The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-23
LOSE MILLIONS
ON A CEMETERY
pinrIawn Investors to Get
only 9l-2 Cents on
Each Share.
HIRED BY 40 PER CENT.
Court Orders Payment After
Legal Fight of }
Years.
CATHEDRAL BOUGHT LOTS
Between S2.OOO.O00 and 49,
600. 900 Stock Sold
Prosecution Barred.

n $50 q few years ago. are to have a
dvidend ~ almost 10 cents share as
result Of an order signed in the Supreme
court yesterday by Justice Giegerich, IN
confirming the report Of PercIval II
Gregory a. referee.
The stockholders have received $3.50 a
share m two previous distributions of the
sonparys cash assets. Under Justice
Gi.gsrichs order tho sha rchodcrs get ais
cents for each Of the l27.s50 shares out
standing and any further payment will de.
pend on whether the company Ii able to
dispose If It's remaining property.
Tho shareholders action. In which the
court order Is entered. was brought In the
name ~ William II. Tyndall a lawyer at
~ Broadway. who alleged in the course
q, his suit that between 100000 and
81 Geo Gao had been paid by the public for
, stock in the company and that the bulk OF
thls money went TO the insiders In tho
cemetery management, who are alleged to
have bought stock for about 50 share
and sold 1t as high as $50.
Abram g. DeGraw, the president and
william ". Locke, Jr.. the secretary OF
the cemetery company. have been accused
with other officers OF using the company's
headquarters and office to sell stock on
their own account. rather than for the
purpose Of disposng OF cemetery lots for
the benefit Of tho shareholders.
Eleven Companies Merged.
Supreme Court Justice William II. Jay
Goa Of Nassau county. who was n member
Of the executive committee OF the com
pany until charges OF serious msman-
sgenent resulted in a finding in the SUI
preme Court in New Norl, county that the
curt was warranted in making an in
r'stisation Of the company's finances. is
the largest individual shareholder. lie got
part Of hi. stock In payment for his
work As attorney some thirteen years ago
anon eleven small cemetery corporations
~ Long Island consolidated stho Pine.
avn Cemetery and had their action APP
proved by supreme Court Justice Smith in
Nassau county.
The Pinelawn promoters first attracted
attention 10 their financial methods when
thel took tract of land near Babylon.
t. l. then heavily mort=aged, and oh.
tanned Idditiousl mortgages on tho prop
'-tv for sj,525,0oo. Then the promoters
offered l2I,s50 purchase money shares to
tho public. the shareholders being on
lifted to receive one-half of the proceeds
~ all the money paid to the company for
cemetery lots.
In order 10 boost this stock the pro-
motors prepared figures to show that while
tho shares had a book value Of only $s3,
the company ought to be able to pay out
f,i>9,l2l In dividends when the property
was all sold because the promoters ex-
rocied 10 get sSa.93S.24O for the property.
The referees report, which came be-
fore Justice Giegerich, showed that about
one-quarter of the property has been sold.
and the total amount received by the COM
pany In about S350.OOO. OF this amount
the company got sl76,sS7 from the trus-
tees Of ST Patrick's Cathedral for 5o|.s?
rr,r,oJ h, an 40, %, III Iag,sIa,, go A.,
ie,o mi. 81 go. .,,,s,o,, =. hrn,,...,
co,,,,,t,s,o,,, - ,n,,oa ~ ,','.., -,
,i5soio sala - Az snras -;
psrls I-,,n.oi,.a, r,urc,, ., yy,,ti,,
brrr rc,,od a. 900 S,rco tho an,nan,,
was oryari,.d a. 100 4, has roa,i,na III,
10 al ~, IT, ~. 10 ,'',, '"''
Referee ,,r.gnr, ronnr,oa ,h,, IA.
.b,,ehnldo-s - o,,,.,na w. 60 49, g.,
,.re., an ,,,o,o,. ho,on.,ns -, 80, ,i,,
m. ,c,,o,or, d;ra,,sr' ,,,,,s,I,,, ,,.,,h ~,
own ,ro,oy .rd .,js ,h,, 1,,, y, 80,
o. ,,Sn so ne, n.hinh A. ~ % 49, 80" 4,
charged !, has nd s,ss "a, nan,.,,a
tissts % 49,
"o,uers OF the l21,s5o shares
r,sh,. "'s "p'nion INC geieree sala that tne
violated Ia. ,no 81 80 a., ,,,''' ,o, 80
no G, ~, ~ po's ~
a. psr,'s Ch,,r,, o.. 49, - $3.50 80 ~,
nv ~. 10, ~ ~, 80 su y,
vhs,har 81 ~ a '',a.I,' 20
thu 81 - -
ac,.asa M IN p ", ,nes, W.
~. cs,,,,o.,. WV p'a'.',n. s','I"eu tna,
win 'ha G,coua, snou,u DC .narssu
ana ~ tu. 'VI we t"o parcels OF isna
nv - d,.'. ~ ia"u wouiu nave SOU
eourss 80 81 y. Wy ''o 'o' !" the USUAL
'u'''''s'
Recovery Not Possible.
On this min, IN. ro,.rs. s,,d ,,,,
while the came,ery oc,,,ar. .,,od -, ,,ta
lation OF tho rights ~ th. sb,rabn,,ar,
,hev can no cb,rsod on,,, ,.,,h n.y., ~,
received because one-bay tho Move, raai
lied on the saIo ~ lots must ha b.id :,
pay for the mairtopanco ~ ,hc con,ator,
In perpetuitv -
~ dllesen by the plaintiN tnat TN
put aside az a go ~ a., ,,a.,,,nnao =,
OF the cems,er,' hss oi-aad, 49, -,
IN the n,yr,en, -, de- aaht. r,s,toa 80,
erich droc,ed ~, ~ %, 20 ~ it'I
rstfo- ,gains, tha ,',',' -, ' ~ 80,
NJ tho cornor,,,nn,. ~, go. 60 ~
ont OF fhs none, Az ~ ,ar,,s,a,,
holders "'o '"o wi
NJ Tvndars S,i, has hs., nord,,,