The Washington times., 1915-11-21
JAMES SMITHS DEBTS
PUT At s1,75O,OOO
Former U. S. Senator From New
Jersey Hopes to Pay Them
in Full.
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CONTINUED from First Page.)
Of the Essex County National Bsnk-all
OF Newark-and. In an advisory ca
ssc ssscity. WaitfT r Albertson. Vice presi-
dent or the Mechanics and Metals Ma
tional Bank OF New York.
= A week ago last Friday National Bark
Exe miner II. q. Hanna. IN charge for
troller John SHELTON Williams discoveries
ne had made as to the character Of some
OF the Smith paper In national banks.
Comptroller Williams communicated
national bank examiner and vice chair
man Of the Federal Reserve Bank Of
New York. On the same day Starch
began an irvestigatlon In banks In New
a.,r Yask i, holding Smith paper. III. diseoy-
leading bankers OF Newark.
Prompt and Secret Action.
They were told that the situation
called for prompt but secret action, in
order to prevent a possible run on nil
OF the banks OF Newark. There being
no clearing house In Newark, II dcvolyed
upon a group Of bankers to act for
Chief Examiner Starek's revelations
astrnished the Newark bankers. For
wears Jim Smiths credit had been good
for anything he put his name on. He
~aS ruDtONeu 10 DC worm The
added Endorsements OF the two wealthy
brewers> relatives by marriage, made
the smith paper acceptable anywhere.
But the committee was told bv Starck
that more than $4,000 OF Smith paper
was included In the assets OF the Fed
eral Trust Company. OF which Smith
was President. Although none OF the
paper. Endorsement OF which was In
question. appeared in Smiths own bank
the committee was told that Joint ac-
"a a a ItVNE. NlNF 90 - N-I-
Trust and preserve confidence In the
community.
Smith Pleads For Time.
Comptroller Williams Insisted tina,
Smiths affairs should be taken In hand
ut once. and that to no one creditor OF
group Of creditors should any prefer.
ence be given. Smith pleaded for time
but Chief Examiner Starek insisted
that there should be no delay In effect.
Ing a trusteeship. Saturday at the Close
OF banking hours was selected as the
time less likely to result In a disturb
| ancc.
At noon yesterday the directors Of tn,
Federal Trust Company met In Newark
smith agreeing. the board asked tho
committee Of bankers to take charge
smith offered his resignation. and Il
| was accepted. and the meeting ad
lourned until late last night to give tim.
!
eral Trust Company's books.
| The companies whose paper Is in
volyed in the financial collapse OF th'
eex.boss are J; H. Halsey & smith
large leather manufacturing concern,
Of Newark. In which Smith laid tn,
foundation of his fortune. The onl,
other corporations In which Smitf
tiser Publishing Company. and tn,
Improved Realty Company.
Crippled By His Newspapers.
The burden that has crippled Smith
financially is his newspapers, tn,
Newark Evening star and the Newarl
Eagle. For years they have been main
tained AT heavy loss--Sloy. 900 to S2D 90
a year-as organs Of the Smith -Nugcn
Democratic machine. Smith has beer
weslthiest Democrat In the state. h,
could not escape Even facing the pres
ent situation, he gave $500 to th'
The Federal Trust Company. will
| $4,000 deposits. was the only financia
institution in which he was interested
! Allied with him was a strong board o
| directors. which included his son-in-law
| Peter Hauck. jr., and Gottfried Kruger
| Other directors are Hamilton i. kean
brother OF the late John kean, forme
| United States Senator, head of tn
banking firm of Kean. Taylor & Co
New York: Arthur c. Hensler. treas
urer Of the Joseph Hensler Brewing
q Mcdonnell. William II. Kellnerr
Louis Plaut, OF the l.. S. Plaut & Co.
Chester r. Hoag. of the Whitehead
| Hoag Company: James Il. Bathgate
| Jr, treasurer OF the John Darlinj
Company importers. New York; Thoma
J. Maloncy. president Of the p. Lori
lard Company: william Bittlcs. presi
dent OF the Wagner Pastry Company
| Edward r. Mcguire, treasurer OF tn
| EederAl Trust COMPANY and DE- Well