New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-07-24
TROUBLE OVER BIG HOUSES
MORTGAGES ON NAvARRos ApARrNENra
SEEKING TO FOREcLOsE TuEM-AsKiNG FOR A m.
CEIyER-YARIOus COMRLIcArIoxs

SEEKING TO FoREcLosE THEM-AsKiNG FOR m.
cEivER-vARIoUs COMPLTCArIoxs
The Navarro department houses at Fifty.
eighth AMI Fftyninih cts, extending from Seventh
nearly 10 sxth-aye have after various attempts fin av
got into the courts In proceedings begun by the Mutual
Lie Insurance Company to forecosea first mortgses
upon them for $i.0io.000 with additional claims 10,
some $4,000. reCevcr OF the property also .sk.a
FOR The matter before Justice Barrett for hsartns
yesterday In the Supreme Court. Chambers
These apartment houses famous as tho finest IVA
lings OF the kind IN this country They are eighth
number and are known as tho Barcelona the M.dra
the Lisbon, the Cordoya. the Valencia In.
Granada. the Salamanca AMI the Tallosa. Tbsv
are estm to be worth at least So O0o Ooo
jose Navarro conceived the scheme OF these buidn1a
AMI he set out TO make them magnificent strctures s
succeeded They fourteen stories high are buit z.
inclose ne courtyard arc OF brick stone with rich
ornamenaton and are all striking In appearance form
ing splendid pile They OF the great sights az
New-York. One standing in the courtyard seem, hut
pgmy so high do the structures tower above him. They
are ire-proof with hne halls and hnishings ghout
In keeping Mr. navarro from all that be learned
however got an elephant on his hands when he under.
took tho erection OF the structure His pan on area
SCALE identical with that OF many builders He pus
In money himsef-ssid to be S50OOOO-and
raised the rest by frat and second mortgages
on the buildings The Mutual Life and thu
New.York Life Insurance companies each loaned
81 600 900 and took first mortgages. said gentleman
yesterday who thoroughly Informed the history Of
the enterprise. "But." continued he, "Mr. Navarro in
this scheme cut his cloth too small hu
customer rather he did not have cloth enough IN
purpose. The fault lay with the architect who essl.
mated the cost Of the buildings at about half OF what
turned out to be- The result was natural
one. Mr. Navarro has found himself In
a prediclment He undertook 10 raise moncy
for the purpose BY giving first mortgages the prop
ort0 nsu Thu Mutual the Eav.
York Life Insurance Companies each loaned 81 100000
on these MORTGAGE Mr.. Navarro himself put In
100000 and he raised 100000 more through other
mortgages He leased each apartment on nnety.nns
years leases Finding that the buildings were going
cost so much than he had expected. he found
necessary to look around for some ono TO help him
through. He found that one in James ]. McComb. wAs
took g. 100000 in second mortga.es Time went and
Mr. Navarro did pay the interest or taxes on the
mortgages and the Mutual Company began foreclosure
suit Efforts made to stop this action and TO sd
Just matters. Mr.. McComb would not pay the
interest tho first mortgages, IS he wa
asked, because he would have no security for
reimbursement but he offered to give security
payment OF the interest with the interest that thus
protecting himself and the interest Of the holders OF the
iirst mortgage bonds But no, they wanted cash or
nothing the suit went on. The fact Is that Mr.
Navarro finds himself IN a tight place lie had q largo
plantations at one tine. but this has
fallen or believe and he now mas pretty good ioau 70
carry In this matter"
From various sources 1t is learned that financial hat
tiers around the Navarro apartment houses have been In
condition. Efforts have been made to adjust the
difficulties associations been formed and new per-
sons have been taken into the enterprise. Last
fall the Mutual Life Insurance Company
determined to forecose and then began war between
the attorneys OF the insurance company, Thomas Z.
Watson Charles T. Miller on the one SIDE ana VAN
derpoe Green Cunning for NT. Navarro. on tue other
isI,. I'm. kenf an
The lessees Of the houses became alarmed their
status lest the dwellings should De sold over their heas
and they be left out In the cold They claimed righr
paramount TO those II the hoers OF hrss ana second
nortgages an ADDED difficulties to the legal tangle
Tne whole matter came to an open legal issue Yesterday
before Justice Barrett Messrs Miller ana watson ap.
Il. Cunning for Mr.. Navarro ami James Clyno VINO mas
put money the venture and also has al along
renresente Mr. Navarro In the cement, while other
lawyers looked out for the interests OF the essees and
the holders OF o her mortgages The suit was brought
against Messrs Navarro and Cyne the Mercantile Irsss
Company and the apartment associations conroHIg tne
houses. th. four in which the Mutual Life
placed In the following amounts: Inc Barce1ons.
500 900; the Madrid 100000 the Cordovs $4,000;
the Lisbon 100000 On these mortgages no interest
has paid IS alleged, since september ioot inc
amounting SIS 1881, and the water rents Tor hat
remained unpaid 1t was provided IN tne morgage
pointmcnt OF receiver, II the interest should not be
paid and the rent was to be applied ~ sa.islacuon
urged that there danger that the rents might be
to the insurance company, II lney were not So COZ
lected az the defendants were nsoivent and nae ale1
TO use The keep the property clear OF incun-
brauces. He charged bad fAitn upon Messrs Navarro
ana Cyne IN delaying the foreclosure litigation while
the same time penG the MORTGAGE TO increase IT'S
expenditures the property MI Miller asked thas
Lewis May should be appointed receiver. ,
Mr.. yanderpoel opposed receiyershp on tne GROUND
that the property worth three tine as nuch as tue
amount the mortgages and That taxing the property
from the conro OF the apartment associations when
were behind Mes>rs Navarro anc Cyne, "ouIe
mpute insolvency to those associations anu
would make the letting OF the apartments dhcult
ant he
appoint Of receiver; was devised 10 increase
The vtuie OF the lender which was obnoxious 70 sne
spirit OF the law. - , ,,-,, ,.o.o,
the appointment OF receiver although he did not wish
Mr. May director in the Mutual Life. He would Ike "
nave appointed an experienced real estate man VINO
would serve for not moe than So,ooO annual SANITY
The property should nave skliful MANAGEMENT. MT.
McComo, he sad. was by lar tnr one mos. h
A deposition OF MI watson set lorlh tnas
George 5. Iespinasse, the agent OF the Prop
erty, had retarded the forecloure proceedings oy
keeping back lists OF the tenants when he pad pohlsea
to furnish, but which he had not produced on the pea
that Mr.. Navarro had taken them from hin.
Mr. Clyne depOsed that the appointment OF receiver
at This time would work great and lrrrparabIe INJURY
He added III the apartment associations are lett 10
the management their property tnero Hlle uoups
that the la ger proportion Thereon wnen 10 DO" ueS
Will be adyant aseousy leased nurng tne su snaa
income- producing basis that all claims against the
several can be promptly met as they eome
Will stamp the associations as being practically nso
vent and wholly discourage the occupancy There's" ny
desirable tenants ,..,.a In,
faith Mr. Iespinasse deposes that the Maurlh IS
worth $500, 900. tho Lisbon 100000. the cordovA
S6jO.000 and the Barcelona SoOoOVV, Anu '"'' '"''
estimates are upon a conservative basis.
Justice Barrett reserved MS decision , -, -.
Mr. Navarro Is at s~aoright, where he mas oeeu Il. los
seyeral DAYS said by his friends that he IS prov
ing so that he will be able TO be In the CITY by Monday