Newark evening star and Newark advertiser., 1915-10-21
F|SHMAN PREFERS
A TRUNK TO A
BANK, HE SAYS
Witness in Pugh Lawsuit Over
Property Deal Sharply 0uIzzed
About Practices.

of properties made by her in exchange
for apartment house property was
continued today before Vice-Chan-
cellor Stevens. Mrs. Pugh, through
her counsel, George H. Lambert. al
legged that she was induced by Lipitz
to transfer her property at "a Park
hurst street and at 81 and 81 Astor
street, valued at $4,000, free and
clear, for the apartment house at 81
% Murray street, worth $4,000, but
covered with mortgages aggregating
$4,000.
As soon as Mrs. Pugh transferred
her properties to one Boris Goldsteit
said to be nephew OF Lipitz, they
were fnortgaged. Two of these mort
cages were made to Sam F'ishmail, of
1863 Springfield avenue. on the stand
today F'ishman admitted that he is a
brother -in-law Of Lipitz.
Ffshman had a most uncomfortable
time while being cross-examined by
FORMER Judge Lambert and the vice.
chancellor today. On direct examine
ton yesterday he admitted that al
though the two mortgages purported
to be for total OF $4,000 that the
actual loan made was only 1,500.
When did you first meet Gold
stein?" asked Judge Lambert.
just before I made the loan" res
sponded the witness. 81 saw him
about three times and / never knew
him before. Goldstein asked for a
loan of $500 first and then for $1,000.
He finally agreed to take $1,000 and to
give me a mortgage for $500. He
also offered to give me a mortgage for
$1,000 on the Parkhurst street prop
erty. The first mortgage was on the
Astor street house."
No Faith In Banks.
The witness then said that he had
no bank account. Don't believe in
banks" he said.
Where do you keep your money!"
Keep 1t in a trunk In the house;
when I'm not there, my wife has it."
"How much did you have in the
trunk last january" asked the vice.
chancellor.
$4,000" said the witness.
"How much have you in the trunk
today?"
"I've got $1,475," was the reply.
Where did you get that?" asked
the vice chancellor you say you
had $1,000 in your trunk in January
and that you gave Goldstein $780,"
"I did give him $1,000 and was to
give him thousand more when the
houses were painted" answered the
witness.
"where did the $975 come frofh?"
"I don't know. I got it."
Fishman said that he handed the
81 800 to Goldstein in Market street
liquor store. After / gave It to him,
he treated" added the witness.
Mrs. Pugh was on the stand most OF
the day yesterday Though seventy
five years old, she was alert and
bright, and In her answers to Judge
Lambert showed that her memory OF
the transaction and what led up to 1t
was clear and distinct. She said that
when Llpitz first came to her home in
Parkhurst street he urged her to
allow him to collect the rents for her,
and said that he was a Mason and
his wife a member OF the Order of
the Eastern Star.
Mrs. Pugh's husband had been a
member OF the Masonic order and she
is in the Order of the Eastern Star,
and this statement established Lipitz
in her good graces at once. Lipitz
in the course of the conversation said
that he was worth 100000, and this
made him seem more responsible to
Mrs. Pugh.
She employed him to collect the
rents for her properties and he made
himself useful in many ways. Cain
ing her confidence, he told her that
he would be able to exchange her
Parkhurst and Astor street proper
ties for the Murray street apartment
at a great advantage to her. He rep
resented that her gross income from
the apartments would amount to $50
a week. With her consent he then
conducted all negotiations.
Mrs. Pugh further testified that at
the time she made the deeds trans
ferring the property to Goldstein, and
receiving transfers to the Murray
street property from him In turn, she
did not know him at all and did not
know that he figured in the trans
action.
Between the signing Of the con-
tracts and the time for the signing of
the deeds, Mrs. Pugh said that a man
came to her house while Lipitz was
there. He said that he had come
from the Bronx and was in the mar
ket for the Murray street property.
While negotiations we're still pending.
the man said, Lipits had gotten
ahead OF him. He added that he was
ready to purchase the property for
$33,o00 and said that he would give
that sum. Lipitz. however, advised
Mrs. Pugh to hold out for $4,000, and
told the man that no less would be
accepted.
mir. Lipits said that he would not
sell for less" added Mrs. Pugh, "and
that IL the man wanted the property
at that price he could call him up.
After the man left asked him why
he had sent the man away, and he
replied that he wanted to see how the
rents OF the apartment came out
HE never told me that the prop
erty was being sold for $4,000, and
did not know the consideration until
I saw record of the transaction in
the newspapers. Then / went to see
Judge Lambert the next day"
In reply to another question, Mrs.
Pugh said: "I did not rely on any
body in the transaction except Mr..
Lipitz."
She repeated this assertion in
answer to questions put to her on
cross-ex animation by Harry Cross
man, Lipitz's solicitor. Mr.. Grossman
tried to get Mrs Pugh to say that
she had agreed to take up the mort
gage which had been called In. This
was for $4,000. He showed by her
that she had four shares of stock in
the Prudential Insurance Company,
but on redirect Judge Lambert
showed that all that she possessed
would not meet the amount of the
mortgage.
Mr.. Grossman called Abe D. Lipitz
to the stand. He testified that his
interest in the property was only as
agent, and that the total sum
realized by him out of the transaction
was $25.
Sam Fishman, the holder of the two
mortgages on the Parkhurst street
and Astor street properties. was
called to the stand. His evidence WIS
to the effect that he had loaned Boris