The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-04
]. E. ENOLOSES SUIT
AGAINST MRS. SAGE
Sought to Recover Bonds
Pledged With Her Hus-
band for $4,000 Loan.
THREE PARTIES IN ACTION
Securities Put Up by Decker,
Howell & Co. Will BE Sold
to Pay Claims.

a financial transaction with the late
Russell Sage eighteen years ago was in
volved in a decision handed down yester-
day by Supreme Court Justice Giegerich
In suit brought by John r. Emo against
Mrs. Margaret Olivia Sage TO recover
securities pledged with Mr.. Sage for loans
In 1896.
Mr.. En-, is an uncle OF clifford Pinchot
and son Of Amos Il. Emo, owner Of the
old Fifth Avenue Hotel. He was at one
time president of the Second National
Bank and was indicted for misappropriat-
ing the banks funds. He was an exile
the indictment and only returned after
his share of his fathers estate had been
largely used up In paying hts debts
The facts of the case stated In the
opinion OF the court showed that Mr..
Sage made two loans. one of $4,000
to the brokerage firm OF Decker. Howell
& Co and one OF $4,000 TO Joseph =.
Decker individually. The notes were re-
newed and became the property of Mrs.
Sage upon her husbands death.
Tho court said that. although the bro
keragc firm had given Mr.. Sage securities
owned by its customers as coalateral
for the loan, there was no question OF
the right of Mrs. Sage to as much OF the
securities as We're required 10 pay the
loan with interest. since they were re-
,ei>ei in good faith.
Bonds Part Of Collateral.
The collateral included $4,000 Gal
weston. Houston and Henderson bonds.
$4,000 South Yuba Water Company
bonds and IS 900 city OF Houston bonds.
Isp 81 fr,.l h.. Houston ana
Henderson bonds. while Warner Van Nor
den claimed the $4,000 South fuba Wa
ter Company bonds. The court said that
Mr. Van Nordeu was undoubtedly the
owner OF these bonds. because he dcpos-
tied them with Decker. Howell 4 Co. 10
get loan vi $4,000 from Mr.. sage.
The $4,000 city of Houston bonds were
claimed by the estate of Henry o. Seixas.
who died recently. while the assignee of
Decker, Howell & Co. which failed IN
1897. insisted that all the bonds held by
Mrs. Sage must be sold and the surplus
turned over to him for the beneht OF
the creditors The court rejected the
assgnees claim.
Justice Giegerich said that the Gall
weston. Houston and henderson bohds
were the exclusive property OF William NJ
FTeiss. who had simply left them with
| Decker. Howell & Co. for safekeepirg
Soon after the brokers assigned Mr.. Fleiss
| discovered that his bonds had beer
| pledged with Mr.. Sage and he threat
ened criminal proceedings unless they
were returned 10 him.
FIeiss Assigned Bonds.
The members of the firm appealed 10
! their counsel. William Nelson Cromwell
/ and 10 avert the prosecution Mrs Emma
Williams. wife OF one OF the partners,
gave "A mortgage on her house for $4,000
and Mr.. Decker made a note for sl2 900
! Mr.. Cromwell then paid Mr.. Fleiss W.
s25, and the latter assigned the bonds
| 10 a clerk in Mr.. Cromwelrs ONCE.
The brokers were heavily indebted to
Emo at the time they failed. but In spite
, OF IL they appealed to him for assistance
} and he indorsed the note made by Decker
! with the result that Mr.. Cromwell who
| had charge OF his financial affairs. cred
| tied himself with $4,000 oil Enos's account
! for the money paid to Mr.. Fleiss, and
| Emo finally got the assignment OF the
! bonds made by Mr. Fleiss.
some OF the claimants to the securities
| contended that the assignment OF Mr..
| Fleiss's interest In the bonds was incl
dent to compounding a felony and that
! since Emo took the bonds with such
| knowledge he had no standing In court
Justice Giegerich said he believed the
assignment OF the bonds by Mr.. Fleiss
must be- held to have been an Illegal
! agreement, inasmuch az part OF the con-
sideration for the payment to him was
| the implied understanding that he would
abstain from the prosecution OF Grim
inal charge"
The court says however, that Emo got
| legal title to the bonds and the law
1 viii leave the title where II finds n.
| The court directs that the securities
be sold and that after the loan by Mrs.
Sage has been paid of the surplus will
| be divided among the three claimants in
proportion to their claims.