, 1875-04-04

Answer Of the Defendants In tho
Suit.
H. Freer Explains His Connection
with the? Matter.
The Charges Of Fraul Apparently Dis
proved.
Treera Contract with Smith.

] and xifa against James ?. Smith, j.. and wife
L. G. P. Frear, and others, which made some
serious charges Of fraud. It Was alleged thai
Smith, Jr., had in effect taken advantage Of the
Illness and mental weakness OF Hiram Joy, te
| gat from him large amount OF property, parl
located on Arcade court and Monroe street, and
part On Indinna avenue and Twcnty-sixth street,
valued, at the present time. at several hundred
Thousand dollars The answers Of the principal
defendants we're fled few days ago, and, Us the
complainants were given largel space, it is but
| just that the defendants should also have faiF
showing. The defendants deny, fully and spe-
officially, Ell cliGrges OF fraud made against them,
| and put
| AN ENTIRELY DzTFEnEST PHASE on TEE NATTER
The answers are quite volu1ninous, covering
nearly 200 pages of legal cap, and give detailed
history Of tho means aud manner By which the
title Of Jog to the property in controversy Was
Invested, and BY which John Y. Farwel, the Y.
II. g. A., and James T. Smith, Jr., afterwards
became owners Of portions OF Lots and 7, Block
LIB, School Section Addition, on A1oads cour
and Monroe street.
THE nILL CHANCES
In substance that everything done in regard to
the real estate formerly owned by Joy was for
his exclusive benefit and that every conveyance
made whether by Joy & Frisbie in executing
trustdeeds,tt ito secure their indebtedness. or saes
and conyeyauces hereunder, OF quit-c1aims by
his assi.1ee, or conveynaces By Free1, who pu--
chased ut Trustees sale Of portions Of tue prop
orty,-in short, everything from beginning to
end was intendeded in some mode TO create q
trust for the benefit Of Joy, and for that pur-
pose only. All this the ansTeTs deny, and on
tho contrary a11eg5 that all the property IN ques
tion uas covered by trust-deeda given to SECURE
to Freer SC, LOO loaned by linn to JOY i Frisbie,
and mortgage to Gorham Of $1,000, pr16r 10
the trust-doeds which Mr. freer wss
compelled to take up in order to pro-
tect the incumbrances IN Lis fa7or,
aud that February 18, 1861, there was actually
due aIr. Fteer on these membranes over
$40, 900. 81:
IT IS Explicitly DENIED
by the answers that tla tr11s5~3eeda we're with
ont consideration. or were in any respect unlaw-
ful, aud also denied thas Joy Furnished any por-
tioo OF the 81, 0O0 to buy in the Gotham mort
gage as:ths bill charges. Joy Frisbie, the de-
fendants state, as partners, Deo- .. ls6o,
made general assignraont to Horny Fuller for
the benefit OF creditors, in which their indebted
ness to F1eer ia expressly stated. Two days
later jog made an individual ASST gnment to
James r. Smith, Sr., his brother-in-law, hoping
Thereby to- ssc95s am against a9oas
indorser Of Joy & Frisbie's paper Between tho
9Th Of December 1860, and the 8th OF February
1861 various creditors Of Joy s. Frlspie recovered
judgments against them in this county amount
ing TO about $40, ,000-
The notes Of JOY l. F1iabie, thus held by Freer,
secured By the trust-]eeds. had fallen due IN
November and December 1850, and remained
unpaid. Freer had taken an assignment OF The
Gorharn mortgage to protect himself, no steps
were being taken by Joy g. Frisbe or either Of
them to reduce the claims Of freer nor to re-; l.
deem from the truet-deeds or the mortgageF
and the prospect OF civil war materially exer-
csod depressing influence On values III Chi
c.go. Real estate had dropped far below the
standard OF values twenty months before. and
was constantly depreciating, 80 that property Te-
Ga.ded as good security for the MONEYS loaned
Joy daFrisbie in August, 1883, had ID February,
1861, become insufficient, and, by reason OF the
general want OF confidence caused by tho uncer-
tainty of public affairs, it IVES growing constant
~ worse, whilst the debt was increasing by the
accumulation Of interest. Joy & Frsnie, it is
also claimed, were hopelessly involved, their
liabilities sreaoh;ug to nearly $16o, 600. In this con-
ditioo ot things,
FRzEa PROCURED SALE
to be made OF the naortsased property under
took place Feb. IS, 1861, in due form. after
previous notice had been given a. the trust
deeds required. Mr. Freer WAS compelled to,
and did, purchase tho properly at this sale for
81, 500, which is claimed to ba al it Nas worth At
that time, and no other person would bid that
much This still left portion OF Freer's claim
unaasisfed. The Trustee, 1ngals, executed to
Mr. Frcer the usual Trustees deed Of tho prop
erty, and thereupon Freer became the owncr
thereof in fee, the equity of redemption haVing'
bean cut of BY the eale to him under tho deods
Of trusts Hi, Freer very positively afirns that
thora was
NO AGREEMENT Oh UNDERSTANDING
between himself and Mr. Joy. or any other par
sou, that this purchase was for the benefit ct
Joy, bat tnat ha purchased the property at reg
ular sale for his own benefit. Mr. Freer aud alr.
Joy were on quite intimate end friendly terms,
and Joy Has eleo strongly attached to hla
nephew. James ?. Smith, il.
Young Smith, as he alleges in lis ansTer, had
come West some years before at the sohcltaton OF
bis uncle; had nbo1od to build up the ice bueiness
Of Joy Il Frisbee bud suffered largely by their
miafortunea in business, the firm owing him
Bome S., 500 when they broko up In addition
thereto, hs had also Endorsed their paper
for several thousazd dollars. Brsiness, 1t is
claimed, was fiat. smith. Jr., was occupying the
house on Lot s, under o LEASE from jog, which
had several years to run, aea monthly rental.
Joy Ind it iB admitted, decided in 1850 portion |
of the Indiana avenue lot to Smiths tHo chll-
and Ball but the deed, it is alleged |
Sns rendered vaiueless to them by reason OF |
neglect to record it until after the two trust
leeds were executed and recorded, thus making
hem prior lien. These circumstances, hlr.
1oer declares also in his answer: when considered
~ him, soon after the Trustea,s sale to him, in
Smith Jr., by which he after stating that ho did
1ot wish to make any profit out OF the forced |
Iale, agreed to bold the land for four years,
complainant interest on what be had
,aid for 1t (S10, ,534-54), selling part at certain
peciGed prices, and ut the end OF tnas time
70 offered to convey the remainder to
smith, Jr., IS trustee for his daughters,
N pa7ment of tic amount tLen remaining
lue. ANY payments made by Smith, Jr:, OF
mounts received from salos, Vereto be credited,
nd draw compound interest. Freer expressly |
tated in the contract il it can DO called con-
rsct. it being withou. consideration and volun-
ary, TINT this agreement vAs mads for the sole
urposo OF
ENABLIs9 4 RELATIVE oF JOYS
. receive sny profits that might a1isa from
ais Of tho land.
Freer also, Boou after the sale to him, induced
NTH, Jr., who occupied a part Of The
Ind. to attoxn to him, 50 l.nd1 nd.
NTH, howoye5, wes reluctant to upaerz-ke
-hat then seemed impossible OF accomplishment,
ut having soms 1aith III the prosperity OF 1li-
ago. le on reflection concluded to accept II.
recr's proposition, and theceupon Hr. F1oer
oduced tue sa1no to writins--a copy OF which il
It out in h4 ansver-aild presented it to
NTH, and Emitnt ook new lease from Fre-ez.
Lo Waz caaso OF. g1oenc1cks weto issued.
loney became plenty, aud real estato advanced
, that sa}e4 wera IN = icw yes7s made Of the
wenty-fourth street and IaGiGna avenue property
t sufficient amount, including the rents paid
? Smith, j., for tho ho1se Gu 3l0uroo street, |
Fnr oil }f,a{f |