Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-06
NEWARK MONEY
LOAN CONCERNS
HEADS ACCUSED
ViCe=ChanCeIIOr Howell Hats
Roth Investment Company,
Pending Hearing.
STOCKHOLDERS CLAIM
FIRM Is INS0LVENT
Officers Deny Wrongdoing.
Excessive Salaries Voted, Is
One of Complaints.

Chancellor James Il. Howell
has signed an order restraining the
Roth Investment Association. of 165
Spruce street, from doing any further
business until hearing is held in
Chancery Court next Tuesday. This
hearing will be on rule to show
cause why the temporary injunction
should not be made permanent and a
receiver appointed for the associa-
ton.
The bill OF complaint, which was
filed by Elias A. Kanter, representing
about fifty shareholders of the asso-
citation, makes grave charges against
the officers of the concern and alleges
that it is insolvent.
The officers of the association are:
Nathaniel Elm. of 500 Broad street,
president; Nathan Pallant, same adj
dress, president; Harris Cash, of
II Monmouth street. treasurer, and
Jacob = cansler, of S6 North Fifth
street, atary. These officers are
enjoinet I'M either collecting any
more m, or disposing of the cash,
real estat, OF other assets OF the asso-
citation until the hearing next Tues
day.
Il mporary Injunction
The sha = Ter named in the com
plaint is ph Field. The applica-
ton for the restraining order was
brought to Chancellor Howell
last night and the latter granted the
temporary injunction. A subpoena to
appear at the hearing was served on
Charles Elm, the registered agent OF
the association, after the order had
been granted last night.
The bill of complaint sets forth
that the association was incorpor-
ated March 49, 1910, in this State,
with an authorized capital stock OF
500. 900. The par value of each share
is $780, and there is approximately
! sic, 900 worth of stock subscribed. In
the application for certificate OF
incorporation it was stated that the
principal object of the concern was
| to loan money on negotiable notes
| Scores of charges are made in the
| bill of complaint against the officers
and directors of the association
4 When asked about the charges thu
/ biiicers who could be reached toua,
made a sweepingadenial Of the. ale
lgaticns.
! IL is charged that the directors and
| officers voted themselves excessive
salaries; that the board of directors
acting in violation of the bylaws
hpermitted committees to make loans
that carelessness and negligence ir
conducting the business resulted ir
$4,000 worth of useless notes be-
ing unloaded ON the shareholders
1t is alleged that the balance of the
notes held are of an extremely
doubtful character.
According to the bill of complaint
Nathan Elm, the president, has ad
mitted the charges that notes amount
| ing to $4,000 held by the association
are worthless. Mr.. Elm today denied
that he ever made such statemen
or that such a condition exists.
Not Building Loan.
| Many of the shareholders were in
duced to Join the association believ
| ing that 1T was a building and loaI
association, coming under the direc
| Jurisdiction of the State department
of banking and insurance, states tn
complaint The document goes on t,
say that the true character of the as
sociation was not learned by thes
deluded shareholders until recently
when they applied for their money
On that occasion, 1t is charged, th
shareholders were told that what /
| lOSL. is lOSL anu lUtN WOulu nave u
wait until the association was liz
uidated for the creditors and a per
centage basis of payment decide,
upon
President Elm has received S675 TO
his services since the concern WAS in
corporated, states the complaint; tn
vice president. $25; secretary ant
treasurer together, s1.720, making ;
total of 5000 paid in salaries
1t is alleged that the officers of th
association should have collecte'
about $4,000 on notes during Octobe
of this year, but that only $3.50 was 81
collected.
Used Some of Capital.
Another charge is that $1.593 ha
been paid in dividends from the capi
4 tai of the association instead of from
the surplus, or profits, in direct vic
| lation of the laws regulating cor
porations in this State. 1t is Sc
forth that all the figures mentioned
In the complaint have been talSel
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