New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-12-03
COURT INDIGNANT
Justice MCaU Denounces
Mortgage Tangie.

Justice Mccall handed down a mernoran-
DUN yesterday on one OF some twenty
five motions that have come before several
justices OF the Supreme Court in the much
involved litigation on the foreclosure of a
second mortgage on the property Nos
337 and sac West 18th street AMI Nos.
71s and 72l Washington street
The Builders Construction Company.
which was incorporated by Charles H.
Stcddard. a lawyer. at No. al Broadway.
built a six-story loft building on the site
three years ago The property was
bought. il is said with an ilconsiderable
outlay OF money and the purchasers have
incumbered IL with so many mortgages
that the judgment creditors have been I'M
able to collect any money.
Justice Mccall said in his memorandum
yesterday:
In disposing OF this motion l would be
remiss IN my duty II / did not voice the
arosses. II such Juggling and trifiing with
the DEGREES and orders OF this court can
be INDUCED in with IMMUNITY and without
bringing down upon those answerable for
the same the heavy hand of the court in
punishment. II is about time some method
were devised to arouse US to sense OF
where we are drifting
The property that figures in the legal
foreclosure proceeding. in each instance
the purchaser refusing 10 take title. The
last buyer was Willis G. Yeamans, who
made the motion denied yesterday by Jus
tice Mccall. which was for the appoint
ment of a referee 10 report on the validity
OF the title. The court at the same time
granted another motion made by Amy ".
Frank and Harry w. Mack. the plaintiffs
In the foreclosure action, for a resale of
the property
The complete record in the case shows
that Eva Kaye was owner OF the property
in question up 10 1903. when she trans
ferred ii 10 Leopold Ehrmann- In 1895
John A Walker. a reputable builder.
learned that he could get the property at
a reasonable figure for the purpose Of put
ting up loft building, and went to see
Charles II. Stoddard. Walker told StOd-
dard that he had found a cheap parcel OF
land and had tenant for loft building
II StOddard could organize a company to
put up the building and swing the financial
end Of H. He told Stoddard he would give
him half interest in the deal.
Stoddard learned that the owner OF the
land asked only $500 in cash and was
willing TO take a mortgage for sl450o on
the balance He also learned that the
ltalian-Swiss Colony. wine merchants. was
the prospective tenant OF the new building
and that they were willing TO put up an
advance of 5000 on a dfteen-year lease II
the terms were sufficiently favorable
on May 25, 1865. Stoddard Incorporated
The Builders Construction Company, In
which he held 24s shares OF a total OF 80
Later he transferred I24 shares To Walker
and took l26 himself A week after the
company was formed the property was
transferred To William Carter. who trans
ferred it the same day TO the Builders
Construction Company. Stoddards com
pany got the $500 advance from the wine
concern and turned it over to Ehrmann
with the s14.5O0 mortgage. In November Of
that year the Builders Construction Com
pany got building loan Of $4,000 from
the Mutual Life Insurance Company SCI 500
Of which was used TO cancel a first mort
gage held on the property by the Excelsior
Savings Bank before the property was
bought The Mutual Life then became
holder Of the first mortgage by its build
ing loan.
The second mortgage Of sl4.5co held by
Ehrmann. had been assigned to the
Guardian Trust Company. Stoddard's con-
Germ satisfied the mortgage with the trust
company out Of the building loan. BY this
time there were many claims against the
construction company by builders and
others. and when they looked up this sec
ond mortgage they supposed il had been
cancelled when 1t was satisfied. as the law
directs. II was not cancelled Instead IL
was assigned TO Henry NJ. Bailey, Stod-
dard's father-in-law.
Bailey never gave any consideration for
the mortgage. the court declared later, but
he assigned it in December. 1896, after the
building had been completed. 10 Amy N
Frank and Harry ". Mack for its face
value.