The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-19
ATTEMPT TO DODGE
JUDGMENT CHARGED
Searching Inquiry Ordered In
10 Acts of Lawyers by JUS
tice Grcenbaum.
TAXI CONCERN INVOLVED

u,ri,m II. Davis. members of the law
firm Of Hcnnccker, Roth & Davis. on the
,rounds that through the action OF Roth
, CONAN who was injured by n taxi !
,,h has been prevented from collecting
a Judgment of $3.50. obtained in the
CITY court. Supreme Court. Justice
c-ecnbaum has referred the case to
,,.Justice John J. Freedman. an official
referee Of the Supreme Court. Justice
Greenbaum directs that "a searching
inquiry into the acts OF the attorneys
and Of the other persons connected with
the transaction be made
The order was made as the result OF
an application by Edward A. Scott. at
,orney for Mrs. Mary Golden. who OBJ
tanned a Judgment for SI.250 against
the New Harlem Casino Taxi Service.
10 fine the attorneys named the amount
Of the Judgment for contempt Of court
because OF acts Of the lawyer. The
PETITION OF Mr.. Scott also asserted that
".oui,y and Justice demanded hat the
matter he sent to the District Attorney
for action by the Grand Jury and the
matter Of the attorneys be laid before
the Appellate Division" Any further
action in the case will await the re-
por, OF the referee.
The petition Of Attorney Scott said
that Mrs. Golden got her judgment on
December 3 last. Execution against
the taxicab company was returned un-
satisfied and supplementary proceed
ings were instituted. Morris =.
Schwartz. managing agent OF the COM
pany. who Is a brother OF Max
Schwartz. proprietor of the Little Hum
gary restaurant, appeared In court on
February Is and was examined to some
extent. A further examination was set
for February Is.
Dissolution Proceedings.
At that time Mr.. Scott was notified
that the taNcab company. through
Herman Roth as its attorney, had
started proceedings In the Supreme
Court 20 dissolve the corporation. and
referee was appointed TO hear the
case on April 20. In the meantime
the Judgment creditors were prevented
BY an Injunction from taking any steps
TO collect.
Attorney Scott said he appeared be-
attorneys for the taxicab company we're
not heard from and when the referee
telephoned Roth he said that he didn't
intend to proceed with the case. Mr..
Scott told Justice Greenbaum that there
was no doubt that the courts order re-
strainiug the judgment creditors was
used for the sole purpose of ending the
inquiry so the rights Of Mary Golden
would be seriously impaired and lost
to her
Mr.. Scott said the testimony of
Schwartz. 80 far as IL went. revealed
a startling situation" Nine days after
Mrs Golden got her judgment the
owners of the taxicab company formed a
rev concern under the name OF the
Harlem Taxi Company. Inc. and made
eigh, applications for tax!cab licenses
20 the Secretary OF state through the
PRESIDENT. Raymond s. Schwartz. who
Rad been secretary and treasurer OF the
former corporation and is a son OF
Norris Schwartz. When Morris Schwartz
vas examined he said nothing about the
transfer of the company's automobiles
10 the new corporation.
Mr.. Scott said II was when the com.
pany WAS confronted with the immediate
appointment Of a receiver that Roth go,
the order staying the supplementary pro.
ceedings by deceit and fraud. with nc
Intention Of acting under it." He pointed
out that automobiles depreciate more
rapidly thar other property and ever Il
ne Judgment creditors could seize to-day
ne automobiles transferred to the new
corporation and could have a receiver
appointed for the concern the amour,
Tor which the machines could be solo
would he much less than could have
been obtained at a sale last February
during the season when automobile.
were in demand.
The testimony OF Schwartz. who live,
a. 400 Manhattan avenue which wa.
submitted TO Justice ~Greenbaum, stated
mat ne didn't know anything about tn,
,axlcah company. but 'it didn't seem I,
no IN business" He said the business
had been run by employees who con
Quoted II at a loss and he frequently len
mem money to make up deficiencies
-Iney owe me a pile OF money" h.
sad. Mr.: Roth was secretary Of tn.
company, he testified.
Roth's Defence.
IN defending himself against tn,
charges. Roth said his clients instructe,
MN 20 abandon the dissolution pro
cee1lngs because they had no funds anc
couldn't afford the expense. He denie,
ha' the corporation had ira nsferred an,
p~Foperty to the new concern, and sait
MAY on June 23 the company's taxi
cans were sold under the foreclosure o
'ha'le! mortgag es and were ented 4
We New Harlem Casino Tax! Service.
Atter this affidavit OF Roth had beef
nei Scott filed one In reply In whicl
no sid that pursuant to the authorize
Uoh OF Justice Greenbaum to investi
fa'e the statements of Roth, Schwart
ana others he had learned that thel
sworn statements were false. except tina
MIS- Pauline Schwartz. wife of Mcrri
S'hVartz. held chattel mortga ges or tn
automobiles which were not valid. II
sad that the mortgages purported T.
snow that Mrs. Schwartz had borrowe,
5000 from her husbands brother, Ma.
schwartz $1,000 from her sister, Mrs
Hlss.e Nedell, and $1,000 from the LAT
ers husband. Louis Nedell. clerk In
pawubroker's shop.
M. Scott said that Max Schwartz toll
nun ne never lent any money to hi
sS'e'-in-,aw and never held any chatte
mortgages from her. He didn't knoy
herman Roth, who appeared as hi
counsel in the mortgage transaction, h
tdn. The attorney also said that h
"a" Mrs. Nedcll. who told him she didn'
END any money and never held an,
,aat'el mortgage. When Scott aske
Nedell about II he said he would hav
L See his lawyer before he could tel
"heti"r he lent any money. He ais
Issert"d that he didn't want to b
'fought into the matter. Mr.. Scott sal
" MS affidavit
III must he anna rant that INV Ia wye