New Britain herald., 1929-10-18
LETTERS FROM HUBBARD ID EYANS0N EXPOSE MANUFACTURERS LINK WITH
 HEARINGS ON TARIFF AT WASHINGTON
PARKER R-SMITH C0. INVESTORS HEARD
WitnessPH1 D.. >s Did Not
 Get NIv.. 'S <
AUDITOR WILL h.

mcntS of Mortgages and Did No,
 Turn Money Over to Holders of
 Nogs At All.
 New Haven, Oct. is P}-In the presentation today of yoluminous documentary evidence in the em. bezzlcmcnt trial of the three Parker Smith company officers, States -N- torney Samuel E. Hoyt sought to show that withdrawals by the three men of funds from segregated mort gage trust accounts were "conver- slons with intent to defraud.'
 The state is prepared to put on the stand, probably Monday, Chas. F. Coates, of the Hartford account ing firm which audited the $25,000,- 0U0 accounts of the dcfunCt mort gage finance concern Coates will explain the audit made, his eXplana- ton to be used by Mr. Hoyt in show ing, item by item, how, as the state contends, money was withheld from notoholder, although paid by mort gagecrs so that it could be used for purposes other than those for which it was received. The use of the monoy-the state estimate makes it total S16G,40O-by the company when it should have gone to the pur- pose of liquidating notes were de scribed by Hoyt as illegal"
 Holds Use Was Legal
 Charles J. Martin, of defense counsel, in Interpreting the states maneuvers in the trial which is be- ing held in criminal superior court before Judge Isaac Wolfe and @ jury said; "Th0 defense comedies tn, three men issued checks against pait mortgage trust accounts, but holds 1 that the use of the money by the company was not illegal. The money went into the operations of the com. pany."
 Hoyt presented documents show ing that mortgage trusts had beer liquidated by the mortgagers and that in several instances, investors in these trusts received interest on their notes as long as a year after the company had the money to pay off the notes.
 In one case, interest stopped six months before the trust was liqui- dated and neither interest nor pay mont of the principal was forthcom- ing.
 This was the case of Miss Dorothy A. Cannon of New Haven for whom John +. Daniels, as trust officer of the Union X, New Haven Trust Co., invested 5000 in ten notes in tho $5,000 mortgage trust of Nellie J Miller of New Haven. The mortgage was paid by Mrs. Miller in Deccm- Der, 1928, but the last interest paid to Daniels for Miss Cannon, came on June 23, 1928. Neither Daniels nor Miss Cannon was ever notified Daniels testified, that the mortgage had been paid off.
 Waive Cross Examination Defense counsel who yesterday at. 1 tempted to show noteholders lcf' their money with tho company fol reinycstment when they were noti. | fled that the mortgages financed by their notes had been paid waived ! cross examination of every witness today. Both Martin and Benjamin | for asking questions on the rein, l Slade, his associate, were rebukeC vestmcnt point, because Hoyt ha( not originally presented the point il direct examination.
 Mr. Hoyt, when he has concluded the case, which is being tried bcfor, Judge Isaac Wolfe and a jury, vii i have shown, he said, that some four score investors have lost total 0 ! $166,427 on unpaid notes.
 The audit shows. it is undcrstoot that at present market values, tn, total losses 10 investors and note holders is between $S50,00O an, $1,00O,000. Mr. Hoyt brought to th stand yesterday a dozen witnesse who said they had not been paid ol their notes, though mortgages ha, been liquidated. The defense sough to get admissions from these note
 (Continucd on Page Two)