The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-25

company are turned ever 10 the assignee,
Edwin o. Chase.
Those books which he considers OF the
greatest Importance In tracing the as
sets are not In evidence 80 far as he has
been informed and entries which appear
upon the few turned over TO him show
discrepancies between what was repre-
sented to the creditors at their first
mtttng and the actual condition OF af-
fairs APPARENTLY disclosed In a. his first
Inspection OF the records OF the c0mpany.
For instance. there appears to have been
q payment OF x7.6o0 by the Home Realty
company to the Central Trust company
under d,te of June 20. 1907; transfer of
property valued at SPAS 90 by the Home
Realty company to the Rhode Island
Agency just before the announcement OF
Insolvency. and the payment by the Home
Realty company OF ss40.70. by way OF
credit to the Commercial corporation
under date OF July 8. 1907. for work done
on Everett A. Dunham's house.
Strangely enough the cash books OF the
Home Realty company run from Dec. /.
1904. only. while the journal is from July
!. 1902. The ledger is from Dec /. 1906.
but there Is another and special ledger
bearing the date Of 1906 which has to do
with the accounts only OF persons who
have bought lots or made contracts for
houses.
There Is a record of the $4,000 bonds
" lie fiOIlt hearty company ndNlnk Dceu
charged TO profit. and loss" but most
Significant OF all Is private memoir
andum OF the Home Realty company's
own valuation OF the Home Crest and
Warwick properties Home Crest is listed
At $s5.4l0 and Lincoln Park. Jefferson
Park and Oakhurst at $22.536. At the cred
itors' meeting the former-named tract.
mortgaged at $35, 900. was represented as
having an equity OF $4,000; the latter
group. mortgaged at $4,000. was claimed
to have aggregated equities Of $4,000.
RENTS ASSIGNED TO COL. GOFF
There is also an assignment from the
Home Realty company by Charles G..
Smith. treasurer. dated June Is. 1907.
TO Isaac l.. Con-, OF all the rents then
due the company and the use and occu-
pancy OF any and all Its houses and
lands at Jackson. N. H., the consideration
being 81. The books do not appear to
show the receipt even of this 81. 1t is
at jackson and on Thorn Mountain Park
that Col. Goff has his summer home.
"A discovery that is regarded as OF the
utmost importance is that payments made
by some OF those who had contracts for
homes have resulted in the giving of re-
ceipts for interest and principal paid on
account Of the Home Realty contracts,
these receipts being signed with the
names OF from two to five corporations
made by one and the same person, for
several corporations. Col. p. II. Quinn
Will. he Gays, endeavor TO ascertain IL
Zach was authorized to receipt on account
OF these contracts with the Home Realty
company.
Col. p. H. Quinn, counsel for Burrows
b Kenyon. and for Edwin o. Chase, as
signee OF the Home Realty company. met
with Mr. Chase yesterday afternoon for
the purpose Of looking over such books
OF the insolvent company as had been
turned over to the assignee. At the con-
m "a rxrlf4 o<,fa txxn<,
hours. Col. Quinn said:
WHAT COL. QUINN FOUND.
What first surprised us was that so
few books were turned over to the as
signee. who was told, so he says, that he
had been given all there were.
I'm tho list OF assets and liabilities
which was read to the creditors of the
Home Realty company at their first meet
inS. there appears an item which declares
that the Central Trust company Is a
creditor Of the Home Realty company to
the extent of but $192.s0 The books OF the
Home Realty company show, as late as
June 20. 1907. unsecured notes In favor OF
the Central Trust company aggregating
Sl7,6h IL the statement which was made
70 the creditors at their first meeting was
correct, namely. that the Home Realty
company II indebted to the Central Trust
company In the sum OF $192 80. then there
must have been paid to the Central Trust
company since June 20, 1907. and at the
time the company was insolvent $685.. 20.
This is on the presumption that the item
on the book Is properly entered.
Under date Of July 5, 1907 we found
the Commercial corporation appearing as
q creditor OF the Home Realty company
10 the extent of $940 70. but following out
this transaction we found an entry to the
effect that this was paid In the form
OF work done by the Home Realty COM
rnff nn hQv ,fc
IN FRAUD OF CREDITORS?
''On the journal we found this entry.
Valley street property turned over to
Rhode Island Agency. In payment OF bal
ance due on note; note received from
Rhode Island Agency. s2443.5o Mr.. Chase
told me that a transfer OF this particular
security he recalls was recorded at the
city hall a few days before the creditors
meeting was called. II this is so. then 1t
looks as IL there has been an attempt to
convey property to defraud the creditors.
"The books also show that the Isaac l..
Con company has beeH-eharging the
Home Realty company $72 per week. pre-
sumably for Office rent and for the use
OF a portion of the safe.
I'VE found a typewriter paper which
was headed: Property of the Home Real
~ company on this paper the realty
OF the company IL listed as follows: Homo
Crest ss5.4lo: Lincoln Park, Jefferson
PARK ana OaknuTst, $Zl.Ooo At tnt Ctcui-
tors meeting these properties were read
of to us as follows: Home Crest mort
gage. 5000: equity. $4,000 Lincoln Park.
Jefferson Park and Oakhurst. $4,000;
equity. $4,000 consider the private men,
orandum a fair valuation OF the plats.
ION the Journal was found an interest
ing item concerning 10000 worth OF the
bonds Of the Home Realty company. We
found that these had been charged to
'proflt and loss We looked over the cash
book 10 discover II there had been any
entry which would correspond with the
first mentioned one. There was none.
The general Interpretation lawyers give
20 such entries Ia that property which Is
charged 10 profit and loss is to be consid-
cred as NIL.
RENTS TO COL. GOFF.
I'VE found also an assignment made by
the Home Realty company by It's treas
urer. Charles q. Smith. under date OF
June rs. 1907. to Isaac L. Con. his execu-
tors and assigns. OF all the rents then due
the Home Realty company for the use