Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-24
La MONTE ORDERS
CHANGES IN PLANS
FOR MUTUAL BANK
Refuses to Pass Finally on Re-
organization Until Correc-
tiOns Are Made.

State Banking Commissioner George
M. La Monte has not passed final
judgment on the plans of the Mutual
Bank on account of several details
that have to be changed before he
gives the plans his final approval. The
matter will be definitely settled with
In the next few days and will be sent
to the Court of Chancery for the
final action. 1t is expected that the
grand jury will take UP the probe OF
the defunct institutions affairs some
time this week, and speculation is
rife as to what the final outcome will
be-
The wide latitude that Raymond e
Smith, former secretary treasurer OF
the defunct Roseville Trust Company
and alleged wrecker of the institution
pursued in his looting tactics were
forcibly illustrated today when Pat
rick Joseph Clossick, former butler
and valet to the late James B. Uill
called to see L, r. Vredenburgh, dep.
uty bank examiner, in regard to $1,000
that he had deposited in the trust
company and had failed to get credit
for.
AT the time of Judge Dills death il
was found that he had bequeathed
$4,000 to his employee for seventeen
years of faithful service, and when
Smith heard of the Wallets inheritance
he Immediately made overtures to him
to deposit the money in his bank.
According to- ClossicK, he deposited
$1,000 to his personal account and
$4,000 in the, savings department for
his children on January IL, 1911, and
did not receive a deposit book, being
put off by Smith, who always claimed
he was busy at the time Clossick
called and would promise to mail the
books to him. He failed to do this
and at last ClossiclI told him that he
would go to the prosecutor for his
money is it was not Forthcoming. Then
Smith mailed him his book with cred
its of $1,000 showing, and told him the
other amount would be credited to
him, when he. Smith, could get
around to it. "You can borrow all
the money you want to keep up your
business" Clossick claims Smith told
him. The matter Is being adjusted by
Mr.. Vredenburgh.
The entire contents of the automo-
bile accessory store on William street,
owned by Raymond r. Smith, the
bankrupt secretary of the
looted Roseville Trust Company, was
sold today by Wilfred c. Roszel. re-
ceiver, for $11,270
The sale of the contents OF the Oak
land garage in Central avenue, East
Orange and his Central avenue apart
ments are being sold on the premises
at public auction this afternoon.
Kane Makes Statement.
5,.
nent OF reorganization, today made a
statement scoring the manner in
which the settlement of the, tangled
i fairs of the trust company is being
handled.
why hasn't the banking department
filed any claim against Raymond e.
Smiths estate?" he said. Mr. Scar
lett admitted 90 the stand that he
borrowed large sums of money--not
Smiths money, but the banks
money. Smith was Indebted to
the bank for that amount and the
bank ought to have filed a claim
against his estate in the bankruptcy
proceedings.
I'm the reorganization agreement it
is said that the new Mutual Bank
will open on December 1. If 1t does
not the agreement will be null and
void. 1 am told. Frank M. McDer-
nit jr.. says that if the bank does
not open by that time. he, for one,
will withdraw from the plan.
'"There is the question of the man
ner in which the banking department
cancelled the notes of depositors who
had borrowed from the bank against
the accounts of those depositors. That
was equivalent, of course, to paying
those depositors in part off dollar for
dollar. If there is a State law maxi
ing that legal, 1t is unconstitutional,
for it is class legislation, discrimi-
mating against borrowing depos-
itors."
l.. r. Vredenburgh, the special
deputy State banking Commissioner,
who is in charge of the bankrupt trust
company, was asked why the bank
ing department had not filed any
claim.
haven't done So" said Mr..
yfedenburgh, because we are at a
loss at present to know what amount
to file q claim for. We are ready to
file part of our claim, but it is better
to wait until we know the exact
amount to file a claim for"
In regard to Mr.. Kane's assertion
that the reorganization agreement
would lapse If the new bank was not
opened by December l, Mr.. Vredep-
burgh said:
II don't know anything about that,
but / don't believe such Is the case.
The new "oank can't possibly open by
December /, because II Will probably
be December Is before they get cons