New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-10-22
HOEY WILL FIGHT CASE.
A RUNIoR OF COMPROMISE NOT VERIFIED.
IT AROSE FROM NEGOTI ATOMS WITH THE MUTUAL
LIFE INSURANCE co. TO TAKE CP THE
a1nOn ono MnRTGAGE on HOLLYWOOD.


LIFE INSURANCE co. To TAKE tP THE
$1,000 900 MORTGAGE on HOLLYWOOD.
1t was reported late yesterday that John Ioey had
negotiated loan which would place him in position
TO satisfy the claims OF the managers OF the ADAMS
Express Company against him and lead TO an abandon
ment Of all litigation. The runner could not DC
verified and il doubtless rested upon the fact that
Mr.. HOey had practically arranged to have The 9lOooO
loan on part Of the Hollywood property, for which
the Adams Company is secured by mortgage, taken
up by the Mutual Life Insurance Company This aclon
indicates that the deposed president Of the Adams EN-
press Company is not I'm a humor TO compromise, Dut
is prepared to make strong fight against the men
who turned him out Of Office. IL will weaken part
of the NewJerscy proceedings taken against hin,
besides furnishing evidence to the word that he still
commands friends and refuses to accept the stigma
sought to be put upon him by the managers VINO
deposed him.
It was said that the Executive Committee Of the
Mutual Life had already approved the loan, but ms
could not be confirmed. friend OF Mr.
Uoey,s. who is in position to speak
with authority. said: Il do not know whether
the loan has been taken up for Mr.. lcey, but the
negotiations looking to that result certainly wei
under way. The transaction Is simple one. The
loan was made to Mr. IlOey by the trustees OF the
Adams Express Company and was perfectly proper
one. The company does not feel satisfied, ana Nj.
IIoey arranges tO pay ii or, the mortgage being as
sumed by another corporation. There has been no
change otherwise in the situation. The Adams En-
press Company has begun a series Of lgaons against
Mr. Hoey which lie VIII meet in the courts al the
proper time. There have been no negotiations Looking
to compromise or settlement and there is not likely
TO be any settlement until the courts decide the ques
tiOns at issue
II was announced officially last night that the
Mutual Life Insurance Company had the taking mp OF
the loan under consideration. no decision has yet
been reached the company's lawyers have not
made their report the vnildity Of the titles. An
officer Of the company said that they would be governd
entirely by ordinary business considerations, ana VIII
not act until they are satisfied that the property offered
affords them ample security, and that their action VIII
be agreeable 10 all parties concerned.
1t is not believed by the friends Of Henry Sanford.
the new president Of the Adams Express Company
that he will relax any of his efforts In behalf OF the
company because Of Mr. Hoey's ability to take up the
100000 mortgage. It is not impossible that some
resistance may be offered 10 the completion Of the
transfer as proposed by Mr.. Ioey The friends Of the
companv felt encouraged by Mr.. Hoeys resignation Of
his position as manager last Friday to hope that he
was preparing TO negotiate settlement. This hope
Is now abandoned. and the new management will pre-
pare to press the warfare to the bitter end. Mr..
Sanford and his fellow managers have had no desire
to persecute Mr Hcey or harass him unneces-
sarly but they are determined to recover from him
the sums which, they alege, he improperly converted
to his use while in Official position.
Some transactions in connection with the 100000
mortgage which Mr.. IIoey is preparing to take up
were made a ground of complaint in the suit brought
by the Express Company at Trenton on Monday. The
complaint in that suit sets forth that on or about
April 80 1886, Mr.. HOey borrowed 100000 from
the Guarantee Trust and safe Deposit Company OF
Philadelphia and gave security his individual
bond together with a mortgage on his real estate,
the mortgage being executed by his wife, Josephine
Hoey. without the knowledge of the managers of
the Adams Express Company, the complaint goes
on to say, lie procured from Charles "
Hay. the cashier of the company check for 100000
drawn by William l.. Hubbeu, the treasurer. Hub
bell absent at the time. and the check was made
payable TO Hay The latter indorsed the check, 50 IT
was said TO the credit of the American Exchange
Bank which received it and charged the money 10
the account of the Adams Express Company. Hay
the charge goes on at Oey's request procured from
the bank on the basis of this check a certificate Of
deposit for 100000 In favor Of the Guarantee Trust
and safe Deposit Company. Hay gave the certificate
IIoey, who. June II, 1891, turned 1t over
to the Guarantee Trust and safe Deposit
Company and took a receipt therefor. Then loey.
II was charged delivered 10 lIubbe the receipt and the
original bond and mortgage. together with assign
ment Of the mortgage to IIubbell Individually. The
procurement the $l0O,0 is characterize in the
bill as a breach of trust
The records in the County Clerks Office at Freehold,
N j., reported 10 show however that the mort
gage was not executed by Mrs. Josephine HOcy but
bv JOhn IlOcy himself. II was assigned by the trpSt
company to William l.. Hubhe on June 20, 1891 for
100000 in cash. and on Wednesday OF last week nun
bell assigned II In turn To Henry Sau,cII and l.. G..
Weir, trustees Of the Adams Express Company. -