Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-30
DIRECTORS SEEK
TO BUY RELEASE,
SAYS M'DERM|T
Alleges Officials of Looted Bank
Are Willing to Pay
$4,000.
ATTORNEY SAYS FAIRLE
AND BELL HAVE PAID
Smith Counsel Suddenly
Agrees to Bankruptcy Adju-
dication, Ending Hearing.


dication, Ending Hearing.
To buy their release from liability
the directors of the looted RoseVf1Ie
Trust Company. so Frank NJ NcDer-
nit, jr., of the law firm Of afeDerrnif
& McDermit. said today. are willing
20 make a { II payment to the new
Mutual Bank of Roseville Of s112. coo
| That amount has already been
placed in the hards of Ralph z. Lura.
the directors counsel Mr.. McDermit
explained 1T viii be turned over 70
the new bank for their release. We
think the amount is fairly satisfac-
tory, and shall probably accept II
we nave already given William Fair
lie release for his $4,000 contr1bu-
ton and John :. Bell one fer his
s15.000.'
Mr.. NcDermit gave this statement
OF the assets of the proposed success
pany:
Capital, cash
William F'airlie. . $50 oso
John S. Bell........ IL 0oh
/ Clifford F. MacEvov.. 1000
Directors esubsrribed) -. i1s.oaO 70
bonu Oh A Randolph Jen-
nings (problematicaD 49,. fgH09 10
Notes IN bank placed az $780,
900 and said TO be bad
I by the banking depart
ment, but estimated as 90
per cent. eollectable by the
new bank k............. 25s Que 10
/ Assets Of the closed Rose
vile Trust Company (as
revealed in the Raymond
T. Smith bankruptcy hear
lng) .-.--.....:.....-... 1854 81
Total ...................... .s5s1.s74 81
The Mutual Bank. a1r McDer,nit
said, would open. provf.ied their pres
ei1t expectations wert realized. on
December l. At that time every de-
positor will be able to withdraw forty
per cent. of his account If he so de-
sires
MANY Of the depositors however,
continued Mr.. McDermit. ''have
promised rot 10 withdraw that much
but keen their account with the new
bank just as Il there had been 10
failure q the old trust company.
When the bankruptcy court recop-
Hsflssa shortly before noon today Hsf-
ris1rr 2 -f7ilF7dBury. OF counsel Ter
Smith, stated that no good purpose
would be served III continuing tlle
proceedings any further.
For that reason. he said. we are
willing to consent to an adJudica-
ton"
That brought to a sudden and un-
expected cad the sensational hearing.
Referee Adams viii recommend that
Smith be adiudicated bankrupt
George Furst was attorney for the
ipetidoning creditors, and Harold
Remington and Nilfred c. Roszei Of
counsel.
Smiths action STAYED off threatened
revelations OF a highly sensational
character. L. f. Eredenburgh. the
deputy State commissioner OF bank
ing and insurance, who has conducted
the exanina ion Of the Roseville
Trust Company's books. had init
mated that he would resist to the
utmost any attempt made TO force
him TO tell, as q witness in the Bank
ruptcy Court, who are the makers OF
the bad paper or 10 give what proofs
he has of the alleged criminality OF
Smith
Since II was the intention of the Pc
titioners TO try to show that Smith
was indebted 70 the bank by reason
of a large embezzlement, there was
practically certain 10 have been a
clash.
Mr., NrefsA b. rsh thought il would
not be fair to the county authorities
TO expose their hand prematurely BIZ
revealing the discoveries that have
been made by the bank examiners as
TO how the bank was piundered Of
half million dollars and as TO Who
benefited thereby
Following Smiths admission to in
solveney. Mr.. Nredenburgh said:
We We're not prepared 10 prove our
claim in The Smith bankruptcy matter
until the audit and investigation had
been completed. But we were drawn
into this proceeding by the action Of
the petitioning creditors in bank
ruptcy, and our books and records. a.
well as those engaged in the audit
were all subpoenaed. and brought into
court and thus was forced into max
ing a claim upon those items upon
which the liability for which Smith
seemed 10 be clearly liable.
THAT is as far as I would have gone
in the matter at present. The remain
der Of the claim of the Trust COM
been gone into at this time.
Smith today made formal demand
on Wilfred Q. Roszel. as receiver.
for q number of personal effects.
which it is declared were taken from
the Oakland Garage on Central ave-
nue.. East Orange.
Through his counsel Frank NJ. Nc
Dermit, Smith declared Roszei had
taken the personal effects along with
the other assets on the appointment
of the receivership. Smith is attend
ing court during his fight against ad-
Judication as a bankrupt, through
writ of habeas corpus taken out by
Harrison p Lindabury, his associate