The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-07-13
CHARGE Of BIG FRAUDS
IN LONG ISLAND REALTY
Millions Involved in Cases Now
Before the Grand
Jury.
JACKSON BROS. ACCUSED
Nelson Dingley's Son Figures in
One Of the Complaining
Firms.

iue Jury II IlScstikdtilk ecIIce
Of transactions in Long Island real es-
tate put through by the jackson Bros |
Realty Company. formerly Of the Times
Building and now of 5O7 Fifth avenue.
and Edgar r. jackson. the head Of the
incorporated realty firm.
The investigation was taken up on a
complaint made to the District Attorney
by Winfield Scott Libby Of Libby 4 Ding
Icy Of Lewiston. Me-. heavy owners OF
water power and public utilities as we'll
as large mills in the State OF Maine. The
total amount which figures in the story
told by Mr.. Libby is about 81 .OOO. 900.
The specific charges under investiga-
tion by the Grand Jury on Mr.. Libby's
complaint have to do with deals involv-
ing about sii0,OOO. Mr.. Libby's partner.
Harry NJ. Dingley. is a son Of the late
Congressman Nelson Dingley. Mr.. Libby
il one Of those who have been witnesses
before the Grand Jury. He.is at the Hotel
Manhattan. With him in New York
is his attorney. Serene Thayer Kimball
of Rockland county. Maine.
Neither District Attorney Whitman
nor Assistant District Attorney Moss is
willing yet to make public any Of the
revelations Of the invest igat ion. and
both Mr. Libby and his attorney are
equally reticent From an outside source
THE SrN is informed that the Libby
transactions have to do with property
bought by the jackson brothers from the
Garden City Estates in 1905 According
to this Information. the plot bought by
the jackson brothers comprised 262 acres
Of land at $1,000 an acre. Mr.. Libby is al
legged TO have become interested in the pro-
positions Of the jackson brothers through
investments made by Arthur W. Wei
lington Of the United States Leather
Company at 2Oi Essex street Boston;
BrackIey Shaw. Lyman Gordon and other
Boston men.
According to this information Mr..
Libby bought sixty-four acres of the
Garden City property for $500 an acre
subject to four mortgages. the first for
$40. $50. the second for s2i $50. the third
for $4,000 and fourth for $4,000.
After this deal jackson brothers offered
Libby a substantial profit OH the invest
ment and so gained his confidence the!
he raised 81 200, ,OOO and invested nearly
a million of il with the Jackson brothers
in nine deals.
These transactions involved so acres
on Long Island al prices ranging from
81, 600 TO $4,000 an acre The Jackson
/ brothers are said to have bought this
land for from 81, 500 TO 81 900 All acre
/, is also asserted that the Libby firm can
realize practically nothing on its invest
ments because. as the information goes,
the property is heavily mort gagged. These
sales were made in 1909.
II is charged that the Jacksons repre-
sented to Libby that the land cost them
the amount an acre they had charged
him for il and that he was partner with
Them on an equal basis. In addition
TO this it is alleged that they sold Libby a
second mort gage to the amount Of Sl4l SIS
at par. and that bill Of equity on behalf
of the Hyde Park Terrace Land Company
of Boston has been filed to cancel this
mort gage on the ground OF fraud.
Another case which has been brought
to the attention of the Grand Jury ia that
OF Miss Mary Griffith Of Akron. Ohio,
who is alleged to have sent Edgar X.
jackson drafts for s. 600 for a share in
one of his syndicates. In tho case of this
syndicate. it is alleged. Jackson repre-
sented that he had paid 5000 an acre
for plot Of foty-three acres. paying in
cash slO3 600 for the equity. Information
obtained later by Miss Griffith is TO the
effect that jackson actually paid only
81. 400 an acre for the property and that he
had only paid in $SO. 600 instead of SlO3. 900
F.. B. Denison. real estate man Of 2Ot
a T. -
Jacksons in Ohio and who was one of the
witnesses before the Grand Jury SAID
yesterday that he had been looking into
the Jackson brothers transactions for q
year or more.
Mr.. Denison has tabulated list OF
about 800 persons to whom. he says
Edgar r. Jackson or his concern has sole
real estate in the last few years. and HI
believes, he says, that the JacksOns have
| cleaned up at least S2. .5OO.O
= They got their first start when in tn,
fall OF 1907. according TO MIR. Denison
Edgar Il. Jackson met j. Edward Swan
strom Of Brooklyn. who gave the jackson
!. brothers an option on some land pur
I chased from the Stewart estate al Mineol,
! and Garden City and, Mr.. Denison. Gays
, took interest enough in the young men tt
assist them with references. as result oi
Of which +. o, Woodruff interested Bos
ton men.
According to MIR, Denison, the syndi
eating Of property, as outlined alread,
in case or two, was the usual methOt
employed by the Jacksons. In some O
the cases which MIR. Denison has in readi
ness to call to the attention Of the Dis
trict Attorney there is series of trans
ters OF the property among various per
sons alleged to have been connected Will
Jacks son and resultant series Of mort
cages. Many of these mortgages. Mr.
p Denison says. were sold by the jackson
q concern, although, according to MIR, Deni
!, son. their value in many cases Ia at leas
problematical.
Auburn Me. figures prominently il
the list of the buyers into the jackson
y syndicates MIR DenisOn alleges that hi
/ figures show that in this town of isW,
inhabitants Horace &, Day and J. War,
Renwick collected for the jackson firr
33i7 .@O cash on transactions representin
q SS3a,5iO the deals covering some 80 acre
p and leaving tho acreage subject To S%0i. II
A in mort gagt~
. Mr.. Denison says he himself sOld S78a. m
Of real estate for the Jscksons in Obi
i IN six months in 1910, Other purchaser
q are scattered from Portland. Me. tn Mes
y leo Mo, with New England menti lone
4 most often IN IN" list.
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