Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-07-24
TWO CASES IN BIN
+ GROW INTO THREE
Surprising Discovery in Con-
nection With Hearing in Lee
Bankruptcy Proceedings.

The mystery surrounding the dis
covery of three cases of overcoats in
the cellar of 112 Market street, where
only two cases ought to have been.
was not cleared up today, but Bank
ruptcy Referee Edwin G. Adams de-
oided the overcoats were the property
of Mortimer Lowy, trustee for the
bankrupt Lees Clothes Shop, Inc,
lessees of the store at the above ad-
dress. The coats are worth, in all.
about 81 800
Max Frank, of 722 Broadway, New
York, thought he had chattel mort
gage on two cases of the coats, but
somehow the mortgage was not re-
corded in the hall of fame" and
Referee Adams today ruled that it
was not good and gave the trustee
clear title to all three cases.
Lees clothes shop, a few months
ago sub-rented half of the store to
J. Eosenstrauch, a haberdasher, who
is still in business. He wants to pay
his rent, but does not know whom
TO pay 1t to.
odllutl INOtSSitI. TIC
interests of the haberdasher, APP
peared in the bankruptcy court today
and asked Referee Adams what he
should do with the rent money. That
could not be decided off-hand, as too
many complications arose, and will
be considered later.
The first meeting of the creditors
of the Lee concern was also held
today and the creditors waived their
rights of electing trustee, and
Referee Adams appointed Mr.. Lowy,
who has been acting as receiver and
who discovered the mysterious cases.
Moses Newman, president of the
bankrupt concern, was placed on the
stand by Nathan Bilder, of counsel
for the trustee, and asked to explain
how series of notes were made to
cover an alleged loan of $500 to the
bankrupts. Max Frank claimed to
have endorsed the notes and received
a chattel mortgage on the overcoats
in the cellar of the Lee store, as
security for his endorsement.
Gets Mixed Up on Dates.
Mr.. Newman tried his best to ex-
plain how the notes were made, but
became sadly mixed up in his dates,
Between the questioning of Attorney
Bilder and his own attorney, A. Sa-
binsky, of New York, Newman gave
several different explanations, and
Attorney Sabinsky brought the ex-
animation to a close, impatiently.
Attorney Sabinsky, by the way, rep
resented the bankrupt and also rep
resented Mr.. Frank, who made plea
to have his alleged chattel mortgage
on the overcoats recognized. Then he
entered into the case again as coun-
sci for Adolph Balkind, secretary and
treasurer of the bankrupt concern,
who claims ownership of the lease to
the Market street store, which is con-
sidered valuable.
Attorney Bilder later on called
Newman to the stand again to ex-
plain why the bankrupt firm returned
about $500 worth of clothing to the
Proser Brothers, of 692 Broadway,
several months before their ajudica-
ton as bankrupts.
Owed Firm 81 100 at the Time.
He said it was done because the
firm could not pay a bill of 81 100 they
owed to the Broadway concern
Pressed by Attorney Bilder Newman
said the firm at that time had enough
assets to cover their liabilities.
Then you lost a lot of money sud
denly didn't your" the attorney
asked quickly, with conviction in his
voice.
"No-o-o!" the witness replied. hest
fatingly II guess j was wrong be-
fore. l retract that. We were insol-
vent when we sent the goods back"
Attorney Bilder then asked him if
he did not know at that time that
the firm was going to fail He re-
piled:
I'VE were living in hopes"
He admitted however. that about
a month later he had offered his
creditors 8 composition.