Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-24
REORGANIZATION PLANS OF
LOOTED BANK ANNOUNCED
6contInued from FIRST Page.)

positors OF the Roseville Trust Com
pany when the plan becomes opera
tive and the new bank opens. Al
that these two directors are to re-
ceiye is a release from any liability
on account of the claim of negligence
on their part during their connection
with the trust company.
THE counsel who formulated the
plan now being submitted to deposit
tors found early in his consideration
of the matter that some method must
be provided for having the capital OF
the new bank paid in in cash. To ask
the depositors to put up this cash
would have imposed upon them a
heavy burden. The only source avail
able was to obtain it from some of the
old directors in return for a release
from liability. Ralph Z. Lum, acting
for the directors of the Roseville
Trust Company, obtained the assur-
ance from two directors that they
would provide this money; and, after
necessary delays in the preparation of
agreements and the selection of de-
positary, the sum of $4,000 was paid
: in. Immediately thereafter the new
bank was Incorporated and the bal
ance of it's stock, five thousand dol
lars, paid f9r by the individual incor-
porators and directors. Under the
law, directors of a bank must own and
: hold in their own right at least five
s shares of its stock.
Success with DepOsitors.
THE success or failure of the new
plan lies entirely with the depositors
1t is practically certain that, granted
the favorable action of the depositers,
other steps necessary including the
obtaining of the approval of the
Court of Chaneery, will involve no
great difficulty. although they will re-
quire time and effort upon the part of
those who must conduct the same.
s. THE new bank win be owned and
controlled entirely by the depositors.
ssThe directors who have consented to
sct are as follows: Wallace G.
Hooper, Clifford f. MacEvoy. Mar
shall N. Shoemaker. Arthur VOTERS,
Fred III. Highly, Elwood S. MacNabb
and Frederick Bowden. The officers
are: President, Elwood S. MacNabb;
vice president, Fred II. Highly;
cashier, Frederick Bowden. Should
the plan become effective, there will
be appointed as cashier a thoroughly
competent and experienced bank
man, satisfactory to the commissioner
of banking Mr.. Bowden having con-
sented to act only until it is deter
shall open. An election of directors
s will be held on the second Tuesday in
january, and a new board of direct
= may then be selected by the new
'sholders 0being the depositors of
seville Trust Company if 1t
ed
Sstion for the depositors to
IA heir own minds with refer
\ this plan is a very simple
eiey may sit back, let the hqui-
ego on through several years
kield then. as estimated by the
special deputy commissioner, not over
az per cent of their deposits, and wait
and hope for the balance of their
claims as the result of suit against
the directors. Such suit, involving,
as it would, about 100000, would be
expensive and long delayed. The out
come of which suit and the ability of
the directors to pay the Judgment
found need not be discussed at this
time. On the other hand, if the de-
.positors accept the offer made by the
new bank acting for them, they will
have all of the assets of the Roseville
Trust Company, all claims against di-
fectors and others turned over to
them as owners of the new bank; they
will receive g, deposit balance on the
books of the new bank to the amount
of 40 per cent. of their claim against
the Roseville Trust Company: this
balance will be subject to check, when
the bank opens for business. in the
same manner that any bank balance
is available in any going institution;
In addition to the bank balance they
will receive their psroportionate share
of 450. shares of the new bank, which
$50 shares are paid, for and worth at
least $3.50 In liquidation the de-
n form of
5ividends extending over a long
period their proportionate share of
the assets when realized. Under the
proposed plan they will receive 40 per
cent. of their claim in a live bank
balance and their proportionate share
Of the assets of the new bank in stock
Of the new bank which has been paid