The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1905-05-30

until tne call OF Sheriff Bower, who may
2 be obliged to summon their return fol
) the early trial of the Hainesport homi
: eide case
The case of the state vs. U. s. Culinary,
against whom there were two indictments
for embeZZlement, was tried on Saturday
morning, but before the state had finished
its side of the case. Judge Gaskill ordered
the jury to render verdict of not guilty,
and discharged Mr. Culinary, who re.
ceived quite an ovation from friends
This sudden termination was not unex-
! pected to those who heard the testimony.
} In his opening address Prosecutor At
kinson said in part: Gentlemen of the
, jury: You have been sworn to try two
indictments found by the grand jury at
the December term of court, charging
this defendant with embezzlement. The
first indictment charges that on August
II, 1904, he being agent for Charles Coles,
Culinary received money for him, and in.
stead of paying the money to Coles, di-
verted the same to his own use or to the
use of the Standard Hicks Hammock
Company. The property received
amounted to $42. %, for and in the name
of the account of Coles. This money he
disbursed to his own use 1t became the
property of Coles by the assignment of
book accounts by the Standard Hicks
/ Hammock Company to secure loans adj
vanced by him.
The second count is similar to the first,
only in this instance the sum of $500 is
involved, the transaction taking place on
July Is, 1904 We shall show that the
defendant was in the employ of the com
pany and that he had charge of the books
that the company had borrowed money
from Coles and had assigned to him book
accounts due the company. There was
an understanding that Culinary should
collect the money and give it to Coles as
it came in. This he did not do. Culinary
took the $40. 25 check to Burlington and
had it cashed at the Mechanics National
Bank. We shall also show that on July
10 check for $500 was received by Col
mary. Instead of giving it to Coles, Col
mary took it to the Mount Holly National
Bank and kept the money"
Charles Coles was the first witness. He
resides at Lumberton, and is employed at
the Union National Bank, of Mount Holly
He is one of the directors of the Standard
Hicks Hammock Company. John A.
Bidwell was its President and Treasurer,
and U. S. Culinary, stakeholder, was
made secretary about September, 1903,
! holding that office up to the early part of
/
money on the Company's note, secured by
accounts receivable. An account against
the Hoffman-Carr Manufacturing, of
Philadelphia, was signed by Culinary as
secretary and Bidwell as president, re-
ceived the assignment July Is, 1904
Prosecutor Atkinson then read the as
signment paper. 1t stipulates that for
and in consideration of the sum of one
dollar, paid by Coles, trustee, on account
against the Hoffman Carr Manufacturing
Company, the company gives to Coles
full power, for his Use, to collect the same,
in his name or in the name of the COM
pany.
Mr.. Coles stated that he was using his
own money, and if there was any loss it
would fall upon him and not on the bank.
He had loaned to the Company on assign
ment of accounts the sum of 81, 604 81,
and the accounts specified here are the
only ones remaining unpaid
On July Is, 1904, Culinary called on
Coles and said the company was in need
of funds and it was necessary they should
have the same on that day. In case the
loan was made, Culinary agreed to secure
Coles by the assignment of two accounts
| Coles was handed the assignment of
three accounts against the Hoffman Carr
Manufacturing Company, amounting to
81. 399.81. Nothing was said at that time
about the collection of these acco Ints
| Culinary agreed that as soon as the checks
were received by the company he would
give them to Coles. But this he did not
do, although he received the checks The
check which Coles gave for the assigned
accounts was deposited in the Union Ma
tional Bank to the credit of the company
When Coles learned that the checks had
/ ha
Culinary had disappeared He was away
for week or ten days. All Coles got for
his loans to the Company was two per
cent. net.
| The minute book of the company was
produced, and reference made to resolu-
| tion passed by five directors, giving the
president and secretary authority to borrow
from time to time, money needed by them,
and to issue notes and proper assignments
OF accounts as collateral security for pay
ment In pursuance of this resolution
Coles loaned the company money on book
accounts.
! On cross examination Mr. Coles said he
held the accounts as security for money
loaned and not for discountiug notes. He
did not notify the Hoffman Carr Manu-
featuring Company that he held a claim
| against them. Coles waived that right on
the ground that the president and secre-
tary said that such notification would in
| jure the company. He waived his right
to notify the Philadelphia Company be
cause of the confidence he had in the Of
fcers O. the Standard Hicks Hammock
Company. There were no meetings of
the board of directors from December,
1908, to the time of closing the business
in September, 1904. Coles did not notify
Bidwell when the loan was made, and he
! did not know from the minutes that Col
mary was authorized to do business out
side of Bidwell Culinary had usually
transacted the financial business of the
company and he was looked upon as a
responsible party. The last year of bust
ness Bidwell drew salary of 81, 900 per
year Previous to that it was somewhat
less. In the examination of papers and
books Coles found nothing to show that
Culinary had been benefited by the col
lection of this money. Coles was not in
terested in having Colmary's friends raise
money to reimburse him for his loss. He
offered to sell his account to Colmary's
friends for So per cent.
The Court.-"The question is who de-
frauded Coles? If it was the company all
the officers should have been indicted
No corporate action has yet been shown
to empower Culinary to act as agent of
the company, and no action to show that
Culinary was authorized to act for Coles.
AS the case now stands, Culinary was not
made the agent of Coles, nor was he agent
of the company"
Mr.. Coles, continuing, said that what he
, remembered of the conversation had with
Culinary, was not repeated to establi sh
agency with Culinary to make him Grimm
ally liable. In advancing money to the
/ company Coles was not receiving 10 per
cent. When they got in Strengthened cir.
cumstances Coles advanced them money.
because they were short of working capital
since organization. The conversation
with Bidwell related to the manufacture
ing end of the business Always dealt with
: Culinary on financial matters, although
, Bidwell was treasurer Because the com.
pany needed funds was not Coles reason
! for waving right of notification, which
was probably done as an accommodation
to the company.
James Bodine, manager of the Hoffman.
Carr Manufacturing Company, of German
I town, Pa, said that in 1904 they pur
chased material of the Standard Hicks
: Hammock company, and paid for the
same by check, which was admitted in
} evidence without objection from Mr. Hen
} erickson.
2 Cashier Frederick H Lee said that in
July last the Standard Hicks Hammoc k
, company had an account at the Mount
5 Holly National Bank The check for $500
was received there and deposited to the
7 account of the company. The deposit
slip was in the handwriting of Culinary.
~. L.