The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-15
MIDDLE70N'S BOOTY $4,000.
VAS, LEGALLY AT least, 2 "CGR-
PORATIONS" ALL BY HIMSELF.
Had Fine 500 900 Issue Of Gold Sends, but
Floated Only a Few-Queer Bullying
Letter to q Trust Co, which Never
Heard OF Him-Typewriter Unpaid.

Letter 10 a Trust Co. which Never
Heard OF Him-Typewriter Unpaid.
Some Of the creditors and directors Of
Viloughby Middletons New York Realty
Corporation had a meeting last night in the
Office of Lawyer Denis A. Spellissy at ao2
Broadway. Mr.. Spellissy is trying to find
il there is anything valuable in the mess
Middleton has left behind him.
None of the directors was able to throw
snv light on matters. because, they said.
Middleton simply told them they were
direct ors, and that was all. They bought lots
of him to qualify. according to Mr.. Spellssy.
The directors and some of the victims
thought possibly Middleton might have left
fehind some valuable contracts, but in a
eearch of the papers last night none
vas found. There we're bushels Of letters.
all showing what a fine time Middleton
had in organizing companies and building
air castles for investors in lots which he
didn't have to sell in Westminster.
Mr. Spellissy said after the meeting
that he was going ahead to see If somebody
else wasn't criminally liable in the swindle.
Assistant District Attorney Chadwick Is
also Investigating, and it was said yesterday
that there is a chance Of at least one other
PERSON being arrested. This person. 1t s
relieved, assisted Middleton in his schemes.
From what came to light yesterday
il would appear that Middleton gathered
in at least $4,000, and possibly twice that
amount, before any Of his lot purchasers
discovered that they didn't own the beauti-
fl suburban sites that he had sold them
in the name Of the New York Realty
Corporation. 1t is thought that he took
-...j L i =.
Just how Middleton, not four months
ont Of a Canadian prison, went to work to
effect this was told yesterday by lawyer
Srelissy Instead of the New York Realty
Corporation teing what its name would
imply, it turns out it was simply the as
sumed name under which Middleton did
BUSINESS. He complied with the law which
allows a man this privilege by certifying
his real name to the County Clerk. Mr.
Spellissy said that in taking advantage
of this law Middleton must have been forti-
fed with very shrewd legal counsel
In May Of last year he organized the New
York Realty Corporation with a capital Of
500 900. and had it Incorporated under the
avs Of the District of Columbia by the
f.. W. Mccormick Company, legal firm
In Washington that acts in such cas- s.
Mccormick the head of this concern; P. B.
Anderson, T. A. Terry, E. S. Kretschmann
and f. NJ Freeman. clerks in McCormick's
office in Washington; and William H. Page
Herbert Richmond. Frederick W. Bossert
and Woughby Middleton of New York.
Edna H. Williams. one Of Middleton's clerks.
was secretary.
This concern was in existence only long
enough to issue, according to Lawyer
Spellissy, slO0,OO worth Of stock and to
vote second issue bringing the capitaliza-
ton up to s, ooO, OOo All Of the first ISSUE
Of stock. Mr.. Spellissy says, was appar-
emily disposd of.
If there were any bona fide purchasers
Of it they have not yet appeared. The
,ock books have disappeared. On Aug. /,
Middleton from the letters that have been
found apparently had this company dis
solved He told those interested that it
had been merged in the Mutual Real Estate,
Trust and Guarantee Company and that
when the legal matters had been adjusted
they would get share for share in this con-
Germ then in process of formation.
On Oct. %. 1905. Middleton, having dis
solved the company which he had organized
tor a purpose, went down TO the County
Clerks Office and filed an application for
permission to do business under the name
of the New York Realty Corporation in
stead of as Willoughby Middleton. Mid
dleton got his certificate and became the
New York Realty Corporation. People who
might have heen suspicious of Willough-
by Middleton put faith in this alias that he
assumed. Not one of his lot purchasers
ever dreamed, apparently, that it was any
thing but corporation with responsible
directors and not an individual without
dollar to his name.
On Jan. 3 Middleton got another certi-
fcate from the County Clerk allowing
him as an individual to do business under
the name of the Manhattan Contracting
Company. This was the concern to which
ot buyers paid their SIS for the suburban
villas that they were told were being con-
s,ructed on the lots in White Plains Many
O, them believed that Herbert Richmond,
p White Plains builder. was the president
Of the concern. Richmond says that Mid
d.eton got some of his money and that's
all Although Richmond lives in White
Plains he says he never knew that the New
York Realty Corporation didn't own the
lots that were being sold. Middleton
simply paid the others salaries, ran every
thing and signed all checks.
Applications for lots came in rapidly
that Middleton organized title guarantee
company that was to insure titles to the
lots he sold and separate more money from
come ons. II does not appear that he went
him to trade also under this name but the
ma me is on the doors of his Offices in Harlem.
and several persons say ehey paid money
to him to insure titles.
But this was not all. 1t came out yester-
day that Middleton recently hit on plan
Of issuing beautifully engraved gold bonds.
He planned to get some letters from the
Knickerbocker Trust Company to use in
convincing people that it was trustee of
the mortgage securing the bonds. The
bonds were beautiful green and yellow
things. Of $500 denomination. He had
100000 worth printed. Mr.. Spellissy has
found $40 600 of these in Middletons desk
The Knckerhocker Trust Company ap-
pears as trustee, and on fly page is list
NJ the officers Of that pany and a state
ment Of it's financial condition. The bonds
we're isSned by the New York Realty Cor
poration, and Middleton's name is signed to
the bonds and the interest pons as presi-
dent. The certificate Of the trustee. with
ont which no bond is good, is lacking.
The Knickerbocker Trust Company de-
MED Yesterday. through W. B. Randall, it's
trust officer. that il had ever even heard of
Middleton or the New York Realty Corpora :
ton, Lawyer Spellssv showed this letter
last night, which possibly Middleton wrote