New Britain herald., 1929-07-02
ALLEN UNDER FIRE
 0F HIS CREDITORS
 AT HEARING TODAY
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Continued From First Page) fact that he has exercised the duties | of all three offices. The answer was affirmative. Mr. Mag then demand ed to know by what authority he did so.
 Ben Alling gave me that power in the original papers; I've always had it" Allen responded.
 Is it not true that the directors passed a motion to that effect?" | Attorney Mag continued,
 To this Allen made reply: You have read the ledger and you must so."
 Attorney Donald Gaffney. counsel tor Allen, interrupted the hearing a this point to raise an objection to the line of questioning. Aims to Establish Directors Liability Mir. Mag was permitted to proceed when he explained that the purpose of the questioning was to establish the possible liability of the directors and as a possible asset to the trustee. Further questioning brought out that directors meetings were held from time to time. being called i whenever Allen deemed it advisa ble. Asked if any directors had attended in the past year, Allen replied af- tirmatively. but could recall no in- dividual other than Mr. Cheney.
 
 To the question whether any finan- cial statement had been taken from the books in the past two years. Mr. Allen answered yes" and when he was queried as 10 what the state ments showed, he said "a profit" Amplfying his answer, MT. Allen said an income tax was paid for the year 1927 and surplus of $16,0OO over the capital was disclosed.
 When did the firm begin to lose money the attorney inquired.
 T don't know" the defunct con- tractor answered, "in fact I didn't know anything about it right up to the end"
 Cannot Explain S1OO,OO0 Deficit
 Your books show deficit of S1O0,000, about; can you account for that?" Mag asked.
 Allen said he could not and insist ed that none of the jobs he was exc cutting appeared 10 be showing a loss.
 He admitted he had discussed his financial condition with officials of the New Britain Lumber Co. and had submitted a financial statement which satisfied them as to his solvency.
 Asked for the circumstances sur rounding the giving of mortgage to Bristol man named Bailey. Mir. Allen said the New Britain Lumber Co. wanted security before furnish ing additional materials to con- plete contracts then in force, and for the consideration of the mort gage agreed to furnish the materials and also agreed to advance funds for the payrolls whenever needed. They did both, he said
 Doesn't Know Bailey
 Asked who Bailey is, Allen replied that he is employed by the Bristol Lumber Co., a branch of the New Britain Lumber Co.,
 He answered No" to the oues- tons; Do you know him? Have you ever seen him? Has he paid you anything for the mortgage ?" II was brought out that the mortga ge was for an amount slightly in ex- cess of what was due the lumber company, and that it was given tc Bailey for Mir. Shepard.
 Allen denied that he had heer playing the market" adding that he didn't know how 10 buy stock lie admitted the purchase of speed boat for about S3,2OO, and said this ! boat IS now the property of the New brltaln Lumber Co.,, to whom he sold it for about s1,SO0. He pur. chased an automobile for ahout s4.. zoo for his wife, registering if in his own name. The car has been taken l by the receiver.
 Ills obligation 10 the corporation he fixed at about $2S.OO0.
 Appointment of Charles Hawkins as trustee. and authorization tc communicate with the United States auctoneer for sale of the asets were The only other items of business a, the hearing.
 X hearing on the Allen estate. in. dlNidually, was set for July II.
 Personal Assets Shrink
 Creditors Of Allen personally saw his assets, listed by him at s3t1.50u shrink to s2oss5o, slightly less thar the total Of the mortgages standjnl against them.
 This report, presented by Cles,or w. Parker, John E. Downes nn Frank II, Dohrenwend as appraiser, Of the court, means that creditors whose claims aggregate s227.Sto will receive nothing unless additioua assets are located
 An apartment building at 32-3i Park place, on which Allen haC placed valuation Of s1as.OH0. wa, appraised for sSo,0Oo. or s3o,Oot less. Mortgages total s11o.50O O,