Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-06
HUDSON DENIES
!. STORY OF FRAUD
Out on Bail, company's Head
Explains His Coupon Ad-
vertising Deals.

William H. Hudson, of AZ Blocker
street, president of the American
Bonded Certificate Corporation. who
was arraigned before Magistrate Bar
low in the Tombs Police Court YES
terday and held in $4,000 bail to the
grand jury on a charge of grand lar
ceny, preferred against him by for
mer employee, Howard w. Birmbaum,
of New York, was loud in his profess
tations of innocence when seen in this
city this morning and called the whole
affair an outrage
This man Birmbaum is a l. and
nothing more. There was no inten-
ton on my part to defraud him out
OF $3.50, the amount he claims to have
put up with my company as surety.
The story as printed in the New York
papers is entirely wrong, commented
Mr.. Hudson, who then proceeded to
give what he termed the correct YER
sion of the whole affair.
THE American Bonded Certificate
Corporation" he said, lis strictly a
legitimate business, in which we have
u unique coupon deal, which adver-
tlses the merchants business and at
the same time the customer benefits
by receiving a cash rebate of $2.75 on
every 500 he spends with the mer-
chant.
'Birmbaum would have never been
an employee of the company # 1T had
not been for me. He answered an
advertisement inserted in one of the
papers and was told that he could
qualify if he invested $500 in stock in
the company. He claimed he did not
have the necessary capital and was
told by Rodney S. Ross, of 112 Chad
wick avenue, this city, that we could
not use him, as it was imperative that
he should take stock in the company
to show his good faith. He then came
to me and after having the situation
explained to him a second time asked
that he be allowed to loan the COM
pany $3.50 until he could raise the nee
essary $500.
This was agreed to and in the
meantime the finances of the COM
pany became impaired for a short
time. as the stockholders were late in
coming in with their money, thereby
tying up the business financially for
short period and Birmbaum, not
having the knowledge of the business
essential to his own success, became
discouraged and quit. He then went
to the district attorney and tried to
OApidlli pul oClilH6 pail WltCii iit -
not acquainted with, it being some
what complicated and had me ar
rested for defrauding him out of the
$3.50 that he had merely loaned and
which would have been repaid short
ly," concluded Mr. Hudson.
Mr.. Hudson explained to a Star re-
porter the nature of the coupon prop
osition put out by the corporation and
claimed it was an interchangeable,
cooperative advertising proposition
with coupon certificates, on the order
Of the endless-chain system. Al
though he went into the scheme at
length and endeavored to show that
much mony could be made by the in
weston, still all the reporter could
understand was that the corporation
sold the coupons for SO and redeemed
them for $275. However, Mr.. Hudson
explained that there We're angles to
the scheme that took a long time to
understand. He further stated that
there were several merchants in New
ark that were using the coupons and
that he hoped the affairs of the COM
pany would be in good shape again
shortly, as the arrest caused by Birm-
baum has cost him over $4,000 worth
of business
At the home of Rodney S. Rose,
who was secretary and treasurer of
the concern, callers were informed
that he was away on a business trip.