Newark evening star and Newark advertiser., 1916-01-27
SENT VARN|SH,
NOT EXPECTING
IT TO Be USED
Alleged Note-Kiting Scheme OF
Parker Bradley Bankrupt,
Being Probed by Referee.

Echoes from an alleged nation wide
/ "note-kiting" system, involving nearly
$4,000, were heard yesterday after
noon in Referee Charles NJ. Mason's $
section of the Bankruptcy Court in
the matter of Parker r. Bradley, Inc.
bankrupt leather manufacturers, OF
this city.
As a result of these note trans
actions, according to testimony gived
by Parker r. Bradley, vice. president
Of the bankrupt concern, thousands OF
barrels of patent leather finish manu-
factured by the Bradley Company are
stored in various railroad freight sta
tions throughout the country.
These facts were disclosed when
William Harris, attorney for Trustee
Francis Child, questioned the bank
rupt concerning alleged transactions.
Mr. Harris is endeavoring. among
other things, to prove that the bank
rupt obtained credit from banks and
other concerns by the alleged repre-
sentation that the checks had been
received for actual sales, and, by con-
signing the varnish to various firms.
was able to point to the shipments
as evidence of his having made such
sales. That he never expected the
varnish to be used was admitted by
Mr.. Bradley.
According to the bankrupt, notes
were given to New York note spec
ulator and the latter in turn placed
the negotiable paper with numerous
Western concerns. Bradley, ii was re-
vealed. received similar paper from
the note speculator. Many of these
notes are alleged to have been dis
counted by banks.
Did you at any time represent to
any bank that the notes you wanted
to discount were accommodation
paper or notes given i'll exchange for
Parker r. Bradley notes?' Mr.. Harris
inquired of the witness.
Herbert j. Hannoch, attorney for
the bankrupt, objected to the ques-
tion on the ground that the witness
might incriminate himself by answer
ing. The objection was sustained.
what other partners had anything
to do with these notes?" inquired
the referee.
mo one" replied the witness.
did any partner or director know
anything about them?" asked the
referee.
NO" answered the witness.
Collateral Security.
Mr.. Harris then questioned the wit
ness regarding the shipment OF the
patent leather finish given as col
lateral security for the payment OF
the notes. According to the witness
he did not expect the various con-
Germs to whom shipments were for
warded to use the leather finish.
"Did you in the last fourteen months
make a bona-fide sale without note
transactions asked Mr.. Harris.
II don't remember" replied the wit
ness.
Did you make any," asked the at
torney.
mot very many" answered Brad
ley.
did you have a book in which you
entered these so-called sales?" in
guired Mr. Mason.
"Yes." answered the witness.
"Have you this book?" asked the
referee.
"I don't know where it is" replied
the witness.
various railroads stating that thou
sands of these barrels of patent
leather finish are stored in their
freight stations" added Mr.. Harris
you have only raised money and
shipped your leather finish for nearly
year," inquired the referee.
"Yes." replied Bradley.
Tho bankrupt was directed to turn
over q quantity of the leather finish
to the trustee Referee Mason stated
that he desired to have the liquid
tested.