Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-11
DEPOS|TORS TALK
OF DRASTIC MOVE
IN BANK FAILURE
Contemplate Action Other Than
Civil if Other Methods
Fail.
COMMITTEE TAKES MATTER
UP WITH VREDENBURGH
Some of People Having Money
in Bank Insist on Having
Full Settlement.

fui1 0eLtlemenI.
Drastic action in the looting of the
Roseville Trust Company was fore
casted today from two sources.
L. H. Vredenburgh, deputy State
commissioner of banking ana 1nsur-
ance, said to Justice Henry b. Tower
Michael Kane jr., and other de-
positors today:
81 should not like to state that there
will be, but there fs a possibility that
there will be action. other than civil
against directors of the trust COM
pany. No civil settlement, such as the
one now proposed. of course, could
affect in amy way the prosecution OF
criminal charges"
without waiting for the banking
department to take action, the De-
positors Protective Association to-
day started on it's own account to
find way to press charges against
any director who may have been
aware of the methods of Raymond r..
Smith, the missing treasurer, or who
may have participated in the plunder:
Michael Kane, Jr., as president OF
the association, appealed to Justice
Tower to issue warrants for all the
directors.
Justice Tower advised consulta-
ton with Mr.. Vredenburgh as to
what the audit of the banks BOOKS
has revealed and as to the banking
departments attitude.
Saw Mr.. vredenburgh.
The two men thereupon called at
the bank They first asked Mr.. Vre-
denburgh how the proposed settle
ment on 70 per cent cash basis was
going to affect the situation.
1t will necessarily prohibit any civil
action against the directors he an
swered, choosing his words carefully.
1T will not, however, interfere with
any other action against them
rs it likely that there will be any
such action?' the justice OF the peace
said.
Mr. vredenburgh replied that there
was a possibility that there would be.
If it is shown that any OF the dlrec-
tors were aware of conditions as they
existed in the bank.
ITO bring civil suit against these Ill
reetors,' the commissioners continued
would mean litigation that would pc
carried from one court to another and
take years to end A bird in the hand
is worth two in the bush. and we
think it is better to accept % per cent.
cash"
Mr.. Kane. speaking for his asso-
citation, asserted that the members
would never accept any settlement
other tnd1 JndI OI uolidI loi uoiihA. !.
Mr. Vredenburgh was next asked
about the discoveries he had made
In going over the books of the trust
company.
'The affairs are in such a state"
he said. "that we do not know what
the shortage is. There is much paper
in the form of notes and we are try
ing to find out what it is really
worth. Many of the notes, we know,
ix,Ir a r.
ten in"
Were any of these notes given by
the directors? Mr. Kane inquired.
.sThey were given by friends 0,
smith, replied Mr.. Vredenburgh,
lodging the question
The question was brought up as to
why Smith had not been removed at
the time when irregularities We're
first found in his accounts several
years ago.
"There was a transaction involy-
ing a sum of money which caused
the banking department to recon-
mend the removal of Smith. When
the bank examiners find that there
has been something wrong on the
part of an official or an employee. all
they can do is to ask his removal or
close the bank. When the directors
decided to retain Smith. the depart
ment did not feel justified in fore
ing the trust company to close its
doors"
Financial Settlement First.
Mr.. Vredenburgh's attitude seemed
to be that a financial settlement was
desirable first of all and that the
fixing of blame for the looting of the
bank could come later after the de-
positors had obtained their rs per
cent in cash.
After the conference, Mr.. Kane an
Iounced that he would have affi-
davits prepared and endeavor to
bring the new aspects of the case
before the courts Immediately.
Commissioner George M. La Monte
said this afternoon that the approval
or disapproval of the proposed reor-
ganization lay in the hands of the de-
partment of banking.
'.,rbe attitude of the depositors, Of
course, will be considered, he said.
II shall certainly take into account
the number of depositors who are in
4 favor of the proposed settlement as
against those who object to 1t.
while progress has been made to-
ward the reorganization, the plan has
vet to be submitted in writing to me-
and it will he very carefully scrutl-
nized The interests of the depositors
must be conserved.
Clifford F. MacEvoy, president OF
the Depositors' Association, which
favors the reorganization and is OPP
posed TO the Depositors Protective
Association, said today that he was
working on a statement of the reor-
ganization plan to be sent to all the
depositors.
They will be asked to sign an
i agreement TO devote 20 per cent. or
their deposits to the purchase of CO.
operative stock in the new trust COM
pany that is projected. Upon their
consent, OF course, will depend the
Success of the present plans of the
directors.
According to Mr.. MacEvoy all the
1nany letters he has received from
depositors have indorsed the reor-
gani2ation scheme.
The directors, who held q long
rneeting from o'clock Yesterday
afternoon to after midnight. worked
today on statement to be submitted
to Mr.. La Monte. They assert that
S2o0. 900 they have subscribed will be
placed in the Essex County National
Bank before Monday.
committee of the Roseville Busi-
mess Mems Association will be ap-
pointed to assist the directors of the
iooted trus. company in starting a
new inst alton That action was de-
kided upon ut meeting OF the or
ranization ut 105 Roseville avenue
bat night.
George 4, Mutchlcr, the secretary.
aid today thnt the association would
i've entered into the reorganization
ms before if ii had been asked TO
S0-,eratt oy the depositors and di-