Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-11-21
]. SMITH, JR., ASSIGNS
PROPERTY TO TRUSTEES
He Also Resigns Presidency of Fed
cral Trust Company OF
Newark.
STATEMENT BY COMPTROLLER
John SHELTON Williams Tells of Pre-
cautions Taken by Banks to Make
Themselves Especially Strong and
Ready 10 Meet Any Demands.
ISnocial to The Times Dispatch.

NE NE(sf& TO H"e I"G NoI W,nrS'S" 10
James Smith. Jr.. depoScd Democratic
boss of New Jersey. resigned to-day the
presidency of Ia" Federal Trust :,om-
pany of Newark and turned over all his
assets 10 trustees. This was accom-
plishcd under pressure of the Federal
banking authorities To say. a situation
that might have brought disaster to a
score Of banks i'm New Jersey New
York and Philadelphia
Smiths Liabilities, AZ nearly as the
Federal authorities could ascertain OF
the hasty examination OF his tangled
affairs, approximate. $l.55o.0no. y large
part OF this consists OF notes of Smith,
rs an individual or Of the companies
which he controls.
The names OF Peter Hauck. Sr.. mill
lionairc brewer, of harrison y. j.. and
Gottfricd NrUogor. brewer OF New
ark, app"an rs iudorsors Of much of
this paper. Smiths daughter. Eliza
beth, married Peter iiauck, Jr.. and
his son. Jam"s smith, Ill. married
Kruegers daughter. Krucger has been
in Berlin since h.for" the war.
Endorsements on about 100000 OF the
paper Smith has deposited in various
banks have been questioned by tho
Federal examiners. and its value re-
mains to u" determined. How much
more OF this paper is outstanding is
also unknown. since tho Federal au-
thoritics found that Smith himself
could not toll. Nor could the exam
imorS tell from their books the exact
condition "f Smiths corporations. whose
notes were in the banks
NO ACCURATE. ESTIMATE
or ASSETS VET POSSIBLE
With these compiled tiorS-- admitted
by Federal examiners to he one of the
worst situations with which they have
ever had to dcal--no accurate estimate
OF assets could hc made to-day
The bankers who volunteered 10 act
as trustees for all creditors believe.
however. that Smiths debts Will he
paid i'm fun.
\ week HEo last Friday. National
Bank Examiner II. c. Hanna, in charge
Tor Northern New Jersey, reported to
Comptroller John Shelton Williams dis
coNcrieS lie had made as TO tho char
acter or som" OF the Smith paper In
National banks. He believed that Smith
was badly oNereNtcltdci, and that trou-
bic Nigh, result.
comptroller Williams communicated
immediately with Charles Starch. chief
national bank examiner and yi..-rb,ir
man of tn" Federal Reserve Rank of
Ne" lo'k. ON the same day-i'rid,y--
NJ Starek began an investigations in
banks in New York holding Smith
paper Ills discoveries caused Kim to
summon nest dav to his Office in New
hofk me thrc" leading bankers OF New
rcli' MesSrs McCartor and Scheor
as PRESIDENTS, r,Spcctv.ly, of the III
heiltN Trust aud the Union National
represent ia" banking interests of the
Iruuental life Insurance group.
ne Were told that tho situation
".itu '"' prompt but secret action. In
"r"rr TO prevent possible run on ali
OF the banks OF Newark There ha;ur
no clearing house in Newark II 10
''opt" on group Of bankers to act
Tor the common interest
,.,n,i., A".nlNer Starek's revelations
smith credit has been good for any.
'hlh" ho pH, his name on Ia x,s
supposed 10 bc worth $4,000. 600 ,rh,.
to"tu lno"Tscments Of the two wealthy
n'tW'rS, relatives by marriage, made
INC smith paper acceptable auywhcra
But IN" committed was tnII H.,
Sthrtk that more than 100000 OF
smith rapc! was Included in tn. as
scis OF tn" Federal Trust Compnny of
"hich smith was president Although
Et % va" paper Endorsement of
WH!'l was an question. appcarcd j.,
SmlthS own bank. tho committee was
told thHt Joint action was i,up.ra,ivo
!" save N" Federal Trust and pre-
serve confidence ia the community
Comptroller Williams Insisted that
a,'!'',' "hairs should he taken in hand
- V"'e' ai" tina ~ - nae; one creditor
or group of creditor. .s!rsiild an,. nrof.
eTeHc' 10" given. Smith plcad.d ror
Time but chief Examiner S,nrcl, in
sisted that there should be no d.lav
IN cHttting q trustees hip. SATURDAY a,
'"e C'oS' OF bhh"ing hours was selected
rs IN" tim" less likely to resul, i'm ,
disturbances al q
At noon to-day the directors Of ,no
Federal Trust Company me, Sni,h
agreeing. the board asked tho commit.
zee OF bankers 20 take charge Smith