Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-07-06
FRAUD CHARGED IN
MEADOW LAND DEAL
Second Mortgage Holders
Start Suit, Alleging Plot
to Eliminate Them.

TRENTON, July 6.-Charges
involving the banking firm of Harvey
Fisk & Sons, officials of the Chase
National Bank, the Columbia Trust
Company and the Guaranty Trust
Company. of New York, are before
the Chancery Court in Trenton.
The allegations are made in an ac-
ton brought to prevent the sale by
foreclosure of land owned by the
Newark Meadows Improvement Com
pany because of the company's fail
ure to pay taxes and interest on it's
mortgages.
The charges are brought by holders
of part of an issue of 100000 second
mortgage debenture bonds. which 1t
is charged will be wiped out If the
foreclosure is allowed, These COM
plainants assert that the mortgage
is being foreclosed under an unlawful,
fraudulent and collusive agreement,
plan or method between the Inter-
City Land Company, the Newark
Meadows Improvement Company and
the Guaranty Trust Company for the
purpose of defrauding the holders OF
the 1000 bonds and for the purpose
of selling the mortgaged premises at
forced sale
1t is alleged that though dummies
of Fisk & Sons and other first mort
gage holders are ostensible owners OF
about S675,000 worth of the second
mortgage bonds, they or their princi-
pals can afford to sacrifice this
amount in view of the reported
value of the lands. This, 1t is said,
will be as much as 40 per cent. IN
the next five years.
Sold for $4,000 an Acre.
Harvey Fisk & Sons, as parties in
control of the Newark Meadows I'M
provement Company, are charged
with transferring to the inter- City
Land Company, a majority of stock
of which they are said to have
owned, "at grossly inadequate con-
sideratfon." seventy-eight acres in
January, 1911, and 104 acres in June of
that year. This land is alleged to
have been worth from $500 to $4,000
an acre, and it is charged that it was
sold at about $4,000 an acre.
Others named whose actions are
complained of. in connection with
transfers of property and the alleged
forcing of the foreclosure proceedings
are Albert Fl. Wiggin, president of
the Chase National Bank: the Column
bia Trust Company, the Guaranty
Trust Company, and five of the seven
directors of the Meadows Improve
ment Company. Two of these are
said to be members of Harvey Fisk
& Sons, two directors of the Guar
anty Trust Company and one presi-
dent of the Chase National Bank and
chairman of the Columbia Knicker-
booker Trust COmpany
Among the holders of the $2,000,0O0
debenture bonds which it is asserted |
will be wiped out are Cornelius Van
derbilt, Richard Croker Walter Frew, |
president of the Corn Exchange Bank; |
Morton F. Plant and H. B. Hollins |
& Co.
Master UphoIds Foreclosure.
The report of M. T. Rosenberg, of |
Jersey City, master in reference, be- |
fore the foreclosure petition brought by |
the Guaranty Trust Company and the |
cross bills of two sets Of second mort |
gage bondllolders were argued, has |
lust been filed here. The master up
holds the right of the foreclosure pro- |
ceedings The protesting second |
mortgage bondholders are advised to |
bring separate actions in equity |
equity against the accused for such /
relief as they may feel entitled to.
Notice of appeal to the Chancery |
Court OF Error and Appeals has been |
served.
In his opinion Mr.. Rosenberg says:
IF the Newark Meadows Improve |
ment Company permitted properties |
to be sold for an Inadequate price as
part of a fraudulent scheme between |
1t and some of the bondholders or of |
its stockholders as organized into the I
Inter City Realty Company, this is a |
matter to be litigated in another pro- |
ceeding. 1t has no place in this |
suit"
Attorneys John T. Hetricl1 and |
Francis J. Byrne, of 165 Broadway, |
New York, represent holders of second |
bond to the extent of $685. |
900. Attorneys Dudley F. Phelps and |
T. M. Dlttenhoefer, of 96 Broadway, |
New York, represent Miss Florence l.. |
Mills of Philadelphia. formerly Of 1414
East Nineteenth street. Brooklyn, |
holder of $4,000 worth of debenture
bonds. In the New Jersey proceed
ings the former clients are repre-
sented by Wilson & SmoclS, of Red
Bank, and the claim of Miss Mills by