Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-27
SMITH, ALLEGED
WRECKER, IN
BANKRUPTCY FIGHT
Hearing Opens Before Referee
Adams, Acting as Special
Master.
PREFERENTIAL PAYMENTS
CHARGED BY CREDITORS
MacEvoy Declares Depositors
of RoseviIle Trust Are Fa-
voring Reorganization.

The banking methods of the de-
funct Roseville Trust Company were
exposed in the bankruptcy court to-
day when William P. Odell, of 179
North Sixth street. president of the
institution, was called to the witness
stand at the hearing to determine
the financial condition of Raymond
e. Smith. the former secretary-treas-
urer of the bank. whose disappear
ance was followed by the closing of
the bank. The hearing was held
before Bankruptcy Referee Edwin G.
Adams. sitting as a special master.
1t was only after a close question
ing by Referee Adams that Al Odell
told of the methods in vogue at the
bank. and admitted that Smith was
in absolute control of the banking
house. and could make loans UP to
$4,000 without seeking further advice
or authority.
He explained that Smith met all
applicants for loans, and treated them
according to his own judgment. Then
he submitted list of the loans made
to the executive committee, which
met once a week.
THE executive committee, however,
did not know of these loans until
after Smith had made them, did ite'
| asked Referee Adams.
No, certainly not" replied Mr.
Odell. Mr.. Smith made what loans
he deemed wist and kept a list of
them. This list was shown to the ex-
ecutive committee once a week, but
we never saw the notes themselves
or any of the paper
WAS Smith the only officer in
charger" asked the referee.
Yes" said the witness. He was
the only officer of the bank at the in
stitution at all times and he con-
tracted for every loan made and
looked after everything that was done
In the bank. His word was supreme
and what he said went. He was linz
tied. however, to making loans less
than $1,000"
On questioning by the referee, Mr..
Odell said that by the time the COM
mittee knew of the loans they had
been made. He also explained that
each one of the borrowers of the
bank had credit limit which Smith
" Instructed not to exceed.
Mr.. Odell also narrated the con-
versation he had with Smith over the
telephone at o'clock on the day
Smith left the bank and later phoned
from Lakewood.
After Smith had told me he was in
Lakewood | aked him what he was
doing there" said Mr.. Odell.
"He told me then that he had gone
there for a rest. Well, we want you
here; we've got to have you.' l then
told him. He replied that it would
take two hours to get back Well,
you'll have to come back as soon as
you can, I said. Well wait here
al nj frr \
then told me that the next train left
in about two hours, and | understood
him to say that he would return on
it, but I never saw him after that.
when / asked him why he had
gone to Lakewood instead of coming
back after he had gone out for break
fast he said that he had been labor
ing under a mental strain and was all
overwrought. I thought that he was
coming right back and waited until 2
o'clock the following morning for
him."
Smith appeared in the courtroom in
custody of a court officer and for a
time was obliged to stand In part of
the chamber because of the large
, crowd which had already filled the
seats.
He appeared nervous and embar-
rassed and seemed to be attempting
to hide behind the court officer.
Later more chairs were brought in
the chamber and Smith took a seat
between Frank M. McDermitt and
Harrison P. Lindabury, his attorneys.
Creditors Case Opened.
George Furst, attorney for the
petitioning creditors who are suing
for Smiths adjudication as a bank
rupt, opened the case. He announced
that Harold Remington, of New
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