Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-10-29
SUES THE FIDELITY
/. TRUST FOR $4,000
Action Brought Against Conn
pany as Trustee of Philip
N. Jackson Estate.
MONEY IS ALLEGED TO BE
PART OF DEFUNCT FIRM
Receiver Appeals to Vice-chan-
celIor for Permission TO
Bring Suit.

A suit TO recover $4,000 from the
Fidelity Trust Company as trustee
sof the late Philip y. Jackson's es-
tate will be instituted by Leo Stein,
Receiver for the Peoples Realty In
svestment and Finance Company IL
Is claimed that this amount was de-
posted in the personal account OF
the late real estate operator when
IT rightfully belonged to the treasury
OF the defunct realty and finance
z company.
The receiver appeared before Vice
Chancellor stevens in Chancery
Court yesterday and applied for per-
mission to bring the suit against
the Fidelity Trust Company. There
was no one present to oppose the
application and 1t was granted. Pa
pers are now being prepared in the
suit by Receiver STEIN.
Receiver Files Report.
The application for permission TO
bring suit was made by Mr. stein
on a statement of facts contained IN
his second report as receiver Of the
Peoples Realty and Finance Com
pany. This second report was FLED
with the court yesterday and con-
tains details o. the work OF Mr..
Stein since he was appointed re-
ceiyer by the Court of Chnncery in
July. 1912.
i According to the receivers report,
= Philip n. Jackson was one OF the
incorporators OF the now insolvent
Hconcern. which was formed in Feb
@ruary, 1899, with a capital stock of
$50 900, 600. The purpose of the cor
s poration was to conduct a general
real estate and investment business.
The stock subscribed to at that time
brought $4,000 in the company's
4 treasury.
The total amount Of shares issued
was Loss. representing an invest
@ment of s105,6O0. One of the investors
was Charles Holzhauer, a druggist,
: at Market and Broad streets. who
bought $4,000 worth of stock. At
present the 1.056 shares of stock are
divided as follows: Fidelity Trust
4 Company, as trustee of the Philip N.
3 Jackson estate, SS4 shares; Charles
Holzhauer. 100 shares and the re-
naming seventy-two shares are held
in small numbers by various stock |
holders
Held No Property.
The report fled by Receiver Stein |
- news that he made an investigation |
OF the real estate records of Essex |
Z county and found that the Peoples .
Realty and Investment Company /
never acquired title to any property /
+ In this county nor even held a mort
gage on any tract within the county.
/ II is not known whether the concern
held any property outside of the
Axcounty
q The books of the insolvent COM
: pany were turned over TO the re-
Z ceiver by the Fidelity Trust Com
I pany. These books show that the
COMPANY had bank account of s45.
900, which was $50. 700 short OF the |
atal amount of stock subscribed to. |
IL the time Mr.. Stein became re-
Z reiver all of the funds Of the concern |
5had been paid out with the exception |
seof S775. which was turned over to
the receiver.
s According TO the receivers report,
z the bank account of the Peoples
sRealty and Finance Company was
represented in eight checks as fol-
flows: One check for 5000 payable
10 Mr.. Jackson, and deposited to his
personal account: one check for 81 900
banded in the same manner: two
checks for s5.125 paid to Warren N
Trusdell for stock in another con-
scern; two checks for $4,000 paid to
s1glius s. Rippel for the purchase OF
fifty shares Of Celluloid stock: $1,000
y CHECK representing a loan to the
ashore Electric Company.
Bond Issue for Debt
q The Shore Electric Company was
2 bsorbed later by the Shore Lighting
8 COMPANY which assumed the debt
educ 10 Mr. Jackson. The lighting
scoupany then issued bonds to the
amount OF the debt, and these bonds
were turned over to the jackson es-
tate The eighth check is for 3d.
inade payable to W. f. Jackson. but
tbe receiver has not yet been able to
trace the transaction IN which this
.snm passed between the two men
4These checks bring the total distribu-
ton of the company's funds up to
s45.1 25. The remaining s775 in cash
was turned over TO the receiver by
1.-The National Newark Banking Com
pany.
Mr. Stein notified all stockholders
Of the PEOPLES Realty and Finance
aromnany that he proposed to sue the
Fidelity Trust Company to recover
the s4l.0oo he claims IS due the con-
5 Germ from he Jackson estate. The
STOCKHOLDERS were unanimous in In
darsin~ the plan TO bring such a suit.
( n he is "w7rded the s45 900 the re-
sca'ver VIII then have sufficient funds
este p1V or Il stockholders. There are