The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-09-02

in the winchester company 'uuS"
Edwards decides, virtually, that how
ever the Winchester people may view
the late judges dealings they were
legal and binding and he gives YER
dict for the plaintiff in the full amount
of the claim, $15,2S2.20.
THE TRANSACTION.
The transaction in brief was this:
Judge Handley was president and five
sixth owner of the Equity Improve
ment company of winchester. He was
also president and whole entire, four
shares excepted, of the Equity I'M
provement company, of Scranton. lie
paid his subscription to the Winches-
ter company with certain real estate
in Scranton. To make up the differ
ence between the value of the real
estate and the amount of his SUD-
scription the company gave a mort
gage bond for S155,O00. In course or
the time the company at Judge Hand
ley's suggestion, authorized him TO sell
the Scranton real estate for not less
than three-fourths of its value. de
sold it for exactly three-fourths OF It's
value to the Equity Improvement COM
pany of Scranton, which was himself
The terms of the sale, the accompany
ing bond and the like were drawn up
by Judge Handley, but when he went
to Winchester to report his transac-
tions to the company he neglected to
take the papers along. After his death
his executors produced the papers and
it was found by the Winchester peo-
'ple, much to their surprise, that ac-
cording to its provisions they were
still held for the compound interest on
the Sl55OO0 worth of bonds, contrary
to the verbal understandings which they
allege was had at the meeting, when
they aver Judge Handley gave them
to understand that the sale of the real
estate released them from further re-
sponsibility for the mortgage bond. 1t
was to escape this very responsibility,
they say, that they agreed to the sale.
Excerpts from Judge Edwards opin-
ion will give a more detailed UNDER
standing of the case.
FINDINGS OF FACT.
In payment of his subscription to the
stock of the Winchester company Hand
lev conveyed to the Winchester company
several pieces and lots of land situate
in Lackawanna county. Pennsylvania,
ffty-fve thousand &l550OO dollars in
bonds secured by a mortgage given to the
Chestnut Street Trust and Savings Fund
company, of the city of Philadelphia,
as trustee. The amount of these bonds
represented the difference between the
purchase price of the property conveyed
by Handley and the amount of his sub
scrpton to the capital stock OF the WIN
chester company.
The mortgage given to the trustee as
aforesaid bears date July 1st, 1890. The
bonds secured by 1t are each of the de-
nomination of one thousand dollars, pay
July, l, 1910, with interest semi-annually
from July /, 1890, at four per centum per
annum. The coupons, therefore, attached
to the bonds were twenty dollars each
In amount The properties included in
the mortgage consist of an undivided
one-half interest in 5612 acres of coal
land 10 city lots on Penn avenue and
Vine street, Scranton; two lots on Wyo-
ming avenue and Spruce street Scran-
ton, and the surface of Go acres of land.
The conditions of the trust as set forth
in the mortgage need not be recited here
as they are not of Importance in the
disposition of this case.
Feb. 13, 1894 at a meeting of the Win
chester company, John Handley, being
present, the following resolution was
passed and recorded in the minutes OF
the company:
"On motion of John ]. Williams, the
following resolution was adopted, viz
That the president of this company is
hereby authorized and empowered to
make sale of any of the real estate sit
uated in Scranton, or Lackawanna coun-
ty. Pennsylvania, belonging to this COM
pany, in such parcels and at such prices
terms and conditions as in his judgment
may be advantageous to the company,
provided said prices shall not be less
than 25 per cent. less than the price at
which said property was turned over to
this company, and also make execute
and deliver deeds for the real estate
when sold from time to time"
SOLD THE PROPERTY.
In pursuance to the above resolution
the Winchester company by its presi-
dent, John Handley, on the 10th day OF
March, 1884, sold and conveyed to the
Equity Improvement company of Scran,
ton Pa, the property situate on the
corner of Wyoming avenue and Spruce
street, Scranton, for the sum of one
hundred and siXty-eight thousand and
| five hundred Sl6S5OO) dollars, which sum
was twenty-five per cent. less than the
price for which John Handley had sold
the same property to the Winchester
company, to wit, twenty-five per cent. OF
$225, 900
To provide for and secure the pay,
ment of the purchase money of $16S, 500 the
Scranton company executed a bond In
favor of the Winchester company, par.
agraph OF which was as follows: "Sec.
| ond, to surrender on the first day OF
July A. ID. 1885, to the Equity Improve.
ment company of Winchester, Virginia
for cancellation thirty of the first mort.
gage bonds hereinbefore mentioned of the
par value of thirty thousand dollars witt
coupons attached up to- but not incIudinp
the LIST day of January, A. D. 1895.
On the Gath day of April, 1894, at a
meeting at which John Handley was
present, the following resolutions were
Dassed bV the Eouitv Iunroyaroon. a...