The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-01-25
WAHRH'S THE NONE?
Astonishing Disclosures in
a Case Before Vice
Chancellor Pitney.
NOVEL WAY TO CONDUCT BUSINESS
Treasurer Perkins Must Explain
to the Receiver Of the
Burritt Company.
|OYEL WAY TO CONDUCT BUSINESS

counsel Robert McCarter of Newark
precipitated lively argument before
Vice Chancellor Pitney this morning in
reference to the conduct Of the affairs
OF the Burritt Manufacturing Company,
an insolvent corporation, with large
factory at Bound Brook.
AS counsel for Receiver Gaskin Mr.,
McCarter asked the Court to compel
treasurer Perkins. who resides in New
ark, to answer certain questions which
the receiver is desirous of putting as to
the expenditure of certain monies. The
lawyer read an affidavit which told a
queer story scarcely creditable to the
business knowledge of the officials of the
corporation. The affidavit was made by
John ]. Hannahs of Newark, who had
made an examination of the books of the
company, and he says that no books OF
account We're kept by the company nor
any data, kept to show how its business
was conducted from its organization in
october, 1892, to January Is. 1884
From that time, said Mr.. Hannahs'
condition with leaves torn out were kept
until November 8, 1894, when again ali
books ceased to be kept
Mr. Hannahs then makes the strange
charge that after an investigation he
found that large quantity of subscrip-
ton stock of the company was disposed
OF at a rate not in excess of forty per
cent. of its par value and that the direc-
tors claim, although the books of the
company show nothing, that the balance
or sixty per cent. was in some way made
up by the payment by the company or
its agents for merchandise furnished the
company.
This merchandise, Mr.. MeCarter said,
was now in the hands of the receiver
and is all that is left to represent an ex-
penditure of S36,000 Should this property
be sold, he said, there will be nothing
leftifor the receiver to tell whether or not
the property, which is claimed represents
the payment of the sixty per cent. of
stock, was worth the sum mentioned and
whether in fact such subscriptions were
ever paid for.
Continuing, the lawyer said that the
receiver on Friday last, in Newark, un-
these matters; but that individual fatty
refused to say word.
What have you to say?' asked the
Vice Chancellor of Lawyer MCGOWAN,
who represented Mr.. Perkins.
Counsel wandered into an account of
Judgment of $1,000 on the company held
by an assignee of Judge Andrew Kirk
Mr.. Robert McCarter, who was also
counsel for the receiver as well as for
half of the creditors, was using his in
huence to the detriment of the other
creditors.
The Vice Chancellor reproved the law
yer and told him that if he made such
charges they should be done openly in
court and special counsel would be ap-
pointed for the receiver. Mr.. Pitney said
he had confidence in the receiver and Mr..
McCarter that the receivership would be
conducted as the statute provides and di-
rects for the benefit ofathe creditors.
Lawyer MCGOWAN then tried another
tack by urging that the sale be made
and that there should be no delay. Too
much delay, he said, had marked the
course of the proceedings.
tn
have contributed to that delay by not
answering the receivers questions was
the Vice Chancenor's thrust
Mr.. MeCarter waited for his chance
and then began to pulverize Mr. Perkins
counsel. His frank, straightforward ac-
count of his connection with the Garvin
Machine Company, which was & creditor
of the insolvent company, and his advice
to the receiver induced the Court to direct
an order compelling Mr.. Perkins to
answer or go to jail for contempt and
delay the sale of the plant until the re-
ceiver has made a full investigation as
to what was done with several thousands
of dollars paid out by the treasurer and
for which no accounts OF receipts have
been kent