John Steneck & Sons (Hoboken, NJ)

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Hoboken to Petition to ResumeBusiness

Declaring that the closing of the Steneck Trust Company in Moboken had been "neither necessary nor advisable." Marshall Van Winkle, Jersey City lawyer, today was preparing to apply to Chancery Court for an injunction to restrain the State Banking Commissioner from keeping the bank closed. Mr. Van Winkle was retained yesterday by Henry Steneck, president of the closed bank. and the board of directors to institute Chancery Court proceedings. firmly believe," said Mr. Van Winkle statement, "that the bank will be re-opened as soon as the necessary legal actions can heard. Hoboken city officials yesterday made to meet sal aries of city employes checks on Trust Company New Jerwith tax notes to voted by Commission create fund current account. The city had on deposit bank. Meanwhile, President Steneck yesterday reiterated his assertion the Steneck Trust Company's were caused entirely the in the townof North Bergen. He said the state banking department had arbitrarily wiped surplus and by the simple expedient discount per of of the North Bergen securities held bank. and addition about $35,000 personal loans.

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HOBOKEN BANK NOW CARTERET MAN TRIED UNIT OF OTHER BANK IN CRIMINAL COURT ON SERIOUS CHARGE AFTER OFFICIALS MEET

Bank and Trust Company of boken today the Trust Company New Jersey with assets more than General William Heppen heimer president the Trust Company of New Jersey mace the following meeting last night of directors his bank the Hudson Trust Comand Bank pany of Hudson County Bankers formed after the closing the Steneck Trust Company Hoboken June one the larger institutions take over the business the Second Bank and Trust The latter bank's board directors proval and signed the Company New Jersey against any from by the Second Bank and The Second Bank and Trust is one of oldest banking June 1931 its assets totaled and deposits The Second was furnished with $750,000 cash the Trust Company Jersey The merger was made at the request of the directors the Second Bank, feared that bank would fail not absorbed by stronger bank Stockholders of the Hoboken bank will lose their investDirectors the Second Bank posted $200,000 fund indemnify the Jersey City bank against possible shrinkage the Hoboken bank's collateral for There was no heavy run on the bank by depositors when it opened this morning authough at times there was line varied between 75 and 100 during the morning

Frank Sico of Carteret went on trial this morning before Judge Adrian Lyon Criminal Court on charges of carnal abuse. The witness is Mary 13 years old of Somerset street Appearing for Sico Public Utilities Thomas Hanson of Perth Amboy Attorney James S. Wight represents the state was given by the complaining witness this morning relative her meeting Sico in October of year being attacked. The jury is composed entireof Detective Dennis J. Walsh told of locating birth certificate of the Gyug girl showing her to have been 13 years old at the time of the alleged attack Dr. M. Feher gave medical

Stephen Kostinosz, John Nicholas Byer Samuel Roszinsky and Joseph Galosky, who told of Sico's actions on the day of the attack Sico took the stand shortly court adjourned for recess and denied that he had attacked the girl He said that at the time of the alleged attack he about town trying to borrow some from friends. He told and Steve Gyug brothers the ness, attacking him January 10 when received beating and was thrown through a plate glass

An English aviator has built model airplane automatic controls that flown successfully with motor of eighth horsepower.

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STENECK REPORT EXPECTED TODAY

Bank Commissioner May Be Apprised of Trust Co. Status. conference of State Banking Department officials was scheduled for today the closed Steneck Trust reported that Theodore B. examiner the bank prepared preliminary the bank's condition Deputy Bank Commissioner Hayes Markley Judge Walter Hetfield. counsel for the Banking Department, attend conference, along number bank Bank Commissioner Frank H. Smith out of the state The Hoboken City Commission held its regular today, there reports that the city would order further steps efforts more than city money tied the closed bank.

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GEO. STENECK ARRAIGNED ON BANK CHARGES

Official of Closed Hoboken Bank Pleads Not Guilty $25,000 Bail Furnished.

Reprinted From Final Edition Yesterday) George Steneck, vice-president the closed Steneck Trust Co., Hoboken surrendered this afternoon at the Court House released by Judge Daniel O'Regan in $25,000 two charging violation the state banking laws. He pleaded not One charges he obtained loan of from the bank Dec. without approval the board The other charges that, an officer the trust company, his account in it by $85, Dec. furnished by the widow his Mrs. Nicholas Steneck, posted her Weehawken home as security Samuel Stern appeared as counsel for by Court Clerk William Ward. handed up Friday and sealed, opened today by Drewen, for arraignment. handed up the last day possible. The statute limitations have outlawed case after that. The only comment Steneck would make can say that there is criminality good faith part of any kind, nature or deagainst George Steneck are the arising out the closing the sioner Smith last June 27. Henry brother of George, president The City Commission of making formal demand Smith, Henry bank for turn of almost city deposited day before the alleged by the officers letting money knew The depositors $10,000,000 deposits. Mortgage Title Guarantee Co closed. holders for reorganization of the which submitted to Banking Commissioner Smith three weeks

The commissioner turned back the but the door left open for further and the comagreed mittee Monday if certain objections are overcome.

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Rumors Circulated After Appearance of Prosecutor's Auditor Before Grand Jury.

BILLS MAY GO TO COURT TUESDAY

Reports were in circulation today that Henry Steneck, president of the closed Steneck Trust Co. in Hobeken. indicted by the grand jury at its session yesterday afternoon.

Reports were also circulated that new indictments had also been found against George W. Steneck, vicepresident of the bank and brother

Henry Steneck

According to these rumors Henry

Steneck was indicted for making false report of the bank's condition to the State Department of Banking and Insurance

A similar charge is also said have been found yesterday against George W. Steneck. He was previously indicted on other charges in connection with the bank's failure.

The rumors apparently grew out of the fact that Harry C. Braverman, of Newark, certified public countant, who auditing the Steneck Trust books for Prosecutor John Drewen, appeared before the Grand Jury yesterday afternoon. Mr. Braverman was in the jury room for some time and the assumption about the corridors of the Court House was that he had testified regarding his findings while examining the Steneck Trust's records Grand Jury into court next Tuesday and time expected the reported indictments will be handed up. George W. Steneck was indicted just before the Christmas holidays. In that instance sealed indictments were handed into court and were dered impounded the request of Prosecutor Drewen. Later George Steneck was brought into court plead released in $25,000 bail furnished by his Mrs. Nicholas Steneck. who pledged her home security. Prosecutor Drewen discuss the case after the grand jury adjourned, but that did not prevent rumors from circulating rapidly about the Court House and in Hoboken, especially in the fact that Braverman was witness before the grand jury. It was shortly after previous appearance by Braverman before the Grand Jury that the original indictment against George Steneck found. One indictment against George W. charges he obtained loan from the bank Dec 1929, without approval of the board of directors. Another indictment charges that. as an officer of the trust company. he overdrew his account in it by $85,527 Dec. 1929 He pleaded not guilty when arraigned court.

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Rumors Circulated After Appearance of Prosecutor's Auditor Before Grand Jury.

BILLS MAY GO TO COURT TUESDAY

Reports were in circulation today that Henry Steneck, president of the closed Steneck Trust Co. in Hobeken, was indicted by the grand jury at its session yesterday afternoon. Reports were also circulated that new indictments had also been found against George W. Steneck, vicepresident of the bank and brother of

Henry Steneck.

According to these rumors Henry Steneck was indicted for making a false report of the bank's condition to the State Department of Banking and Insurance.

A similar charge is also said have been found yesterday against George W. Steneck. He was pre- viously indicted on other charges connection with the bank's failure.

The rumors apparently grew out of the fact that Harry C. Braverman, of Newark certified public accountant, auditing the Steneck Trust books for Prosecutor John Drewen, appeared before the Grand Jury yesterday afternoon. Mr. Braverman was in the jury room for some time and the assumption about the corridors of the Court House was that he had testified regarding his findings while examining the Steneck Trust's records. The Grand Jury will go into court next Tuesday and at that time expected the reported indictments will be George W. Steneck was indicted just before the Christmas holidays. In sealed indictments were handed court and were ordered impounded at the request of Prosecutor Drewen. Later George Steneck was brought into court plead and released in $25,000 bail furnished by his Mrs. Nicholas Steneck, who pledged her home in Weehawken as security. Prosecutor Drewen refused to discuss the after the grand jury adjourned, but that did prevent rumors from circulating rapidly about the Court House and in Hoboken, especially view of the fact that Braverman a witness before the grand It shortly after previous appearance by Braverman before Grand Jury that the original indictment against George Steneck found. One indictment against George W. Steneck charges he obtained loan $61 850 from the bank Dec. 18 1929. without approval of the board of directors Another charges that, an officer of the trust company. his account in it by $85,527 on Dec. He pleaded not guilty when raigned in court.

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Receivers Asked

Applications for appointment of lor James Fielder, yesterday. in suits Insurance William H. Kelly charge of affairs Steneck Trust Co. The petitions are as follows 202 5th Hoboken, against Holding 722-4 Washington Hoboken, William 550-4 Union Garden Corp. River Hoboken, against A number applications filed, affecting in Bergen and Essex counties.

Monuments of bronze granite mark the United line.

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GOLD STOCKS GAIN

NEW YORK, July gold in totransactions the metal. York Federal Bank reports exports of $3,500,100 France, which were more than net the held under earfor foreign account.

May Reorganize Bank

Hudson citizens interested reorganthe Steneck ComHoboken, and officials of the Reconstruction Finance Corporation scheduled be withheld the bank pending on plans reopen the institution.

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BANK SEEKS U. S. AID

WASHINGTON July 12 (A. P.) to reorganize the Steneck Trust Company, defunct Hoboken bank, were laid before officials the Finance Corporation today by committee Hudson citizens. On the basis information given the ation today will deter mine the advisability loaning Government funds to aid the reor The Corporation, was said, desired learn the amount and source posits which might be expected local interests opinion already has been may place Federal funds the disposal of the Steneck bank.

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CARRICK ASKS BOOKS OF ALL CLOSED BANKS

Gus Seide Witness at Receiver Probe in Steneck Bank Case Here.

Officials conducting the investigation Chancery Court cases asked the Department Insurance Banking for records all the today of the ment but that subpoenas had for officials the closed Steneck Trust Co. of Hoboken. The latest move in the investigawas believed to be the forerunner an inquiry into counsel fees allowances bank receivers. The banking inquiry comes under scope of the gation funds may be bursed from closed institutions without approval the Chan cery Court. The court does not a.p.

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Chancery Court Probers Ask All Closed Bank Data

Newark—(AP)—Officials conducting the investigation into Chancery Court receivership cases have asked the State Department of Insurance and Banking for records of all closed banks in the state, it became known today.

Charles Carrick, in charge of the investigation, declined to comment on the move, but said that subpoenas had been issued for officials of the closed Steneck Trust Company of Hoboken.

The latest move in the investigation was believed to be the forerunner of an inquiry into counsel fees and allowances to bank receivers.

The banking inquiry comes under the scope of the receivership investigation because no funds may be disbursed from closed banking institutions, without approval of the Chancery Court. The court does not appoint bank receivers, they are named by the State Department of Banking and Insurance.

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CLOSED BANK FEES WILL BE STUDIED

Receivership Investigators Subpoena Closed Bank Records

(By The Associated Press) NEWARK, July 15.-Officials conducting the investigation into Chancery Court receivership cases have asked the State Department of Insurance and Banking for records of all closed banks in the State, it became known today. Charles Carrick, in charge of the vestigation, declined to comment on the move, but said that subpoenas had been issued for officials of the closed Steneck Trust Company of Hoboken. The latest move in the investigation was believed to be the forerunner of an inquiry into counsel fees and allowances to bank reThe banking inquiry comes under the scope of the receivership investigation because no funds may be disbursed from closed banking institutions, without approval of the Chancery Court. The court does not appoint bank receivers, they are named by the State Department of Banking and Insurance. Power to investigate closed banks is specifically provided for under the order of Chancellor Edwin Walker. which inaugurated the chancery receivership inquiry. This section of the order authorized Mr. Carrick, as master, "to inquire into the of receiverships and other trust estates in the past and present, including the fees allowed and paid to receivers, solicitors for and counsel with receivers and other trustees, auctioneers, appraisers, accountants, masters, and any other officer of this court, including fees paid to officers and attorneys in the administration of the affairs of closed banks.

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STATE BANKS ASKED

Steneck Trust Among Institutions Listed by lieve Move Foreshadows InInto Counsel Fees. quiry

HUDSON HEARINGS STARTED

Newark. July conducting into Chancery the State Department Insurance Banking for records closed banks in the became known today. Charles Carrick, charge the declined to comment the move, that subpoenas been officials the Steneck Trust Hoboken. The in the investigation be the fees and allowinquiry receivers. inquiry under the scope the because funds be disbursed withthe Chancery Court. Court appoint bank named by the State Banking and Insur

WALKER ASKS PROBE.

Power to investigate closed banks Chancellor Walker. which augurated This section of the order thorized Carrick, inquire into the ceiverships and other estates the and including the fees paid receivers. licitors for counsel trustees, and officer this Court. fees attorneys the of the affairs Bergen Jersey Charles Carrick having investigating Church he soon make report Chancellor Walker receivership the transferred this morning initial hearing held this Counsel Shelton Pitney sey was private plan Carrick public preceded private hearing which testithe public hearing sifted that damage reputations out at the public hearing. today's proceedings were behind closed and that the Hoboken affairs for will come in for attention After State Banking and Insurance Frank Smith Steneck Trust Thomas Brown. Walter Hetfield Pearce Franklin Newark served counsel Smith Franklin got $12,000. in fees of the case.

BROWN ASKS $25,000.

County Judge Brown has asked for an for his Judge Hetfield has asked for has held matter of in and signed orders for Brown Hetfield. the who Frankfee Editor Gus Seide the Jersey Obappear the private today Carwas of the principal depositors the Steneck Trust. There other private hearings that Hudmatters highly will come in attention before many The public hearings Hudson cases may be held during August.

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Chancery Court Probers Ask All Closed Bank Data

Newark—(AP)—Officials conducting the investigation into Chancery Court receivership cases have asked the State Department of Insurance and Banking for records of all closed banks in the state, it became known yesterday.

Charles Carrick, in charge of the investigation, declined to comment on the move, but said that subpoenas had been issued for officials of the closed Steneck Trust Company of Hoboken.

The latest move in the investigation was believed to be the forerunner of an inquiry into counsel fees and allowances to bank receivers.

The banking inquiry comes under the scope of the receivership investigation because no funds may be disbursed from closed banking institutions, without approval of the Chancery Court. The court does not appoint bank receivers, they are named by the State Department of Banking and Insurance.

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When the investigation con. cluded the presentation of its case against Fallon had taken testimony purporting to establish that the Vice Chancelor's sonal business and financial fairs frequently involved, both directly and indirectly, cases which he ruled judicial

Among charges levelled against Fallon by the investigation that he frequently appointed port was submitted to the late receiverships men with whom Chancellor Walker. had close and financial connections. the committee contended, made the To support this the allegation, called neases who testified among other That often appointed the late Henry Frank, Jr. business partner his prior designation vice receiver and appraiser in reThat Fallon entertained him the receivership Zerand realty firm which he and Frank, private had personal That appointed Frank for Zerman and Rubenstein, approved disbursement firm's funds sources which both he and Frank personal Interests; That Fallon receivership of and appraised only had notes and obligations which Fallon had at Hudson County That designated John Milton, lawyer and political of Mayor Frank Hague, to be and counhad been named arbiter stock contract which the sold shares reputedly to Henry president the closed Steneck Trust Company, of Hoboken. Interspersing this the porting details Fallon's specific well as data his financial was February by GoverHarry Moore, serving his first term office, succeed deceased. Fallon Democrat.

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Bank Closing Was Unfair, President Steneck Says

Was in No Worse Condition Than Other Banks Now Allowed to Stay Open, Asserts Trust Co. Head-Assails Heppenheimer.

"The Steneck Trust Co. should never have been closed, Henry Steneck declared second anniversary the closing of the Hoboken "If the financial condition of other banks were judged today on the same basis as Steneck Trust Co. two years ago, there be bank open in New Jersey the president of the closed bank continued The Seaboard Trust Co., which has won court permission to take over the business and of the Steneck Trust will open about Highlights of the statement by Steneck No Mun On Bank The Steneck Trust Co. should never have been closed.

There was no run on the bank and at the time of closing there sufficient assets to pay depositors Frank H. Smith, by whose order as state commissioner of banking and Insurance, the institution was closed. has declared that there never was any question to the of the bank The bank should have been permitted to reopen, its surplus at the present time amounting to ap. proximately half million dollars and its capital one million dollars Steneck asked "Where the bank's money now, and why have we been denied R00088 to our records On the indictment of himself and his brother. George W. Steneck, vice-

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She Called Him 'Uncle'

Charles L. Carrick's investigation of Chancery turned on the Steneck case, as yesterday Other features in the case transpired follows Commissioner Kelly on Dec 1932 that would apply Chancery pay depositors and creditors ten per cent. dividend

City Charges Fraud

Four days later, asked Chancery Court for permission pay an eight There no Around through counsel, filtwo bills settle the The instructions on how handle On Dec. 1932 the City of Ho. boken filed five suits Chancery Court Trenton against the Steneck Trust and Commissioner Kelly seeking the status its was tied up the closed city the trust and sought its The suits charged fraud by bank accepting deposits after the officers and directors was the verge closing also alleged Henry Steneck treasurer the Hoboken Sinking had acted illegally placing fund money in his bank without authorization.

"Man From Africa"

The Africa story broke John 530 Jefferson Hoboken was for unpaid His defense that the Steneck Co. acted illegally loaning him money so he could its own stock Minervini testified that suspictous the bank's month be fore closed. he had gone to Henry Steneck and the Steneck bank which had been posted for the loan coming from buy stock. Steneck told Minervini, the latter testified from Africa" never rived. he never Judge Thomas Brown ruled against Minervini holding though bank had illegally its the state was really the offended party. Feb 10 1933. Dr Harry Periberg Fielder of the estate Steneck replacing the Steneck Trust sioner Kelly The switch the result charges heirs Nicholas Steneck the bank had grossly wasted and mismanaged the of the Steneck John Flanigan Judge post March the ground that he unprepared as he had thought Merritt be counsel On March was nounced Judge O'Regan had postponed the which been set for The grounds that the holiday declared trial and and wanted the records the

Delay Trial Again

On April trial Judge been Trial was the Seaboard ducted Trust business Trust Co. The next Seaboard Trust On June defense counsel were turned by Justice Harry Heher pleas struck change venue separation day Judge jected of trial June that take pleas to Part of the date which had set action bers Judge had already allowed delay June returned before Judge June and peated their motions delay All in motions were denied and June confirmed as On Lewis approved Banking John ment's petition to have the newlyTrust over the assets and business the Steneck Trust and nounced the new bank would open or about (The end.)

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STENECK REVIEW

(Continued) liam Kelly as trustees and executhe

Waste Charged The Steneck Trust Co., which had been before brought, selling trust fund for relief of the money in Trust The heirs asked that Mrs. Amalia widow be named substitute executor and trusthe remaining funds The Steneck Trust Co. and Commissioner the held liable for Steneck and which were said Nicholas died June 26, 1929 his will named his trust company executor and trustee his which vided follows $100,000 to be held trust fund for benefit and the and for charities, which the trustees were to arbiters: the to be divided equally the widow: and the the was they per cent. age and quarter the period until their entire share received. In September, 1930. the executors told the amountFrom this the fund subtracted. Mrs of $131. and the 21, of his

Poor Fund Lost

The set for the had about Part this, caused charges among which charges of and movie attorney fees and execucited. These funds. was claimed. were withdrawn. notice wos given to the and no court The suit also charged that the Nicholas $100,000, kept sound Trust stock. That claimed, worthless the closing the and the fund provided for the wiped The attorney general brought into the the complainants the the beneficiaries of the $100,000

Many Suits Filed

From time the closing the June, right the time, there of suits in ery and the courts. Persons large money on de posit institution closed subsequently reduced beggary. Others had funds deposit the bank sued the bonds mortgages, and for suits were brought by hold. mortgage participation certificates demanding that the bank the banking them as holders of the underlying mortgages the paid liquidation the debt had aside trust accounts segregated from the general funds bank. directed ment the but where the funds the had not especially set aside, courts held they had become and not be earmarked and and could out the There cases in which officers of organizations and treasurers sought have their funds declared held the bank trust. the courts held almost variably the bank had failed funds and mingled general not aside kept from the funds was released the that hundreds per had entrusted their sav. other agencies their meagre fortunes because Steneck Trust Co. bank as depository of the funds of priority of claims, in groups trust claimed have legal pref manded they others were presented passed courts result great expense the ready by the ing the great state which maintains the

Claimant

Picking up the chronological story On the spotlight Charles Chancery turned the as yesterday Other features in the case transpired follows Kelly 1932 would apply to Chancery Court for pay depositors and other creditors per

City Charges Fraud

Four later Kelly asked Chan Court permission eight per cent There dividend Around Kelly, through his counsel, Milton, bills in Chancery Court settle the mass on instructions on how the On Dec. the City of Ho five suits Chancery Court Trenton against the Steneck Trust Commissioner Kelly establish the status claims for tied the city the was trust suits fraud the accepting posits after the and directors verge closing. alleged Henry Steneck, treasurer of the Hoboken Sinking had illegally placing money his bank without authori-

From Africa" The story broke

Co. had acted illegally in loaning him money so could its own Minervini testified that, suspicious the bank's condition month closed, he had gone to Henry Steneck and asked the Steneck bank had been posted for the coming from your Steneck told the latter The "man from Africa' never rived. did, he never stock. Judge Thomas Brown ruled against Minervini, holding that though bank had acted illegally loaning money stock the state was really offended Harry Periberg Fielder of the of the Steneck Trust Commissioner The switch was the result charges by the heirs Nicholas Steneck that the bank grossly wasted and mismanaged the estate. Trial of the Steneck brothers first set for 27, John G. Judge March 13 the ground that he unprepared as he thought Merritt Lane On March was announced Judge O'Regan postponed the trial which had been set for March The grounds that the banking holiday declared by would prevent trial "free from and counsel to the records in the Delay Trial Again

On April the trial Judge had yet been not sit. Trial have the Seaboard Trust the and business of the Trust Co. was April The next day the Trust was On June defense counsel were turned down by Justice Harry Heher pleas for postponement, struck jury change separation of day Judge rejected by defense but delay of June that take to Part the On June which had set for action taken. had already allowed delay until Defense returned before Judge June peated their motions denied June On June 26 Lewis the State Banking Department's the Trust Co. the assets and the Steneck Trust Co., and announced bank open on Sept. (The

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Court Clears Steneck Liquidation Muddle

Fielder Hands Down Opinion Determining Right of Mortgage Participation Certificate 15 Other Questions. long step in the the affairs the Steneck Title Guaranty Co., Hoboken, James handed down opinion termining the rights mortgage participation certificate holders 15 other have perplexed First National Bank Hoboken Rufus substitute trustees for the company. Foremost the concluall certiregardless the of their in the of the underlying mortcontended certificate the type certificates by them entitled specific mortgages, the decided was made in the trust the company Steneck Trust the certificates, for the issuance certificates on specific mortgages.

Two of certificates were istypes sued the trust company behalf the one known certificates the other "D" certificates. The certificates indicated they backed deposited the title company with trust certificates in being similar the certificates their wording added that represented express signment share particular mortgage group of mortgages. substituted trustees were unable decide rights each group and the question placed before the court solution. The court held "These D certificates issued without corporate the title company authorizing them and contrary the provisions of the trust agreement. Netther the company nor the trust company the power, against the holders of blue and certificates the terms of the trust agreement by issuing certificates. Blue certificates are similar in form certificates. Continuing, the states: the conclusion that the holders of certificates are entitled preference ment the particular mortgage described their certificate that they must stand the same position other certificate holders share pro rata in mortgages (or their proceeds) deposited the trust company. This conclusion, the court believes, will greatly facilitate liquidation. Answering other questions, the court substitute trustees the income from properties and pay taxes, water, rents, foreclosure proceedings and for repair. Instructions are given for the legal form which foreclosure are be undertaken the manner which may be made where there are deficiencies mortbonds. The substitute trustees are given the right extend payment and alteraheld in trust for the holders. They are allowed insure property, abandon after notice. They may sell and property, but should be made for longer one year, notice be given They empowered hire real estate agent to handle the trust property and may accept municipal scrip bonds as rent principle on mortgage Home Owners' Loan Corporation bonds in payment mortgages, the court Finally, the court to hold jurisdiction the liquidation of the so that other questions may be settled. closed along with the Steneck Trust Co. on June 27, 1931, the then Banking Frank H. Smith. banking sioner remained as trustee for the title supplanting the trust company, until July 14, when the court appointed the First National Bank and Besson as substitute trustees. The substitute trustees hold bonds mortgages totaling nearly $1.gages for $162,000. The total amount of participation issued and outstanding is

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Court Clears Steneck Liquidation Muddle

Fielder Hands Down Opinion Determining Right of Mortgage Participation Certificate 15 Other Questions. the of long step affairs the defunct Steneck Title and Guaranty Hoboken, taken today James Fielder handed down 23-page opinion rights mortgage participation certificate holders 15 other questions which answering First National have Bank Hoboken Rufus Beason, substitute trustees for the company. Foremost the court's concludecjsion that all certificate regardless the form their certificates, share the the underlying mortgages contended certificate holders the certificates held by type entitled them share specific mortgages, but the vice-chancellor has decided provision was the trust agreement the company Steneck Trust issued the certificates, the issuance certificates on specific mortgages. of certificates were isTwo types trust on behalf sued by company of the title company, known certificates the other The certificertificates. indicated they were backed cates all by the by mortgages with trust certificates pany, being similar the to added certificates that represented signment of share particular mortgage of mortgages. The were unable decide rights of each group and the was placed before the court The court "These D certificates issued without any corporate act the title authorizing and to the provisions the trust Neither the nor the trust the against the holders and the terms the trust by issuing certificates Blue certificates are similar form certificates. vice-chancellor conclusion that the holders certificates are not entitled to preference in payment out particular described certificate that must stand in the same position all other certificate holders and rata all mortgages their proceeds) deposited with the trust This conclusion. court will greatly facilitate liquidation. Answering questions, the court said the trustees from properties mortgages water, rents, foreclosure proceedings and for repair. Instructions also given for the legal form which are be undertaken and the manner which compromise may be made where there are deficiencies mortgage bonds. The substitute trustees are also given the right extend payment mortgages, to alterations property in trust for the holders. They are allowed to insure property. may giving notice. They and property, lease should made for longer one notice be given They empowhire estate agent to handle trust property accept municipal scrip bonds rent principle mortgage Home Loan poration bonds acceptable in mortgages, the court hold jurisdiction the liquidation the title that other quessettled. The title company closed along with the Steneck Trust Co. June 1931, by the then Banking and Frank H. banking commissioner remained trustee for title supplanting trust until when the court appointed the First National Bank Besson : substitrustees. The substitute trustees hold bonds and totaling nearly 200,000 have gages for $162,000. The amount of participation certificates issued and outstanding