Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-17
SMITH IN COURT
ON HABEAS CORPUS;
HEARING DELAYED
Creditors Demand More Time TO
Prepare Answer to Bank
Officials Writ.
NEW REORGANIZATION
PLAN FOR R0SEVILLE
Directors Offer Solution of
Problems TO Keep from
Liquidating Stock.

the bankruptcy court To-Day On q VIII
of habeas corpus to fight against his
adjudication as bankrupt Bank
ruptcy Referee Edwin G. Adams sat
las special master to hear testimony.
The writ of habeas corpus was OBJ
ltained by former Assistant United
States Attorney Harrison P. Linda
bury. representing Smith. late last
night and because OF the short
notice George F'urst. attorney for the
petitioning creditors. was not pre-
pared TO conduct the examination of
the alleged bankrupt and the matter
was set over until October 81 The
referee warned both sides that they
must be ready TO go on with the case
at that date.
I Smith is being held in the Essex
county jail in default OF $4,000 bail
bonds on charges of enbezzlement
Iand forgery.
Hearing IL Delayed.
The case was scheduled TO be heard
at 1920. but the opening was delayed
by the arrangements for the payment
of the indemnity demanded by
Referee Adams before the bankrupt
could have his day in court. The in
demnity, amounting to $3.50. was pro-
duced by Attorney Lindabury today,
and. following the preliminary de-
tails, the case was called shortly
after II o'clock.
Smith appeared in court shortly
after 10 o'clock, attended by the at
taches of the -sheriff's office and
flanked by gallant array Of counsel.
The latter included, besides Mr..
Lindabury, who is looking after
Smiths interests in the bankruptcy
case; Frank NJ. McDermit. Of Nc
: Dermit & McDernlit, and Ernest c.
Lurn, of the firm of Lum, Tamblyn *
Collyer, the original attorneys Of
record.
Has Hnbens Corpus Writ.
Attorney Lindabury went TO Tren-
ton yesterday and secured - writ OF
habeas corpus from Fsdskai Judge
ReIlstab. Of the United States Districi
Court. requiring the warden of the
Essex county Jail. to produce Ray
mond E. Smith in the bankruptcy
court at such times as Referee Adams
. shall require his presence. The writ
will be effective until the determine
tion of the present proceedings OF
I the release of Smith from jail on
bail.
Attorney Furst opened the case and
| declared that the cost of the pro-
ceedings were not to be charged on
the State. He said he intended te
summon a number of witnesses and
> that the proceedings would probably
, take UP two weeks. He asked foT
the appointment of Wednesday. octo-
/. Der %, as a date for the argument OF
! preliminary motions on the answer tc
! the bankruptcy petition filed by him
This date was approved by Referee
2 Adams.
, Reorganization Pinn.
The present plan for the reorga MIA
:, ton of the Roseville Trust Company,
: il was learned bv the Evening Star
;, today is as follows:
/. Forty per cent. of the deficit is TO
be made up in cash by the directors.
, ?. Sixty per cent. is to be provided
by the depositors out of their deposits
of record. For that amount they are
\ to take scrip in the new bank.
3. The forty per cent. cash given by
the directors win be Immediately
! available for the depositors to with
I draw if they wish to.
4. Capital and surplus for the new
!. institution is to be provided Jointly in
. cash by the depositors and the diree-
tors.
The Burden of Proof.
THE creditors must prove that
d Smith committed acts of bank
: rIptcy," the referee said, before the
! matter of insolvency will be consid-
cred at all. There can be no dajudi-
9 cation until it has been proven that
Smith transferred or concealed his
assets to benefit certain creditors OF
committed other acts of bankruptcy
when this is accomplished the
burden of proof will shift to the al
legged bankrupt to prove his solvency
to prevent an adjudication"
Wilfred r. Roszel, receiver fol-
\ Smith, and Philip D. Elliot, attorney
for the appraisers who valued Smiths
property, were in court. prepared tc
offer testimony.
smith Is Worried.
Smith appeared decidedly worried
5 during the proceedings. He had lost
all his eare-free indifference that for
merly marked his attitude toward the
bank case.
Before he left the Jail to go to the
Bankruptcy Court he had a confer.
ence with his counsel. Frank NJ Nc
[ Dermit. and two representatives of 6
{ surety company. IT is absolutely GER.
= tain. however ~ at no surety com
c pany bond will be accepted by th'
= county authorities.
= Clifford F. MacEvoy, president o
[ the Depositors' Associa ton, said to
{ day that as soon as possible he woul,
s send out a circular letter to the de
positors advising them of the lates
d proposition and informing them tina
i it would be the last. II II is not ac
: cepted, he said, the bank will have t,
e go into liquidation.
May Ask for $4,000.
Il Are you contemplating asking Ed
: ward d. Dunn for the 900 he sal,
q he would give, provided the other di
0 rectors gave equal amounts?" MI
4 MacEvoy was asked.
f II should be glad to receive tn
e SEQ 0oo,s he said. 1T would be grea
help"
r 1t is understood. however. that tn
{ greatest drawback to the presen
e plans is the fact that several of tn,
r directors are not willing to con
: tribute
f Charles c. Zurich. one of the di
rectors, was asked II he had con
= tributed.
: "If 1t wasn't for giving the de
: positors a chance" he said. =
: wouldn't pay up two-cent piece. IL
q let the whole thing be shown up II
fCoutfnued nm Pare 2 Colunen ~