New-York tribune., 1912-08-24

pany had 81 In assets, and s. in value
for each 81 in bonded Indebtedness. IL
was said that the company owned Tree
and clear, more than $1,OO0,00 worth
of property, conservatively appraised
The mortgages. on real estate were
deposited with the Windsor Trust
Company, which certified 10 tne
amount in face value on deposit with
It, but stipulated that ii. as trustee
should not be responsible for the valid
ity of the bonds or mortgages or olhcr
security delivered to il, or for the
nature or amount of the security. Inc
sum total face value of the mortgages
in the hands of the trustees pur-
ported to be S2.40O00O. but II is
charged by the federal Investigators
that this appraisement was far In eX-
cess of the actual value Of the real es-
tate represented.
According to the postofIice inspectors
who have investigated the methods OF
the company n special attempt was
made for investments from people VINO
were ambitious to send their sons to
college.
IF the son. so their promises ran
said Inspector Barber Yesterday, when
at the age Of six years would lay aside
q certain sum of money in the invest
mcnt of their bonds, by the time he
20
have all of his expenses assured.
Although II was advertised that the
officers of the company were serving
without pay, the charges further al
lege, tho cost of conducting the COM
pany for the last three years of its eX-
istcnce was $4,000 a year. Cooper
il is alleged. was receiving a salary Of
81 600 n month until January 81, 1910.
when he retired as president: Van
Slyke received $500 in commissions,
and after he succeeded 10 the presi-
dency drew a salary of $4,000 while
Robinson got an income of $1,000, later
drawing a salary Of $500
There were number Of subsidiary
companies. il is alleged, controlled by
pany, II is alleged, were used to de-
velop the property Of these subsidiary
companies. These companies mad diff
Guilty in meeting the interest, on bonds.
and finally in October. 1911. defaulted
entirely.
How Property Was Valued.
As an example Of the value put upon
property by the company. the pur-
chase by it of a tract called "Rycsdalc
Acres" near Rye, is cited. The prop
erty was purchased for $4,000, $4,000
in cash being paid and 5000 I'm bonds
of the company. The property was
taken subject to a purchase money
mortgage of SlJ0OO0. Title was taken
in the name of the Tuckahoe Lime and
Lumber Company. one OF the com
panies owned by Cooper, and was inn
mediately taken over by the New York
Central Realty Company. Upon this the
company voted to William II. Cooper a
profit Of 100000 on the purchase. and
this was then carried as an asset in
appraising the assets of the company
at a value Of S1,O0O.OV;. They also
purchased tax titles over in the Hack
ensack Meadows, which stood them
about 81, 800, il Is alleged, and were
mortgaged to the company for prob
ably $3J0,O00.
The company was put into bank
ruptcy last March by BloOmingdale
Brothers. which firm had invested in
bonds TO the amount of $67 900. Accord
ing to a statement of the receiver. II
then had in the Windsor Trust Com
pany on deposit a mortgage for only
$4,000 on the Woodfern property. in
Northwestern. n. j., as security for
bonds aggregating S49S,OOO According
tC the postofilce investigators. this land
was not acquired by purchase, but
through trade Of the yacht Bucca-
neer
William A. Moore. counsel for Van
Slyke. said yesterday that his clients
association with the bond transactions
Of the company was innocent. although
in strict legal sense he might be in
measure responsible.
He was not actually connected with
the bond department" said Mr.. Moore
yesterday. "but was real estate sales
man. He became president upon Mr..
Cooper's retirement. The circulars
bearing the alleged false statements
as TO values and so forth were pre-
pared before he came IN, and were
Issued, without his actual knowledge,
as matter Of office routine. The ap-
praisements Of property were a matter
OF opinion and do not necessarily in
dicate anything culpable. Under diff
ferent real estate market conditions the
values placed upon them might have
developed as expected. They were
suburban tracts which development
was expected to enhance"
GIRL FALLS ON ELEVATOR