The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-01-17

On the witness stand before
Referee Carleton ]. Hoadley In
the United States district court
today John C. Chamberlain
made revelations of ffenzied
finance which paralleled in
vivid description the Standard
Oil exposures of Thomas w.
Lawson some years ago.
Chamberlain told how q
bankrupt water company had
been absorbed while its bond
holders were metaphorically,
asleep, by agents who carried a
dresssuit case filled with $780,
600 in greenbacks.
How legislation was juggled
in the state of New York and
even a governors signature
withheld by political influence
until the last Of a $4,000 cash
payment was made, was part
of the sensational testimony
given.
That Burr & Knapp's bank would
have been in good standing today,
able to pay every one Of it's creditors,
that the Watervliet Hydraulic Co.
was to all extents and purposes
wrecked by the action of New Haven
financiers and that as a result of their
decision to place the water company
in the hands of a receiver, Burr &
Knapp's creditors will lose substan-
TALLY $4,000 and the hondholders Of
the water company about 100000,
were minor features in most sensa-
tional financial revelations.
Light into the darkness which has
heretofore surrounded the wierd
financial transactions of Burr &
Knapp and it's allied companies was
thrown by Chamberlain today, show
ing that the key to the whole Burr &
Knapp, failure and Herbert M.
Knapps embezzlement was an effort
to sustain the Watervliet company
against most unfortuitous accidents.
The manner in which Chamberlain
was himself tricked by the promises
of Knapp to protect him on endorse
ments by keeping a private safe de-
post vault of. Chamberlain filled with
valuable security, but which upon
being opened revealed that Knapp
had hypothecated nearly $4,000 Of
the securities supposed to have been
there was recalled by the witness.
The tale Of the attempts of Knapp
and his associates to sustain the
Watervliet Co. against overwhelming
odds, the action of the trustee to
play fair with Burr & Knapp creditors
ended in the solemn observation of
Trustee Chamberlain to the fact that
every act done by him was known
to Referee John w. Banks and that
in the minutest detail they have re-
ceived the sanction of the court and
cannot be criticised.
The morning session began with
Mr.. Chamberlain, who is suffering
from a severe cold, being again plac-
ed on the witness stand. With a
few minutes interruption when Dorr
r. Whitney, the auctioneer who sold
the insurance business of Burr &
Knapp, told of his efforts to get local
insurance men to bid for the prop
erty. Chamberlain sat during the
three hours session explaining con-
stantly. Whitney testified that with
all the books needed in insurance
bidders were loath to make any Of
fer seemingly because they felt peev-
ed at some possibility of the books
having been viewed by outsiders
In answer to an assertion of cred
itors that Chamberlain had collected
S1.001.60 assets held by the City Ma
tional bank and had applied the sum
on note endorsed by Chamberlain,
which transaction might be consider
ed to reduce Chamberlain's personal
obligation and deprive the Burr &
Knapp creditors, it was shown that
demurrer had been entered. In fur
tner explanation Cham berlain recit-
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