New-York tribune., 1912-08-24
OFFICERS OF OFFUNCT
CONCERN ARRESTED
Four Members of New York
Central Realty Company In
diCted-TWo in Custody.
MISUSE OF MAILS ALLEGED
Circulars Get VIM. H. Cooper,
Claude J. Van Slyke, James
A. Robinson and Ernest
Sharp in Postoffice Net.

6udI " III 7 OSbOlliCC NSVs
After an investigation OF ten months
on the part of postoffice inspectors.
bench warrants were issued yesterday
by Judge Holt for the arrest of Will
lam II. Cooper, Claude j. Van Slyke,
James A. Robinson and Ernest Sharp
all former officers of the defunct New
York Central Realty Company. They
were indicted on July 20 by the federal
grand jury on a charge of using the
mails to defraud in the real estate
bonds issued by their company. The
indictments were kept under the seal oil
the court until yesterday morning
when the bench warrants were issued
at the request of c. Fl. Griffiths' as
sistant United States District Attor-
ney, who has been directing the inVes-
ugation Of the case.
Robinson was arrested yesterday
morning at No. 1170 Broadway, where
he conducts a publicity concern, by In
spectors Pollitt and Kenyon. He was
secretary and treasurer of the bankrupt
company at the time it is alleged the
offences against the postal laws were
committed. Van Slyke, who was presi-
dent OF the company at the time of its
failure, accompanied by his counsel
William a. Moore, gave himself up yes
torday and was arraigned in the after
noon before Commissioner Gilchrlst'
being held in $4,000 bail for pleading
next Wednesday.
Word has been received by the fed
eral authorities that Cooper and Sharp
the other two men indicted. will give
themselves up, later Cooper was the
moving spirit and first president Of the
company. until he retired in 1910, being
succeeded by Van Slyke Sharp, who
conducts the Central Park Realty Com
narv ut No. 40 Broadway. was vice
president
The New York Central Realty Com
pany advertised its bonds in the finan-
rial sections of we'll known magazines,
besides publishing q monthly magazine
of it's own called the Six Per Cent. EX-
poucnt." described in a motto at the
ton of the first page as being devoted
TO the interests of the small investor
in general and the New York Central
Realty Company in particular. The
selling price was five cents a copy. In
addition TO these methods of publicity,
large quantities of circulars were is
sued. and it is for these that the mis-
use of the mails is alleged.
Offer to Return Money Lost?
Tie investigation was conducted by
Inspector II. A. Barber, under the di-
rection of w A. Dickson. inspector in
charge of the district, and Mr. Griffiths.
This was said yesterday to be the
twentieth real estate company Of SINH
lar nature that has come under the ban
OF the postoffice authorities within the
year. 1t was said yesterday that large
business interests brought great press
ure to bear on the federal authorities
vent the indictment of one of the four
men, carrying with it the promise to
return all money lost by disappointed
investors cent for cent.
The New York Central Realty Com
pany was formed in 1903 with capital
of $4,000. William H. Cooper was the
president, and it is said that holdings
IN il were confined chiefly 20 members
Of the Cooper family. In 1905 the capt.
tai WAS increased to 100000. The Of
fees of the company were In the Mar
bridge Building. at Broadway and 34th
street. The company was declared
bankrupt in March. 1912, by involun-
tary proceedings, and A. Gordon Muir
ray was appointed receiver.
1t is estimated that there were eight
hundred small investors in all parts Of
the world who lost money In the crash,
many Of them being in the United
states navy, as a special attempt was
made to attract the notice Of navy men.
An aggregate of 100000 is alleged
10 nave DCtiI - O''' ~S
OF the company's bonds.
The main activities of the concern
were in the sale of bonds, which were
represented to be amply secured by
MORTGAGES on New York City and sub
urban real estate. The bonds were OF
three kinds. The first kind was called
Coupon gold bonds" which were issued
I'm three denominations, of 500. 5000
and $1,000, maturing In ten years at
face value, with 6 per cent interest
payable semi-annually. and with the
privilege of surrender at any time at
face value with interest.
Terms Of Sale Attractive.
The second class, of the same denom-
inations, was called "accumulative
bonds" purchasabIe in ten yearly
payments, maturing. with per cent
compound interest. in either ten or
fifteen wears. with a cash surrender
value always in excess Of all payments.
The third was called 'single payment
accumulative bonds" in which annual
instalments were discounted, being
payable in one sum in advance, this
payment, with 6 per cent interest COM
pounded annually, aggregating the face
value of the bond at maturity, which