Evening star., 1939-06-02
j. ). Demands Manton
Explain Quick Shift
From Debtor Status
Jump to Net Worth
Of $3.50, 900 in II Months
Probed at Trial
BACKGROUND

ohN n hohoOND-
Men described as henchmsn
haze turned on former Judoe
Martin T. Manton NTH testimony
he used his Office to pad his bank
accounts 1Uith brides secured
through them Scandals hare
linked his name to the appoint
ntent OF receivers and other legal
rdmifcdtionS under his control.
Case is regarded as indicating
Justice Departments resolue to
stamp out practices contrary to
ld,D UhereUer encountered.
BY the Associated Press
NEW YORK, June 2-United
States Attorney John T. Cahill,
delving further into the involved
financial affairs of former United
States Circuit Judge Martin T.
Manton. demanded today that Man.
ton explain his change in IL months
from debtor with minus balance
Of $500 900 to a creditor with a net
worth of $750,00O.
The resigned jurist is on trial on
a charge OF conspiracy and dispens-
ing pustice for a price.
Mr.. Manton explained that his
fortunes. bad in early 1884. improved
when he arranged for the sale of
the Hotel Alamac, owned by the
Forest Hills Terrace Corp, one of
his holding companies.
Mr. Cohin ,o,o~l,z.J
show that on July %. 1884 a law
hrm paid Carl j. Austrian, liQuidator
Tor the defunct band of United
States, $23 500 in settlement of an
Indebtedness of about SIPS 900 due
from Mantons corporate organiza-
tions.
Mr.. Manton said he got the
money through the hotel sale.
Hartman Deal Aired.
Mr.. Cahill turned next to an
Indebtedness to the Hartman Bank
and Trust Co. for $4,000 which
was settled by payment of s1O3 500
on August 20, 1894.
Mr.. Manton explained that after
the hotel sale, money went to the
Aldean Holding Co., another of his
companies, from which he obtained
the money. Manton is accused of
profiting to the extent of S225 900
in six cases before him.
The 58-year old jurist, who re-
ceived a $l2,500 salary as the Ma
tion's tenth-ranking judge, admitted
that in one 11-month period his
finances improved by $1,25O,OO0, but
categorically denied any wrongdo-
ing.
A jammed Federal courtroom heard
the spare, white haired defendant
acknowledge that in June. 1884
when he had been examined as to
his ability to liquidate certain notes
in a failed bank, he had stated his
assets at $6,250 and liabilities at
more than $5OOOO0.
Questioned About Loan.
Questioning Mr.. Manton on his
application the following year for
a loan from the Fort Greene Ma
tional Bank of Brooklyn, Mr.. Cahill
asked:
"On May 10, 1895, II months
later, you certified that my net
worth is upwards of $3.50 ,O00' did you
not?"
Mr.. Manton explained the 81 ESQ.,
600 Improvement in his financial
position by saying he had obtained a
compromise settlement of his debts
and added
Il also made sale of a hotel
interest, and this is a correct state
ment."
Earlier, under questioning by his
own attorney, James M. Noonan of
Albany, he made an almost point
by-point denial of testimony given
by co-defendant who pleaded
guilty-John Lotsch, minor Brooklyn
politician and former chairman of
the Board of Directors of the Fort
Greene Bank.
Mr.. Manton admitted borrowing
$4,000 from the bank while Mr..
Lotsch was serving as attorney for
two litigants before his court, but
stoutly insisted he saw no reason
why this should have disqualified
him from sitting in the two cases.
1T was the banks money that
borrowed and not Lotsch's," he said.
He denied testimony by Lotsch
that he had taken $4,000 to help
fix" a bribery case pending against
the banker. Lotsch testified Man.
ton told him United States Judge
Edwin S. Thomas, assigned by Man
ton to handle the case, had asked
for the money.
Judge Thomas, who resigned re-
Gently, freed Lotsch on q directed
acquittal.