The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-20

by unanimous consent. there were AT
tachments. judgments. moves made In
Federal courts and state courts. all of
which resulted In a r~eceivewhip. In
voluntary bankruptcy actions, and the
present hearings came on.
The main difficulties met by the in
v~estigators grew out OF the fact that
around last November the books Of
the company disappeared from the fac
tory. A marshal In charge mt the
time said he did not now what became
Of them no one appears TO know
to this day. because Of this 1t VAS
impossible to ascertain the full list
Of creditors. to understand the items
Of the bank account. the nature Of de-
posits made or OF checks drawn.
There was much curiosity concerning
the fate OF the 100000 issue of gold
notes. Mr.. Brown. who sold the notes.
testified that he had turned the pro-
ceeds Of the sale over to the trcasury
OF the company. Unfortunately the
books of ". A. Brown & Co, as well
AS all papers, had been destroyed when
that firm went out OF existence. An
ex-ofticer of the company testified at
a hearing that he remembered receiv-
ing Mr.. Browns checks. Unfortunately
the books were gone and out Of the
gross balance which the bank cou,d
supply he could not say what had been
BroXn checks and What had been re-
ceived from the sale Of candy.
II was admitted all around that for
some reason they could 40, make the
candy business pay. The fault did not
appear 20 be with the candy itself. for
they had an expert candy man. hut with
the business methods. While there
might be an aggregate ban accoun. Of
$4,000. there had never been any
large balance.
Dr. Parkhurss a. President.
Mr.. Franklin had severed his coTnec-
ton with the company AS president. and
Dr. P~arkhurst was acting president and
william +. Grinter was secretary-treas-
urer. William II. Griffin. attorney FOR
DIR. P~arkhurst. said at last THURSDAYS
hearing that Mr.. Grin'er formerly had
been connected with Brown & Co. Mr..
GriHter appeared 10 be the business head
Of the concern.
What was you knowledge of the
business of the concern" was me Of
the questions asked by Dr. Parkhurst AZ
the time he admitted that he had been
"A dupe.
Il was never permitted to have any"
he replied. ~ was always frustrated
by Mr., irinter when ! tried to get any
Information
There were a number Of things Dr.
P~arkhurst tried to learn. For instance.
when affairs became trying and there
was not enough money to pay wages
certain automobile trucks were sold. No
one knows exactly about hat. The
! candy u in charge testified tina, some
times when they were out Of orders he
WnIllh .Sk ush. ,a..o 20 a.. 1a,,xa sLsAA
, going" was the order. " can never
sell stock II the factory is shut down.
Work over the old stock"
Dr. Parkhurst has testified that he
never knew anything about this. He
knew that as time went on certain men
appeared and objected to the gold notes
they had been persuaded to buy. one
man threatened trouble. and AZ he had
faith in the enterprise the minister went
to his safe deposit vault. procured there
from United States Steel common and
turned over to Mr.. Brown to purchase
these notes Of the protestants,
Buys To Save His Friends.
TIL. preacher kept on buying in this
way until he had acquired the ss3.sO0
of the total issue ~ $780, 900. Then
when the payment Of interest Was de-
Multed he sought TO protect himself lie
had been informed and believed that
the assets OF the company were worth
AZ least 1900, 000. and h. was very much
disa ppointed when the entire plant sold
for $4,000. another candy manufacturer
being the purchaser.
As II that were not enough the general
creditors have attacked the priority OF
the chattel mortgage. asserting that
1, has lost its lien because OF IA failure
10 rehle it at the expiration Of one year,
according to law. That would put the
general creditors and the note holders
in the san class after the expenses
have been paid and the mortgage de-
Quoted.
The hearings before the referee will
continue. as the experts seek to unravel
the banking complications and look for
the 100000 or a part Of II, There were
hints at recent meetings. as has been
said, that the aid OF the authorities may
ne called in the quest for the money
In the meantime Ir. Parkhurst says:
81 WAS as honest as ! could he In his
matter, but ! have 20 confess myself u
dune
His attorney. Mr.. Griffin, said yester-
day that he preferred not To discuss
the ase at present, as there ar" so man!
81 G-.. L.. NhA HAl