Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-02
REORGAN|ZAT|ONOF
BANK HIT BY DUNN
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knowledge that all of the board had
not agreed to sign the note.
1.-THE reopening of a bank, accord
ing to the present plan, in my judg-
ment and in the opinion of bankers
have consulted, would mean GER
tain liquidation. I most emphatically
will not subscribe money to a plan
that is not for saving of the situa-
ton. / oppose the trusteeship of the
three trustees for the directors fund,
and propose that the bank be trus-
tee and that the fund be automatical-
ly turned in to a definite reorganiza-
ton corporation by a specific date, or
turned to any other purpose agreed
ON by the subscribers, but the pres
ent agreement was carried in spite
of my opposition.
my many visits to Commissioner
LaMonte kept me in direct touch with
the probabilities of a new bank re-
opening with favor and the commits
sioners expression of satisfaction and
suggestion of his support to some of
the former plans proposed. made such
plans advisable to work on.
For an entire month after the
Roseville Trust Comany closed,
worked untiringly day and night
the bank, simply because I felt a
bank could be opened with success
on the corner and could save a great
loss of depositors that would occur in
liquidation. l worked because / was
able and willing to do a great deal
towards the reopening of the bank,
and l felt that as l was one of the
directors at the time that the insti-
tuition closed that it was my duty IL
do everything possible to save any
loss to the community.
MY first plan proposed included re-
payment in some degree to the stock
holders as we'll as full payment to the
depositors. I would like to make it
very clear that | bought my stock at
a higher price than the market value,
and / was a director only eighteen
months when the bank closed, and
the bank, when l was elected director,
was not in clear condition, and the
irregularities | have learned recently
existed at the time of my purchase of
stock and election as a director. l
most assuredly feel that l have q
claim against somebody for allowing
such a condition to exist in a bank,
and for me to so innocently be al
lowed connection with such an insti-
tuition. never knew of the letter the
banking department sent three years
ago, asking for the resignation of Mr.
Smith, until this bank closed.
II further refuse to shoulder re-
sponsibilities of others who were
connected with the bank when it got
into the condition that forced its
closing, and the subscription list does
not include all the directors that
officiated on the bank at the time
1t came into the unfayorable condi-
ton which was so successfully COW
cred up.
II am anxious to do everything pos
sible to have the depositors protected
and repaid in full, and | want the
ones responsible to feel the RESPONSE
bility and take the interest financial
ly. and any other way encountered
upon them to take at this time.
However. / most certainly do not
feel responsible to the slightest de-
gree for the closing of the bank, as
1 never missed a meeting nor a duty
at the bank. only when I was sick
or out of town. which were very few
times. | worked hard for the bank,
having my own friends open accounts
there. and carried one of the largest
accounts in the bank during my con-
nection with it.
II repeat, however, | feel an active
interest and responsibility of stick
ing to the proposition to do every
thing for the protection of depos-
itors.
According to the opinions that I
have consulted, the only feasible plan
of reopenng at this time would be
direct contributions to fund to
make up the deficit. and make ar
rangements by a joining of every
body concerned to contribute to the
deficit. and start an entirely new
institution with unhampered articles
in it's subscription list, and speaking
only of taking over the good assets
of the bank, and saving the usual
percentage of loss in good paper,
and saving the cost of liquidating
good paper in the bank.
'I also wish to say that threats
of suits do not concern me in any
degree, as such suits could be easily
cleared by the presentation of facts
of my standing in the case. and they
viii not influence me in any way to
give up the interest and desire / have
in seeing that the depositors are pro-
tected.
From the start ] have advocated
absolute frankness with facts about
the entire condition as it progressed,
and / have given the facts to Mr..
Weber. of the Evening Star. as I
have them all the time.
When L. r. Vredenburg, deputy
banking commissioner in charge of
the defunct institution, was seen at
the bank this afternoon and told of
Mr.. Dunn's statement, he was at once
interested and protested his belief
that criminal negligence would be