New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-08
DIR. PARKHURST
DENIES FRAUD
Pastor Explains His Part
in American Candy
Deal.

Lakewood, y. j., Jan. T. The Rev.
Dr. Charles II. Parkhurst. pastor Of
the Madison Avenue Presb yterian
Church. denied to-day that he had been
instrumental. by the use Of his name
as viee-presldent Of the American
Candy Manufacturing Company IN per
petrating "A fraud on stockholders Of
the company.
First he characterized the statement
as "a wicked and damnable lie then
he grew cooler and reviewed the finan-
cial history Of Frankllns, incorporated.
New Jersey concern. with factory
for candy making N Long Island Clty,
and the American Candy Manufacture
ing Company. which bought the assets
Of the New JERSEY corporation, the sale
OF which was set aside this week ~
the New Jersey Court OF Cnancery.
81 am glad did j.. ! am proud OF
it," declared Or. Parkhurst, IN admit
ting that he wrote letters as vice-pres-
ident of the American company, which
was organized in Delaware, asking
stockholders for their proxies 20 vote
the sale Of the Franklin company.
Il had opposed the reorganization
was so complete that the Federal in
dictment of the original managers
would be forgotten he said. but |
was mistaken. The past followed them
like shadow. The resources OF our
business shrank until we were forced
20 stop.
In the mean time the stockholders
became dissatisfied and threatened suit.
IL -eemed desirable-to hay, tho unsym-
pathetic and undesirable ones out OF n.
SO ! bought their stock. At any rate,
| testified 20 my honest interest IN the
welfare Of the company. Ny holdings
al that time were therefore large. In
order 20 get out Of the situation il was
recommended 20 me 10 resort 10 re-
ownership, % which proposal replied,
Il do not want 10 avail myself OF any
scheme that will impair the value OF
the holdings Of the stockholders, in
Guiding those widows II - publicly IN
situated have been the means OF
defrauding."
Dr. Parkhurst added that II was his
ambition TO secure money 20 meet the
outstanding obligations OF the Ameri-
can Candy Manufacturing Company
and TO furnish working capital for the
resumption OF business. N''h tho value
90 the stockholders unimpaircd.
That is the KIND Of a fraud am.
he declared tonight a. the Pine rec
Inn. at Iakehurst. where he Is living
temporarily. There IL not fibre in
my system that is not outraged by the
calumnaciOus presentation Of my case
Regarding Charles Jones. OF Newark.
attorney FOR the minority stockholders
Of the American Candy Manufacturing
Company. who was instrumental m
having a receiver FOR the concern sp-
pointed and the sale OF Frauhlin's, Inc.
10 the American Company set aside.
declaring 20 the New JERSEY Court Of
Chancery that DR.. parkhurst lent his
name TO fraud, the clergyman said:
"TIc insinuates that | sold myself 20
the company for consideration. |
scorn me imputation and | scorn him
for making it."
Al Newark yesterday Charles Jones,
OF the law firm Of Jones & Gleesor,
said:
THE charge against DR.. Parkhurst
was made in the courts last May. That
is the place for him TO answer il. NJ
i'm the newspapers. Why has he not
filed an answer? Unless he does so by
next Tuesday pro confessor proceedings
AGAINST him and other officials Of the
candy company will be commenced.
Then he will be called TO the witness
stand and cross-eXamined as 10 where
the money received by the candy com
panv b. the sale of stock went
Jones went 20 Long Island City yes
terday to inspect the Franklir's plant.
lie was accompanied by Judge Charles
Carrick. Of the Cnancery Court OF Jcr-
sey City. who on Tuesday was appoint
cd receiver for the dcfunct corporation.
While investigating. Jones found that
the property in Long Island City was
heavily mortgaged and that foreclosure
proceedings had been started by the
williamsburg Savings Bank. The mort
gage was found 20 be held by the
bondholders. among whom is DR.. Park
nurse When an effort was made TO
locate the books of the Franklin con
Germ, in which were recorded all stock
transfers and other accounts of the
company. il was found that they had
,nvsteriouslv diSapDearad