Newark evening star and Newark advertiser., 1914-09-24
RAYMOND SMITH
PUT ON STAND
Continued from First Page.)

these notes were given to him in the
payment of premiums for liability in
surance, and that In order to pro-
tect their makers, he had never sur
rendered his dominion over them.
This, he claimed, had been effected
through special arrangement with
Smith. If this is sustained by the
court, McCausland will be entitled
to the full amount of the notes.
-Four directors of the refunct trust
company, Messrs. Odell, Mott, Fairlie,
Foster and Munroe, signed affidavits
declaring that this arrangement ex-
listed. A similar affidavit was pre-
sented to Smith, while he was in
Jail, but he refused to sign ii.
Smith, on the stand today conduct
ed himself with the greatest ease and
assurance and was theated with def
erence by the lawyers In the case.
The vice chancellor listened to what
he had to say with evident interest,
occasionally asking him a question
when an important point arose.
Smith denied that there had been
any special arrangement with regard
to the notes deposited by Mr. Nc
Causland but that they took the
course usually taken by commercial
paper. In his testimony, he said.
the fall of 1910 regarding accommoda-
tion. He told me that from time to
time he would have blocks of custo-
mers' notes representing premiums
for insurance. He couldn't tell how
much these notes would amount to.
| told him at the time that | knew
there would be no trouble because his
account with us would warrant GER
tain accommodation.
"He asked that he be allowed two
per cent. on his account, including his
notes and / told him that ii was not
customary to allow interest on bor-
rowing accounts. He said that If the
notes were not paid at maturity they
could be charged against his account.
l told him that that was customary.
"A great many times the notes he
deposited with us were made payable
at the Roseville Trust Company. The
others were sent through for coIlec-
ton on the day they were payable un.
less we received orders to the con-
trary"
In answer TO a question, the wit
ness said; 81 recall that at the time
Mr.. McCausland saw me about his
notes, he said that the notes would
never. at any time exceed the cash
balance to his credit.
II never made any special arrange
ment with him. / held the notes in
the same way I would hold the notes
of any other depositor."
Arthur J. Vanderbilt, representing
the trust company, asked:
did you do all the purchasing of
these notes or did you place the mat
ter before the directors?"
81 purchased all of them and then
submitted them to the directors" re-
sponded Smith
w. Howard Demarest, solicitor for
McCausland, brought UP the refusal
Of Smith to sign the affidavit madC
by his fellow directors Smith said:
'I refused to sign the affidavit be-
cause / could not conscientiously do
so. 1t did not in my mind truly repre-
sent the facts"
After Smiths testimony had been
given, the attorneys closed the case.
He was Immediately taken back to
Trenton. II was said that this is the
first of series of visits that Smith
expects to make to Newark, as his
testimony will be needed inr several
criminal prosecutions and civil ac-
tions growing out of the failure of
the bank. Argument will be made by
the lawyers in the suit later.