New Britain herald., 1929-08-07
CREDITORS LAWYER GRILLS DIRECTORS
 0F ALLEN O., INC.
(Continued From First Page)

was present al the A- I'll, O. HltIt- ing Mir. Mag said;
 Was there any reason why you | should not be there or do you rt member any reason why you shoull i .hnk you were present. T cant say" was the answer, Asked about three per cent quarterly dividend MT Bencc said il was difficult for him 10 kccep track Of the matters because hc carried the information in his head. Pressed further whether he rr- < membered being al any meeting ,, where dividends were declared he said if they were declared at any meeting at which he was present he voted in favor of them. Did you know Mr. Allen was cuilding apartments of his own?"
 Yes"
 Did he make arrangements with he direct ors?p
 T do not know of any arrange !, ments," he answered.
 Do you know the Allen com pa"y was building for William Allen ?'' was the next question shot out by the attorney.
 Mir. Bence answered negatively. sdding that he never saw the cen tract.
 Cannot Recall Sl29,i0i |hargc
 When MT. Benco's attention Was called to the fact that MT. Allen. personally. had $129,4o4 charged to him for the construction of the spartmen. buildings, MT Bence did not seem to be able to recall the matter.
 At this point Referee German ln- terrupted the hearing with the re- mark that they were not getting anywhere that all the answers from the witness were T don't remem- ber."
 Attorney Mag explained that it was his purpose 10 determine Mir Bences knowledge Of the meetings because it was not in the records whether the directors were at the meetings.
 Director Berce said he did not '. take up with MT. Allen the matter Of heavy loans MT, Allen was taking from the company.
 On one occasion the books were audited by an accountant who dE- nounced them as 70. K" MT. Bence informed the creditors in. answer to the attorneys question.
 Aliens salary S1O.40O and 10 r. C. The directors voted 10 give Mr Allen 10 per cent of the profits in addition to his annual salary of sl0,- 400. Questioning Bence about this MT. Mag received the usual answer T don't remember
 The fact was brought out that the Allen company started in 1919 with q capital of sfO,D00 which inclu jed The equipment of Mr. Allen, MT. Bence thought it possible that Alien received 5l per cent of the shares.
 George |. Cheney On stand -
 The second of the two directors ef the company George. Y. Cheney, was called 10 the stand. He was. vice resident but had little oBportun'ty to pay attention to the business be- cause he Was absent nine months O. the year.
 He admitted he dropped in oc- casionally," that he owned eigEt shares in the company and tha' William H. Allen personally owes hIm money.
 He said he looked at the annual reports when ne was in attendance at the meetings and thought busi- ness was prospering.
 Did you know that the Allen Co. was building two apartment build ings for William H. Allen?"
 Sure, everybody knew it," was the directors answer. As far as he knew there never was any arrange ment abodt it. he added.
 His first knowledge of Aliens be- ing in financial difficulties was when Allen renewed his large note which Cheney was holding, the latter sad. Although he remembered seeing Bence at several of the meetings he could not say whether Bence vas Ii certain meetings which were men, toned by Mir. Mag. Cheney said ne was under the impression he was present when the 10 per cent salary pOlluS lOI Stltil " dS NOIttl,
 Dividends were declared on the profits and surplus and Aliens word was taken for 1t, Mr. Cheney said Cheney dld not see books and was not in a position to dell of entries he admitted.
 Allen On stand
 In answer 10 questions. MT Allen said the equipment which he possess ed was turned over to the company at it's organization and he held 5I shares.
 When Attorney Mag called his at ,entioE 10 the fact that it was 1. mitted that the equipment was con. sidered part of the sl0.G0O equity but that the secretary Of state was sent papers saying the $l0,OO0 was in cash, MT. Allen could not remem- her the arrangement.
 Director Bence activity in in, company Was again questioned anc Mir. Allen assured the creditors tna Mr. Bencc did not direct or partici pate in the company to any grca ,Ntent. He and MT Cheney gave h' Allen company much business an, helped get other business, Mr. Allaf said.
 Questioned whether ne diret.ivs his bookkeepcr "whcn, how, an, what 10 record" he said it was no true that he gave any directions ii this particular. Questioned furthe he said she made her entries fror bills and charges.
 Mag Asks Pointed Question
 IL was at this point that Attorac, Mag made the sharpest statement O he afternoon when he said
 "You know lot more about hoy he books were run if you want tt tell us. You know how the book were run. What arrangements dt, you have with the company rela live 10 building the apartments How about the S3,OGU profit Whicl