New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-13
PROBES AFFAIRS OF
A REALTY COMPANY
District Attorney Moved to
Action by Complaints of
Maine Manufacturers.
SPECIFIC SUM is $4,000
It Is Said, However, That 1nves-
tors Have Mortgaged Their
Property for More than
100000.

Property for More than
100000.
The grand jury has taken up the af-
fairs of the Jackson Brothers Realty
Company. of which Edgar r. Jackson Is
president and whose Offices are at NO
3O1 Fifth avenue. District Attorney
Whitman was moved to make an inves-
tigation on the statements OF Wlnheld
Scott Libby. who. with his partner
Harry NJ. Dingley. of Lewiston. Me.
owns a good part of the water power
Of that state. The specific sum said to
be under investigation by the grand jury
is $4,000, but a former employe OF
Edgar r. Jackson, who was one or the
witnesses before the grand jury, said
Libby and Dingley had mortgaged their
property TO the extent Of more than
million dollars, almost ali Of which they
had invested with Jackson Brothers.
He estimated the number Of complaints
against the firm at 300 and the total
amount involved at more than two mill
ion dollars.
The realty company has been under
the scrutiny Of the District Attorney for
several months. Charles G.. Mott. jr..
Frank Moss. Charles Bostwck and Rob-
ort s. Johnstone, the most experienced
men in Mr. Whitman's office, have been
giving their attention to the case. 1t is
alleged that a large number of COM
plants have come in, many OF them
from Lewiston and its neighboring city,
Auburn: others from the factory sections
Of Massachusetts, where machine work
ers bought land at the rate OF 81 down
and s. month and found that even at
that rate it was hard TO keep out Of
debt
The witnesses before the grand jury
yesterday were Andrew ]. Mccormick.
Edgar r Durland. Elmer Sammis. Mary
GrifFth. Judge Robert Seabury, Of Hemp
stead. Long Island; August Makofskle, f
B. Denison and Ruth e. Dace.
Woman Said To Be Dummy.
Miss Dace is said TO have acted the
part OF dummy I'm having real estate
transferred In her name when really II
never left the control Of Jackson Broth
ers. Judge Seabury handled the estate
Of Mary Brush, who before her death
Long Island. Mr. Mccormick was the
auctioneer who sold at public auction
Sl2, 900 worth Of Mayfair Avenue Realty
Company stock, which. 1t Is said. sold for
six-tenths Of cent on the dollar. II Is
alleged that the MAYFAIR stock certificates
were given in exchange for sums invest
ed in real estate. Elmer Sammis con-
Quoted foreclosure proceedings on prop
crtv near Garden city.
The grand jury has not completed its
Investigation. II is said that Jackson Is
no longer in the city. W. Scott Libby
and Harry VI Dingley. the men who
came from Down East to make COM
plalnt against the Jackson Brothers
Realty Company. were apparently much
vexed at the outcome Of their invest
ments.
they allege that they became acquaint-
ed with the Jackson Brothers firm and
had some confidence I'm IL because they
had heard that Arthur w Wellington.
Brackley Shaw. Lyman Gordon and other
well known business men Of Boston, had
invested In Jackson real estate. Mr.
Libby says he bought sixtyfour acres
out Of 262 acres purchased from the
Garden City Estates, subject TO four
mortgages, for $500 an acre.
Subsequently, 1t Is said Jackson Broth
ers offered Mr. Libby a substantial profit
on his Investment, thereby strengthen
ing his confidence to such an extent that
he mortgaged his electric light plant.
water power and manufacturing plant
for 81. 200. 900. ard invested about $1,000
900 with the Jackson Brothers In deals
aggregatlng $40 acres. at prices ranging
from $4,000 to $4,000 an acre.
Since then. It is alleged. Mr.. Libby has
discovered that Jackson Brothers paid
only from $500 to $4,000 an acre for
the land. What the grand jury has to
decide Is whether Jackson Brothers.
when they offered to let Mr.. Libby In
on the deal on equal shares, told him
that they had paid $4,000 or $4,000 an
acre for the land instead of about half
that.
In addition to the above real estate
deals 1t is alleged that Jackson Brothers
sold to Mr.. Libby a second mortgage to
the amount of Sl41.515 at par, and that
a bill in equity has been filed on behalf
OF the Hyde Park Terrace Land Com
pany. OF Boston. to cancel the mortgage
on the ground Of fraud.
II is said that the dealings held with
Jackson Brothers by Libby & Dingley.
well known to their neighbors as con-
manufacturers. inspired great
confidence in the firm of Jackson Broth |
ers throughout the State Of Maine. and
that many persons invested with the
firm. Jackson Brothers, through agents.
conducted business both in Lewiston and
In the nearby city OF Auburn. This busi- |
ness continued uninterrupted in spite OF
n complaint lodged against them with |
the authorities OF Androscoggin County |
by II. T. Waterhouse, of Portland. Me.
only thirty miles away. Mr.. Waterhouse
is now City Clerk. The complaint is now |
outlawed because of the time that has |
elapsed.
MADE HIM MEND HER CLOTHES