The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-25
MESS AT THE EVERETT HOUSE.
NEW PROPRIETOR AND RECEIVER
IN JOINT POSSESSION.
Foreclosure OF Chattel Mortgage I'm Adj
vance OF bankruptcy Petitions MAN.
ager Says That Fronts We're Good but
That BnIs We're Not Paid with Them.

HREI says AA@N Wv " SVO "
That Bills We're Not Paid with Them.
The Everett House in Union Square,
which in its day has harbored many a dis
tinguished guest, including the present
King Of England, was the scene yesterday
Of a lively dispute between j. p. Flsnnery.
a well known hotel man, who asserted that
he had Just bought the stock. fixtures and
good will. and Lindsey Russell, a lawyer
Of 90 Nassau street. who had been appointed
receiver in the morning by Judge Holt OF
the United States District Court on p editions
In bankruptcy that had been a lied by Acker,
Neral 4 Condit and other creditors for
supp lies furnished. These petitions had
been filed against the Everett House Com
pany, a corporation that was organiz ed
last May TO take over the business OF the
hotel from c. F. l.. Bates, who gave II up
70 become the manage OF the new Bel
mont Hotel.
Mr.. Flannery got there before the re-
ceiver. He was introduced to j. H. Park,
the active manager. by j. H. Siebert, who
hCItHl as IOI NAc SolROIoLoht M
the new owner Of the Everett. and Flannery
told Park that he would take possession
Immediately. The place was turned over
20 Flaunery, and Siebert, who lived there,
packed mp his effects and moved out. He
has not been at the hotel since. He told
Mr.. Park that he was going to Buffalo.
This is the most remarkable proceeding
ever heard Of, said Manager Park last
night. 1T is news to me that this is not a
naylng institution. figure that the hotel
has made a net profit of at least 500 a day
since | have been here. | know that more
than enough to pay current expenses and
a handsome profit has been turned in to
the company or its representative, yet now
| understand that there are claims against
the house for between $50 900 and $40, 900
for supplies. All these claims have ac-
Cumulated since last May, when this COM
pany was formed to take over the business
and | came here. The money that we took
in was turned over to Siebert, who repre-
sented the company here.
NY impression is that money has been
lost in a gold mining speculation in
jamaica"
Siebert had lived at the hotel since the
company was formed. His apartments
we're taken yesterday by Mr.. Flannery
for his own personal use. He had not been
in them long, he says, when woman dressed
in the mode walked in and asked for Mr..
Siebert.
H has left here, madame, " said the new
proprietor.
Gomez" cried the woman. mo, no,
he could not have gone without telling
me. ALI, yes, he must be gone. His fur
coat is gone. Gone also is his automobile
cap, and where is my Sl2 ,OOO?"
When Receiver Russell got to the hotel
he was told that the property would not be
surrendered to him. Flannery said that he
had bought it under foreclosure OF a chattel
mort ga ge and that he intended to hang on
to il. 1t developed thai the mort q ge,
which was for $40, 900, had been made on
December 5to Joseph Lazarus for borrowed
money. The mortg age had been hastily
foreclosed IN Saturday, but the prelimi-
naries we're not completed until 8 o'cloc
yesterday morning. Asked how he had got
iutothe scheme Mr.. Flannery said that he
was always looking for a chance to make
money and that he had been tipped of to
the foreclosure by a friend.
Il paid, y said he, $4,000. That was the
purchase price. l thought it was a very
good investment, considering that the lease
has many years to IN.
When Receiver Russell appeared at the
hotel yesterday armed with the papers
showing that he had been appointed re-
ceiver Of the Everett House Company, d.
j, Myers, attorney for Flannery, refused
70 recognize his authority to take possess
sion. He said Flannery had bought the
la en- and UnnJ mill and that fha EUaraft
House Company had beer dissolved. There
was nothing there, he said, which the COM
pany now owned.
The lobby filed up with lawyers n
others who were interested. It was
finally agreed that the receiver should
have a representative at the hotel to watch
the receipts and see that they were prop
erly accounted for; also to keep tabs on
the furniture. Mr.. Flannery, however,
will remain in possession until Mr.. Russell
can appeal to Judge Holt for advice.
Mr.. Russell said that he had not had time
70 examine the old books.
lam going to look into them right away"
he said. Il want to find out just how mat
ters stand. An examination Of these books
may reveal just what caused the trouble
here. 1t seems strange to me that II the
hotel was doing so good a business as has
been described TO me the corporation should
have become insolvent."
The Everett House Company was in
corporated last February, with a capital Of
$4,000. The incorporators are given in
the copartnership directory as f. f. Waters,
J.Dugana and F. B.. MacCarthy, with further
Information un~attainable." The company
gave no place of business and the address
OF none of the directors could be obtained
yesterday. Mr.. Park, the manager, said he
did business with no one but Siebert. Walter
Z, Preble was the president.