1934-1-16 Criminal prosecution Lehrenkrauss -2-

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1934-1-16 Criminal prosecution Lehrenkrauss -2- - JANUARY 16, 1934 have Plaza and Motor Rock-away...
JANUARY 16, 1934 have Plaza and Motor Rock-away In St. their them the the be in lt." $300 on bail on as Sabba- 11 the fan-tan persons during 1831 in a St, for St.. cigar on a heart Riv 76th it by the funeral followed to. well her She Mc-Gowan, held the the mass in two Vila New of of the survived He was city He C. the fu In 40-18 the 124 of 123 who had at To Ask Criminal Prosecution of Lehrenkrauss Referee Will Aet on Formal Request of Palmer 3,000 at Hearing Continued from Page 1 ings had been bought for him by Vom Lehn in the name of the Avenue D Building Construction Corporation, which latter is exclusively owned by Vom Lehn and Vom Lehn relatives. Vom Lehn. in turn, corroborated the transaction and consented to execute to the trus- tees of the bankrupt House of Leh renkrauss a "duplirate deed" to the property in place of an original he said was given years ago. More than 3,000 of the persons who bought some $30,000,000 of Lehrenkrauss mortgages and mortgage certificates and $1,611,000 of Lehrenkrauss Corporation preferred stock tried to crowd Into the courtroom last evening. As lt has a capacity of not more than 300. crowds surged through the corridors for hours. Outbursts Squelched While probably the largest gath ering of its sort Brooklyn has ever known, the control maintained by Referee Stitt made it remarkably orderly. He quickly curbed several outbursts of resentment against the heads of the Lehrenkrauss firm. Palmer, who filed the petition which resulted In adjudication of the House of Lehrenkrauss as bankrupt on Dec. 27, outlined conditions, that he uncovered In a series of Inquiries before Special Commissioner Blck. He also warned all present that their proofs of claim must be filed with Referee Stitt before June 26 or they could not share in the estate. When Palmer stopped speaking a creditor, who described himself as Anse F. Dlstler and said he was 79 years old, shouted: "We've read all about what the House of Lehrenkrauss did In The Eagle. We know that. What we would like to know Is the amount of assets and the liabilities." Told Books Tell Nothing Referee Stitt responded that both Palmer and McDermott had previously answered that query as well as It could be answered at this time. Both had described the books of the bankrupt firm as a medium for concealing, rather than revealing the firm's condition. "In the good days before the crash," said Palmer, "they bought too much property. Thereafter they sold too much paper, sold lt over and over again." McDermott, who had been core-ceiver of the business with Martyn since the bankruptcy petition was filed In November, had said: "We can't give you now a satisfactory picture of the condition of the business because we haven't been able to get one satisfactory to ourselves. It Is the most inter woven, Interlocked and hopelessly muddled affair I've encountered in my 50 years experience as a lawyer." Three Making Money Of the source of activities In which the House of Lehrenkrauss engaged, under separate company or corporate names, McDermott added, only three are currently "making some money." He said these were the private bank, the safe deposit business and the Lehrenkrauss mortgage servicing department. Palmer urged upon "you victims gathered here" the necessity for patience. He said it would take time to gather in assets that rightfully should be in the estate for the benefit of "you victims." He told of litigations already started for possession of properties now in the names of members of the Lehrenkrauss organization and their "dummies." When he mentioned having already recovered 99.000 shares of a copper stock that Julius Lehrenkrauss had taken out of his capital Investment account two weeks before the bankruptcy, the atrdience cheered wildly. Only One Wrinkle' 'That's nothing to cheer about," Palmer resumed when quiet was restored. "Stock worth $100,000 or! $150,000 won't go far toward meeting all of the debts In this case. It's of as much consequence as one wrinkle more or less on an old lady's face." Some one In the audience shout ed a query as to the status of heirs of estates of which Lehrenkrauss firm members were executors. 'You will have to file claims as general creditors," Palmer advised. Such estate funds were dumDed Into the general funds of the business: no attempt was made to segregate and preserve them for the heirs. Likewise, there are In the firm's safe the wills of 370 Individuals, still alive, which name Lehrenkrauss executors. I advise the makers of those wills to draw new wills without delay naming others." Milton Hertz and another lawyer. who failed to Identify himself for the record, filed claims totaling more than $1,102,000 for designa tion oi the trustees who were elected. In approving their elec tion Referee Stitt fixed their bonds t $10,000 each. Some Unsuccessful John T. Dooling, attorney for several persons with claims aggregating $29,000, moved unsuccess fully for the election of James E. Finnegan as a trustee. A similarly unsuccessful nomination of Ferdinand pecora was made by James B. Emerich, who described himself as attorney for two creditors and who first sought a week's adjournment and a mass meeting of creditors In "some public school." Isidore Silberman, an attorney representing creditors with some $200,000 of claims, warned those present that thev would be "so-1 licitcd by lawyers and representa- tives Of lawyers, but paying fees1 now will gain you nothing that you i r.n f jih.. t u- . I can not get directly from the court by filing your proofs of claim with the referee yourselwa." Girl, When down the Navy hit on the something or champagne). descendant skipper Constitution, smashing. The Louise Manhattan traced several skipper . Mary ! Frederick ; ther of the Patricia, Stirling Jr.. revealed champagne be the here since Era. Storms with . . . originally due reach tomorrow (Frenrh), morning, i before Bremen Scheduled she might . . . severe tomorrow, a Vessels todaymissing on their Include ending a Bermuda and Queens The York, meeting Island took, several eviction condemned Tri-Boroush resolution steps necessary David revealed property owners condemned notices to At the to make thus leaving were order A will wait and press the families Quit Madison, Brooklyn four who have Cardinal, University alleged the Cardinal The AMrlc R. Brooklyn. N Y Maurice Brooklvn, f Morris chairman. Arthur T editorial Members they editorial The week when control in which administration and Wisconsin Alumni Queens On The Sanitation, in Committee Sanitation started against the handbills, advertising matter places of announced KILLS That's what Quinine dow yAr'a calendar the bowels. and fever in headache and the entire further attack. Grove's BROMO NOTICE License No. the undersigned a restaurant Alcoholic of Voorhlea New York, Foot of NOTICE distiller's to the under Section Beverage Control located at HfirSl ,.1', SUM to the S'1,01'5"1" holic Beveraee ises located at FOUR STAR 68

Clipped from
  1. The Brooklyn Daily Eagle,
  2. 16 Jan 1934, Tue,
  3. Page 15

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  • 1934-1-16 Criminal prosecution Lehrenkrauss -2-

    LehrenkraussX – 03 Dec 2016

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