New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-05
HORGAN'S APPEAL HEARD.
THE TAMMANY ARCHITECT HAS THE
QUESTION OF PRESENTING COR
PORATION BOOKS HEARD.

IN the United States Circuit Court yesterday
morning Arthur !. Horgan. Of the firm OF Morgan
& Slattery architects. through his counsel foIner
Judge George NJ Van Hoesen. appealed to Judge
Addison Brown from the decision Of Stanley W.
Dexter. referee in bankruptcy. suspending Mr. Hor-
gan as a witness and virtually declaring him IN
contempt The offence for which the suspension
was imposed occurred at hearing Of the Horgan
& Slattery bankruptcy proceedings. held on sep
TENDER p. Mr. Morgan had been requested by the
referee to produce all Of the books OF the Horsan
& Slattery Corporation. He carried the books 10
Mr. Dextor's office the date mentioned. ana con-
scented to quote them on points which he consld-
cred material 10 tho case.
H. J. Ifindes counsel for the Press Publishing
Company creditor holding rent bill against the
firm demanded that the books be turned over 10
the creditors in toto and Referee Dexter seconded
the demand with an order. Oh advice OF eX-Judge
Van Hoescn. Mr IIorgan refused TO do So Referee
Dexter tnereupon suspended him as witness pend
ing decision by Judee Brown.
James W. Hyde appeared IN court as counsel for
tho Horgan q Sattory Corporation, and Register
Isaac Frommc Tor fourteen Of the creditors. Tho
credit ,rs arc not unanimous in demanding that the
book should be surrendered for general inspec-
tion hy them or their counsel Mr. Fromme said
before the case was called i think Judge Van
Hoesen Is right Nh Hyde said that II the books
were the personal property OF M"ssrs. Horgan q
Slattorv the petitioners there would he no obje~-
ton 10 their being handed 20 the creditors But
they belong 70 the corporation b" said. and the
corporation does not want its private business given
to the world.
When the case was called Nj Iindes presented
his side of the case lie related the history OF the
Horran & Slattery Corporation. and told Of the
peculiar formation Of the last one-'he wives Of The
two architects holding 997 Of the total of 1000
shares Mcssrs Horgan & Sattory held only one
share each. valued at so.
Tho mere fact that the petitioners have drawn
in salaries and advances $4,000 on an investment
Of not moro than $50 speaks for itself. said M
Hndcs. we aege that the second corporation u
a fraud a scheme 10 carry the business OF these
men. take the ground THAI We have rght 10 eN-
anime the books OF the corporation with regard 10
all its dealings with the bankruptcy. we be"e'"
that they have massed their earnings in This cor
poratlon and If there is any evidence in The books
10 show that The corporation was d scheme to oe-
fraud the creditors. then the corporation Is d
fraud and the creditors have right to take what
W Ir7 Hlndes declared that the wives Of Messrs
Horgan 4 Slattcry had never pa!d uoiidr loi l.'
stock they hold aud NAT II inc pet ,b - ,be,r
wives names II was fraudulent lie quoted man!
pEx-juJeo Van Hocsen counsel for Horean &
Slattcrr addressed the Court ANA directed me al
his clients by newspapers because ihe{ nan l'-
r,ivod patronage from "a certain political organl%-
on ~ nl 51 In the refcrecs hands was that tho
room where the hearing had taken pidc" vas
sstionaI newspapers He commended that IN" nor
gan & Siattcry Corporation IS third part!. n9i
bankrupt aud As such entitled TO be uedted IKE
auv third party subpTnaed IN court
Judge Brown remarked that he conSidofed u f'S-
seitiai to kaoU whether the corporation was
legitimate concern or subterfuge. as tn 'ouHS' }
foT fhc creditors Mr.. Ilindes. had declared
Judge Van Tloeser therefore started on new
tack The creditors allcgc. be- said tna' tns!
have the right 10 investigate by means o. the books
the services that Mr. Horgan and MI Saiiery nav"
reformed for thc corporation. Now, the question
is What right has 4 man to his own eXfruons ;
Has man a right 10 give his services To his VIE
Tbose bankrupts have an absolute right to give
their personal services 10 their wives ana 10 thls
corport tion even n ny doing they would prevent
their creditors from ever getting oro Cent re
wont on To- say that n there was surplus IN me
,rrinys Of the corporation il is not attachahc. but
mat n Messrs. Horgan and Slattery personally pos
scesed surplus from their salaries IL i. He SAID
that unimpeachabe authorities conceded he right
~ /. man to give his personal services 20 MS VIE.
and on this point he said. the whole case de-
pended. , =, ~,
Hindes who repeated his argument OF me morn
ing Judge Brown decided that he would accept
hriof4 from the opposing sides to-day and give his
decision in the course ~ few days