Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-21
NEWS STORY, IN
AID" AGAIN HIT
AS MISLEADING
Referee Adams Stands by Crit
icism of Its Use as "Vicious
and Unauthorized"

Reiteratlon of the charges that an
advertisement, based on a story
printed by the Newark Evening
News, was vicious and unauthor-
lied" was made by Referee Edwin
G. Adams, of the Bankruptcy Court,
yesterday.
In reference to the News story, Mr..
Adams declared that he has not the
slightest doubt that 1t was mislead-
ing. He also declares that he did say
in court Thursday that allegations
contained in the News story were I'M
true.
The advertisement in question was
one by the Standard Piano Company
This concern now occupies u store at
Broad street and Central avenue. Tho
store formerly was occupied by the
Edisonia Company, which has been
in bankruptcy since November, 1912.
An attempt to make il appear that
the story used in the advertisement
was correct was made by the News
yesterday 1t published an alleged
refutation of The Stars report of the
proceedings of Thursday in Referee
Adams's court. The alleged REPUTATION
carried the heading, Referee Up
holds News's Accuracy"
The story goes on to say: THAT the
referee pointed out that The Star ac-
count had left out that portion of the
sentence which referred to leases in
the possession of the trustee The
accuracy of the foregoing state
ment by the News may be judged by
the fiat denial of Referee Adams that
he had mentioned The Star during
the proceedings yesterday.
Official Report.
THE stenographic report of the
court proceedings shows exactly what
| did say said Mr. Adams. He
then asked the court stenographer to
read from the notes of the proceed
ings. This was done. No mention
of The Star was made in the record.
1t was explained by Referee Adams
yesterday afternoon that the question
of newspaper veracity in the matter
was one that was only incidental to
the case of the Standard Piano Com
pany. His criticism denounced the
advertisement, which contained the
News story.
The proceedings against the Stand
ard Piano Company were begun by
the law firm of McCarter & English.
representing about thirty-five banks
In all parts of the country. These
banks hold as collateral installment
accounts with the Edisonia Company.
The installment accounts represent
sums of money owed to the Edi-
sonia company for pianos and talk
ing machines and were turned over
to the various banks as security. In
legal phraseology the installment ac-
counts are called Ceases"
McCarter &, English allege that the
Standard Piano Company is in con-
tempt of court. 1t is charged that the
Standard has violated an order by
Referee Adams. This order gave to
the III. T. Nelson Company, of Chi
cago, authority to collect on SOME
installment accounts that originated
with the Edisonia- The Nelson com
pany had sold pianos to the Edisonia.
AS collateral the Newark firm pledged
it's installment accounts with the Mel
son company, which manufactures
pianos.
Gave Wrong Impression.
The alleged violation of the court
order was said to have consisted in
the Standard Piano Company pub
fishing an advertisement which Ref
cree Adams held to be misleading
The court announced that the ad-
vertisement. which is the ono carry
ing the Newss story. conveyed the
impression that the Standard Piano
Company had a legal right to make
collections on ALL instalment ac-
counts of the Edlsonia.
1t was at this point in the case.
reached on Thursday, that the ref
cree declared the advertisements to
be vicious and unauthorized. The
advertisement referred to was based
on an article in the News March 6,
relative to proceedings before Referee
Adams regarding the power of maxi
Ing collections on the instalment ac-
counts of the Edisonia.
The News story of March bore
the following heading: "Edisonia Col
lectiOns to be Made by Nelson Con-
Germ"
AS a matter Of fact there was a
large number of the Edisonia install
ment accounts that the Nelson COM
pany had no legal right to make col
lections on. These accounts We're held
as collateral by the thirty or more
banks represented by the law firm of
McCarter & English, of this city.
Other creditors of the Edisonia are
also involved in the bankruptcy pro-
ceedings. They are represented by
the Gotham Clearing House, a mer-
camille collecting agency Of New
York, whose counsel in the contempt
proceedings is former Judge Wilbur
A. Heisley, who has his office in the
Prudential building.
Hit by Ex-Judge HeIsIey.
Both Mr.. Heisley and George w. c.
McCarter, of McCarter e. English. at
lacked the Standard Piano Company
for the use OF the advertisement that
contained the News's article They
alleged that they were prevented from
making collections for their clients
because of the use by the Standard
concern of the alleged misleading ad-
Vertisement
out by the STANDARD also were sub
mitted in evidence. These circular
letters. it Is said, were sent to debtors
of the Edisonia for the purpose of
having them come to the Standards
store. Mr. Heisley said it was evil
IDENTIFY the purpose in sending out the
circulars to give the Standard Com
pany a chance to sell more goods
Before the regular court hearing
was started yesterday in the Stand
ard alleged contempt case, Referee
Adams was approached by a reporter
for the News, who said he wrote the
article that was used as the basis for
the vicious and unauthorized" adj
Vertisement This representative of
the News was much wrought up over
the caustic criticism of the adVer-
tisement containing his article OF
February G. He took exception to
Referee Adams's criticism of the day
before. The court stenographers re-
port of Mr.. Adams's reply in open
court is as follows:
81 want to say that the representa-