The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-10-04
N 'MAHON ESTATE.
Jacob Weart Moving to Set
tie the Question of Its
Solyency.
JOURNAL FALSEHCODS ANSWERED
How the Sugar House Is Concerned
In the Affair-A Bit of
History.

So many misstatements were recently
printed in the Evening Journal and
elsewhere regarding the affairs OF the
Bernard McMahon estate, and Mr.. JACOB
Weart's stewardship thereof, that the
following minute and accurate version
Of the facts will be of great interest IN
this city, where many persons have
contingent interest in the settlement OF
the estate:-
on motion af Administrator Weart
peremptory order has been made by the
Orphans Court of Hudson County for
hearing on the question of the insolvency
of the estate of Bernard Mcmahon, some
reference to which was made in Ihe
News recently. The hearing will take
place ON October 5,
Bernard Mcmahon was a cooper en-
ployed with the Matthiessen Eichers
Sugar Refining Company for supplying
them with barrels and repairing barrels.
He was so employed until the latter
part of 1871, when he became dementeo,
and died in January, 1872. He purchaseu
considerable real estate in Jersey City'
mostly meadow land, and through such
purchases and erecting buildings on Same
and borrowing money for the purpose
because financially embarrassed III lo'A'
Shortly after his financial emnarrass-
meat the sugar house required Zo,ooo par
rels. and McMahon, not having SUM-
cient credit to purchase the materials
the sugar house advanced the money
for the materials and took the completed
barrels in payment. This TRANSACTION
was presumed to be closed in 1S7l
LEFT NO WILL.
McMahon died without will and the aa-
lainistration of the estate was turned
over to the creditors, who appointed
Jacob Weart administrator for them.
Upon his taking letters out he had
nine months rule to limit creditors
which expired on November 2, 1872. Short
II after he took upon himself the admin
istration of the estate, and before the
above rule limiting creditors had eX-
pired, he discovered that the estate was
so largely insolvent that he proceeded
in June 1877, to have it so declared, as
to the personality. and by an order op-
tanned September, 1872, he was authorized
to sell the real estate to pay the debts
He proceeded with the sale of the real
estate, and on December 81, 1872, had the
sales up to that period confirmed, and
also by an order from the Court was
authorized to pay all encumbrances and
liens upon such property from the money
then in his hands, or to come into MS
hands. Mr.. Weart had about closed up
the estate in the summer OF 1873, and he
informed the creditors that the estate
would pay not over twenty per cent. ON
their claims as presented and approved.
This so alarmed the creditors that they
loot tod n business
relations between Mcmahon and the
sugar house, and Mr. Weart was aware
for the first time that there was any
open agreement between the sugar house
and the estate. 1t was then decided by
the creditors to prosecute the claim
against the sugar house The admins
traitor was relieved from all response
bility of prosecuting the suit and COM
rnittee of three creditors was appointed
to push the case. A recovery was had
on February 8, 1875, for s1S 461.97, which
was afterward confirmed in the Court
of Errors and Appeals, and an execu-
ton was issued and levy made on the
sugar house company.
A SWEET INJUNCTION.
The sugar house company got an in
junction restraining the collection of the
money due for the judgment. The cred
itors endeavored to dissolve the injunc-
ton, but failed. A proposition of settle
.nient was made to the sugar house peo-
pie, who offered to pay s1,5O0. which offer
was refused by the creditors.
The expenditures in suit had so re-
duced the funds of the estate in the
hands of the administrator that only
about 10 per cent. could be realized for
the creditors on their claims. and the
creditors thereupon decided to allow the
judgment and levy to stand against the
sugar house, and let the company get out
of it the best way they could. Had,
however, the judgment against the sugar
house company been collected in full,
the estate would still have been largely
insolvent. Mr.. Weart found that the liti-
cation with the sugar house was likely
to be long and tedious, and as he could
not close the estate until 1T was settled,
he obtained an order allowing him fur
ther time In which to file his final ac-
count.
TILLMAN GETS IN.
In the summer of 1888 Irving ]. Till
man, a counsellor-at-law in the State
of New York, called upon Mr.. Weart on
behalf of the heirs of the Mcmahon es-
tate in regard to the judgment against
the sugar house company. Mr.. Tillman
said he would brush aside the equitable
defence of the sugar house people, to
which Mr.. Weart replied that If he were
successful in doing so and recovered the
whole amount with interest, it would
all go to the creditors, and the heirs
would not get one cent. He also told
Mr.. Tillman that the estate was all set
tied but the sugar house suit and the sale
of three meadow lots in Jersey City,
which were so heavily encumbered that
they were of no value. In September,
1893. Sally Gage, one of the heirs, filed
a petition in the Orphans Court of Hud-
son County asking that the administrator
be ordered to file his account and settle
the estate, which account was after
ward filed by Mr.. Weart. and a petition
also filed by him to have the estate de-
clared insolvent. The account filed by
the administrator was full, embracing
schedules of all receipts and payments,
together with all orders granted and all
claims proved The account showed as
sets amounting to s53,5T2.50, including
So. 500 compromise of the sugar house
suit. which compromise was subject to
the approval of the Orphans Court. The
account also showed payments made
and loss upon Inventory amounting to
fc n1S 10 hn