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Jury Questions ENB Vice President NEWARK — a Federal Say Mrs Plans Dropped for Dumping Ammo Off Coast "^ ^-^ SEE StORDES WSJOfa ** , - '•• Sunny, Warm Sunny and warm today. FINAL Cloudy, mild tonight. Warm, chance of rain tomorrow. Bed Bank, Freehold EDITION (Bet DetUU. Firs 21 Long Brandt J Monmouth County's Home Newspaper for 92 Years VOE. 93, NO. 38 RED BANK, N. J., WEDNESDAY, AUGUST 19, 1970 22 PAGES TEN CENTS Jury Questions ENB Vice President NEWARK — A federal say Mrs. Kennedy was a part- by 1977. It carries a clause custom swimming pool, is as- comment on the nature of the grand jury investigating the ner in a real estate concern stipulating that, if a payment sessed at 76.5 per cent of questions. alleged misapplication of $5 with Sdiotte. is not received within a 90- valuation in a neighborhood Mrs. Kennedy, wearing a million of funds of the defunct Holds Mortgage day period, the entire princip- where homes are said to be green checkered dress, ar- Eatontown National Bank Meanwhile, Mr. Schotte's al will become due. valued at $75,000. rived at the federal building questioned the bank's attrac- attorney, William H. Frank, Mr. Frank said that his Mr. Frank declined further and waited in the corridor un- tive blonde vice president for said that he holds a mortgage client is aware that there's comment about his client. til she was ushered into the more than an hour yesterday. on his client's home as part of "reasonable expectation" The government's in- jury room for her hour and 10 Mrs. Betty Kennedy, 35, a retainer agreement. that the case will continue for vestigation turns today to the minutes of testimony. Ocean Township, who also "It was a normal lawyer- some time. "No one knows at status of the bank's stock bro- Jonathan L. Goldstein, an served as the bank's cashier, client transaction based on a this time how many civil as kerage accounts. assistant U.S. attorney who is declined comment about her retainer agreement drafted well as criminal actions there U.S. Atty. Frederick B. La- chief of the criminal division, testimony. Her lawyer, Mat- this week," said the Red will be," Mr. Frank com- cey was expected to meet put the questions to the wit- thew Boylan of Red Bank, Bank attorney. mented. with Kevin Duffy, regional nesses. would only say that he did not Mr. Frank said he was re- The mortgage is the third administrator of the Secu- Representatives of stock expect her to be called again. tained on Aug. 6, the day be- on Mr. Schotte's Lincroft rities and Exchange Commis- brokerage firms who ap- On Aug. 11, the bank's pres- fore the bank was closed. home since he bought it in sion, to discuss the bank's peared were William Gold- ident, Douglas J. Schotte, 39, Mr. Schotte received a 1961. An initial mortgage with stock investments. enbaum of New York City, a was arrested and charged $36,000 mortgage on his home the Merchants Trust Co., Red Besides Mrs. Kennedy, oth- vice president of Bache & Co., with misapplication of $5 mil- from Mr. Frank on Monday. Bank, for $20,500 was can- er bank officers, representa- Inc.; Thomas C. Meehan of lion in the bank's funds. He The agreement, filed in the celed in 1964. tives of brokerage firms and Merrill, Lynch, Pierce, Fen- was accused of using the office of the Monmouth Coun- In December 1963, he took an official of the firm that au- ner & Smith, Inc., and James money for stock market ty Clerk in Freehold, requires out a $24,000 mortgage with dited the bank's books were Barbi of Herold, Kastor & transactions in the New York $18,000 to be paid to Mr. Progressive Life Insurance called before the grand jury Gerald. — New Jersey area. Frank by 1975 without inter- and it still exists. yesterday. Also testifying was a repre- Law enforcement officials est and the balance to be paid The property, including a Federal authorities declined (See Bank, Pg. 3) ENB Checks Will 'Bounce' By JANE FODERARO Moreover, a three-man de- tive director of the associ- $ bank in which it was depos- FDIC officials today were BLONDE TESTIFIES IN BANK CASE — Mrs. Betty Kennedy, 35, vice president EATONTOWN — Checks legation of the N.J. Bankers ation, said last night, "This is ited,- then it will go to that apparently trying to work out and cashier of the defunct Eatontown National Bank, arrives at tfie Federal writteir'on the Eatontown Na- Association yesterday met an extraordinary, once-in-a- baiik's depositor (a landlord procedures so that the checks Building in Newark where she testified for an hour and 10 minutes before a tional Bank that presumably with the FDIC, officials at the million situation . where or grocer, for example) who, could be stopped early in the Fed and the Controller of the customers of other banks will in turn, will give it back to irreversible chain. federal grand jury probing the bank's business activities. With her is her lawyer, cleared just before the bank was closed on Aug. 7 will be Currency to determine effects be involved." the Eatontown customer. The It was hoped that banks In- Matthew Boylan, and preceding them on right is U. S. Atty. Jonathan Goldstein. charged back by the Federal of the charge-back. In the charge-back, he ex- customer will then file a volved could forward checks, (AP Wirephotol Reserve System. Richard R. Benedict, execu- plained, a check will revert to claim with the FDIC. at least those under $20,000, to The charge-back can mean the FDIC and file claims on more red tape for some Ea- lllilllllllllllllllllllllllllllliM^ them. It would eliminate in- tontown depositors and the convenience to both the Ea- Federal Deposit Insurance tontown depositor and his Notice Still Remains Corp. creditor. • - . \ It also will involve a num- Arts Center Incidents Mr. Benedict said he ber of other banks in New thought banks in New Jersey Jersey and possibly in other would be willing to file the states. claims. "But that's up to the On High School Eviction FDIC," he said. The bank's account with the Spur Prevention Plans RED BANK — As things The regional board main- ventory is somewhere en- "Fed" reportedly was in defi- ' To Send Bulletin stand now, the newly created tains its offices in the high route. _. cit of approximately $4 mil- By CAROL JACOBSON —Bus drivers will request tickets from The executive director said Bed Bank Regional Board of school. It also is now in- Clarence S. Gale, president lion on the days of Aug. 4, 5 persons who were diverted in their cars to he will send a bulletin tomor- HOLMDEL — D. Louis Tonti, executive row to, the 219 commercial Education has 13 days to get stalling portable classrooms of the regional board,.said and 6, according to informed director <of the New Jersey Highway Au- . alternate parking lots, out of the high school It has on the high school grounds. last night that there's been no 1 sources. Hence the charge- r banks in the state, all. associ- thority, said yesterday immediate steps Several hundred youngsters forced their ation members,,to clarify the the responsibility for oper- Under an agreement change in the situation al* ' back. :'••"-' have been taken to avoid incidents similar" ' 'way past the ticket gates without tickets for ating. reached during the formative though "something may der the FDIC, insuror and re- FDlC's ppsition on the to those which occurred last week at" the f • performances Tuesday and Thursday eve- Charge-back. He said there is The eviction notice served stages of the regional unit, velop later this week." • ceiver of the defunct bank, to. Gaden State Arts Center. • • nings by Janis Joplin and The Band, dis- on the regional board July 31 the regional board is to pay He said he has been in day reassured Eatontown cus- no way to estimate how many He said these actions have been taken , persing quickly into the crowd. banks,ultimately will be in- by the Red Bank Board of $525,000 for the school's equip- touch with representatives of tomers as well as New Jersey CONCERN AROUSED ment and furnishings, and to to avoid the build-up of young people on the volved. Education is still posted and Marshal & Stevens, t£e firm bankers that claims on the ticket plaza when there is a sold out per- Both incidents, along with reported use officials report that there has lease the high school building which took the inventory, and checks will be processed with of marijuana, caused Serious concern to Mr. Mr. Benedict was joined in for four years until a new formance: Washington yesterday by the been "no real change" in the has been told that the earliest dispatch. Repayments will be —Sold out performances will be an- Tonti as well as to John P. Gallagher, chair- dispute. school is built in Little Silver. it can be expected here is up to $20,000 the. insurance president of the banker's as- nounced as early as possible to discourage man of the Authority. sociation, Erwin Kraft, presi- The possibility still lingers There is no dispute over the Monday. limit. those who would come to buy tickets at the Mr: Gallagher and Mr. Tonti will attend that the high school may not basic terms of the agreement. In addition to the $525,000 dis- dent of the First National FDIC officials in Washing- box office that night. a meeting tomorrow with John Larson, Bank of Passaic, and the as- open as scheduled during the The trouble is that the local pute, there also is dis- ton, D.C., have been closeted —Drivers must show tickets at those manager of the center, Elizabeth McCann, •econd week of September.
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