Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-06

To protect the depositors of the
plundered Roseville Trust Cor
the State department of banking is
prepared to sue individually every
member of the directorate for the
huge shortage.
That assurance was given a CON-
mittee- representing the Depositors'
Protective Association today by
Frank C. Ferguson, a bank examiner,
who spoke for L. r. Vredenburgn,
deputy commissioner of banking and
insurance.
Furthermore, Mr.. Ferguson said
that there had been such laxity on
the part of the bank officials that he
had no hope whatever of collecting
the $4,000 due on the bond of Ray
mond E. Smith. the vanished secre-
tary and treasurer.
BY these statements Mr.. Ferguson
verified two of the exclusive stories
that have appeared in the Evening
Star-one to the effect that the di-
rectors were individually liable in a
civil way, and the other, yesterday,
announcing the depositors belief that
Smiths bond could not be collected
upon.
Henry B. Tower. a justice of the
peace: Michael Kane, jr., and Valen-
tine b. Kane who form the deposit
tors committee, first visited William
p Odell, president of the defurct
bank
They asked him to demand the Ma
tional Surety Company to pay the
s20000 due on Smiths bond.
That will be done at the proper
time" he replied.
And when will that be-" he was
asked
THAT is in the hands of the bank :
ing department. You had better see
Mr.. Vredenburgh.
When the committee called at the
bank building, Roseville avenue and
Orange street, Mr.. Ferguson net
them, in the absence of the deputy
commissioner. He was asked what
had been done to recover on the bond
OF the missing treasurer.
THE directors" he answered. with
slow and emphatic deliberation.
have not shown any disposition to
demand the money from the com
pany.
I'm the event that they do not de-
mand it or make up the money them
selves, Mr.. Vredenburgh, as receiver,
will sue the surety company.
Il do not think however, that there
are any grounds upon which to col
lect. I am thoroughly convinced that
there was laxity on the part of the
directors in allowing this conditions
of affairs to exist. There is a clause
in Smiths bond that requires any
wrong doing on his part to be re-
ported to the surety company as soon
as 1t becomes known. That clause, in
my opinion, will enable the surety
company to successfully contest pay
ment.
''It is true that the surety COM
panies dislike to have a controversy,
and sometimes prefer to pay claims,
as a-matter of policy. But this case
is so fragrant that ! do not think the
company will pay the claim
I'm the event that we cannot collect
the money from them. the receiver
will bring suit individually against
each member of the directorate.
IF all the directors but one are un-
able to pay, we can force that one
director to make good the entire loss,
even If it strips him of every possess
sion"
The officers and directors of the
trust company are: William p Odell,
president William Fairlie, first vice.
PRESIDENT; Harry w. Foster, second
vice-president: Raymond e. Smith.
the secretary and treasurer. who has
disappeared; James B. Bannister,
William L. Benjamin. John S. Bell,
Harry w. Foster, William F. Keim,
Frederick Kilgus, George E. Krug,
Charles c. Zurich, Harvey Mott. G..
Rowland Monroe, John B. Scarlet,
Elmer X. Sexton and Edward d..
Dunn,
Shortly before the depositors re-
cejved the assurance that the bank
ing department was prepared to pro-
ceed against the directors, Mr.. Vred-
enburgh had limited that the shortage
in the accounts of the institution will
be far in excess of the previous esti-
mate of $37S.000.
Discovery of this increased deficit
was due to the checking UP of, de-
positors' passbooks with the deposit
ors' ledger.
The procedure used in looting these
accounts was brazen but simple.
There was no elaborate or bothersome
falsifying of the books. The entries
were correctly noted in the passbooks,
hut many of them were left out of
the ledger entirely.
When ne had checked up only a
few of the passbooks, Mr.. Vrenden-
bureh issued statement in which he
sContinued ON PAGE :. Column IL