The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-09-07
HEAD OF BUSINESS
CONCERN IS RUINED
President Hall of Bedding
Hall Manufacturing Com
pany is Missing.
SPENT $4,000; BANK LOSES
F. H. Jones Is Receiver-Invested
Funds in Mining Stock
and Lost.

Chicago. Sept. THE appointment of
a receiver for the properties OF the
Belding-Han Manufacturing company
yesterday followed close upon the heels
of the discovery by the creditors of the
concern that its missing president,
Jesse Edison Hall. had appropriated TO
his own uses at least $4,000 of the
corporations funds.
AS far as can be discovered every
dollar OF this money went into mining
stock which was backed up with no
tangible property theatrical ventures
which made no money. and other Sc
curities which the creditors are willing
to sell In lump for something less
than $4,000
Frank II. Jones OF the American
Trust and Savings bank was appointed
receiver during the morning by Referee
in Bankruptcy Eastman In the absence
of a District court judge. lie imme-
diately took possession of the local Off
ces of the corporation at 1e6 Monroe
street and the three factories at Beld
ing. Mich.
A close examination of the financial
operations Of the missing corporation
head shows astonishing results.
The accounts, which have just been
audited. show that Hall for two years
had made a practice Of distributing the
company's funds, In sums varying from
$1,000 to $1,000, among irresponsible
persons connected with the company.
These people, it appears, knew the con-
dition of Halls finances, and the only
reason which his creditors can assign
for this open handed generosity with
the company's funds is that he was
under their influence because Of this
knowledge. About $4,000 was distri-
buted in this way.
Indications yesterday were that Hall
would not voluntarily return from Ca
NADIA and that criminal prosecution
would be Instituted to bring him back
to this country by the First National
bank, which holds notes OF the company
aggregating 100000
Audit Finished, Heavy Liabilities.
The audit OF the company's stock at
Belding was completed by the experts
employed by the creditors committee
last Thursday. The audit showed that
the company's direct liabilities amount
ed to 1876, 900, with indirect liabilities
including notes which are considered
worthless-which will bring the total
up to seas, O00 Against this indebted
Il
amounted to but $400. 900 to $500 600.
Accompanied by Attorney Jacob New
man, the creditors committee repaired
to the office Of Attorney Percy Eek
hart in the First National Bank build
| ing to decide upon some action. Until
| late into the night Mr.. Eckhart argued
against the appointment of a receiver,
! but the creditors at last decided that
| the interests of all concerned could
best be conserved only by court action,
and the application for a receiver was
made Immediately.
Mr. Jones left for Belding last even
ing and will begin an invoice of the
properties on hand this morning. 1t is
expected that the factories will be
operated for some weeks at least.
President James B. Forgan of the
First National bank insisted that the
failure was brought about. not by a
tight" money market or any Difficult
ties of the company, but because of the
withdrawal Of the company's funds
from the business by Hall.
Hall and some of the employees ap-
propriated large sums Of money. more
than $500, 900, of the company's money,
and that is the cause of the failure"
said Mr.. Forgan.
ITO what extent is the FIRST national
bank a creditor?" Mr.. Forgan was
asked.
'erhe bank is creditor to the extent
OF 800 900, and it is more than likely
that we shall lose $4,000"
''wirl criminal prosecution Of Mr..
Hall follow?"
at have consulted with my attorney
with that end in view" said Mr.. Forgan,
HE is looking into the matter now"
DOrrows for Two Years.
1t appears that Mr.. Hall has been
borrowing" the company's money for
at least two years. There has been lit
tie effort on his part to conceal this
fact. The money taken out of the busi-
ness was secured only by promissory
notes signed by Mr.. Hall. As he has
no other property than the $4,000
worth of Bedding Hall stock, which is
worthless until all outstanding bills
are paid, 1t is expected that the $315.O0C
which he borrowed" and the $40, 0oC
which he lent to irresponsible persons
l-s355. 900 in a1l--wlll be a total loss.