The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-01-27
SW|NDLED ITALIANS.
Suit in Chancery Shows How
McNamee Sold Them
Mortgaged Property.

A foreclosure suit in which the title
of nearly four hundred Italian 1aborers
to land is involved was begun in Cham
Gerry Chambers this morning before vice
Chancellor Pitney. The property is set
tlement near Summit, N. j., that is
known as. Berkeley Heights. The Italians,
who are all hard working men, princi-
pally railroad laborers, invested the saw
ings of years in the land and secured
what they, in their judgment, believed to
be clear titles. Christian Laux is the
complainant in the present suit. He is
represented by Charles E. Hill, of New
ark. John E. Brown, of Elizabeth, ap-
pears for the defendant, Philip Saitta, a
New York lawyer, who is trustee for the
Italian property owners. The history OF
the case is as follows:
Early in 1898 man named Patrick Nc
Nance bought tract of land in the town
ship of New Providence, County of Union,
adjoining the fashionable residential sec
ton of Summit McNamee cut the prop
ertyerty up into building lots and called
his purchase Berkeley Heights. He ad-
verified the land for sale In a number
of italian newspapers and succeeded IN
disposing of about 400 lots at prices rang
ing from $50 to 500. All the buyers were
Italians from Newark, New York, Pater-
son, Jersey City and adjacent places.
When McNamee acquired the property
he gave mortgage on it to Joseph Laux,
who became his partner in the promotion
of Berkeley Heights.
McNamee did not procure release OF
this mortgage on disposing of the lots to
the Italians and gave them titles which
they did not take the trouble to have
examined, believing them to be All right.
They knew nothing of the mortgage 1T
is alleged, in Mr.. Browns bill, which
sets forth all these facts, and, it is al
legged, Laux was present in the real es-
tate office and saw McNamee give the
Italians deeds for the property without
making any objections or comments. 1t
is alleged that he failed to inform any
of the buyers of the mortgage which he
held.
McNamee, after collecting several thou
sands of dollars from the purchasers of
the lots, disappeared and has not since
been heard of. He was indicted by the
Union County Grand Jury for obtaining
warrant could not be served. The indict-
ment is still in existence.
Laux, after McNamee's disappearance,
brought proceedings to foreclose the mort
gage held by him, making each of the
Italian purchasers of lots co-defendants
in the suit. When the Italians learned
of the foreclosure proceedings they were
frantic. Under advice of Lawyer
| John F. Brown each lot owner
contributed small amount and
placed the money in the hands of Philip
Saitta, in whom they had confidence, to
be used by him in buying up the prop
deemed the property, paying for it partly
| in cash as trustee for the Italians. He
gave a mortgage of s2.O22 for the bal
ance of the purchase price to Christian
Laux, father of Joseph Laux. The sale
was on February 2S, 1885, Since then
Mr.. Saftta claims he has paid enough
money on the principal to reduce it to
collect the $3.50 and costs.
A sensational defense is being. put
in by Mr.. Brown ..on behalf Of his
| client 1t appears that Lawyer Saitta
| had difficulty in collecting money from
the Italians, many of whom moved away
| from Berkeley Heights. During this de-
| lay the mortgage became due and he was
the amounts credited on the mortgage
| Saitta claims that he paid to Mr.. Laux
] about $400, which was never credited on
| the mortgage. Saitta is willing to pay
| the balance of the mortgage, $3.50, if the
| 500 is taken off.
| Laux claims that the money was not
| paid to him for granting extensions of the
mortgage. Mr.. Brown for Mr.. Saitta,
claims that Laux in accepting the S4ol
usury. He contends that the law of New
Jersey is such that all payments made
should have been credited on the mort
gage.