The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1916-05-16
Another Hearing


There were 1,074 persons summoned
before Referee in Bankruptcy s. Con-
rad OFT Wednesday morning as respon-
dents in the order to show cause why
they should not be assessed for unpaid
stock in the Linwood Haines Limited of
America. This rule was obtained some
months ago by Lawyer J. Mercer Davis,
trustee of the defunct concern, lawyer
Walter ]. Carroll, OF Wilson & Carr, be-
ing counsel.
While the regiment of shareholders
did not put in an appearance in its en-
tirety, the Criminal Court room, where
the session was held, was fairly well
filed. These respondents came from all
sections of this state, Pennsylvania and
Delaware. About 200 of them were rep
resented by Lawyer Harry c. Kramer.
Other counsel included Lawyer ]. B.
Tyler, David o. Watkins, Harry F.
Whaland, Walter S. Knerr, A. B. Dawes.
Lawyer Carroll stated the total assets
from all sources were $16,683.77, out OF
which has been paid first and second
dividends Of 20 and 10 per cent, wage
claims, etc. There have been filed 279
unsecured claims, aggregating without
interest, $50, 1922. There is still due
$21, 556.69 and it is estimated it will take
$4,000 additional to pay the interest to
these unsecured creditors. Then there
| a 70 ovnonSae Of odpoio;Str ration, tI,a ID 81
eree's commissions and incidental ex-
penses. To pay the creditors with inter
est it will be necessary to raise $3S, 200.
Cross-examined by Mr.. Kramer, the
witness was asked as to all the expenses
and this was shown to be the $21, 1856. SO
to pay the creditors, $40 interest, 81, 900
for the trustee, $500 for the referee in
fees and expenses fixed by law and other
things which brought it up to $2S, 5O6. SO,
according to Mr.. Kramer.
"And the counsel fee, what will that
be ?" asked Mr.. Kramer.
1--WE are going to ask for $4,000" re-
piled Mr.. Carroll, and the stockholders
present said quite a few things soto
voce, which sounded like the angry buzz
zing of hive.
1t was shown that the present pro-
ceedings had cost 500, resulting in con-
stables service in serving subpoena,
mileage, postage, etc.
In reply to further questioning by Mr..
Kramer, the witness said there is due
the company on an unpaid balance ON
the sale of perferred stock $3.50, of
which $1,000 can be reached. The com
mon stock is represented by 1857
shares, vauled at $115, S46. He stated IS
of the respondents were either dead or
had moved away. These represented
558 shares with par value of $3.50,
leaving balance of SLOPES which can
be reached. The total possible assets at
present that can be reached, share
holders not having been located up to
the present is $1,000, on perferred and
$10S,595 on the common stock.
"Have you discovered any act that
would make the officers or any one liable
to the stockholders in damages OF
money" asked Mr.. Kramer.
81 can't say that have" replied Mr.
Carroll. ''There was very foolish bust
ness policy, for their whole effort seemed
! to be to sell stock instead of getting leg
innate profit on the purchase and sale O
merchandise.
Mr.. Kramer further asked the witness
whether when the United Distributing
Company was formed from the wreck
age of the Haines outfit the sharehold
ers were led to believe that by the pay.
ment of Sal, 900 it would be satisfac
tory to the creditors and no furthe
movement for the assessment would b
made.
Mr.. Carroll said the trustee was deal
ing with a committee and he said tina
such an offer would not release tn
stockholders from liability. He de
clared, in fact, there had been nothing
said about the creditors being satisfied