Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-17
NO FUNDS IN BANK,
'SCARLETT'S CHECKS
CASHED BY SMITH
Director, on Stand, Tells of IL
legal Transactions at Rose
vile Trust.

On the stand in the local Bankruptcy
Court today John b. Scarlet, direc-
tor of the wrecked Roseville Trust
Company. gave startling revelations
into the financial jugglery of Ray
mond e. Smith. the former treasurer.
Scarlet said that in 1911 there was
discrepancy in his account in the
bank between his own figures and
the trust company figures, amounting
to upwards of $1,000.
George Furst attorney for the re-
ceiver asked how the account stood
on the passbook. The witness then
declared that the pasbook had been
lost just about that time.
The witness then went on to ex-
plain that after the discovery of the
discrepancy that Smith loaned him
$500 at different times, secured by
the conveyance to trustee of deed
to Mr. Scarlett's home at 81 Johnson
avenue, East Orange, and that after
that his checks were cashed by
Smith whether or not there were the
necessary funds in the bank to cover
the checks.
The property is encumbered to the
extent of about $4,000. Scarlett says
he has paid no rent for the dwelling
since the deed was turned over to the
trustee 1t is declared that there is
an $4,000 equity in the property.
Scarlet explained that last April
he secured a new passbook, and just
before the bank was closed left the
passbook to have it balanced. few
weeks ago, he said, he asked l.. r.
Vredenburgh, the deputy bank exami-
ner, to balance the passbook, which
was still In the bank when 1t closed
and return 1t. To the witness' sur
prise, he declared, the book Mr.
Vredenburgh returned was the orig
inal passbook, which was said to have
been lost.
Questioned more closely by Attor-
ney Furst about his checks. Mr.
scarlet explained that he would call
smith up at the bank when he needed
money and Smith would tell him
what to do to get the money.
Sometimes he would tell me to
write out q check for the amount !
wanted and he would cash it," said
the witness, "or he would give me
his personal check and l would get
1t cashed.''
do you mean to say that Smith
would cash your checks whether you
had money in the bank or not ?"
asked Attorney Furst.
well, yes, that's about the size
of it, explained the witness, ''I sup
posed. he was keeping account and
would balance IL when my account
was finally settled I thought that
! had $500 in the bank at one time,
but did not seem to have received
credit for it,
Chauncey f. Buggs, formerly
manager of Smiths Central avenue
garage, was placed on the stand and
said he had heard that after the
sheriff's office had taken possession
OF the garage a number of things
began to disappear. He said he
knew of his own knowledge that sew
eral tires and other accessories were
missing from the garage
1T was common talk around the
garage" he said, that the sheriff's
men were taking things that were
loose, but / doubt this to be a fact.
It's only hearsay"
Among the liabilities of Benjamin
Grossman, bankrupt, of 297 Bel
mont avenue, appears an unpaid note
for $400 discounted at the Roseville
Trust Company The note was made
by Michael Grossman and indorsed
by the bankrupt.
The schedules and order of refer
ence were filed in the Bankruptcy
Court today. The schedules show
his Liabilities to be $1,764, with as
sets aggregating $4SS. Besides the
$400 note there are unsecured claims
amounting to 1884.