The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1917-10-23
Interesting Case Settled

Interesting Case Settled
A case that has interested many
people in Mount Holly, directly, and {
number outside, indirectly, has at las
been settled by the Court of Errors ano
Appeals, which has confirmed the
opinion of the Supreme Court, and
which established precedent by show
that subscribers for stock NAV, unde,
certain conditions, be relieved from
paying the amounts they put their
names down for.
The case was that of the trustee in
bankruptcy of the Ottomobile Com.
pany against some of those who had
subscribed for, stock of company that
showed up very highly on paper and
which was to manufacture automo-
biles in such numbers that the fortunes
OF the stockholders would soon be
made and the town was also to be
greatly benefited because there was to
be a large plant established on the out
skirts of the town and numbers of
people were to be employed.
Promoters came to town and by their
glowing accounts that there were
millions in it," got subscriptions
from our citizens. The business men,
especially, became interested, because
it would necessarily follow with the
bringing of so many workmen to
Mount Holly business must naturally
increase. The subscription paper con-
tanned certain agreements and obliga-
tons but when the charter was issued
it was found that the incorporators
had inserted much more than was or.
iginally agreed to. There had been an
understanding that certain things were
to be done but this part of the program
was not carried out and on the ground
that faith had not been kept, some OF
the subscribing stock refused to
pay the amounts they had set their
signatures against.
NThe new plant was never put up in
Mount Holly and the manufacture of
automobiles was begun in Philadel-
phia. The concern did not live long
and went into bankruptcy. Then the
trouble beganA The trustee in bank
ruptcy insisted that the subscribers
must pay up and the latter declined 10
add to the treasury. There were MANY
hearings before the referee in bank
ruptcy, some of them intensely lively.
Finding that the men who had SUBJ
scribed were not going to pay unless
compelled to, the trustee began suit.
1t was agreed that test case should
be made and that Walter Allen and
Abraham Saltzman should be the de-
PENDANTS. If the case went against
them the others were to come under
the decision.
The first trial was before Judge Car
row and after lengthy hearing he de-
cided against the defendants. The
case was then carried before the Su.
preme Court and the decision of the
court below was reversed. This, of
course, did not suit the trustee, and he
carried the matter to the Court of
Errors and Appeals, and that tribunal
has decided with the Supreme Court
and those who did not want to paw out
their good money on what they con-
'idered fraudulent deal, are relieved
from that move.
The objection to paying the subscrip-
ions was based on that part of the
agreement which stipulated that the
company, among other things it
was to build a plant in or
1ear Mount Holly and manufacture
automobiles at that place. This was
never done and there were other powers
given the corporation that were not in
he original agreement. The money
hat has been saved to those who
ought the affair, amounts to about
10000. In addition to being relieved
rom paying this sum, the contestants
AVE mad established the precedent
hat when stock is subscribed for it
iced not be paid for unIesss the party
Who is securing the signatures does his
part in carrying out every detail OF the
contract
This was one of the most difficult
.ases to conduct that has been in the
courts for some time as it involved
many points that had to be covered
md combatted, the parties sued being
iefendants in every sense of the word
md were compelled to fight against
very contention of the lawyers on the
'ther side, who put up strong argu-
nents in order to attempt to compel
he payment of the money. V. Claude
Palmer, of Mount Holly, was the law
ver of record for the defence. He had
Iarten V. Bergen, of Camden, as as
ociate counsel, but the real work in
he case was done by Mr.. Palmer, who
naturally feels quite elated over his
,ictory, and he is perfectly justified in
hat feeling.