The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-12-19
Woman Regrets Acting on
FOrtune-teIIer's New Jer-
sey Real Estate Tip.
BwLACKMAIL, SAYS LAWYER
Branding Pair as Rogues, Mrs.
Schmidt Tells in Legal Pro.
ceedings of SkiIfully Con.
cOcted lot. Made Her
Treasurer of Company.

AACkENSACk, Dec. 1g.-ln accuS-
ing Gustav Schroeder, of the Schmidt
Realty and Construction Company, of
haywood, of p~erpetrating, with Philip
Zalkind, a big real estate swindle, of
which she was the alleged victim, Mrs.
Maria Schmidt, treasurer of the firm,
declares that the trickery of a fortune
teller was utilized to assist in their
schemes. Chancellor Magic yesterday
enjoined the company from disposing
of n property or transferring any
of its stock.
Zalkind, n of the defendants, who
is a lawyer, says Mrs. Schmidt's charge
is blackmail. This is the story Mrs.
Schmidt tells:
Schroeder wanted to buy a farm foT
her. He later told her that he had a
farm to show her at Sherman Park,
N. Y. This time HI took with him
Philip Zalkind, whom he introduced as
his ..lawyer'' and "a person necessary
to insure the legality of the transac-
ton"
Mrs. Schmidt saw the farm and in
structed Schroeder to purchase 1t.
Several months elapsed and Schroeder
told Mrs. Schmidt that the delay was
occasioned because the deposit was in
adequate. Mrs. Schmidt says she
thereupon gave Schroeder $500 addi-
tional. He went away and returned in
a few days and said that $500 was not
sufficient to satisfy the owners of the
property and declared that he would
have to have $1,000 more.
Mrs. Schmidt did not have the $1,000
demanded, but was so impressed with
u. ..-.--A l. .x-,I-A Ln,- xryna1thy nc En-
lated by Schroeder hat she borrowed
the money. When she got the money
Schroeder handed her a paper to sign.
She says Schroeder told her that 1t
was a power of attorney. Mrs. Schmidt
executed the instrument. Subsequent
ly she says she signed another docu-
ment, the nature of which she claims
not to know.
Mr.. Schroeder declared that the
owners declined to sell the property,
Mrs. Schmidt says. and she asked for
the return of her money. but Schroeder
then told her that he had another bar
gain in Haywood, and that he had
already paid $500 on the property. Mrs.
Schmidt swears that she told Schroe-
der that che was willing to lose the
$500. as she did not now care to buy
any land
1t was mere that Mrs. Schmidt says the
fortune teller was introduced to her. She
swear3 that Schroeder suggested that she
pay a visit to a fortune teller before she
finally decided to give up entirely the
idea of purchasing a farm. He agreed TO
take her to one. Mrs. Schmidt nnally
consented after considerable persuasion
and Schroeder took her to a man named
Lowey living in Hoboken and who owns
several lcts In the haywood tract,
The fortune teller advised Mrs. Schmidt
to sell some of her New York holdings
and invest her money in New Jersey. He
added that IL she followed his advice she
would be A very rich woman some day.
When they left the house of the clair
vovant Mrs. Schmidt says she asked
Schroeder IL he believed what the fortune
teller had said, and he answered, Yes, by
all means
Schroeder and Zalkind then called upon
her almost daily. They told her that they
had sold one of her houses in New Yorh
and had bought the haywood property
Although Mrs. Schmidt several times at
tempted to learn the price at which mel
house had been sold She was never In
formed. They did, however, tell her tina
the consideration for the haywood prop
erty was SfV,VOU, hnu lndt they uuu paiN
5000 on 1t and had given a purchase
money mortgage to a Cornelius w. Ander'
son for $4,000. They then asked for s1,oO
more and Mrs. Schmidt handed 1t to them
Mrs. Schmidt finally moved to haywood
Until October of the present year she be
| lieved hat the title to the haywood prop
erty was in her own name, but she fount
| that the property was In the name Of thu
Schmidt Realty and Construction Com
pany.
IA, 1905, Mrs. Schmidt being told by Zal
kind and Schroeder that 1t would be
more businesslike." The discovery was
also made that the controlling interes
was in the hands of Schroeder, who hat
i26 shares Of the common stock. Mrs
Schmidt has 122 shares. Mrs. Schmidt
as treasurer of the company, never han
died one penny. She says Schroeder trans
ferred his stock to Zalkind.
The affidavit also sets forth that sh'
paid TO Schroeder and Zalkind cash TO
CONSTRUCTION work, but that none hai
been done except the marking OF on
| street"
"This action said Lawyer zalkind, Isl
brought to prove that she has laboret
under the impression that this land II
haywood is her personal property: Il
show how ridiculous this claim Is ] simpi,
nave TO point to the fact that last sprins
advertisements were published stating
that the land was the property OF tn
Schmidt Realty and Construction Com
"As to the charge that Schroeder an,
/ took Mrs. Schmidt to a fortune teller,
that Is equally false with the rest OF he
misstatements.
'T expect on Monday to present sucl
a mass of affidavits that the case will b
knocked out" concluded Lawyer Zalklnd