Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-11-11
.C.P. TAYLOR PAID
NOTHING IN DEAL
FOR STORMS CO.
Board of Education President
Explains Transaction With
J. F. Kelly, ex-Owner.
SAYS c. w. KNIGHT DID
NOT OWN ANY STOCK
Kelly Now Offers Notes for As
sets in Order to Regain
Control.

Charles P. Taylor, president or the
Board of Education was the princi-
pal witness at a meeting of creditors
of Storms & Co., bankrupt heating
and ventilating contractors, held yes
terday afternoon in Bankruptcy Court
before Referee Atwood l.. De Coster.
Mr.. Taylor is president and treas
urer of the company. An examina-
tion of the officers of the concern was
demanded by the creditors before the
proposed sale of assets to James f..
Kelly, former president of the COM
pany, was confirmed by the court.
The referee was requested to eX-
clude from the court room Mr. Kelly
and his counsel, Ralph e. Lum, dur
ing the examination of Mr.. Taylor
MIR. Lum and his client withdrew.
Mr.. Kelly has made a bid of $4,000
for some unfinished contracts and
tho stock afhd machinery of the de-
funct concern at its plant, 126-12S
South Fourteenth street. Counsel for
certain creditors objected to the
sale of the assets to the former pres
ident of the company ON the ground
that there should be an investigation
before the deal was put through.
John A. Matthews, representing a
few creditors, questioned Mr.. Taylor
at the hearing yesterday. The presi-
dent admitted that he paid nothing
for the 1863 shares of stock of the
company which he secured from
James F. Kelly, and which gave Mr..
Taylor control of the company. On
January II, 1914. Mr.. Taylor became
president of the company. He tes-
titled that Mr.. Kelly turned over to
him about $4,000 worth of stock, or
the majority portion of the stock
IN la N
the deal Taylor said:
az understood that Mr.. Kelly wanted.
TO get out of the business. In order
to get rid of his holdings he was
willing to assume certain liabilities Of
the company. He also decided to the
company certain property which he
and his wife ,Tned. That WAS the
only equity that charged hands at the
lime Of the stock transfer. | gave no
money or Tangible property for the
stock. One If the conditions of the
transfer was that Mr.. Kelly was to
be retained by the company for six
months at a salary of $50 a week.
Mr. Taylor testified that when he
became president. of the company 1t
had near1y completed contracts for
installing heating and ventilating
systerns in the Miller Street school.
South Side High School, Newton
Street School, CITY Hospital. Nurses
Home and the Epileptic Home at
Trenton, He. said that some of the
school contracts were made with the
Board of Education, while others
were sub-contracts made with the
general contractor in charge OF the
building. Taylor denied that any
contracts were made with the Board
Of Education while he was president
Of the company or that any money
for the various jobs was paid to him
personally.
was George w. Knight, engineer of
the Board of Education, ever en-
ployed by Storms Company, or held
any stock in the company" asked
Mr.. Matthews.
"IIe was not employed by the COM
pany and never held any OF its stock,
answered the president.
Mr.. TAYLOR denied that he had made
any arrangements with James II
Kelly by which the latter was to pur-
chase the assets of the company. The
president concluded his testimony by
telling how the stock was divided and
explaining a certain loan which the
company negotiated with the Ameri-
can Laundry Machinery COMPANY.
The other witness was Mr. Kelly,
who stated that he had been presl-
dent of Storms & Company for about
seven years before he sold out to
Taylor. He testified that he received
nothing for his stock except the sal
sry of $50 a week for six months.
The witness declared that Taylor had
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