Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-06-01
MUTUAL B. AND |.
DIRECTORS UNDER
THUMB, IS CHARGE
Plaintiff Says ex-Judge ARM
strong, Defunct Concerns
Head, Was Pooh Bah.
HUNDREDS OF POUNDS OF
ACCOUNT BOOKS IN COURT
Three Receivers of Camden AS
ISOLATION Try for Years
to Trace Funds.

Several hundred pounds of books of
account were carried into the Court of
Chancery before Vice-Chancellor stew
ems today, where an attempt was again
made to straighten out some more of
the tangled affairs of the defunct state
Mutual Building and Loan Association
of Camden. the troubles of which have
occupied the attention of half a dozen
courts since it went to the wall, May
25, 1908.
The responsibility for most of it's
tangles was put upon the shoulders Of
former Judge Edward Amber Arm
strong, of Camden. He was the presi-
dent Of the concern. solicitor and gen.
eral head from February 10, 1892, until
II was declared insolvent.
May %, 1908, three receivers took
charge and they have been after the
former judge fer IN accounting ever
since. The receivers are Thomas E.
French, Samuel K. Robbins and George
j, Bergen. and they figured in court
today. represented by lawyers in try
ing to have the affairs of the dead
as. o~ciation Strengthened out along the
lines of a second bill of complaint.
First Bill stu Pending.
The i-rst bill is still in the hands of
the courts for final adjudication and
covered "a $500 stock transaction, for
which the former judge disclaimed all
responsibility. In the second bill he
does the same, denying that he a
done anything not in strict accord with
the position he occupied and that
everything would be accouI Led for.
In the bill before the court today
1t is set forth with legal verbosity.
And your orators show that the said
Edward Amber Armstrong, by virtue
Of his position as president, solicitor,
director and member of the executive
committee of said association, occu-
pied a position of such prominence in
said association as to practically cor
troll and direct all its activities. That
the real facts in connection with said
matters heretofore set forth were
known with accuracy and certainty by
the other directors, and were known
only PARTIALLY by some of the subordi-
nate officers of said association. That
said officers and directors were prac-
tically under the domination of said de-
PENDANT and were Indifferent, COM
PLEASANT and ignorant of their duties,
or deceived with regard to said matters
by said defendant, SO that there was
no one to call said. defendant to accoun
prior to the insolvency of said associa-
ton as aforesaid"
In their bill, which was set up by
two OF the receivers, French n
Bergen, who are lawyers, the various
transactions the former judge is asked
TO throw light IN are one into at
length and cover man. pages of type
writing.
The first covers a Ian by the asso-
citation, February q, 1894. to the AS
bury Park NJ. e. Church for 81. 200, for
which they say no bond or mortgage
or moneys were ever received and no
accounting made. Then there are these
transactions, in connection with all of
which like charges are made:
June q, 1894, loan to John Van Boos-
kirk, $500 on real estate on which
Armstrong afterward delivered to the
association bono and mortgage for only
$500.
September 8, 1894, loan to William
Jones, $40, 900; neither money received
nor accounting made.
September 26, 1894, loan to the Cam
den Safety Storage Warehouse Com
pany, S 1000; no bond or mortgage.
September &c, 1894. loan to l.. E.
Miller, $4,000.
December "a, 1894, Cornelia A. Bed
ford paid to Armstrong, as attorney
for the association, 800; M money re-
ceived.
March 20, 1895, loan to Samuel John
son, 5000.
other allegations made are that on
July ., 1896, the association owned two
mortgages made to it by Henry l..
Fairchild covering ST. 700, for which
there is no accounting; another mort
gage transaction April 81. 1896, cover
ing $4,000; a loan May II, 1897, to
Charles c. Spear, of $4,000 on bond ana
mortgage; q payment of S2I by James
MacNeil June 10, 1898; failure to turn
over S11, coo worth of shares OF stock
November II. 1898. of the Cape a
Della ware Bay and SewelPs Point Rail-
road Company, pledged to the assoc
citation as collateral on a loan, stock
delivered. but not turned in to assoc
citation.
Then the former judge is asked to
explain what becane of 2 $50 received
March q. 1900. as attorney, from Mich
otas H.. Larzelere, of Norristown, Pa,
in connection with a court decree. THIS
III
1t is claimed, was never paid over to
the association, but was Tor
or, the ground that he made an ar
rangement with Francis r. Fithian,
the secretary of the defunct concern.
hv which the amount was charged as
q set-off against a bill for services.
II is also alleged that en- Ser TENDER
q, 1887. Armstrong represented that
ona Thomas Grimwood, or Greenwood,
desired TO borrow $4,000 and offered
collateral s~ecurity covered by seventy
five shares OF Union Traction Com
panys stock. This company afterward
became insolvent, and it is further al
legged that Grimwood, or
never applied for a loan, while the
shares went into the hands of a third
party.
Tho prayer of the bill is that it be
decreed by the equity court that the
defendant forthwith turn over or re-
turn all tie money, stocks, bonds ana
property he holds as trustee of the as
ISOLATION, together with interest
1--WE claim Mr.. French told the
court. that these moneys were depos-
tied with Mr.. Armstrong for invest
- s-xr1z@ thao1 nd