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DeMarco Inc.s Cranberry Land Bogs Down Over Family Squabble

Laptop Battery A.R. Demarco Inc. is among the state's biggest landowners and the nation's most powerful cranberry operations. It is owned by two brothers, who do not get along, and their sister, who lives 3,000 miles away.

mile property was owned by A.R.DeMarco Enterprises and had been the cranberry farm of the late Anthony R. DeMarco, a son of Italian immigrants who began acquiring bogs in the area in 1940. The DeMarco lands were one of the largest privately owned tracts in New Jersey. It was also one of the largest and most productive cranberry farms in the country.

Thinkpad The family business farms the bogs in and around Chatsworth, a small southern Burlington County town surrounded by oak and cedar trees and blueberry fields deep in the Pine Barrens.

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Microsoft The bright red cranberries harvested each fall are Chatsworth's lifeblood. Over the years, the tart red berries also made the DeMarco family millionaires.

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Laptop Computers But this fall, A.R. DeMarco Inc. will not harvest the bogs, perhaps for the first time since the DeMarco family's ancestors began working in cranberry bogs in the 1880s.

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Laptop Computer The family business, founded by the late Anthony DeMarco, now owned by his two sons and daughter, last year decided to sell most of its property. The 9,400 acres is slated to be sold to a conservation group at a fraction of the land's value.

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Desktop Computer A family dispute

Notebooks The pending $12 million sale - the land is said to be worth at least twice as much - is, on one hand, a generous gesture enabling the largest private-land acquisition by a nonprofit group in state history.

Lenovo Preserving the tract keeps intact nearly 1,500 acres of reservoirs and thousands of acres of wetlands and forests, including 600 acres of Atlantic white cedar swamp, where bald eagles fly.

Hard Drive On the other hand, the sale could be a cover-up, an attempt by one of the DeMarco brothers to draw attention away from corporate waste and fraud that brought the business to its knees.

Travelstar Which version to believe depends on which DeMarco brother is talking.

Gateway The DeMarco brothers - Mark, 72, and Garfield, 64, - rarely communicate these days, except in court papers.

Laptop Parts Each brother owns a one-third stake in the family business founded by their father in the 1940s.

Software Their sister, Anna Lynne Papinchak, who lives in Washington state, owns the remaining third. She routinely sides with Garfield, effectively giving him control, according to court papers.

Hard Drives But Mark DeMarco wants to wrestle control away from younger brother Garfield, whom he accuses of squandering corporate funds on political contributions, lavish meals, Mercedes Benz repairs and limousines.

Electronics The accusations surfaced last month in a lawsuit Mark DeMarco filed in the chancery division of New Jersey Superior Court in Atlantic County. However, Mark DeMarco later decided not to try blocking sale of the land.

Canon Lawsuit shocks industry

Desktop Pc The legal documents suggest a bitter family battle, the downfall of a dynasty and a cranberry industry bleeding red for years.

Desktop Computers Even by DeMarco standards, industry observers said the lawsuit was a shock.

Think Pad "This used to be a boring business; you had cranberry sauce at Thanksgiving and that was all anybody thought about the stuff," said Hal Brown, who runs a small cranberry farm in Massachusetts as well as a Web site chronicling the cranberry business.

Repair "Now with the whole DeMarco thing, it's like a miniseries: power, money, family - what more can you ask for? It's interesting, but it's also kind of sad."

Data Recovery Local growers weren't so surprised. They said they always have known the DeMarco brothers didn't get along. And the issues at the heart of the lawsuit long have been pitfalls for New Jersey's struggling cranberry business. New Jersey's is a family-run industry.

Cisco Despite DeMarco's troubles and an industry-wide slump, the company still ranks third in the nation.

Keyboard "It's a unique business, you have to stay together to survive," said Edman Budd, 73, owner of T.H. Budd and Sons, a Southampton Township cranberry grower. "The farmers have to stay together. The families have to stay together.

Monitor "Tony DeMarco was a good man," Budd said. "I know the brothers don't get along, though. They never have as far as I know."

Desktop Budd was one of just a few people in the local cranberry industry willing to talk for publication about the DeMarco family.

Infosys "I know him better than I'd like to," fifth-generation farmer Thomas Darlington said about Garfield. "I made the mistake of saying what I thought about him once to a reporter, and I swore I'd never do it again."

Refurbished Laptops Holding the reigns

Wipro Garfield DeMarco, despite his decision to divest his land and close the cranberry operation, still wields significant power.

Lap Top People are careful what they say to him, and about him. He remains active in politics as the former chairman of the Burlington County Republican Party. He also chairs the county bridge commission, which employs, among others, Woodland Township Mayor Robert DePetris.

Refurbished As a political power broker, Garfield DeMarco casts a similar figure as his father, Anthony, a former Atlantic County freeholder, who wielded power from nearby Hammonton. On New Year's Eve 1964, the father died in an automobile accident.

Memory The family business then fell into the hands of Anthony's children. Although the DeMarcos' cranberry operation grew to rank among the nation's largest, 40 years later the children are at serious odds on the fate of A.R. DeMarco Inc.

Intel Mark DeMarco, who was unavailable for comment, wants to keep the business running by turning day-to-day operations over to a corporate trustee.

As400 The retired attorney has been hospitalized with an undisclosed health problem since December, according to his lawyer, Edwin Ferren III of Haddonfield.

Averatec Financial problems grow

Hardware In legal documents calling for a court-appointed corporate trustee, Mark DeMarco paints a grim picture of the company's financial state. He said A.R. DeMarco Inc. owes more than $6 million in loans, taxes and IRS settlement payments.

Dual Xeon A.R. DeMarco is "an insolvent corporation ... unable to pay its bills," he said.

Storage Internal company documents show that Garfield DeMarco spent corporate funds on himself, according to Mark DeMarco, including:

Seagate # $67,000 in meals at a local restaurant;

Computer Sales # $55,000 to renovate his two Mercedes Benz cars;

Computer Hardware # $60,000 in political contributions;

Printers # and $40,000 for limousine service.

Technology "All of this happened during a period of time when A.R. DeMarco Enterprises Inc. was in desperate financial straits," Mark DeMarco said.

Mainframe The environmentalist?

Samsung The disagreements remained private until October 2002, when Mark DeMarco's brother and sister outvoted him to move forward on Garfield's plan to sell the family's land to the New Jersey Conservation Foundation, a Somerset-based nonprofit environmental group.

Computer Repair Michelle Byers, foundation director, said last week that the purchase is critical to protect the pinelands from development.

Used Computers She described the 9,400-acre tract as "the hole in the donut," which would include 200,000 acres in five state forests.

Network Her group lauded Garfield as an environmental steward for selling for just $12 million. Appraisals ranged as high as $30 million.

Digital Cameras "My family and I want to see this unique and beautiful property preserved in its natural state for all the people of New Jersey," Garfield DeMarco was quoted as saying in the group's October 2002 press release announcing the deal.

Desktops However, Garfield apparently wasn't speaking for his brother.

Cognos "Garfield assuming the role of 'the great environmentalist' is a joke," Mark DeMarco said in court documents. "What he is trying to do is distract everyone from his gross mismanagement."

Hosting Garfield opens up

Netfinity So far, Garfield DeMarco hasn't responded in court papers to his brother's allegations.

Internet He declined to talk about the lawsuit at all except to say, "I look forward and welcome the chance to answer each and every allegation in court and that's what I intend to do."

Cheap Computer However, Garfield DeMarco spoke at length about his decision to sell to the conservation group.

Digital Camera DeMarco first approached the group as his cranberry business struggled. A.R. Demarco, like all New Jersey cranberry farmers, buckled amid a market glut of cranberries in the late 1990s, which continues today.

Printer New Jersey cranberry growers received $66 a barrel in 1996, but prices fell to a low of about $10 three years later, according to a report last year by the U.S. Department of Agriculture.

Xseries The downturn, in part, prompted Garfield DeMarco to sue the Ocean Spray cranberry cooperative, of which he is a member.

Maxtor He alleges that the board of directors was trying to force out minority shareholders by regulating production. More than 900 cranberry and grapefruit members belong to the cooperative.

Data Storage That lawsuit, as well as Garfield's decision to sell to the conservation group, both met with decidedly mixed reaction from other local growers.

Hitachi Garfield DeMarco also attracted unwanted attention earlier when the state Department of Environmental Protection cited him for illegally converting 22 acres of wetlands into cranberry bogs.

Rational The federal Environmental Protection Agency later fined him nearly $594,000.

Websphere Garfield DeMarco said he knows to expect that he'll have his share of detractors.

Battery "I think if you're active and successful then you're going to have some enemies, that's just the way it is," he said.

It Support But it is not that simple, of course.

Western Digital Garfield's biggest detractor is his only brother. He prefers to view their troubled relationship in broad, historical and Biblical terms.

Music "Go read Ecclesiastes - 'there is nothing new under the sun,'" the cranberry grower and Yale Law School graduate said. "Go back to Cain and Able. Family conflict and intrigue go back thousands and thousands of years."

Networks But asked about life after the lawsuit, about whether the brothers ever will repair their troubled relationship, Garfield DeMarco had little to say.

Toner He said that he was sorry. He said that he had an important meeting to go to.

Cheap Laptops "I guess," he then added, "that the only thing left to say is that we'll all die some day."

By Jim McElhatton
The Press of Atlantic City - 6/9/2003

Topic: Pinelands

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