The New York herald., 1879-02-06
THREATENING POOR MEMS HOMES.

DISASTROUS CONSEQUENCES WHICH WOULD FOL-
GAGE IN PATERSON, N. J.-THE MADISON
PARK HAMLET.
Paterson, N. j., has been thrown into state of
the utmost excitement and CONSERVATION over the
institution of certain mortgage foreclosure proceed.
ings which threatened to sweep away the homes of
hundreds of her most thrifty citizens. summonses
have been issued, returnabie February 49, by tho
Mutual Benefit Life Insurance Company Of Newark.
and the papers are now being served. The facts
in the case, as near as they can be arrived at,
are follows:-During the real estate fever of
few years since party of spectators
purchased forty acres Of land. known as the
Warren estate, South Paterson, and laid the tract
out in city lots, many of which have been sold and
built upon. mortgage given by the spectators
(who had formed themselves into what was known
the Madison Park Assocation) to Colonel Philip
Rafferty,. who sold the same to the insurance COM
pany above mentioned. The amount originally
$21 O00 and. with the interest which has accumulated.
the total is now in the neghborhood OF $30,00O The
interest was paid as long. as the excitement con-
tinued and 1t was possible to sell lots, but for
some time past nothing has been done. The parties
comprising the association have one BY one
failed. One is now, it is said a recipient
of public charity. And the insurance COM
psny are about to sweep away the homes
S. Of the poor people who lots and
deeds we're given in every case but search seems
to have been made until now, when it is too late to
and interest. and nearly 600 Individuals made de-
PENDANTS in the proceedings just instituted, most OF
them owning but one or two lots each which nave ~
most been built upon, though there are among
the defendants few who are made such by virtue OK
holding Judgments or MORTGAGES NO Pro raea pay.
debt must be paid before any individual o,
tho occupants is safe. This Is one o.
the most iaSes a the sae Mos
OF those whose homes are thrcateneu are Oh
the facts yet. many of them being people OF little
intelligence specially in matters OF law; but those
who have been brought to understand that they are
likely to lose their property to secure which they
IN THE sHERIFF's OFFICE.
II was only Tuesday that Representative OF the
insurance company entered tn, inc sherns Office at
apportanng 10 the and ordered the issuance Of
the usual suinmonscs. Madison Park. the property
threatened, is detached suburb OF Paterson, lying
between the Delaware, Lackawanna and Western
halfway and the Newark branch of the Erie, pretty
location. including ,s the section where i has been
post. There perhaps two hundred houses in all,
and all OF them are owned and occupied by working
pretty having been erected with good taste and at
considerable cost. There seems to be no possibility
OF saving these people from an ecctent unless the
full amount. $3O0oO. can be paid within q short
time.
The parties who responsible for this beartlcss
business are well known, and In their fall they have
not hesitatcd to drag down these hundreds OF hard
working people. for the constant assurance. even
when the direct question asked. that all waa
right; there was no encumbrance. Popular indignar
tion against them Is running v,ry high.
NOT THE ONLY
There Is another tract almost ia similar condition
at West Paterson not large In extent as the ham
let of Madison Park. There too, land was purchased
q mortgage given, payment neglected, and now
the operators bankrupt the holders Of the mort
gage threatening TO forccose. and the poor people
who have bought homes are powcrless to defend
themselves against the unlocked for blow. II is
thought that this latter will be brought to cu
minstton In the course Of few montha-