Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-24

Tor without calling upon the uepoSl-
tors for any money.
The new bank expects, IL the plan
becomes operative. to receive a sub
stantial. amount from directors of the
Roseville Trust Company for a re-
| lease of such directors from liability
| for any negligence in their capacity
as directors, etc. Only such settle
ments with directors can be and will
/ be accepted as will be approved by
the commissioner of banking and in
surance and by the Court of Chancery,
as well as by the new bank. Any di-
rector not making satisfactory settle
ment can, and undoubtedly will, be
sued by the commissioner of banking.
In other words the depositors will re-
ceive all of the assets of every kind.
Need Depository Help.
ut is confidently expected by all
who have been in touch with the sit
uation that depositors will readily see
the advantages to be gained by as
signing their accounts to the new
bank. It is of the utmost Importance,
however, that depositors generally
will. in addition to themselves &C
cepting the offer of the new bank
urge other depositors whom they
know to take similar action. If the
depositors fail to adopt the plan by
prompt general action, those who
have been instrumental in bringing 1t
about will be unable to do anything
further and all efforts along this line
will have to be dropped. and liquida-
ton will be the outcome.
Experience has shown that the
liquidation of failed banks invariably
results in the recovery of a smaller
~, T.
ed, due to the limitations under which
the business of liquidating an insti-
tuition must be carried on, as opposed
to the arrangements which may be
made for payment of notes to going
institution.
"The question of time is important.
Until the depositors act under the
offer of the new bank other steps
must wait. The sooner the new bank
is organized the sooner can recover
les be had on account of bad loans
and overdrafts among the assets of
the Roseville Trust Company.
'Tn conclusion. I desire to state
most emphatica1ly that this project
is solely for the depositors and most
assuredly not being organized in the
interest or for the purpose of any
other bank or for the benefit in any
way of the old directors of the Rose
willie Trust Company. I have seen in
the daily papers suggestions that
either of these interests was instru-
mental in the formation of this plan.
Any such suggestion. statement or
inference is absolutely unfounded-'
The notice mailed to the depositors
was as follows:
Organized As State Bank.
ITO the Depositors OF Rosev!lle Trust
Company:
1.-THE Mutual Bank of Roseville has
been organized as a State bank under
the laws of New Jersey, with paid
I'D capital of fifty thousand dollars
$50 900. 00), for the purpose of provid-
ing a means by which the depositors
of the Roseyille Trust Company may
acquire the assets of the Rosevflle
Trust Company. The new bank sub
mits the following statement and
offer, for the immediate consideration
and action of said depositors.
THE Roseville Trust Company was
closed, by order of the commissioner
of banking and insurance. OH August
IA, 1913. Since that date the special
deputy commissioner and his assist
ants have been engaged in the eX-
animation and audit of the accounts
of the bank and in attempting to
realize on its assets AS a result of
this examination and audit the spe-
cial deputy commissioner lis of the
opinion that the sum of all payments
to depositors upon liquidation of the
assets of the Roseville Trust Com
pany will not exceed AZ per cent. OF
their claims. 1t is likely that such
liquidation will require several years
before all the assets have been real
lied upon or finally found to be
l.. 1rrDf inc n l.
rectors can be finally concluded.
Representatives of the depositors
have been trying constantly TO find
some method by which the long de-
lay and heavy expense Of liquidation
might be avoided and depositors en-
abled to obtain as large a portion as
possible Of their money at once.
Two courses are open TO the de-
positors: They may do nothing, al
lowing the liquidation to continue,
getting such dividends as they may
be able to obtain from time TO time
(the amount of cash on hand at the
present time in the possession of the
commissioner is about eighty thou
sand $50, 100000 dollars, or about
eight cents on the dollar for
the depositors) and await the final
outcome of the suit against directors
and the final liquidation of the affairs
of the company, or they may, If the
commissioner of banking and insur-
ance and the Court of Chancery APP
prove, have all of the assets of the
Roseville Trust Company turned over
to the depositors, including all claims
against directors or any person or
persons whatever and, in the form
of a new bank, with new, capital and
new management Ito be chosen by
the depositors themselves) collect on
the assets and start suit, if necessary,
against director. If the latter plan
be adopted forty per cent. OF the
amount of their deposits will be
available for use by the depositors as
soon as the plan becomes operative
and the new bank opened. For the
remaining portion of their accounts
the depositors will collectively receive
45O shares out of the total of 800
shares of the stock in the new bank,
which bank will own all of the as
sets now owned by the Roseville
Trust Company and all claims against
directors and against any other per-
sons.
"The Mutual Bank of Roseville has
been organized solely for the pur-
pose of carrying out this plan for the
benefit of the depositors. 1t VIII be
owned. except for the shares the new
directors must own, under the law IN
their own names (and for which they
have paid in cash at the price OF
800 per share), wholly by the depos-