The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-11-05
ELLIS, N k0RN|T
QUIZ, SAYS He LOST
MONEY IN MARKET
Blames His Need for Cash on
Unfortunate Stock
Speculation.
ACKNOWLEDGES HE OWNS
THE HOTEL FREDERICK
Witness Again Develops Case
of bad Memory" as to
Details Of Business.


Further details Of the affairs of the
bankrupt Kornit Manufacturing Com
pany of Belleville, by whose failure
many hundreds of small investors lost
considerable sums Of money, were
brought out today In a continuation of
the examination of Charles Z. Ellis,
president of the company. David Bill
der, representing the receiver, Nathan
Bilder, and Spaulding Fraser conducted
the examination. The questioning was
largely directed to throw light on pos-
sible assets of the company.
All through the examination Mr.. Ellis
answered questions with great delibera-
ton, and occasionally his bad memory
would appear, and he could not remem-
Der details, even where sums as large
as 10000 figured in the transactions.
Ellis was on hand early, although the
| examination did not start until 1915
o'clock. His counsel. John ]. Vause,
arose before the examination proper
began and said that while he and his
client had no objection to oral exami-
nation, he had a word to cay in pro-
test against an order received by Mr..
Ellis from the court to produce the
| books of the Ellis Publishing Com
pany. In explanation of his failure to
bring the books to court, he said that 1t
would be almost a physical impossible
ity to bring the company's LOO books
from the New York offices of the c. E.
Ellis Company to the court room. He
also declared tina these books are not
under the control of G.. E. Ellis, as
president of a New York concern. After
considerable debate, in which Mr..
Fraser urged that the prosecution I'LL
issue a subpoena for ali books, mas
much as Mr.. Vause alone knows the
particular books bearing on the subject,
it was decided, at Referee In Bank
ruptcy Adams's suggestion, that the OPP
posing counsel confer on the matter.
Mr.. Frasers first questions related
to a meeting Of the creditors OF the
Kornit Company, held In Belleville,
In December, 1908. Ellis admitted that
he had Endorsed several notes at that
time, but couldn't recall any state
ment he might have made in regard
to his financial standing.
Mr.. Fraser. then asked specifically
if Mr.. Ellis owned the Hotel Frederick
in New York, and II he had not, at the
time, mentioned that hotel as an asset
to substantiate his signature on the
notes. MI. Ellis evaded a direct answer
but admitted owning the hotel. Mr..
Ellis sal he had bought he property
six or seven years ago, and admitted
paying off a mortgage of $4,000 in 1905
by check. Mr.. vause objected to the
entire line Of questioning In regard to
- - A,,k rx,aa axynpVut10d Ha
Have you purchased any property
since May 10, 19O4?'' Mr.. .Bilder asked
81 said the other day that I did not"
Eyes and you said, too. you needed
the money replied Mr.. Bilder. What
did you need it for?'
II got stuck good and har, in the
stock market" said Ellis.
Mr.. Bilder then took UP the question
of the disbursing of Ellis's receipts from
Kornit stock from another viewpoint
did your debts mount to the sum
of your Kornit company stock, some
5000, 000?''
81 nave no means of knowing how
much my debts were. And where Tic
you get that 100000 you refer to, Mr..
Bilder?"
~ ask YOU. is that not the sum-"
/ asked Mr. BllQer.
1T did not receive any sue amount
said Ellis with certainty.
Bilder again resorted to the books.
Mr.. Ellis admitted receiving 7.40o shares
(of STA, 1000 value) from Mr.. Graves; 100
shares Of stock of the incorporates
($1 ,O0O); $500 shares from Mr.. Jones
($25, o00) and 40 per cent. COMMISSION on
sales of the treasury stock tsSo,ooo);
$3.50, 900 in all. -,
The questioning was then directeu
toward the affairs of the G. T.. Ellis
Publishing Company. Ellis testihed
that Temple Court had beer the scene
of the sale of the Kornit Companys
stock; and tha the Ellis Company a
| conducted it's business there also, al
though not in the same rooms. Ellis
| showed indignation for the first time
| when Bilder referred 10 1--WE rooms
Of the company.
Look here" he said, II don't want
you to be putting words in my mouth
that l didn't say"
Ellis testified that he has but ten
shares of the Ellis Company. Zach share
representing $1,000; and that the total
of the outstanding stock is $4,000. The
last transfer of his stock, Ellis further
said, had been made in May of this
year, when he put up the stock in
blank as collateral for a loan.
IT can't remember to whom l gave
the stock" said Ellis, calmly.
do you mean to say" Numbered
Bilder. "that you DOM know to whom
you gave a large mount of valuable
stock? How is 1t that you can't re-
member when the transaction occurred
only five months ago?'
81 don't know" returned Ellis.
How much was the amount of
shares?" questioned Bilder.
1T don't know" said Ellis.
"Was It as much Is $4,000 that you
borrower" said Bidder.
mo"
"15,oOo?"
"No."
"10,0oOr,
Cant remember
who is the Individual from whom
-. I1-~~uroA &hyo c,oray1 -, questioned