The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-01-05
CHARGES PILING UP.

in Another of the Same Kind.
the bail in trover case for the possession
n rwenty-eight boxes of tobacco instituted
AGAINST Max stern was heard yesterday in
,ba city court, and after the close OF the
testimony and the argument of Charles n.
vest. ESQ, counsel for the plaintiff, the
rourt discharged MIR. Stern on his own
recogniZance.
Col. Garrard, for Mr.. Stern, pleaded that
tbe books and papers had passed from his
clients possession, and that his client had
been detained in jail. An affidavit
VAS introduced that his hooks and
napers were in the hands of
S6stein & Wannbacher. The counsel for
Hanes q Co. was not satisfied with this and
wanted further proof, but the court held
that Mr.. Stern need not put any witnesses
on the stand to corroborate his own affi-
iavit.
The other side then called Mr.. Epstein,
who stated that he was in possession Of the
books, and as notice of garnisnment had
been served on witness, he was holding
them subject to the courts order.
An officer was then sent for the books
and papers, and two colored porters
brought them in.
Mr.. West called Mr. Stern to the stand
and he identified the books, and stated that
r.. J. Rieser he had opened no new books
On direct examination, when called by
Col. Garrard, Mr.. Stern said that he had
sold one of the boxes of tobacco to La
hlche, and two boxes had been sent to
Florida customers on the 26th. On the
18th he had sold the remaining twenty-five
boxes to Meinhard Bros. & Co. with other
goods On cross-examination, MIR. Stern
admitted that the sale had been made to
ri Pros & 0f1f ha daxy oft fke,
tobacco had been received from his credit
ors. at discount of between u and l
per cent. below cost price, and less the
freight charges. He had turned over goods
to Meinbard Bros. 60 Co. amounting to
$9,9O2 OF for the release of two notes, one due
Yesterday for 81, 000, and the other due Jan.
Is for S., 900, with $40 interest. These NOTES
had been Endorsed by II. and |. Melnhard
and had been transferred to Meinhard Bros.
& Co., who had refused to extend them.
The proceeds of the So COO note, which had
been discounted by the Meinhards, had been
paid to Mr.. Rieser as his interest. When
Mr.. Well informed the witness that his firm
wouldn't renew the note, but it must be
taken up or security given. witness had said
he could do neither, but would turn him
over goods for the debt Mr.. Rieser got TO
the amount of IS, $50, and witness secured
him to the extent of 5000. Mr.. Rieser,
Mr.. Stern said, holds accounts for their face
value. The witness said that no one had
ever made a demand on him for the to-
bacco.
Mr.. Z. A. We'll, of Meinhard Bros g. Co.,
admitted that among the goods bought of
Mr. Stern there were twenty-five boxes OF
tobacco, which are in the possession of their
firm. He did not consider that he got the
full value of his claims, and would not
realize, he said, enough TO get his money
back He went to Mr. Stern and told him
that he would have to take up the notes or
give good security, and Mr.. Stern told him
that he would have to turn him over goods
for the debt. Mr.. We'll went back and
reported the situation to MIR. Meinhard,
who advised him to accept Mr.. Storms
proposition if ii was the best that could be
done
The plaintiffs offered no evidence, and
Col. Garrard said that he was willing to
submit the case without argument. Mr..
West said he was not willing to let the case
slip i'll that way, and he argued against Mr..
SCern's discharge without a bond. He was
not at all complimentary to the defendant IN
getting the tobacco one day without paying
for it, and making a transfer OF 1t the
day following to apply to another debt. He
said the case was without parallel among
business men of honorable standing
United States Marshal w. p Cerbett,
temporary receiver Of Mr.. Stern, appointed
by Judge Speer upon the petition of Holland
Benton & Co. of Danville, Va, who bring
suit in the United States circuit court
against Max Stern of Savannah and Henry
J. Rieser of New York" for 1926, was q
spectator during the trial. The petitioners
claim that the alleged parting of interest by
Mr.. Rieser was fraud and a sham, con-
cocted for the purpose of detraudlng the
persons whom they should induce to credit
the firm, being then insolvent; that neither
had any valuable interest in the
business which either could buy
or sell to the other, and that
In the transaction there could
be no element of mistake or GENERALIZATION
for the insolvency was too gross te
permit it.
Mr.. Rieser. so the bill alleges, went tc
New York, and Mr.. Stern remained in Sa
vannah to consummate the general plan
Mr.. Stern made heavy purchases OF goods
on credit during the summer and fall until
he delivered the whole stock, amounting tc
$4,000, to various local alleged creditors IL
Savannah, with an unpaid outstanding In
debtedness due nonresident creditors Oh
over $38, 900, by the admission OF MIR. Stern
himself
1t is further alleged that Mr.. Stern per
petrated fraud upon his creditors by
means Of which he secured goods for the
purpose of their subsection to all OF the
alleged or real claims of his family and
personal friends leaving then big balance
between the value of the goods bought and
the amount of goods turned over. which
must be disclosed by Mr.. Storms books
showing his sales for credit or cash, unless
the books have been made to assist in the
completion of the alleged fraud.
The claim that there is due Mr.. Riesel
from Mr.. Stern $13, COO is alleged to be pre-
tended debt, and the court is asked to de
clare the transfers made by Mr.. Stern void
The court has granted an order for the
marshal to take possession Of the books anc
papers, and as the same counsel represent
the litigants in the United States court a
In the city court, there will be no embar
easements about access TO the books. Th'
defendants are required to show cause be
fore Judge Speer next Thursday, at which
time the papers are returnable.