The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1918-05-28
Hotel In Financial Trouble

/ The affairs of the Newlin Haine
Il Company, owner of the st. Charlie
hotel, Atlantic City, are being invests
gated by Edward E. Grosscup, VIII,
was recently appointed receiver. TIL
company is composed largely of Bur
lington county people.
The liabilities of the company
amount to 81, TT, 649.71, which is made
iup of mortgages, 100000; taxes un
paid, $2S, 500; accounts payable, $64, $40
IL; notes payable, 1884, $50. The affairs
OF the company have been so much
involved that the selection of trustee
has aroused much interest. The letter
addressed to all the creditors by Austin,
Nichols & Company, and Francis HI.
Leggett Company, wholesale concerns,
definitely charges that there is a move
ment on foot, headed by H. E. Wood
man, president of the Franklin Trust
Company, of Philadelphia, to secure
the selection Of an interested trustee.
This letter says that neither Mr.,
Woodman nor the franklin Trust
Company is creditor of the bankrupt
company, and that the testimony
taken before the Commissioner showed
that Mr.. Woodman represented the
claim of Eva B. Haines, wife of New
lin Haines, president of the Newlin
Haines Company, Mrs. Haines claims
to be a creditor for upward of $4,000,
and the testimony showed that she re-
ceived in March, 1918, While the COM
pany was insolvent, $4,000 of third
mortgage bonds of the company as
collateral security for her claim. 1t is
the purpose OF the creditors to have
this transaction reviewed by the new
trustee. 1t is further stated that Anna
nj. Jeffrey, relative by marriage of
Newlin Haines, in March, 1918, while
the company was insolvent, received
81, 900 of these third mortgage bonds.
Another claim is that Charles H. Le-
Maistre, director of the hotel COM
pany. received from the company
when it was insolvent $4,000 of the
third mortgage bonds as collateral for
a claim Of $l1, 1000 for commissions in
procuring loans for the company while
he was director.
Other allegations made as the result
of the examination before the United
States Commissioner are as follows: I
That J. Hector Mcneil, counsel for
the company, received for legal services
between March %, 1918, and April 5.
1918, SO, 250; that of this sum So, 900 was !
paid to him on April and 5, several
days before the company authorized
the president to consent to bankruptcy:
that in January, 1918, the company
gave mortgages for $3.50, 600 to secure
an issue of bonds of $3.50, 000 of which
s77, 900 was distributed in March, 1918.
while the company was insolvent, to
Eva B. Haines, Anna NJ. Jeffrey and
Charles Nj. LeMaistre; that Newiin
Halnes received from the company for
The sale of its treasury stock substan-
5lal sums as commissions; that the
company gave mortgages for $500, 900,
II which $4,000 represents commits
'ions TO brokers for procuring the loanI
hat Mr.. Haines has been receiving a
salary at the rate of So, 1000 year and
Mrs. Haines at the rate of $3.50 a
month in addition to their living at
he hotel.
1t is the purpose of the committee of
to have this examination al
eady begun before former Judge Clar-
snce L. Cole, of Atlantic City, contin-
led by the new trustee, and the out !
;ome of this proceeding is arousing
much interest in hotel circles of the
country. II