New-York tribune., 1901-01-15
BIG LOAN ON LITTLE LAND
ONE TRANSACTION BY THE ANGLO
AMERICAN ASSOCIATION.
INDICATIONS THAT SHAREHOLDERS WILL
NOT GET OVER TWENTY CENTS ON
THE DOLLAR AND THE TRANS
FER PLAN WILL FAIL.

THE DOLLAR AND THE TRANS
FER PLAN WILL FAIL.
From Investigations completed yesterday by
Deputy Attorney-General William E. Kissel-
burgh, representing the State Banking Depart
ment it would appear to be practically certain
that the Anglo-American Savings and Loan
Association with liabilities on November 70
last of So 0t3 30J 80 will pay less than 20 cents
the dollar to its shareholders. and that the
attempt Of it's directors to stave off receivershp
liquidation by transferring the cOmpanys ex-
tensive holdings of real estate to a separate
real estate company will come to naUght.
Deputy Attorney-Cieneral Kisselburgb will
also represent the Court at the proper time
that in the annual statement of the company
signed by the directors the mortgages executed
by Mr.. Pearce Of the directors of the COM
pany, which figure in the company's table of as
sets S4,342,S ST. o. were represented in
terest bearing loans, Whether Intentionally or
otherwise, and that such representation. makes
the directors subject to criminal prosecution, if
the State authorities desire to construe the
statement perjury.
\ strenuous effort was made yesterday by
William B. Hornbower, John L. Hill and
Charles A Deshor, representing interests friend
ly to the directors, to persuade eX-Judge George
c. Reynolds, referee, that ii is safe and ad<
Visabe for him to recommend to Justice Mad
dGX to order the transferrence of the Anglo
Americans real estate holdings to a new COM
pany-the Empire Realty Company-organized
by the directors OF the Anglo-American. The
hearing will be resumed to-day at the offices of
the company In the Home Life Insurance Com
pany Building The counsel for the directors
would il conceded last night, stand much
better, chance of success but for the filing yes
terday OF certain afidavits in the Federal Court
before Judge Lacombe setting forth that the
company had pledged large part OF its col
| lateral for temporary loans. and that this col
lateral was subject to snap judgment" by
banks which hold 1t. These afidavits were filed
bS Frank A. weggoner. OF the firm of Russell
& Winsow. of the Postal Building. representing
claims of shareholders aggregating 100000.
MIR. wAGGoNERs STATEMENT.
When Mr.. Waggoner was seen yesterday at his
| office he made the following statement. reading
from official memoranda:
l don't care to make any comments these data,
which are taken from the official records in West
! chester. Erie and Kings counties. They simply
show that contention that the Anglo American
G9n5any shoqiG M nGt oe 3%WeH & 70 no 40 any yts
to evade responsibility for its affairs is wel taken
| The records snow as fellows:
sampson Q. MinsIe on February 10. 1851 bought
from ths 1onbfts 6 1 Hask AsT@9It3n a 81 m lots
the day he borrowed from the AngIo-Ameri-
| lots Is 90. or at the rate Of 81 562 30 lot or
$l.}S7 % Il lot more than he paid for them Mingle
wife subject TO he S25 90 mortgage, on Decem-
gage from, the Anglo American Company 5000
| more on the same lots.
''On Tn. h.oop-ave., Brooklyn between jefferson and
Putnam aves. Cn the east side thee are ten flats.
With the tue r T M IS2re oe &;sstgF vo Of
uatiou Of the corner fiat is $4 800 suuJet 70 first
there il second mortgage from the Anglo Amezi-
can COMPANY .. g. 60 rlEs OF the eight inside ha:s
gage from individuals of $ 600 leaving estimated
pany loaned feaTce of the company $SoCo each or
S. so on each parcel more than the equity.
LOAN FROM CHATHAM BANK
George NJ. Hard, president of the Chatham
%alpn SomPany ilaH oane the 81
sso"9 and Iook demand note from m the S company
s49O.G" in morts ages. the aSslgIments being TO
dates of March 10 and November Z. and both re-
corded December O. the day after Judge Lacombe
directors restraining them from turning over any
9t 0dte the aG{hoPzes MIR Doremus if not paid on de-
mand sell or dispose Of the mortgages without 1
the proceeds to the repayment Of the loan
National Bank loaned the Anglo American Com
pany. of which he is president Sio'OOo taxing as
bank, a mortgage Brooklyn property Of si9;OCe.
fa faio agsregating between 100000 100000 with
authority TO sell in case of non-payment or me
note, The assignment of the collateral was made
on June 20 last, and the MORTGAGES were recorded
on December 6, the day after Judge lacomne ,l Is
have been paid. and there Is no money in the
! y.
/ The Angio-Amerlcan has assigned to John Fertig.
one of it's directors. mortgage for $56OO0 on Its
real estate as collateral for a demand loan OF
$40 900. recapuaton of these transactions shows
/ that Manager Gilbert, of the Anglo-American. Tor
three loans, aggregating $l35GO, has assigned as
/ collateral mortgages aSgreSatng between $'OOOUo
''At Degraw-st and Classon-ave. there was
lot. 13lxl00 feet originally owned by one
conveyed by Curtin to one Wolf by deed re
corded April 20. 1897. and was SIN subject TO the
the Anglo-American company 100 feet square OF
this plot. subject to the existing mortgage. ON
October I. 1891 the Anglo-American company con-
yeyed to stephen Van Wyck Its attorney TINS luC
foot lot Degraw-st. and two other parcels of
land about the same size, unimproved. for 81, Van
ea Msk psFees for on
the Anglo American company released the DegraW-
St lot 10 Van Wyck from the lien of the $4,000
mortgage and quit claim to all title TO for al
legged consideration of $4,000, Van Wyck in No
vember conveyed to Mr.. Pearce of the Anglo
and Mr.. Pearce borrowed S11,000 from the
Anglo-American company on bond and mortgage
a mortgage Of a06S. but il one year the Anglo
American loaned Pearce s10o0 on two-thirds of IL.
EMPIRE REALTY COMPANYS PROPOSAL
At the hearing before the referee yesterday
William B. Hornblower. among other things
told the referee that the equities represented by
the Pearce (second) mortgages, amounting to
about 50 900 COO constituted the principal asset
of the company and that if the mortgages
foreclosed all these equities would be wiped out.
and the stockholders of the Anglo-American
would get nothing. He then explained TO Judge
Reynolds the proposition of the Empire Realty
antee there was that the realty company would
fulnl its contract, If IL got what 1t asked for
Mr. Hornblower could make no Definite promise
The Depew Improvement Company secured