New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-05
WILSON'S SENATOR
IN REALTY TANC[E
Continued from fret page.

suade c. O. stone, Berkleys father
stephen O'Brien. Walter q. Coe ana
about fifteen others to join syndicate
to take It'll, to the Brooklyn real es-
tate.
They formed a corporation styled the
New York and Mddlctown Realty
Company. and in all put mp about S>"'-
Ooo. stock amounting 10 about S2o'Voo
WAS issued To IIei D, who became secre-
tary of the corporation II was III"
general expectation that they could sell
the lots i'm six months at a proht OF at
least $4,000
The property was mortSaSed Tor ABOUT
S12J 600 The interest on TINS ana
various other assessments amounted 20
moi loss than $1,000 When year
had passed and they had not been able
;o make "A sale the Mddletown men
paid Herd visit in his o!icc' - NO
lo5 Fifth avenue. and told him they
wanted To. relnquish the property be-
fore paying another years taxes as
scssments and interest.
They wanted their cash back. but
Herd offered them instead stock OF a
gas company. which they understood
was paying per cent dividends. lie
could get this stock, he told them. from
tho treasurer of the company. friend
Of his. When they hesitatcd. he agreed.
the story runs. 10 transfer 10 them rs
a guarantee Of the value of the gas
stock 500 600 I'm bonds of the company
shortly to bc Incorporated TO take over
tho ST George Manor. later the Tan
gier. property in Suffolk County
Herd. Frederick j. Quinby and Sen
ator. then Congressman. Billy Hughes
were associated i'm the promotion of
this Tangier property.
Herd agreed according To the COM
plaint. 10 transfer 100000 of the Tan
gicr bonds. TO he held for him by
Hughes. TO the Middlctown men.
Hughes was To continue as trustee OF
those securities. but To- issue trust Ger
uncatcs 10 the new holders Longworth
saws that ne and his associates closed
tho deal ON January 20. 1910. Among
othcr documents 10 prove his conten-
ton the plaintiff has the following. adj
mittcd bv the Senator I'm his answer
TO be genuine:
January %. 1910,
Hon. william Hughes. Trustee Citi-
zens' Trust Building. Paterson.
New Jersey.
Dear Sir. will you kindly deliver.
as soon as issued. To James Longworth.
Trustee. one hundred thousand dollars
siOO. O00) par value Of the bonds To b"
issued by the corporation acquiring
title 10 wha, is known as the 81. George
Manor property at Smiths Point
Very truly yours.
,Sigued ANDERSON r. HERD"
II hereby accept the above order and
viii deliver the bonds called for therein
as soon as same are ready for issue.
(Signcd) civilian HUGHES.
Trustee"
Within month the gas company
failed il is said. In the meantime the
Tangicr's Manors Corporation had been
formed. The Connecticut men wrote TO
Hughes demanding that he turn over
TO them trust certificates for the
100000 bonds of the Tangier COM
pany. which Herd agreed. it is alleged
should guarantee the value of the gas
stock.
Hughes at first replied that the
bonds had not yet been issued. Later
they made repeated demands upon him
for the certificates. I.ongworth says in
his complaint. but could get no further
satisfaction. Finally in 1911. they put
the matter in the hands Of Mr.. Gililg
and proceeded to bring suit.
Meanwhile, however, Herd had with
drawn from the Tangier's Manors Cor
poration. An agreement" dated April
II, 1910, recites that Herd shall retire
from any connection with the Tangier
company and that Quinby snail pay
him $1,000 In cash and give him the
st. Louis Hotel. in East sd street
Manhattan, in return for Herds Sc
curities. subject. however TO the as
signments heretofore made by the said !
Anderson T. Herd" Quinpy also
agrees in this document to assume full |,
responsibility for a loan OK flhVoo 10
himself and Herd.
These details are all necessary TO an
understanding of the senators answer
In tho suit. He makes first general