New Britain herald., 1929-10-25
PARKER-SNITHC CO. HEADS SENTENCED;
 APPEAL PROPOSED
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knowing the "Nery first law ot all the law of honesty"
 The defense appeal will be taken on the grounds that the law required that in standardization of an embez- clement charge. it must be shown the accused were trustees and agents in accounts from which funds were embedded and that they need these funds for their own purposes. The defense contends the company was the trustee and agents in transac- ticns and the money appropriated was used by the company. Judge Wolfe had, however, ruled that of were liable for the criminal acts of a company.
 In the arguments on the appeal States Attorney Samuel F. Hoyt said that three reports to him by Bank Commissioner Lester E. Ship manipulated assets, had issued don- be mortgages and a double set Of notes on property in New Haven the Emergr and in New Britain the West nstcr-had used five or six "dummics" to create false assets and had, by means of numer- ous transfers. quit claim deeds and other 'illegal' acts, attempted to give an appearance of safety at a time when the 'company's ship was sinking"
 Used Money Regardless
 He claimed the men segregated accounts late in their business only because the bank commissioner was threatening civil and criminal &C., ton and that though they segregat- ed the accounts, they immediately drew upon them for funds for their company's general use.
 In attacking the defense conten- ton that Parker was not implicat- ed with the Smiths, the states at torney said that Parker could not say he objected to his colleagues az tivities because that would have been disastrous to them" and he could say he did not object to their l N | been disastrous to him. In the course of trial, only the names of Paul and Clarence Smith were shown to have appeared on checks and in transactions and that only they were involved in inter- views with mortgagers and invest OTIS.
 The state maintained however, and Judge Wolfe agreed, that Park CT had knowledge of what was go- ing on.
 Had 900 Counts on Tap Hoyt said he could have present ed "200 odd counts" against the mon and that if he brought action against the men on the three con- | spiraCy to dcfraud charges he is | holding in abeyance he would ar que that the issuance of double mortgages and double sets of notes was in itself a crime.
 Slado declared that the very fact | the men had put into the business their own money and failed to col lect in the last year of business their salaries of $15,O0O each, was evil dence the men were not criminals in the ordinary sense of the term" | Slade's associate. Charles J. Mar tin, declared that while the defend ants are technically guilty, they could not know, as we lawyers know, that the law made their acts a crime
 Slade said the company. which had 5000 investors, still had a val uable good will at the time of the rcc"lVcrship and that after the pro- cecdings instituted by Bank Commits aioner Shippee and Attorney General Benjamin W. Alling, they tried to get outside capital to keep from disaster"
 Tried to Mortgage Home
 They believed "on the very eve of the rcceivcrship,' he said, New i York financial interests were coming 10 their rescue" Sladc said. Clarence smith tried to get his wife to mort gage their horne, which she owned. but he failed, this at the time the bank commissioner was threatening acton 10 stop what Hoyt described . lis as saying was disastrous con- altion."
 Judge Wolfe opinod, as he pro- nouurrd sentence, that the preferred stockholders who invested $490, 1000, would nover get their money back.
 The eleventh count on which the longer sentences were given, pertain cd to the KUgcrman family Of Now Haven three members os which bor-
 rowed $&6,oo on a joint mortgage. Notoholaprs in this mortgage lost
 nearly all this amount Of money.
 This count involved the largest sum of money mentioned in any one
 transaction in court.
 Siade, m the course of todays ar
 gumonts said the ccmpany's business averaged between 1922, the year the mon began business, and 1928, about
 $4G00,00 and showed annual pro,
 its to run in those years from s60.-
 t00 to $I0l,G0O. He said in 1928
 the company lost $28.600.