The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-10-16
FRAUD CHARGED
Brewer Henry Lembeck Said
to Have Entered Into a
Conspiracy.
SECRET AGREEMENT
The Kennys We're Defrauded Out Of
Money Rightfully Due Them
From a Sale of Property.

Stephen B. Ransom on behalf OF Patrick
Kenney and Margaret Kenny. his wife
obtained from Vice Cna ncellor Van Fleet
this morning permission to file bill of
review in the case OF Kenny against
Burke, in which Henry Lembeck, the
wealthy brewer. is charged with being g
party TO fraudulent conspiracy. Some
years ago John Kenny died pos-
sessed of q valuable lot of land
on Henderson street, berween Ninth
and Tenth streets, upon which tere was
erected four story brick building. He
left will leaving the property to his
wife as long as she remained widow.
and upon her death the property was to
go to his two chiIdrsD, Patrick Kenny,
the complainant ia the present suit, and
Margaret Burke, wife of James T..
Burke. QUE Of the defendants.
PARTITION SALE.
The keDneys, together with the widow
of John kenny. filed petition tor a
partition sale of the property and the
matter was referred to Special Master
Charles K. Cannon, who, after listening
to the evidence. reported that in his
opinion ths property should be sold.
Frederick B. Ogden, another Special
Master, was directed by the Chancellor
to sell the property for not less than
SS, 900. and he advertised the sale for May
10 last
At chat time counsel for Patrick
Kenny went 10 the place of sale and
asked to have the day adjourned. AS it
was Impossible for Kenny to be present
LEMBEcK's COUNSEL OBJECTED.
The petition read by MIR. Ransom to
the Vics Chancellor set ,rtn these facts,
aud then says that counsel for Henry
| Lsulbeck ohject0d to the postponement
and the Master went on with the ssls.
Mr. Lembeck bought the property for
| S., 100. The petitioners claimed that II
the sale had been adjourned they would
have been able to have bid the property
up to 1000. its full value.
Then the pstion ssys:-
Your petitioners are informed and
believe that the sale of the property TO
heury Lembeck was the result of a
fraudulent conspiracy and collusion
| between the said Henry Lembeck and
the said Margaret Burke aud James
Burke, her husband, ana Ellen kenny"
SECRET AGREEMENT.
A snort time before the sale the de-
fendants, the petitiop states, made ss-
cret agreemsnt with Henry Lembeck TO
the effect that when the sale of the prop--
erty took place that Lsmbeck should bid
in the property at as low price
as possible below $1,000 aud
he would pay them the difference
between the price he bid for it and
s10, 600. In this way the Kennys would
receive no share of that difference to
which they Were entitled by law. The
petitioners further showed to the Court
that they had no knowledge Of the said
secret collusion until after the sale had
been confirmed by the Court. Ga Sep>
tember 25 last their counsel toll them
that Burke had told him of the Lembeck
agreement.
BURKE DISCLOSES THE SCHEME.
Accompanying the petition WAS a num-
ber of affldavits, among them beiug one
by James T. Burke, one of the defeud-
ants TO the petition. in which he swears
that he and his wife and his mother in
law, the widow OF john Kenny, fled
their petition for the sale of the property
at the request of Heury Lsmbeck.
who was very snxious TO pur-
chase the land. The understanding was
that If sale took place by order of the
courts, ,Lembeck would bid in the prop
erty at the lowest figure possible, and If
he could buy it for less than St0000 he
would pay to the Burkes and Mrs Kenny
the difference between the two sums.
He also swears that he WAS at the sale
and heard Patrick Kenny's counsel ask
for au Adjournment and that the Master
refused the request upon the objection OF
Mr.. Corblr. Counsel for Henry Lemback.
Burke further swears that Lembeck was
the only bidder Rt the sale aut has not
paid him or his wife or mother in law
any part of the s1.900, the difference
between his bid and said sum OF SIC, 900.
The Kennv's claim that Mr.. Lembeck
at one tIma offered $4,000 for the
property. but was refuse.