The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-14
MCMAHON REALTY co.
FIGHTS RECEIVERSHlP
LOCKER Files List Of S131. 900
Assets. Part Of Which
CarmOdy Attacks.

I'll. MonatOn Realty Investing corpo-
ration. through its attorney. Thornton j.
Theall. opposed yesterday before supreme
Court Justice B.jur the application of AZ
torncy- General cArmody for the appoint
ment OF a temporary receiver of the realty
company pending the suit brought by the
Attorncy-G,n"ra 20 revoke its charter Oh
the ground that Il rs doing business in
violation of the law.
Tho defendant coutende1 that IL has
assets OF $4,000, but admitted that II
the receiver is appointed, or anything e!sc
is done to disturb III. company. the assets
y III shrink to practically nothing.
The company consented to have tho
present stay, which prohibits II from doing
business. continued pending the suit. and
said that u number OF friends of the conf
pany had agreed 20 contribute 10000 To
keep the company going in case the re-
ceiver il not appointed.
Deputy Attorney -General McQuaid ar
gied tina. the chief reason for the appli-
cation for I, receiver l. that the company $
books may he seized in case charges are
brought agaius; the Officers 10y stock
holders or creditors. because of the d,sap-
pcarancc OF funds.
An affidavit 10y President Pierre NJ
| Locker. In behalf of the company, said
that the defendants securities. which have
been declared invalid 10y the majority
opinion of the Appellate Division, are not
disslm!.ar from those Issued by many
prosperous real estate corporations, "and
| amount in the aggregate 10 many millions
OF dollars
The company denies the allegation that
| Il has been inSo!vent Tor q year or moro
and declares that many OF the judgments
pending against It have been satisfied
The defendant admits that investors hav,
paid In s6S5,2U0 FOR preferred stock.
President LOCKER submitted a list al
properties W.th alleged Valuations which
he contends makes the coinpauys assets
$J31, 600 at present; The list included Il
number OF parcels In Park place and
Kingston avenue. Brooklyn, but Deputy
| Acknowledgement McQusid pointed out
that foreclosure proceedings arc pending
! against certain OF these properties ano
that the company had disposed of II.
equity IN others.
| The defendant admitted that in add
ton to the >5Sj.2oO OF stock sold TO In
vestors it has sold certificates TO the
| amount of $500. 600, but President Locke,
| said In his AFFIDAVIT that the claims OF tn,
| certificate holders are not To be considered
| because the courts have held that The
| certificates are invalid. The company m
| sls,s that its indebtedness IL only $3.50
against assets ~ more than half a million
Gustav Lansc Jr, an attorney who IL
assisting the Attorney-General in the suit
made affidavit that the papers submitted
| by the defendant fail to show that II has
any cash on hand, or furniture fixtures
and supplies, although its last tnancia
statement showed cash slA.l23 and furni
ture and fixtures worth 1864.
When the sheriff has attempted 10 serv,
| executions on the company for judgments
he has been informed that the desks il
| the company's office were owned by thu
| officers individually, while the Office saf'
did not belong to the company.
| Mr. Lange pointed out that the contro
of the company is vested, IN ffteci
shares of common stock which cost Ia,
present officers and directors only $1,000
Justice Blur reserved decision on th'
| receivership application,