Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-07-14
SASH COMPANY
HEAD CROOKED"
DECLARES JUDGE
Samuel Merlis Severely Ar
raigned in Local Bank
ruptcy Case.
PRESIDENT ACTED BADLY
IN THE PROCEEDINGS
Jurist Won't Stop Proceedings,
as That Might Help
Defendant.

bankrupt Union Sash & Door Co.,
during an investigation today into
!, the failure of the concern. The
courts arraignment followed an at.
tempt to end the investigation.
1T would be too late now to stop
/ this proceeding" said the judge. 1T
has gone too far now and it would
be unfair to Mr.. Furst not to give
him an opportunity to answer the in
| ferences that his actions were ques-
! tionable.
"The setting aside of the composition
among creditors of the Union Sash
in Merlis, the president ing back
the money he spent in plh : :. through
the settlement.
I'VE have no doubt now, even
though the case is not completed, that
Merlis consummated these deals
| knowing he was doing wrong. His
own testimony on the stand, in which
he contradieted himself and changed
his story when I told him l doubted
1t, left no doubt in my mind but that
| he is crooked.
| lidS ditdShtu CNtly oilC, III
Guiding lawyers, in his testimony.
Now it Is shown that he has made
deed which was improper and then
cuts his name out of the deed
| Alvin Cass, Of New York city, who
said he represents creditors, sug-
gested the proceedings might be
shortened II United States District
Attorney j. Warren Davis, who is
seeking to set aside the composition,
would modify his petition.
| "Merlis is a dangerous man, be-
| cause he is an assassin of reputa-
| tions," added Cass.
| Lawyer Furst Criticised, Too.
| II can't see why Mr. Furst ever
consented to a composition Of twenty
per cent. in this case If he was look
/ ing out for the best interests of the
creditors said Judge Haight.
! Mr. Davis refused to modify his pc
/ tition, which alleges the door COM
| pany was solvent when George Furst,
j a local lawyer, threw ii into bank
| ruptcy. The petition also, charges
| there was fraud and misrepresenta-
tion used in persuading creditors to
accept the settlement. 1t was these
| features which Cass wanted removed
from the petition.
The Union Sash and Door Company
agreed to pay creditors twenty per
cent. of their claims last fall after In
voluntary bankruptcy proceedings had
been started. Ten per cent. was paid
in cash. The remainder was paid in
notes which came due about a month
ago when the investigation was
| started.
| George Furst represented the petit
| tioning creditors. Samuel l. Kessler
was appointed receiver and Charles
Fl. Wagner, of Elizabeth, represented
| the defunct company, which was To-
Gated at 100 Magnolia street. A. Harry
Krnsen, of East Orange, lumber
dealer. also a creditor of the door
company. engaged District Attorney
Davis to reopen the case by having
the settlement set aside. Then start
ed the series of hearings which re-
suited considerable mud Singing
among t.N lawyers and business men
/ involved.
When Judge Haight made his at
! tack on Merlis today the latter was
seated in the rear of the court room.
He did not seem to understand what
was being said. although he bent
forward eagerly to catch the judges
remarks. After Judge Haight had
given his opinion Of Merlis the pres
ident of the company moved a few
seats neart the court exit.
Counsel Charge a Surprise.
Another surprise of the hearing to-
day was the apparent change in atti-
tude of Wagner, counsel for Merlis
| AT previous hearing, Wagner ap-
peared to be making efforts with
Furst to show there had been nothing
| questionable in arranging the compo-
sitioD.
Today Wagner told how it was not
| until the fees of $3.50 for the receiver
and Furst were fixed that the compo-
sition met with approval. The deci-
sion to pay fees also ended -Furst' $
plans to examine the bankrupt, said
Wagner The latter also told of sew
eral visits received from Furst since
the Investigation started.
"Furst came to my Office In Eliza
beth and asked me to see Meris and
find out what was going on" said
Wagner HE said that at first he
thought Merlis wanted to proceed
against him (Furs) on a charge OF
malicious prosecution. Then he said
he wanted me to see Merlis and see
what / could do for him (Furst) with
| Merlis.
"Furst also brought up the 500 paid
! to him, which has been testified to at
nothing to fear If the money was paid
to him legitimatey. He said there
| was no question about ii being all
| right, but he didn't want ii to appear
even that his actions were being in
/ vestigated, whether anything could be
| proved or not"
| Mr.. Cass then asked Wagner If the
witness had not seen District Attor-
| ney Davis since the last hearing,
| Wagner admitted he had
And isn't 1t a fact also that YOU
refused to talk to Mr.. Furst and nv
self when we wanted to talk to you %
continued Cass.
The witness denied this. He also
denied he had kept quiet about the
bankrupt's examination being stopped
when the fees for the receiver and
Furst were agreed upon.
II told you about 1t in your New
York Office said Wagner. with con-
siderable heat.
"Will you swear to that?"
II certainly will, answered Wag-
ner.
When Judge Haight learned the re-
ceiver and Furst had been paid $3.50
by the bankrupt, he inquired into the
amount allowed a receiver, under SINH
lar conditions, according to law. The
clerk found the statute, providing the
Il receiver shall be paid one-half of one
per cent. of the amount paid credi-
tors. Creditors in this case got a
total of $40. making the receivers
statutory allowance 1870.