Newark evening star and Newark advertiser., 1914-07-15
PROBE FURTHER
INTOAFF AIRS OF
KEARNY HAT CO.
Establishment of Company in
Orange Under Investigation
in Bankruptcy Court.

The examination of officers of the
bankrupt Kearny Hat Works was
continued today in bankruptcy Court
before Referee Edwin G. Adams.
William A. Baglin, president of the
company, and his son, Alphonso Bag
lin, were the witnesses. Nathan Bill
der, attorney for creditors, continued
his probe into the recent establish
ment of hat factory in Orange by
Alphonso Baglin.
Alphopso Baglin made a number of
contradictory statements regarding a
$500 cash payment to him by his
father for rent of the Kearny Hat
WoiSs plant. The witness at first de-
cial /, he was keeping the money in a
bui Au drawer. Referee Adams then
started a long examination, which
ended in Baglin admitting he did not
tell the truth about the money.
The witness was asked if he had any
objection to another person going to
his house with him from the court
room and seeing the money in the
drawer Baglin balked at this and
then admitted that his mother had
the money.
The $500 is part of the rent paid by
the older Baglin to his son Alphonso.
The latter was ordered by Referee
Adams to bring the money back to
the courtroom after the adjournment
and turn 1t over to the receiver,
Spaulding Frazer.
Another deal which Mr. Bilder ex-
amined closely into was the alleged
sale of $500 worth of hats to his
friend, Mrs. Mildred Stahl of New
York. Baglin declared that he had
known the woman for fifteen years,
having met her at his sons place of
{ business, in Wicxliffe street He told
Npf meeting Mrs. Stahl in her New
York apartments on several occasions
and of dinner parties with her at the
Broadway Central Hotel, New York.
The witness said Mrs. Stahl's hus-
band is living, and that he (Baglin)
did not know him very well Mr..
Stahl is prospector, said the wit
ness. He added that Stahl may be
gold prospector" for all he knew.
Mrs. Stahl visited the Kearny Hat
Works once in a while to get a hat
for herself, said Baglin.
Baglin testified that he called Mrs
--Stahl on the telephone one day and
notified her that he was going to see
her on business. He was at the
apartment only a short time when he
closed the $500 deal.
II wanted to see her make little
money explained Baglin when asked
how he came to sell the woman such
a large sum of goods In their first
transaction.
The witness said he believed the
goods were shipped to the Bowery
Warehouse Company, New York, at
Mrs. Stahl's instructions. He added
that his son, Harry T. Baglin. attend
ed to the shipping end of the trans
action.
Baglin declared that he received a
weekly salary of 800 a week from
the Kearny Hat Works, and his son,
/, Harry. received $50 a. week. The son
was the manufacturing manager at
the plant, said the witness.
What did you do for 800 week?''
asked Mr.. ,Bilder.
-. = Got s100 q Week for Thinking.
1T did the thinking" answered Bag
Tin.
The witness declared that the
Kearny Hat Works, with a plant
located at 1S1 Chestnut street, which
incorporated seven months ago At
that time it had a surplus of $4,000,
all of which has dwindled away, he
testified. Baglin estimated his LA
bilities at 100000. The assets he
rated at $4,000, although he insisted
be paid if we could sell the plant as
a going concern"
Baglin was then asked to explain
the reason for the establishment of
the Progressive Hat Company, of this
city, and Sackendorf Co.. of 604
Broadway, New York. The Progress
sive concern took care of the hat job
bers, he said, and the New York
Office sold goods for the Kearny Hat
Works on commission
While William A. Baglin was on
the stand it developed that his son.
Aiphonso Baglin, has recently started
another hat factory in Orange The
senior Baglin denied having any in
terest in the Orange concern, or hav-
ing invested any money In 1t.
AIphonso Baglin followed his father
on the stand. His story of acquiring
SO 900 with which to start the Orange
hat factory brought forth some sharp
questioning by Referee Adams and
Mr.. Bilder The witness explained
that the Kearny Hat Works plant
was owned by his mother and leased
to him. Alphonso Baglin in turn
leased the plant to the Kearny Hat
Works. During the last few months
thr Kearny Hat Works paid Alphonso
about $4,000 for rent, testified the wit
ness. This money was placed in .he
East River National Bank, of New
York, and used in financing the new
Orange factory. Alphonso admitted
that he has not paid his mother any
money on the lease he obtained from
her.
Referee Adams then ordered AL
pnonso to produce the leases, checks
and bank books used in the trans
action.
After the hearing yesterday Mr..
Bilder intimated that he would ap-
peal to the court for an order to turn
over to the bankrupt estate some of
the money which changed hands in