The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-08-05
VICTIM OF MONEY LENDERS.
How Mrs. Wilmerding Was Cheated
Out of Valuable Property.

+ rom the New 1 Ork Herald.
Startling revelations about the way in
which the loan business is being conducted
in this city may be brought to light soon.
when the suit brought by John B. Glea-
son, to have certain transfers of property
made by Marie F. Wnmerding set aside,
comes to trial At this trial Eta Forgot
ston and her brother, John S. Forgotston
whose peculiar manner of doing business
was described in the Herald two years
ago. will be asked TO explain how Mrs
Wilmerding came to transfer to Rose Frey
property worth about $4,000 for less than
5000.
Mrs. Wiimerding, who is only &c years
old and as beautiful nearly as she was
lew years ago, when she was courted by
the most exclusive society, is now con-
hned in Bloomingdale Asylum for the In
sane, having been placed there at the re-
quest of her father, Col Vanderbilt Allen
who died few months ago on the Island
of Capri
Though the young woman was pro-
nounced insane by Drs. Allen McLane
Hamilton and De Forest Smith an effort
is being made 10 obtain her freedom on
the ground that she has never been Of I'M
sound mind. The Herald told on Sun
Gay OF the habeas corpus proceedings
which We're heard at White Plains. and
how Judge Keogh decided to appoint a
committee of three 10 inquire into the
woman's mental condition.
When the story of Mrs Wilmerding's
actions and transactions in the last wear
is known we can surmise a reason for the
action brought at White Plains, ana why
II Will be to the advantage of certain per-
sons TO prove that the patient is not in
sane. The story of the separation Of Mrs.
Wilmerding and her husband, Jack
Wilmerding, is already wei known to the
public.
Long before this separation Mrs. VIII
merding began to do strange things and
the desire 10 spend money became almost
a mania with her. 1t was a year ago that
the young woman, anxious TO raise money
to spend on herself, fell in with the For
gotstons, whose office IS in the Mail and
Express building, No. 2O3 Broadway.
Ihese two persons, through Others fur
nished Mrs Wilmerding with cash. re-
ceiying very large reward for their ser
vices. In return for the transfer of her
interest Of $4,000 in the estate of Mrs
Carroll, relative, the Forgotsons gave the
young woman bonds amounting to 500
in the Union Traction Company of New
Jersey and a check for $4250.
According to Mrs Gleason. who repre-
sents John Wallace and Franklin Allen.
Mrs. Wilmerding's uncles and the guard
ians of her person and property, the
bonds were worthless. But the young wo-
man used the $3.50, and later. needing
more money, sold the furniture in her fat
in Clinton place at auction for $500. Though
she is the grandniece of Commodore Van
derbilt and has many wealthy relatives
MES. Wilmerding was forced 10 seek al
most any means possible 10 raise money for
herself.
When in sore straits to raise money, Mrs.
Wilmerding, it is alleged again sought
nd oil
ing bonds worth $4,000. OF this amount
$4,000 was in Lake Shore per cent. bonds.
Though the transfers were made to Rose
Frey the money, according to Mr.. Glea-
son, was furnished by the Forgotstons
Rose Frey is the wife of Gus Frey who is
also in the loan business at Lexington
avenue and One Hundred and Twenty
fifth street, and is a sister of Eta For
gotston.
Mrs. Wilmerding had met some woman
who declared that she had a sure scheme
to break the bank at Monte Carlo, and,
believing the story, it is said she handed
the $500 to this woman. She confidently
expected large returns, but they never
came. The woman did not return either,
and no one knows that she even went TO
Monte Carlo. Mrs. Wnmerdng, accord
ing to Mr.. Gleason, is now almost in fnan-
cial straits.
Eta Forgotston has had an eventful
years ago from Syracuse and started life
as salesgirl in a Bowery dry goods store.
As the result of her method and sharp bus
mess transactions she is said TO be worth
several hundred thousand dollars now.
She began TO attract attention about
three years ago when she and her brother
organized the Brighton Land Company.
The companys ostensble business was to
deal in real estate, but the real mission
of the concern was to loan money at
rate of interest far exceeding 100 per cent.
per annum. Before organizing the COM
pany, Miss Forgotston had gained expert
ence by conducting the Harlem Loan AS
ISOLATION, at No. 10 East One Hundred
and Twenty-fifth street, in which she
loaned to all corners.
After the law forbidding loaning money
at a higher rate of interest than per
cent. had gone into effect, Miss Forgot
ston gave up her Harlem business, and
John S. Forgotston gave up his offices in
the Vanderbilt building, so that the two
could go into business. They formed the
Brighton Land Company to get around the
law. and because of Miss Forgotston's
cleverness, the scheme succeeded.
Some 700 acres of land in the marshes of
New Jerseys were purchased, and a hand
some map made dividing the town" into
5000 city lots. Dummies were elected as
incorporators of the company, and James
de la Mare, a lawyer, acted as witness and
notary for the transfers. One of the in
corporators was Inez L. Hedges, de la
Mares clerk.
Advertising brought persons TO the office
seeking loans but when these persons
asked for money they were told loans
we're made only to customers So after
looking at the handsome map and hearing
the growing town praised, the customer
would willingly agree 10 pay S25 for lot,
believing it good investment.
Then the person after paying several
fees, would, If he wished to borrow $780,
agree 10 pay per cent. Two checks
one for $780, tho amount of the loan, and
the other for S25, the price of the lot would
then be gwen to him. The borrower would
then return the check for $50 indorsing
it, and, keeping the $50 check, would give
a note for $75 secured by a chattel mort
gage on his furniture or other property
II he failed to pay when the note fell
due. in two months, foreclosure proceed
ings would at once be instituted.
And now Mr.. Gleason has threatened 10
make the transfers null and void through
4,a courts Sonnet hing had to be done TO