Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-26
WRECKED TRUST
COMPANY WAS A
HEAVY BORROWER
Deputy Vredenburgh Admits
Large Amount of Collateral
Was Hypothecated.
SYSTEMATIC LOOTING
OF INSTITUTION SHOWN
Large Proportion of Intact AS
sets Consists of "Single
Name" Paper.

The thoroughness with which the
Roseville Trust Company was wrecked
was emphasized today by the revela-
ton that it had borrowed heavily
from other banks.
L. r. Vredenburgh, deputy commits
sioner of banking and insurance, ad-
mitted today that a large amount of
collateral had been hypothecated.
This, added to the fact that an un-
usually large proportion of the intact
assets are what is known as single
name" paper, is further evidence of
the systematic looting of the insti-
tuition.
Mr.. Vredenburgh was asked by an
Evening Star reporter today whether
the Investment securities, commercial
paper and collateral for notes were
intact
My instructions from Mr.. La
Monte" he replied, "are to give out
the net amount of shortages until
such time as the investigation is COM
pleted, when a post lnortem will be
issued. However, 1 have given out
all | can In the past and shall con-
tinue to do so.
Pledged with Another Bank.
"In reference to the question you
asked, the investment securities are
pledged with another bank for a
loan"
He refused to name the institution.
1t Is understood that the trust COM
pany was borrowing money largely;
Mr. Vredenburgh admitted that the
bank had overplayed itself in respect
to lending money. 1t carried more
single name" paper than the average
institution OF it's size and many of the
notes, according to rumor, are next TO
worthless.
"The collection of notes and the
protects of assets" Mr.. Vredenburgh
pointed out, ARE to my mind more
important Just now than holding a
post mortem.%
1t is understood that by quick ac-
ton and hard work he has collected
on some notes that did not have a
very good appearance at first.
A clash between the directors and
the bank examiners is probable to-
morrow morning, when Edwin II.
Roreback of New York, appears at
the institution to conduct an inde-
pendent audit.
The banking department. It is ex-
pate in the examination.
1--WE have retained Mr.. Roreback,
who is bank expert to go over the
books" said Edward D. Dunn, one of
the directors, because we think that
the trust company can still be saved.
1t can't, however, If three months are
allowed to elapse before we know just
where we stand. Mr.. Vredenburgh
says it will take at least that time
before he is able to issue statement.
"Our idea is that an auditor work
ing continuously on the books would
be able to furnish a statement of the
condition of the bank that would en-
able the directors to reopen the instf-
tuition more speedily than can be the
case were the examiners delayed by
II is imperative that
a statement should be given very
soon if the bank is to be reopened."
The directors of the trust company
are still unable to reach an agree
ment as to subscribing fund to pro-
tect the depositors upon whom will
fall a large part of the deficit, which.
at its lowest, will be $37S,000.
After a meeting behind closed doors
last night, Harry w Foster, second
vice. president, announced that no de-
cision had been arrived at.
THE depositors are very much sur
prised that the bank directors did not
employ Burns or Pinkerton detectives
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