Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-22
-, INKS
REORGANIZATION /.
MAY Be OPPOSED
RnmOred That State Banking
Department Might Refuse
TO Permit Plan.
DIRECTORATE CHANGES
MAY BE DEMANDED
Banking Commissioner Must
Pass Upon Officials Before
Business Is Resumed.

While the directors of the looted
hoseVllle Trust Company were plan-
hing 10 formulate definite reorgani-
zation scheme at a meeting this
evening, the impression grew among
the depositors today that the State
department of banking and insurance
would never sanction the reopeninp or
the institution unless the list of offi-
GERS ana directors met with its ap-
prevail
lhat TINS could be the case with
the present officers and directors is a
doubtful question, for these reasons:
l. The directors retained RAYMOND
H. smith as secretary and treasurer
after the department of banking ana
insurance had directly and emnhati-
cally ordered his dismissal three
years ago.
Sees Gross Negligence.
= The shortage of s35s. 900 is more
than half the total deposits and
twice as much as the combined cap
ital and surplus. That one man could
succeed in causing such a shortage
without the connivanee or gross nee-
ligence of the officers and directors
is hardly credible except in the case
of abstraction in large sums. Dep
uty Commissioner Vredenburgh has
expressly stated there was no abb
straction apparent.
The directors are confident. how-
ever. that If they can raise a fund
suff1cient to secure the depositors and
In addition, provide 800, 900 to replace
the wiped-out capital, they will be
allowed to reorganize
These are the conditions that II il
understood the banking department
will require.
Change OF Directorate.
There is, however, a strong feeling
among the depositors, many of whom
would like to see the reorganization
accomplished. that 1t will fail in the
end unless the personnel of the direc-
torate Is changed.
Commissioner La Monte will have
the power to pass upon the officers
, by virtue Of this provision in the
banking act of 1913:
. Such trust company may, with the
consent of the commissioner. resums
business upon such conditions as may
be approved by him.
Edward ID. Dunn, the young real
estate man and director in the coll
lapsed institution, today told of the
plans formulated by himself and a
few other officials of the bank, nota-
bly, President William p. OdelI and
Vice-President William Fairlie. for
the rehabilitation of the trust COM
pany. He declared that Liquidation
or the bank would prove a catastrophe
TO the commuters and small trades
men OF Roseville, and that being fully
aware of this he and his colleagues
nave determined to do everything
possible looking toward a reorgani-
cation of the institution.
Liquidation Would BE Costly.
After conferences with officials of
the State banking department" said
Mr.. Dunn. Il discovered that IL the
bank was liqudated the deficiency
would be at least $4,000 more than
now appears This would mean that
the bank would be cleaned out almost
entirely and depositors would be
lucky If they recovered 25 cents on
the dollar. This would mean ruin
to most of them.
1.-THE present plan of the officers
and directors is to induce everyone
to put his shoulder to the wheel and
help. To this end the directors meet
ing that will be held at o'clock this
afternoon has been called. At this
meeting we shall have a showdown
and 1t will be learned what directors
| e.
Mr.. Dunn would not say that some
of the directors have evidenced al
inclination to dodge the issue, but it
is pretty generally understood that
some of the board, convinced they
are not legally responsible for the
shortage are willing to let events
take their own course regardless of
who proves the sufferer. Mr. Dunn
believes that 100000 would put the
bank on its feet again. Seventy thou
sand has already been pledged by
Messrs. Odell, Fairlie and Dunn and
they feel that it should not be hard to
secure the rest
Questions Directors silence.
H. NJ. Van SAINT. speaking for ths
Deposltors' Protective Association.
said:
"As chairman of the depositors'
meeting. held last Tuesday morning.
/ expressed the belief that the irter-
ests of the depositors would be best
served by waiting patiently until an
official report of the condition of the
Trust Company had been made pub
lie and not by hurried or drastic ac-
ton
ut is reassuring that three of the
directors have agreed to pay $70,00J
toward the deficit, but the depositors
and public are asking why every
other man in the board does not now
show the same high sense of respon-l
sibility by signifying a willingness
to do likewise according to his finan-
cial ability"
Defends Miss McCarrick.
In a statement issued this morning
by George Spottiswoode, head of the
family of that name, and one of the
best-known citizens of Orange, he
makes an explanation of the presence
of Miss Anna McCarrick's photograph
in a watch-case found among the pos
sessions of Raymond E. Smith, the
missing treasurer of the RosevilIe
Trust Company, and Mr.. Spottis-s
woode publicity vouches for the char
acter and integrity of the young
woman who is prostrated as a result
of the notoriety given her in the past
few days. With the appearance in
print of Miss McCarrick's name Mr..
Spottiswoode started searching In
vestigation, as the young woman has
been employed in his household for
many years and in his own words
was respected and treated as a mem
ber of his family.
"And she is welcome 10 return to-s
day or whenever she desires to con-
; tinue her work with u.s. said Mra
Spottiswoode this morning. 81 will
personally vouch for her character
and integrity. Why she has been as
a member of my households she has
been an associate of my daughter and
has had her place at our family.
table All this talk started abort
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