Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-24
CHARGE REALTY
EXCHANGE WAS
MADE BY FRAUD
Couple Sued by Firm to Enforce
Contract Claim Value Was
Misrepresented.

In suit tried before Yice-Chanoel-
lor Emery yesterday afternoon IT was
charged that the representatives of
real estate company had induced the
making of a contract for the purchase
of property through misrepresenta-
ton. The suit was that of the Empire
Construction Company against Henry
y. Downs and Marion c. Godoy
Downs to enforce the specific per
Torrance of contract.
The complainant company is the
owner of an apartment house at the
northwest corner of Washington and
Essex streets, East Orange. On July
g last year, the two defendants,
Downs and his wife. signed a con-
tract agreeing 10 purchase The prop
erty for $4,000, part of which was
to remain on mortgage. They paid
the company 50 500 ON the signing of
the contract. Part of the eonsidera-
ton was TO be the transfer by Mr..
and Mrs. Downs of q certain farm
and buildings in Ramsey, Bergen
county, which was to be traded in at
a valuation of 100000.
When the time came for the trans
fer Mr. and Mrs. Downs refused to
that the value of II had been mis-
represented to them. The company
thereupon brought the suit being rep
resented nv Egbert J. Tamblyn and
Ralph F.. Lulm.
DeIuded Into Signing Contract.
Through their attorneys, Robert M
Boyd, jr., and Edward NJ. Cole. the
defendants set up that they, being
inexperienced IN real estate affairs,
were deluded into signing the con-
tract. That the representatives Of the
construction company represented to
them that the apartment house in the
suit was the only one in East Orange,
West Orange and South Orange and
that ii would have no .competltion in
bidding FOR tenants; that there was
a great demand for apartments and
could be filled with tenants at high
rents from the time of its compile
ton: that they falsely represented the
cost Of construction TO be s19aaa0. and
that the land on which ii was built
cost sos, O0o: that instead of this the
cost Of the huilding was only $780,
ard the land but s1f .n00.
The defendants further charge that
as an evidence OF the supposed value
of the property the agents of the
construction company pointed out
that n loan had cen obtained from a
trust company for $4,000, and falsely
stated that trust companies were not
permitted by the law of the estate
ia lend more than one-half of the
value of real property That while
this statement of the law was untrue
the trust company making the loan
lad actually been secured by mort
gage on 176 acres of other property.
Under the circumstances they de-
clared the agreement to he hard and
rnconscionablo and that IT should
not be enforced in equity. They also
ask that the S. 500 paid by them to
Sc cure the contract of sale be or
dered returned TO them.
After ]. +. Kelly. secretary of the
construction company, testified to
themalSing of the contract. Carl F.
Steiger, real estate broker was
called to the stand. He testified that
he.as a member of the former firm of
Steiger q, Taylor, had, with Louis
Schlesinger a. Co. negotiated the sale
of the property.
Brokers Cut Commission.
1t developed in the course of his eX-
animation that although the regular
commission for making such a sale
would amount to SO, $50, the brokers
had agreed to accept $500. Mr.. Col
lie StroVc to tnd out through MN
why this reduction in the commission
had been made
ooh" replied Mr.. Steiger, ION these
exchanges we get so used to having
our commissions cut that we think
nothing about it,"
Charles j. Allen, secretary of the
Tenement House Commission. was
called and testified that Frederick
r Hasselman. the architect of the
apartment house. had filed plans for
the structure in his office. The plans
were produced and showed that the
architect had sworn that the build
ing would cost $65, 900.
John G. Scott, superintendent OF
buildings for the city of East Or
ange, testified that the plans filed
in his office called for building to
cost $65 900. He also testified that he
afterward inspected the property and
found that this estimate was right,
AS the fees to ne paid to the city are
governor by the cost of the building
this became a part of his duty.
AT this point Chancellor
Emery declared an adjournment. AS
today will be motion day in the court