New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-06-15
DEMAND M4DE FOR THEN.
DEPOSITED 5cith Kmckerbocker Trust
Co.-Face VaIue, 81 ,00O,O 900.

I
The entanglements left by the eS-real estate
broker. willoughby Middleton, as the sole as
cots from which his victims might procure re-
,urns from their investments under his direc-
ron. were further complicated yesterday by the
refusal of Wesley Bigelow, secretary of the
Knickerbocker Safe Deposit Company to sur
rsnder TO Denis A. Spellissy, counsel for the
directors of the New-York Realty Corporation
The 100000 in $1,000 gold bonds which is be-
1;eved 10 be in the company's possession. Mr.
Bigelow said that he was acting under legal ad-
vice in refusing to open the box containing the
bonds to any one but Middleton himself or in
case of his DEATH to his executor.
Another fact that has just been discovered is
that the New-York Realty Corporation was dis
solved by Middleton within two or three months
after its formation. and that the real estate
man then filed certificate in the County Clerks
office stating that he desired TO use the name of
The New-York Realty Corporation" instead Of
his own in the transaction of business Under
section Of the Penal Code his action was legal
as provision is there made for carrying on bust
ness under company or other assumed name
50 that heirs will have the least possible diff
Guilty in taking up business enterprises left them
TIE New-York Realty Corporation in all it's
business transactions, was simply Willoughby
Middleton. and this relieves the directors of the
company. as organized, from liability for Mid
dletons frauds
NEVER OWNED ANY PROPERTY.
Mr spellissy explained the latest develop
ments in the case last night. He said:
The Knickerboc1er Safe Deposit Company to-
day refused under legal advice to give UP the
New-York Realty Corporation bonds in their
possession Horace Richmond. the Harlem
builder, with whom Middleton was associated
has a key to the box containing the bonds in
eI-A
deputized by Middleton to open the box in the
case OF his death.
As yet we have been able to find only thirty
FIVE of the many creditors OF the Realty Cor
poration. These paid chiefly small instruments
on property to Middleton We can find record
Of the collection of only about 81 900 IN the form
Of instruments while he probably collected more
than ten times that amount. Middleton. so far
I can find never owned any property. The
nearest that he ever came to it in paying
$1,000 for an option on the Garth estate. This
option has been turned over TO Mrs Herman j.
Bolt His victims paid him probably $4,000
for pieces Of land that Middleton had pointed
out them, but had right to sell them
When selling property in this way. he took every
cent offered him as the first instalment. Such
investors never saw the deeds to the property
they believed that they were purchasing, as they
did not pay in full for anything Middleton
kept all his books himself and apparently had
in view from the start leaving the city as he has
now done.
Middleton organized the New-York Realty
CORPORA ton in May, 1904. In August, 1914. he
announced that it had been dissolved. In Sep
TENDER he began negotiating for the incorpora-
ton of the Mutual Real Estate Trust Company
and later announced that he had established the
Manhattan Contracting Company, which was to
build homes. He never lawfully put the name
of the New-York Realty Corporation to any,
thing. After he had returned from Washington.
where he had announced the dissolution Of the
corporation, he went to the County Clerks office
and fled a certificate that he wished TO do bust
under the fictitious name Of THE New
York Realty Corporation" Under Section 1853
of the Penal Code this is permissible The GER
1ifiCate is dated October 0S 1904 January
g. 1905 he fled another certificate which al
lowed him TO use the name Of Tho Metropoli
nounced at Washington that the New-Yo
Realty Corporation had been turned into the
carry his business under the first name
which makes him solely liable for everything he
did
Under the laws of the District of Columbia
where he organized the New-York Realty Cor
poraton, it is necessary that one-haIf the capital
Of corporation be paid within year after it's
organization and that the rest be paid the fol-
lowing year. Not dollar is necessary to begin
with The directors of the corporation paid
little or nothing to Middleton. He first issued
S1O0.oo0 of capital or preferred stock and
probably sold it. In January, 1905. he increased
this to Sl0O0O00. cannot find what he did
with either the first or the second issues, but
believe that he did not sell much of the second
issue He also issued $500 gold bonds to the
amount of 100000 and 81 900 gold bonds to the
same amount Only two Of the first issue are
missing. and I believe that the whole of the
second is in the hands of the Knickerbocker
tain the certificate Of the Knickerbocker Trust
Company, whom he named trustee which
would have shown that his property had been
mortgaged by them to the amount Of 100000
covering the issues. He had nothing for them
10 mortgage.
Page and Richmond. Vfce-President Bossert
and Miss Williams, clerk of the corporation,
met last night in Mr.. Spellissy's office and au-
thoriZed him to continue the investigation. A
number Of letters from William B. Randall,
trust officer Of the Knickerbocker Trust Com
pany, addressed to Middleton were presented.
A considerable correspondence appears to have
been carried on between the two while Middle
ton was posing as the secretary and as the presi-
dent Of the corporation
Mr. Randall said last night that the letters
written to Middleton were probably of a circu-
lar nature, which are sent every person who
asks the Knickerbocker Trust Company for
mortgage terms He said that his company had
never certified any bonds for Middleton, and
that he had never heard of the man until his
recent actions brought his name into the news
papers.