case to the
new grand jury. which convenes next
week. II is understood that he PLAN
ned TO spend the afternoon today in
conference with one of the bank eS-
aminers.
So far the story Of the looting Of
the bank has only been half told. il
is said. The real facts Of the Jug
glery that went on in the institution
make an unprecedented chapter IN
banking history and it is thought
that they will now be fully revealed.
VIII Play Picturesque Part.
Smith, the ex-treasurer. who is be-
ing held in $4,000 bail on charges Of
forgery, embezzlement and falsifica-
tion, is certain to play picturesque
part in the unfolding of the drama
on which Prosecutor Hood is now
ready to ring up the curtain
He will tell the major part of his
story, ii is thought. at the hearing
in the local bankruptcy court before
Referee Adams beginning Monday
The question of whether or not he Is
liable TO the Roseville Trust Company
for the enormous shortage Will Will f,-
thoroughly probed
Among the witnesses will be hand
writing experts whose testimony. it
is said Will pave the way for num-
Der of sensational revelations of ths
colossal classification of the banks
books and papers.
George Furst, counsel for the re-
ceiver. had a conference with Eay
Mayham. one of the bank examiners.
today in preparation for Smiths hear
ing next week
1t was Smith, who. despite he
warning of his former employer. was
made acting head of the Rosevisle
Trust Company. Exposed in an ille-
gal act of banking. he fell under the
displeasure of the State banking de-
partment. His removal was ordered.
but the directors ignored the depart
ment's demand.
/ On the day The banking examiners
/ closed the trust cplnpany. smith, .-ee1iI
and assured as ever, motoretl away
from Newark and vanished. Scores
of detectives sought him for month.
Finally. through some mysterious mo-
tive that has never been explained
ne surrendered. His avowed purpose
was TO prove there had been no
shortage. but merely series of bad
errors of judgment on his part
President Gives BAIL.
He was first bailed out av William
p. Odell, president of the bank, and
other directors. For time he spent
his days at the bank with the inten-
ton, so he said, of helping the bank
examiners. He was at length re-
arrested as he was waiting for a
train at the Roseville station of the
Laekawanna and since then he has
been in Jail. What he will tell about
the wrecking of the bank is bound to
be sensational TO the last detail
Whether the prosecutors activity
will have any effect on the proposed
reorganization remains TO be seen.
Fifty depositors turned in at the
bank today their formal approval to
the reorganization agreement. When
IS per cent. or more have done SO
the Court of Chancery will be petit
| toned to sanction the plan. If IL
does so the new Mutual Bank Of
/ Roseville will open Immediately as
the successor of the defunct Roseville
Trust Company and yt.s depositors
will ne able to withdraw 90 per cent.
of II y deposits.
Tells of Proposed Release.
Clifford r. MacEvoy. the prime
mover in the reorganization scheme.
said today. in referring to the pro-
posed release of the directors of ths
Roseville Trust Company from la
bility,
Our release that we talk of in our
circular is only a release from liza
bility arising on account of negh-
gence. The books of the new bank
VIII be open TO the inspection of the
prosecutor and his men at all times.
If it shall develop that any director
has extracted funds from the bank
and is in any way criminally liable
we are anxious to have il known. the
offender punished and the money re-
covered, if possible.
From my examination of the assets
of the bank, including the notes and
loverdrafts, which the banking depart
ment win not allow as good. I am
convinced that with the cooperation
of the depositors we will in a very
short period be able to pay them doll
lar for dollar.
''The most important consideration
in the whole scheme of reorganiza
tion is that each depositor appreci-
ate fully that he is a partner, that
this is a cooperative bank and that we
are opening il to carry on a general
banking business and not with the
purpose of being able to pay our de-
positors forty cents on the dollar.
I'VE consider the first payment to
be the smallest part of the whole
scheme and we are sure. if they all
lend their aid. by bringing in new
business and continuing to do their
own here. the result will be more than
satisfactory and those who spent their
time in making the Opening possible
will be more than satisfied =
ID. p. A. Only One 10 Oppose.
The only opposition to the plan
comes from some members Of the De-
positors' Protective Association The
executive committee met at 272 Park
avenue last night and went on record
as being opposed. Michael Kane jr..
explained today that there was only
/ $4,000 in the Roseyille Trust Com
pany at the present time. and that IL
would be insufficient to pay the de-
/ positors 40 per cent. if the directors
| did not contribute to make up the
deficiency.
Frank NJ McDermit. our counsel,
he said. ''told me that If we sign tbs
agreement we abandon our right 20
collect from the directors. That Is
1 just what the directors want and