The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-10-21
SET ASIDE FOR FRAUD
Vice Chancellor Stevens De-
cides the Suit Against
E. K. Meigs.
TRANSFER DECLARED VOID
The New Jersey Lumber Com
pany a Device to Delay
Creditors.
TRANSFER DECLARED VOID

vice Chancellor Stevens has set aslqe
the conveyance of the property Of Edward
x. Meies. who ran a lumber yard at Nine
deenth and Coles street, and had an office
al Ferry and Harrison street, Hopokehs
10 fhe New Jersey Lumber Company, on.
ne ground of fraud. He decided the case
in short order. granting the application
as soon as the testimony was u ana
without taking the papers for review ana
consideration
The decision ends a long aud tedious
legal battle which has been fought N the
Court of Chancery and the Court OF En-
rors and Appeals for over a year ana a
half. There were a number Of plaintifIs
in tbs case. With one exception they
were represented by Garrick & Ewald,
q. X. Meigs and the New Jersey Lumber
Company were represented by Bentley g
Gedney. AT one time former Attorney
General Stockton was called into the case
by counsel for the defence.
The story Of the tight as told by Law
yer Henry Ewald. of counsel for the plain
tifrs, lis as fo1lows.-Edward r. Meigs, VINO
ran a large lumber yard at Nineteenth
and Coles streets, and another at Teneay,
found, in April. 1897, that he was being
pursued by his creditors to pay his debts.
1t was evident that he could not pay
them. so he transferred all his stock y
the New Jersey Lumber Company, wnlch
was composed of Edward X. Meigs, Mn
self. and three men named Davey, Aeker-
lev and Sinsebaugh. who were formerly
EMPLOYED by him. The books OF the New
Jersey Lumber Company showed that +
X. Meigs had subscribed to 81 shares OF
stock. and that the other three men had
each taken a share.
shortly after the transfer, Holland
Graves & Montgomery, James Strong &
Company. the Pearse United Lumber
Company. the John L. Roper Lumber
Company. George w. Sisson, who does
business as the A. Sherman Lumber Com
pany: L. Thompson & Company, and the
Butler Lumber Company, all secured
dgmen against f. K. Meigs and his
former partner, James F. stewart. After
getting the judgments they levied on the
stock, fixtures, horses and wagons when
had been conveyed by Meigs to the NeW
Jersey Lumber Company.
AS there was a cloud on the title OF the
property the creditors fled a bill IN the
Court ofNChancery to have the transfer
of stock set aside and declared nun any
void or the ground that it was made LOT
fraudulent purposes. An injunction was
secured from Chancellor McGill restrain
ing the New Jersey Lumber Company
from disposing of any of the stock, ana
James F. Cannon was appointed receiver.
Bentley & Gedney fought the injunction
in the Court of Errors and Appeals.
Other injunctions were granted. the
fight was a bitter one. On Wednesday
morning last it came up for final nearing
and for the taking of testimony, before
Vice Chancellor Stevens. Vice Chancellor
Stevens on hearing the testimony at once
declared the transfer a legal fraud and
set 1t aside. He continued the receiver,
with Instructions to him to sell the prop
erty still in the hands of the New Jersey
Lumber Company and pay the proceeds
into the Court of Chancery for the benefit
of the creditors.