New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-02
NWjERS!a XfN\
" 49, ~
CHARGE THEM WITH FRAUD.
A NEWARK CONCERN SAID TO HAVE USED
SHARP PRACTICE IN REAL ESTATE
TRANSACTION WITH AN lGNO-
RANT COUPLE.

orarys Aue (SneciaD The details of a pecu-
liar transaction (which puts the American bu'oihs
Loan and Savings Association. OF Newark III a pao
ligAt, have Just come TO light. Chancery proceed
ings have been begun against the association anu
its officers. charging them with conspiracy to de-
fraud
About two years ago Augustus Reinhardt ana
his wife Theresa, of Orange. bought a lot on the
instalment plan in Watson-ave., West orange from
Watson Whittlesey The couple worked nara anu
stinted themselves until last January, when they
made the final payment and received deed 10 TIE
property They at once set about getting loan
10 enable them to build a home They fell INTO
the hands of Arthur Ilinde. the manager OF aseh-
cies Tor the American Building Loan and savings
Association OF New-Jersey. with offices at NOS Of"
and s75 Broad-st Newark. The Reinhardts were
simple and unsuspecting. and 1t is alleged. he IN
fuenoed them to make an application for a loan
Of $.6o
A month later they were informed that the loan
had been passed by the Board OF Directors, ana
Hinde took them down to the offices OF the com
pany. where Edwin j. Murphy. the president OF
the association presented to them what ne repre-
scented 20 be a bond and mortgage TO secure the
loan. This they signed Murphy himself taking
the acknowledgment. Both Reinhardt and ms WIG
are ignorant of the English language. ana they
trusted implicitly the representations OF the
officials OK the company. Mrs. Reinhardt was then
told that she could 30 ahead and make her con-
tracts for the building of the house. She ola So
and contracted in the usual way with Charies d.
Meeker a builder. TO erect house for N,SR Time
went on. and when the first payment came que
Meeker was paid $3.50 by Samuel w. Chapman, the
secretary of the company When the next pay
ment fell due another application was made Tor
money but ii was not forthcoming. Meeker went
on as long as he could and then stopped work ana
told Mrs Reinhardt that he could go no iurther
until he was paid according TO the contract
Mrs Reinhardt then applied to Watson W ~ d 81
who sold her the oi for loan. He agreed 10 40 20
and deposed his check for $3.50 in escrow WIN ms
counsel Blake fiowe to take up the loan itoin ihe
American Building Loan and Savings AsSo,Iai
as soon as the title was found perlect bIahe q
Howe made the usual searches. and found tnat 'ne
alleged bond and mort gage was. in fact an dpsoue
deed of the property not to the ASSOCIATION, pu 10
Chapman. Further search developed the lsct tnat
xhere were on record against Chapman JUDGEMENTS
as first lie: on the property ,,,,..,. could
Under TIE circumstances Mr.. Whittesey cCulu
not make the loan. and his check was returntu 10
him Blake & Howe took up the maNer, az
solicitors for the Rel dts. and have fieu d
bin in chancery asking that the deed OF convey
ance be aside :reIEulent ana chargs In, i1,e
American Building ;.can ari Savings Association
as body Arthur Hirdc. manager or agencies
Edwin J. Murphy. president and Samuel W Ihap-
man secretary. with conspiracy to defrauo
In the mean time the house stands haf rnlsheo
and unprotected. 1t cannot be insured, ana, as IL
will take three four months to press the chan-
Gerry suit through. it is probable that serious dam
are in a pitiable condition every dollar that they
have in the world being tied up in TINS place Az
effort will be made to have the criminal side OF
The case taken