Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-23
OLD TELEPHONE
BUILDING IS PUT IN
RECEIVERS HANDS
Foreclosure Proceedings Are
Brought Against Property by
4. Whitehead & HOag Co.

The Telephone building, at 1880
Market street, today went into the
hands of q receiver. Application for
the receiver was made before Vice
Chancellor Stevens by Henry II. Daw-
son. counsel for Whitehead & Hoag'
novelty manufacturers on Washing
tf,ri street, The manufacturers hold
second mortgage of $4,000 on the
property and have instituted foreclo-
sure proceedings
interest on the Whitehead & Hoag
mortgage is now eight months IN ar
rears. The proceedings are brougnt
against the Chatham Heai Es1 gs,'e
(,onnpany. owners of the building. Inc
frst mortgage is $500, 900, held by the
Prudential Insurance Company OF
America. upon which interest Is over
due nine months
a third mortgage on the valuable
Mot is held by Fred II. Smith, jr.
Taxes amounting to nearly $4,000 are
also due the city on Newark.
The Telephone building was pur-
chased by Charles A. Morel from
Robert shoemaker IN 1911 with two
mortgages. MoreI transferred the
property to the Chatham Real Estate
Company while he retained the third
mortgage of 100000
The Century Realty Company APP
nears as complainant in the forecio-
sure suit, having assigned the mort
gage to the Whitehead 81 Hoag Com
pany. The present tenants or the
Telephone building are the newly or
Eanized Chamber of Commerce ana
the Holland Hotel Company.
The Holland Hotel Company occu-
pies the ground floor, the first floor
in the rear of the building fronting
on Nutria street and the cellar, all
of which it leases for $4,000 annual
". 1t is not known what the Cham
her of Commerce pays for its lease OF
the top floor. The building Is six
stories in height with frontage OF
forty-nine feet on Market street. IL
was built by the then New York and
New Jersey Telephone Company Tor
it's own use.
IT was rumored among real estate
men that there was a plan on loot
TO take title to the building through
Morel's creditors. It is said that the
scheme of taking over the building
was headed by Raymond h. smith,
then secretary and treasurer or the
Roseville Trust Company. The plan
failed when Smith disappeared from
the city and the wrecked trust COM
many was placed in the hands OF the
State examiners
The hearing today before Vice
Chancellor Stevens was the return
of a rule to show cause why re-
ceiver should not be appointed. No
one appeared for the owners OF the
telephone building.
The Fidelity Trust Company, of
this city, was appointed receiver upon
producing a bond of $4,000.
While the order for a receiver for
the Telephone building was being
signed by Vice-Chancellor Stevens
another application for an order to
show cause why a receiver should not
be appointed to take over the prop
erty of Charles A. Morel, former
owner of the old Telephone building
was being made before Vlce-Chan-
cellor Howell in the latter's Chancery
chambers. The application was made
bv James Willis Pierson, who was
represented by William r. Hampson.
lin addition, Pierson asked that the
court set aside the transfer of forty
two tracts of land in this county by
MoreI to his sister, Miss Laura Morel.
According to Attorney Hampson, his
client secured judgment against
Mprel in the Supreme Court on
August 25 last The petitioner claims
that Morel owed him S2,350.34, and
that two days before the judgment
was awarded Morel turned over all
his property to his sister for the con-
sideration of 81.
sThe petition states that the con-
veyance was made merely to pre-
vent payment on the judgment Sc
cured and to defraud Pierson. 1t Is
claimed that Miss Morel has no visi-
Bile means of support and is depend
ent upon her brother for support. 1t
is alleged that notwithstanding the
transfer, Morel still receives the rents
and profits from the property.
The property is also said to be
heavily mortgaged, while the taxes
are also alleged to be in arrears. In
applying for a receiver Pierson also
asks that Morel and his sister be en-
Juined from receiving any rents until
the order is removed.