Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-30
CRIMINAL ACTION
: IS THREATENED BY
BANK DEPOS|TORS
t0ne Week to Make Good ShOrt=
age, Is Ultimatum OF Pro-
tective Association.
DEFICIT NOW REPORTED BY
EXAMINER AS S45O,0OO
State Banking Head Demands
That $5oo,ooo Be Paid In
Before Reorganization.

Speedy criminal action in the loot
ing of the Roseville Trust Company
was threatened today by the Depos1-
tors Protective Association.
The directors will be served with
an ultimatum giving them one week
in which to make good the shortage.
The actual amount of the deficit is
about $450,000.
The association will be represented
by the law firm of McDermit & NC
DerInit After a conference which
was held this morning, Frank M.
McDermit, jr., made this statement:
"a committee of the Roseville De-
positors' Association, of the Rosevllle
Trust Company, composed of Michael
Kane. jr., and Justice Henry b.
Towers met today at the law off1ces
,of McDermit & McDermit to dis
cuss what action should be taken
against the directors of the defunct
Roseville Trust Company. AFTER
lengthy conversation with Frank M.
McDermit and Frank M McDermlt,
ir., the Depositors' Protective AS
sociation have decided to give the di-
rectors one week more to pay up the
deficit and if they do not pay up
within a weeks time, warrants will
be issued for all of the eighteen di-
rectors on criminal charges.
To Demand Statement
A statement as to the exact finan-
. cial condition of the wrecked oank
will be demanded from George M. La
Monte, State commissioner of bank
ing and insurance. A committee COM
posed of Mr. McDermit, jr Mr.. Tow
err Mr.. Kane and A. w. Edelmeyer
will call on Mr. La Monte tomorrow
Both Mr.. Edelmeyer and Mr.. Nc
: Derinit, jr., are heavy depositors IN
the Roseville Trust Company. Their
combined deposits are more than
$4,000.
L. r. Vredenburgh, deputy State
commissioner, is understood to nave
named $450,0OO as the amount of the
shortage in an oral report given
Commissioner George La Monte yes
terday at the offices of Pitney, Hardin
& Skinner.
The loss may actually be more, be-
cause all the passbooks have not yet
been checked up. Discrepancies be-
tween the accounts recorded in pass
books and those in the banks own
ledgers have been responsible for SO
large an increase in the previously
estimated shortage of $S5S,OO0.
Mny Defeat Reorganization.
The largeness of the deficit may de-
feat the proposed reorganization.
, Commissioner LaMonte has already
refused to sanction the scheme until
$780, 900 has been put up as guar
antee.
"I must have further particulars,
Mr. I,aMonte said today. Il shall
have to have more definite informa-
: ton before I sanction any reorganlza-
ton. / expect an answer from the
directors tomorrow.
.'The success of the reorganization
depends entirely in having the prom
= n.
The directors have pledged $500, 900,
and the depositors are supposed to
have agreed to subscribe 100000
more Even that win, leave little
. working margin, it is thought, for the
proposed Indemnity Trust Company
to start business on.
'I am for the reorganization" Mr..
LaMonte continued, "for | believe IL
is the only possible and feasible
scheme for giving the deposltors
their money. The directors must
protect the depositors.'
County Detective Alfred j. Har-
. gan, of the prosecutors office, visited
the bank today It was rumored that
he was preparing list of names OF
witnesses to be subpoenaed for the
grand jury Investigation directed by
Chief Justice Gummere.
Demands Cash.
Mr. Vredenburgh however, said
that the detective was not there for
: that purpose. but on other business
connected with the criminal action
In the bank failure.
Some of the depositors are ad-
vancing a new reorganization scheme.
Their propositions is that the di-
rectors turn over to them the assets
of the defunct institution and $780,
900 or $500, 900 in cash. Then the de-
positors would elect their own board
of directors and continue the busi-
ness of the trust company.
Edward ID. Dunn, the prime mover
among the directors in the reorgani-
zation negotiations, has not returned
from Washington.
A report was circulated in the
Roseville section last night that de-
positors of the defunct trust COM
pany were being paid off. A crowd
"of two hundred eager depositors gath
cred at the bank building, Roseville
avenue and Orange street. When
they found that they could not draw
their money they made such a demon
stration that the doors of the insti-
tuition had to be closed. The bank
was open for the purpose of receiy-
ing ma agSbOOkS