Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-22
'ROSEW[LE TRUST
PLANS NEW BANK
Continued from First Page.)

such a splendid business propositlon,
why can't they pay the depositors
100 cents on the dollar and start with
clean slate?
"As a matter of fact, the new bank
viii be a failure as business propo-
sition according to our view. II IL
does fail before the ldepositors draw
out their remaining twenty-five per
cent, what redress will they hayeY
AS stockholders the loss will ran
upon them.
1.-THE success of the organization is
entirely problematic. Our right TO
dollar-for- dollar settlement is clear
cut and definite and can be MADE
the basis of civil action"
The indemnity, according to the
present reorganization plan, will take
over all the assets and liabilities OF
the defunct Roseville Trust Company.
The depositors will be able to with
draw rs per cent. of their deposits at
once. The remainder they will have
to accept in stock, for which they
will be able to obtain the full pur-
chase price at the end of one, two or
three-year periods The length Of
time has not yet been fixed.
To further insure the success of the
institution, the depositors will be
urged to subscribe for stock of the
new bank an amount not to exceed
80 10 per cent of their total deposits.
The directors say that already a
fund of 5000, 900 has been deposited to
guarantee the transaction. Edward
D. Dunn has pledged 100000 and the
Depositors' Association, similar
amount. That is enough, they believe,
to make up the shortage of about
| 1878 900, and allow a working margin.
Raymond E. Smith. the alleged
wrecker of the Roseville Trust Com
! pany, today filed an answer to the pc
tition in bankruptcy against him. de-
nying that he is insolvent and asking
that he be dismissed as an alleged
bankrupt Smiths answer was pre-
scented today in the u. S. District
Court at Trenton, through his coun-
SELL Harrison p Lindabury.
In his answer Smith admits his
ownership of the Oakland Motor Sales
Company, at 80 Central avenue. East
Orange, and also admits that his debts
amount to $1,000. as alleged in the
bankruptcy petition against him. He
also acknowledges that the petitioners
against him are lawful creditors.
The treasurer and secretary of the
ruined Roseville Trust Company states
that instead of having less than
| twelve creditors, as the bankruptcy
petitions alleged. he has more than
| fifty creditors, but claims that the
value of his assets far exceeds the
aggregate amount of lawful claims
| against him.
Denies Conceaiing Assets.
| The answer contains Smiths denial
| of having committed an act of bank
ruptcy within four months of the fill
| ing of the petition on August IA last
by transferring any of his assets OF
attempting to conceal his goods from
his creditors with intent to defraud
them.
Smith also denies the allegation that
he absconded with the sum of 5000, 600
He states that he has not given any
creditor preference over another, mol
has permitted any creditor to obtain
a preference through legal proceed
ings. The bank official says that the
receiver of his estate appointed by the
United States District Court, has in
his possession enough money to pay
all legal claims and have a substan-
tial sum left over.
The banker also states that there IL
no cause for the bankruptcy proceed
| ings against him, and submits thai
! the court has no jurisdiction to gram
the relief asked for by the petitionine
creditors. Smith asserts that the
bankruptcy petition is irregular an6
| defective. because 1t does not present
| facts to warrant an adjudication OF
| bankruptcy.
| In concluding his answer Smith
asks the court for the same ad
vantage as If he had demurred the
bankruptcy petition. He also requests
that he be dismissed as an alleged
bankrupt with his cost and charges
most wrongfully sustained"
Dewitt c. Reynolds is president o.
the Newark Motor Club, but has nj
automobile. He had one once, bu'
intrusted it to the care of Raymond
| E. Smith, of Roseville Trust Com.
| pany fame, in the Oakland garage
in East Orange. and that is the las
| he's seen of 1t.
That was on August 5. Since tha'
time Mr.. Reynolds, though a leading
factor in the automobile life of tn,
city, has had to go afoot.
Time and again he has tried to gel
that automobile and time and agar
he was refused Then he retained
former Judge w Eugene Turton In
a last resort to get back his favorite
car, but so far even the former judge
has been baff1ed.
Attorney Turton appeared before
Federal Judge Joseph Cross in tht
United States District Court here
today with petition asking the
| Judge to turn the auto over to Its
owner.
| George Furst. attorney for Wilfre6
Roszel, receiver for Raymond e
Smith, was on the job, too, however
and opposed the granting of the APP
plication on the ground that Attorney
Turton had not proved ownership OF
| the car.
Judge Cross sustained this objection
and ruled that before he could order
the car turned over to Mr.. Reynolds
Mr.. Turton would have to prove alb.
solute ownership of 1t for Mr.. Reyn-
olds.
The matter will be taken up again
before Judge Cross at Trenton next
| Monday.
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