Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-18
NEW BANK PLAN
TO SAVE DEPOSITS
tContinued from First PaEe.)

Reorganization plans fathered by Cliff
ford F. MacEvoy, president of the
Depositors' Association, at a meeting
in Roseville Hall last night.
Michael Kane, jr., the president,
together with Henry B. Towers, or
ganizers of the Depositors' Protective
Association, made a vigorous protest
against such action.
Although McDermitt vigorously
protested against accepting any COM
promise of any sort from the direc-
tors at meeting held about q week
ago, declaring that the cases against
the directors of the defunct institu-
ton were strong and that they could
be made to pay dollar-for dollar by
going to law, his attitude last night
was completely in contrast with his
views of the previous week.
1t was like bomb exploding when
Mr.. McDermitt arose and made the
startling announcement to the tired
and restless depositors that "he would
advise them to give the directors one
more chance, as that was the only
way they could expect to get their
money-by reorganization"
Michael Kane, jr., and Justice of
the Peace Henry B. Towers were
dumbfounded. For few moments
after the address they were too sur
nN8 II to speak and then the storm
kSs. G.
81 am justice of the peace and I'm
prepared at this moment to receive
any complaints and swear out war
rant for any of the directors" shouted
Mr. Towers. mo one however took
advantage of his offer.
Those present at the meeting last
I'll.
nunciation of the directors by the lead
ers in the plan to get their money
back from the bank dollar-for-dolla
but the representative of the Evening
Star had been quietly tipped off in the
afternoon that Mr.. McDermitt would
speak in favor of reorganization and
from now on would take an active
interest in the scheme fostered by Mr..
MacEvoy.
For several minutes after McDer-
mitt had concluded the audience was
wanted to know why mike" Kane
was against reorganization. When
he endeavored to answer numerous
questions were hurled at him.
1--WE can get 40 per cent. of our
money at once If the bank is reopened
and If liquidated we may only get Is
or 20 per cent. at the most" was one
of the cries. A communication was
read from G. Rowland Monroe, one of
the directors, who expressed his re-
grets at not being able to be present
at the meeting last night, and said
that he thought it best in view of the
situation at the present time that the
depositors not meet with the direc-
tors. He said that he had talked the
matter over with Mr.. McDermitt and
lie had agreed that such course was
the best
Frank NJ. McDermit, jr., speaking,
for his father, issued the following
statement about last nights meet
ing;
1.-THE meeting last night accom-
plished nothing to speak about. The
directors got one more week to make
good, and that is all The put up to
us an organization plan, which we
will not accept. They say they cam
not put up 100000, but they can raise
100000
Now, it stands to reason that if
any corporation can put up 5000, 900
they certainly can raise 100000. Any
financier will tell .7ou the same. If
we accept 40 per cent. of the money
the depositors will swarm the bank
like bunch of bees crowd a hive
and take out every cent. Then the
pank VIII rail- again, ana then what
will we get? Nothing. The plan is
only scheme of the directors to pay
only 40 per cent. on the money.
what is the difference? If we don't
take the 40 per cent? We can sue
them later and make them pay dol
lar for dollar, and that they them
selves know very well.
why, if we take over the bank
We will have to sue on all the bad
paper and also hire attorneys and
have all kinds of costs. Moreover,
we will have to pay a new set of
bankers to run the bank.
why don't the directors stDy in
the bank and run it? They can an
swer that question as well as can.
The only way we will agree to re-
organization, and this is final, is that
the directors guarantee to us our
other so per cent. Otherwise nothing
doing"
FRANK NJ. MDERMIT, JR.