BANKING: Ellenville Revisited

The little town of Ellenville, N.Y. (pop. 5,000) gulped when Banker William Rose, a self-proclaimed Robin Hood, was charged with allowing overdrafts of $1,200,000 (TIME, Dec. 24), and his Home National Bank was closed by the Federal Deposit Insurance Corp. Last week Ellenville gulped again as the FDIC sifted through the remains of Home National (capital: $807,000). To settle Rose’s gift-loan of $958,000 to the nearby Anjopa Paper Co., the FDIC agreed on a $396,000 installment-plan repayment. FDIC had no other choice; Anjopa’s total worth is only $302,000.

Out of pocket, the bank’s stockholders angrily flared up as well at the delighted reaction of Anjopa President Joseph Di Candia (also under indictment for conspiracy with Rose). “I am a happy man today,” cried Di Candia, and promptly guaranteed a bright future for friendly ex-Banker Rose, who is now driving a truck while awaiting trial next month. Promised Di Candia: “When Bill Rose’s troubles are over, I’ll offer him half interest in the paper mill—for nothing. I will never forget Bill Rose for what he did for me.”