New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-21
SHORTAGE IN ROSEV|LLE
TRUST NOW S35S,0OO
Estimate of Deputy OF New Jer-
sey State Banking Depart
ment DiSmayS Directors.
SMITH STILL AT LARGE
Jump in Probable Deficiency
Gives Pause to Plan for
Making Good Losses
Of Depositors.

Exceeding the highest estimate mads
since the first disclosures came. the
shortage found I'm the Roseville Trust
Company. Of Newark, which was closed
by the State Banking and Insurance
Commissioner week ago to-day. il
1858. 600 This is the sum which repre-
sents the deficiency as reported by
Larue r. Vredenburgh, a special deputy
OF tho State Banking Department.
Tho announcement was shock 10 the
directors. stockholders and depositors
who had expected that the deficit would
not be as great as had been predicted.
Plans were on foot for rehabilitation
OF the bank. but IL IS probable they will
he abandoned n there is any resump-
tion OF business II will probably be as
branch OF some other bank.
Nh. Nredenburgh said yesterday:
Counting the assets OF the institution
found in the companys files at book
value the capital. surplus and profits OF
about $4,000 are wiped out. and in ad-
dition a loss TO depositors OF about ,l69.-
600 is indicated. The total deficiency.
therefore. appears 10 be S35S.00o.
In that estimate no deduction has
been made from tho face value Of the
notes for losses thereon in collection. In
addition 10 the assets found In tho files
~ the institution. largo volume or
notes. mostly past due. we're found in
Mr. Smiths desk. and hasty estimate
indicates a value therein OF about S25.-
o00 II those notes belong 20 tho trust
company. whatever can be realized
therefrom would reduce tho said Sl69-
900 prlma facie loss to dcpositors.
mo attempt has yet been made 20
ascertain the responsibility OF those per-
sons whose names are on those notes or
the value OF the collateral held against
some notes. but inquiry into these mat
ters Will be the next step In the under
taking. Whatever may be recovered from
the surety on the treasurcrs bond or
$4,000 is not included in tho foregoing
estimate OF loss. as the surety company
has not yet admitted its liability"
William +. Odcl, president. William
Fairlic. yice-prcsidcnt. and other direct
ors Of the bank had consultation with
Mr.. Vredcnburgh. and announced after
ward that there would be a meeting OF
the full directorate Nltnln Il udN or TWO
when IL was probable a definite statement
would be made rs to what tho directors
would do
A few days ago they expressed the dis
position TO make good whatever short
ages were disclosed but II was admitted
that the unexpected Jump in the total or
the deficiency made IT urgent that another
meeting bo held.
When Mr.. Nrcdenburgh was asked last
night II the officials OF the trust company
could be held liable for tho loss Of tho
concerns money, he said.
"Ofcials-that f.. the directors and
stockholders Of the bank-cannot be held
accountable for the loss. unless they can
be shown 10 have been grossly negligent
The stock is worcestershire. Therefore
the shortage falls upon the depositors."
Meanwhile the hunt for Raymond T.,
Smith. tho missing secretary and treas
urer. against whom there are two criml-
nal complaints, is going on. without re-
suit The belief OF the Newark police.
however. is that Smith is In hiding either
I'm Newark or New York, and, with
knowledge Of the findings by tho bank
experts. will decide To give himself up as
soon as he can find sufficient ball bonds.