The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-10-12

NEW YORK, Oct. 12.-Lawrence
Wolf, appointed receiver by Judge
Hand In the Unised States district
court. announced that the Interstate
Land 4 Building Cooperative associa'
ton, 100000 concern at No. Pol
Broadway, had been thrown into in
voluntary bankruptcy. Receiver Wolf
sfter preliminary investigation
| characterized the case as apparently
another $40 per cent. Miller fraud
A NJ. Simon. No. 14l Broadway
and Henry Goldey, No. Is Nassau-st
attorneys for Receiver Wolf. We're In
conference with representatives OF
the district-attorney' Office yesterday
regarding the criminal aspects of the
case.
Both Receiver Wolf and Messrs
Simon and Goldey declared to a re-
porter for The World that there was
every evidence OF fraud that Will
cost investors 100000 and possibly
greater amount. Search IL now be
| Ing made for the books Of the com
pany, which disappeared mysteriously
last Friday night. The receiver ID
especially anxious TO obtain the books
of the bonding department.
Receiver Sees Big Fraud.
There is every apparent evidence
OF another $50 per cent. Miller case,
said Mr.. Wolf. This company, how
ever, occupied more imposing ofiices
and dealt In larger amounts. | am
anxious to discover what became OF
the 100000 paidin capital OF the
| company. IL Is question whether
| this amount did not largely consist
of watered stock.
IL never found a place In greater
confusion than when | took posses
sion The furniture. worth $4,000
had been removed by a municipal
court order. but I have been unable
! to discover who took the books.
$50 far as l can discover, the az
/ sociation had a balance of eight
cents in the Williamsburg Trust com
pany in September. II still kept or
selling its bonds, however"
Archibald Bull, building superinr
| tendent OF the company, appeared be
! fore the receiver. according TO Attor
ney Simon. and stated that he had
seen F. j. Sherry, vice-president and
building manager OF the defunct con
Germ, last Friday.
Bull informed u.s." said Mr.. Simon
THAT Sherry had exhibited a roll Of
bills, which he said amounted to Sc,
| 600, and which he said he was going
| to deposit in the Williamsburg Trust
| company. No such deposit has beer
made by Sherry, so far as We car
| learn.
Sent $5,70$o. Got No Bonds.
Richard Lee Cobine. who said he
was an agent OF the association al
Norristown, Pa, also appeared before
| the receiver and stated that severa
weeks ago he had forwarded $5,70t
! TO the association, in return for which
IL was to send to clients in Norris
town certified collateral bonds OF the
| firm. Cobine averred that these
bonds were not forthcoming, despite
repeated inquiries"
Among those who called at the dis
mantled Offices was George Wagner
No. 511 Union-ave., Union Hill, N. j
Wagner desired to build a home al
| Dumont, ". ]. He received a circular
! fro mthe Interstate concern in which
It offered to buy lots for him, build
$4,000 house and take a mortgage
He paid the company 5000 cash, he
| declares. and 500 in installments or
J lots which were TO cost 1915, with the
understanding that building was tc
begin as soon as he had paid his $500
cash Building did not begin, how
ever. and when he came here he was
unable to find any Of the officials.
The company had seventy agents
out selling It's bonds. These bonds
we're sold either on installment OIL
outright. The usual rate was at TWEEN
! ty-fve cents week.
Some "Don'ts" For Investors.
One of the associations pamphlets
headed IAN Appeal to Reason or Per
lection Reached at Last" contained
the following "don'ts' for investors
Don't take a flyer; remember the
other fellow stays on the ground
while you are away up"
| Don't put money in new inven
tions. They will remain new when
you are very old"
Don't invest in gold mine; the
gold takes too long coming to the
surface. You can get 1t quicker al
your bank"
Don't speculate in wall-st. Poker
commissions"
4 DOu put your iuohcy ouS ioi Pio
At or interest without security that Ia
under your own and absolute con
troll"
A letter to a prospective investor
contains the following:
I'VE make speciality OF building
small homes around Greater New
York for the homeseeker, assisting
them by financing them somewhat
The home-buyer must pay 10 per cent
cash, own property Of at least % pei
cent. of value OF building to be erect
ed. We then accept from the client
on completion OF house, as balance OF
payment due, 60 per cent. bond and
| first mortgage on completed proper
ty, thereby giving us complete secur
ity for the monev advanced