Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-21
TO NAME RECEIVER
FOR HEALY FIRM
Company Building Section OF
Passaic Valley Sewer-Re-
ownership Opposed.

Vice-Chancellor Emory today
granted an application for the ap-
pointment of a receiver for the Healy
Contracting Company, which is en-
gagged in building a section of the
Passaic valley trunk sewer in this
city. The application was made in
Chancery Court by Lawrence III. Hem
bricks. of New York. president of the
contracting company
The New England Causalty Com
pany, which went on the bond of the
Healy concern, and David W. Arm
strong, jr., director of the Healy
company, made vigorous opposition
to the appointment of a receiver. Mr..
Armstrong is a creditor of the Healy
company to the extent of $4,000 He
was represented by Spaulding Frazer
in opposing the APPLICATION for a re-
ceiver.
Mr.. Frazer pointed out that Hen
bricks represented the Nassau Ma
tional Bank, of New York which
loaned the concern about S48,000. The
bank was one of the creditors who
signed the agreement in August last
to give the Healy concer an extern
sion of ten months in which to meet
its bills, declared Mr.. Frazer. He
commended that Hendricks, the petit
toner, who is also vice president of
the Nassau National Bank, was act
ing as a stool pigeon" of the bank
in bringing the receivership aplica-
ton.
Mr.. Hendricks was represented by
Francis Child. jr., who pointed out
that the concern is hopelessly insolv-
emit and that the only salvation for
the creditors was the appointment of
a receiver The liabilities are said
to be about $4,000 while the assets
are represented chiefly in the esti-
mated $4,000 profit which would re-
suit if the section of the sewer is
completed in the specified time.
On the stand Mr.. Hendricks related
how the Nassau National Bank,
which had been financing the Healy
concern, refused to advance any more
money. He explained that after the
company had been reorganized last
September the bank advanced an ad-
ditional $4,000, but thereafter refused
to make any additional loans. He
denied that the bank had instructed
him to apply for a receiver and stated
that he made the APPLICATION merely to
relieve him of disagreeable position
as president of the Healy concern.
He was appointed president when the
company was reorganized last Sep
tember
Another witness was Edward Den
nison, engineer for the Healy Com
pany, and in charge of section No. 5,
of the trunk sewer, which is being
constructed by the company The
section is located south of Mt. Pleas
M fn a
nue.. He testified that there are now.
ten men employed on the job and that
the aggregate cost per day totals
$500. He declared that he made an
estimate of the work and figured that
profit of $50, 900 would be made by
the company if it completed it's con-
tract with the Passaic Valley Sewer
age Commission.
To date the company has completed
200 feet of its work on the sewer,
stated Dennison. and there still re-
mains about $500 feet of the work to
be constructed. The surety company
was represented by Stuart Mcnamara,
of New York, who declared that If a
receiver were appointed that official
would be in a position to dictate to
the surety company as to what man.
ner 1t should assist the receiver in
completing the sewer contract.
Attorney Mcnamara told the vice
chancellor that he had been ap-
preached before the hearing today
with an Invitation to cooperate, If
a receiver we're appointed. He de-
clared shat the receiver knew to
what extent the surety company was
liable and would Invite" that concern
to Cooperate extensively" Mr. Nc
Namara asked for an extension of two
or three DAYS in which the surety
company could ascertain the best way
out of the difficulty.
Chancellor Emory announced
that he could not see how an extern
sion of time would benefit the cred
itors. even though it might benefit the
surety company. He decided to APP
point a receiver but suggested that
the nomination of a receiver be post
poned until later in the day. This de-
lay is to give all parties concerned an
opportunity to confer and agree on
the best man to liquidate the affairs
of the heavily indebted contracting
companye =