Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-06-06
MUST RESTORE
HUGE HOLDINGS.
Orderner ]. Delaney Ordered
to Give Back Fisheries Prop
erty by Chancery Court.
QUESTION OF VALUES TO
BE DETERMINED LATER
Amount Involved viii Reach
Several Hundred Thousand
Dollars, 1t Is Claimed.

That Orderner j. Delaney, a wealthy
resident of Moorestown. N. j., must
make restitution for several hundred
thousand dollars worth of property
he is alleged to have wrongfully ac-
CURED in his triple capacity as pres
ident director and manager, and
later as receiver of the Fisheries
Company of New Jersey, a s3,000,oOO
corporation, and must restore the
profits that came to him through
lease of The Menhaden Fisheries
Company, another large corporation
Is the burden of an opinion filed by
Vice Chancellor Howell. Delaney is
alleged to have used the Fisheries
Company of New Jersey for personal
profit. The value of property alone
that he is charged with having di-
verted to himself is set forth as more
than 100000
The suit, which has involved an
enormous amount of litigation, was
originally brought by Marcus Good
body. of Tenafly. and William II,
Goodbody, of Haledon. and about
twoseore other stockholders.
Delaney is alleged to have caused
the property to be listed under two
schedules, A and B, and TO have
manipulated the company's affairs in
such a way that he personally OBJ
tanned all the property listed under
schedule B. valued, according to his
figures, at s437, 500, but which the bill
alleges had an actual value of $780,
600. He is declared to have used 1t
later in competition with the Fish
cries company in other companies IN
which he became interested subse-
quently.
The property consisted of eight
fishing steamers, a fish refining plant
at Lewes, Del. another at Round
Point, Me-: a third at Tiverton L. l.,
and all the capital stock of the Whar-
ton Fisheries Company, Virginia
concern, and the capital stock of the
South Jersey Farms Company, cor
poration owning farms in the south
ern section of the State.
Turns Over Properties.
Under a reorganization agreement,
prompted, it is said, by himself, De-
1aney turned over to another COM
pany all of the properties listed I'M
der schedule A, the bill alleges, con-
sisting of factories at Promised
Land, L. l.; Cape Charles, N. C.;
eleven fishing steamers and the en-
tire capital stock of the Atlantic
Fisheries Corporation, of Virginia.
This company was Heller, Hirsch &
Company, New York brokers, repre-
senting other interests.
The Fisheries Company of New Jer-
sey was incorporated in May, lsOo,
and issued 100000 of preferred and
81 900, 900 of common stock, and also
had 6 per cent. gold bonds outstand-
ing to the amount of s433,000. 1t be-
came .insolvent in 1907. and Garrett
d. w. Vroom. of Trenton, and Della
ney were appointed receivers pursu-
ant to a bill fled in the United States
Circuit Court for the district of New
Jersey. Then a self-constituted COM
mittee of stockholders. bondholders
and creditors composed of j. r. Nc
Allister, E. F. Ferry and Thomas V.
Harmed. arranged for a rehabilitation
of the company. When 1t became in
solvent. 1t had debts, outside of the
bond issue. aggregating $1,200,00O. In
the bill of complaint 1t was declared
that the assets exceeded the total in
debtedness by $1,500,00o.
Late Joseph Wharton President.
The late Joseph Wharton, a Phila-
delphia multi-millionaire, was presi-
dent of the company, and the Han
over National Bank of New York, one
of the creditors, held him responsible
for the claim. Through Delaney. it
was declared, an arrangement was
Brought about whereby Wharton sur
rendered 100000 in 6 per cent. bonds
and 1000 in preferred stock with the
consideration that he be released from
all liability. The receiver sued Heller,
Hirsch & Co, and a settlement
was arranged whereby they were TO
pay over S267, 900 in first mortgage
bonds and 1884 shares of preferred
stock for which the suit was to be
withdrawn and the properties under
schedule A We're to be turned over
TO Heller, Hersch & Co., including a
mortgage held by the Guaranty Trust
Company of New York as security for
the gold bonds The other part of
the companys property Delaney is
alleged to have listed under schedule
3 and used it in his own interest,
according to the complaint.
Under the yice-chaneellor's ruling,
Delaney will have to restore that
property. A master will be named
TO determine Just what its value is,
and the case will probably be re-
Tiewed in the fall term. Robert II.