South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-12-30
HARL|N UNABLE
To EXPLAIN HIS
VARIOUS DEALS
After an All Day Hearing Be-
fore Referee in Bankruptcy
Only $4,000 of Nearly
100000 is Traced.

Harlfn to ascertain where the money
went which they claim 10 have en-
trusted to the realty and loan broker,
proved futile at the examination Of
Harlin before Harry Sheridan, referee
IN bankruptcy Monday.
approximately $4,000 was all that
could be traced to any definite place
out OF the whole amount of claims
now filed, nearly s1O3. 900. besides
the claim Of the Damon estate which
is expected to be about $4,000.
Atty. w. G.. Crabill asked Harlin
what had become OF the amount
which had not been accounted for.
The latter shook his head and re-
Piled:
81 can't tell you. 1t was used in
my business. 1 guess"
In reply to a question whether he
had ever speculated Harlin said en-
phatically:
II never put a dollar up on the
board of trade in my life"
Used His Own Funds.
The examination Monday afternoon
developed that Harlin had sunk
great deal of money in the South
Bend Brick Co, now in the hands OF
receivers in the effort TO keep the
company above water. His own funds
as we'll as those entrusted to him Tor
investment were spent in this effort
the evidence showed.
Harlin said the amount he had ad-
vanced the brick company was near
100000. that he made a claim for
about $4,000 of which the receiver
allowed a little more than $lS,OOO'
This was the only venture in Whlch
he placed money in any large sum-
il was shown. The banks which are
Harlin's creditors hold notes when
he with others interested In the
company, gave 70 raise funds for the
brick concern on which they base
their claims
1t was also developed that several
of Harlin's clients had loaned money
through him on condition that ne ar
range the transaction in such a way
that their security would not be list
ed for taxation against them. Al
though the referee would not allow
the names to be mentioned on the
ground that the matter was irrelevant
to the issue at the examination, Har-
lin said there were several such tax
dodgers" among his clients.
Ones Who Drove Him.
And they are the ones that help
ed drive me to rulnatOn, sdld ne
with their constant insistence on
protection.
This testimony was brought out
when the examination touched upon
the loan of $4,000 which was made
by Harlin as guardian in behalf OF
Harold Kunstman, his ward. Inc
court authorized this loan to be made
and il was finally negotiated through
an attorney. with the understanding.
however that the identity OF the
lender should be concealed so that
taxes would not be required, ii was
alleged. The loan was made osten-
sibly bv Dale Rowe, but the money
was actually furnished by John
Lederer, Harlin testified.
Harlin declared there were many
others among his clients who came to
him for such arrangements with re-
gard to loans.
which are not secured by liens on
any of the property which was
scheduled will be met within a year,
he declared Asked If he had any
source of assets other than those
listed in the schedule, Harlin replied:
Can Raise the Money.
Yes. l have friends who will un-
dertake to raise the money TO meet
those obligations within a year"
When pressed as to whether there
was any legal obligation due him
from these friends Harlin replied:
mo, only moral"
A loan made by Harlin to Arthur
Fories, a South American student at
Notre Dame university, In which
jewelry was taken in security was
the subject Of a searching eXamina-
ton by Atty. Parker. Parker asked
Harlin If he had not disposed Of the
gems and substituted paste in their
place to which the latter replied en-
phatically in the negative:
Those jewels were turned over
just as I got them to Charles
Schuell." said Harlin. The dia-
monds were represented to have been
worth $1,000, Harlin said, but ii
turned out later that they were not
worth nearly that much.
Il was told that they were valuable
in South America because of their
unique designs" said he. Parker
elected the testimony that Harlin had
raised $500 on two diamonds of his
own shortly before he was taken sick
some weeks ago.
Interest Was Kept Up.
It was also revealed that many
loans OF his clients money which
Harlin had made were paid back by
the borrowers years ago but that
Harlin himself kept up the interest
Until TIC pANSClAl col anu eRpPAAtd NAAN
principle in his business instead Of
turning II over 70 the client Harlin
admitted that was the case with sew
eral notes which were subuitted TO
him for examination.
A note bearing the name of A. 3.
Oren for $3.50 was presented and
Harlin was aksed If he knew that
Oren denied such a note.
He will not deny that is his note
in my presence" replied Harlin,
positively.
He was asked the same question
concerning a note bearing the name
OF Matte Gilmartin calling FOR $3.50.
He said that he believed she had
paid him interest on the instrument
and that he had not heard that she
denied ever having executed the in
strument.
Will Aid Receiver.
Harlin has been confined to his
bed since early in November. In
reply to a question by his own coun-