New-York tribune., 1912-01-19
HITS FAKE REALTY MEN
Griffin Bill Against Illegal Profit
Sharing Savings Bonds.
BIG PENALTY PROVIDED
Gittins Measure Would Provide
750 Free Scholarships OF
500 a Year Each.
rBy Telegraph to The Tribune. J


Albany, Jan. s-To prevent the fraudus ,
lent transactions in proft-sharing savings
bonds, issued by real estate corporations
principally in New York City. Senator Grif-
fin, of New York, to-day introduced bills
providing drastic penalties for suoh opera
tions. One of the bills provides that cor
porations or persons engaged in tho dealing
in proiit-sharing savings bonds. whether BE-
cured by real estate or not, shall be placed
under the supervision OF the superintendent
of Banks The other makes IL a felony to
issue or offer for sale such bonds purport-
ing to be secured by real estate OF a greater
amount than 50 per cent Of the owners
equity In the real estate, or to offer for
sale such bonds without reference to any
specific security unless first securing the
consent OF the Superintendent OF Banks
Violation is punishable by a fine of not less
than $500 or Imprisonment OF not less than
five years, or both.
Senator Griffin said that in New York
City many real estate companies were ap-
pealing TO innocent and poor investors
through false representations as TO the!
value of the security behind their bonds~
He added:
One company has issued 81, 10000 OF these
bonds, purporting to be secured by real
estate, which at It's own valuation ls only
appraised at $4,000 This appraisal ts
obviously erroneous and probably inten-
tionally so. Their reports show expendi-
lures for taxes annually of 500, when az
the rate OF taxation In New YORK Clty OF
81 Y hundred would represent real es-
tate holdings OF less than S,O0. This land
is located in Queens Borough, and is mostly
vacant property. ,
rFO hty rceo1ntinuc pf the hoard Of d.
rectOrs, increasing the value of its real
estate holdings on the books. Tne last IN
creasd was $4,000. Against this are set on
the running charges, leaving an apparent
profit of about $4,000 in which the innocent
bOndholders are supposed 10 share. IhiS
would give them a dividend OF about ~ per
cent but II is so remote that none Or the
innocent are likely to live long enough 70
draw f. In the mean time. they keep on
paving their 81 a week. Unless this method
OF high finance is checked al once the peo-
pie who have been msled into buying these
bonds are likely to lose their entire lnyest-
mcnt.
a bill by Senator Gttins. Of Niagara, es-
tablishes state scholarships. five Of which
are to be awarded each year for each As
sembly district. A scholarship would en-
title the holder to 500 year I'm tuition fees
for attendance at any improved college in
the state for four years. The fund is to be
ure and gifts.
Dry" localities would be made a whole
lot drier by a bill introduced by Senator
Burd, Of Buffalo. 1t makes It a misde-
meanor knowingly to deliver liquor to any
person in no license locality other than
a bona fde person whose name and address
appears on the package. At present there
is said to be much traffic I'm liquor in dry"
towns through the sending in Of liquor bear
ing fictitious names. Assemblyman Mer-
ritt the Socialist member from Schenec-
tady, to-day introduced his bill providing
greater powers OF municipal self-govern-
ment to cities and incorporated villages.
Bills introduced in the Assembly included:
Mr. Shlvek Providing for an aviation
license hoard of ten persons.
Mr.. Yule-Authorizing the submission OF
the question of erecting the County of The
Bronx TO the people of that borough.
! Mr. Schifferdecker 49, Proposed constitu-
tlonal amendment extending the term OF
Assemblymen from one to two years.