Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-03
BANK DIRECTORS
IN CONSERVATION
At DUNN'S MOVE
Officials Withdrawal Halts
Plans for Reorganization OF
Wrecked Institution.
CALLED "FOUR-FLUSHER'
BY DEPOSITORS' LEADER
Deficit Is Now Reported by
Vredenburgh to Be
$658,00o.

directors of the defunct HoseFliie
Trust Company and a few of the de-
positors were loud today in their con-
demnation of him.
A distinct feeling of uncertainty
If not downright panic, made itself
evident behind their assertions.
Both William p Odell, the presi-
dent of the looted bank, and Harry
w Foster, one of the vice-presidents
found occasion to pay Dunn a hasty
visit
Dunn was talking to an Evening
Star reporter when Foster entered
his office.
"Oh. pardon my intrusion" said
Foster, when he saw Dunn was en-
gagged What are you doing, Ed
~Agiving out some more facts?' he
ADDED with a decided tinge of sar-
casm.
From the sounds that issued from
Dunn's office while Odell and Fos-
ter were in conference with him II
appeared as If they must have been
having a radical disagreement.
When Odell emerged he was asked
If he did not think that the only
course left for the directors was to
make good the deficiency of the de-
positors and allow the depostors to
conduct the reorganization according
to their own plans.
How can we raise 100000 or SOP
he demanded. "It is practically inn
possible.
1T looks to me that every time we
put a plan of reorganization before
the banking department it raises the
amount on us. 1t is like a game Of
poker"
At that point Odell checked himself.
However l don't play poker, he
explained hastily. Il played once
when | was eighteen years bid Any
way, that is the way We are raised.
Every time we put the proposition up
to Commissioner La Monte and the
banking department they increase
their estimate of the shortage
The actual deficit is far higher thar
any figure that has yet been men,
toned.
This was revealed at conference
this afternoon in the office of Ralph
Ltirn. counsel for the directors. Will
lam Fairlie, a president of the
bank; John s. Bell, one of the direct
ors; clifford r. MacEvoy, Edward F.
Clark, counsel for the Depositors' As
sociation, together with -Odell, F'os-
ter and Dunn, were present.
L. r. Vredenburgh, deputy State
banking commissioner, conferred with
IfieIn Tor a SnOTI Time.
He is understood to have told them
that there was a discrepancy in the
accounts of the wrecked trust CON-
pany of S4S0,000 and a shortage of
s17S.oo0, making total deficit OF
$65s 600.
Eve are tired of waiting on this
faker and four -fiusher." stormed
Clifford F. McEvoy. president of the
Depositors' Association. when he was
asked of his opinion of Mr.. Dunn's
scathing denunciation of the pro-
posed formation of new trust COM
l.anv.
"The reorganization will be con-
summated despite Mr.. Dunn" con-
tinued Mr.. McEvoy. HE has held up
the plans for three weeks. I repeat
he is a miserable four-fusher and a
side-stepper.
Enthusiasm Died.
"His enthusiasm died the minute
ne found out the depositors had
agreed to the plan and that he would
actually have to put up the money he
had hitherto been so loudly promis-
ing
THE original plan was drafted by
Dunn's own attorneys. At first he
wanted Hugh b. Reed to act as coun-
sci for the directors, but he switched
to Ralph Lum just as soon as Mr..
Lun's name was mentioned Dunn S
statement of sexplanation, which he
made yesterday. was ridiculous.
II knew that Dunn would quit all
the time If he got chance. but I
imagined that after making so prom
inent his intention to contribute he
would be forced to do so by fear of
the adverse public opinion his re-
fusal would cause"
The split in the directorate makes
the reorganization only a very re-
mote contingency. 1t is apt to force
a revelation of the real facts of the
Wholesale plundering of the bank.
So far no hint has been given as
E to who got the s450,0oo or, more that
Is missing
Raymond e. Smith, the former sec
retary and treasurer, who is charged
with having wrecked the bank, claims
that he personally did not get a cent
of the money. Then who did? Smith
knows and it is probable that he will
tell all he can in order to save him
self
Dunn too will play a part in the
final expose He said today:
Knew of Deficiencies.
4 AT the time / bought stock in the
bank and became director, some of
the directors. | am almost certain,
knew of the huge deficiency that was
being run up and falsified their re-
reports-the reports upon which |
was led to buy the stock.
From the time Smith came back
lost interest in the reorganization
plan.
II expected Smith to create a sem
sation when he returned, but, instead,
many things have been covered up
since then When he came back I
told the directors that ] would wait
for figures from the banking officials
before taking any further action"
Dunn intimated that the where
abouts of Smith during the month he
was lying in hiding were known to
some one or other acquainted with the
situation at the bank He scored
MacEvoy for the way in which he
had greeted the self-surrendered
treasurer.
while / shall have nothing further
to do with the reorganization plans as
they stand at present" Dunn added,
81 am perfectly willing to contribute
$20,000 to make up the deficit, if the
other directors will do their share"
Il don't mind criticism. am only
interested in opening the bank The
time will come, and very soon. when
my work and present view will be
recognized, and at that time / will
be here and ready and glad to do all
possible to protect depositors from
further loss. There have been fac