New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-29
REALTY CO. FAILS;
LACKS READY CASH
Receiver Named by Court
for Large Owner of Man
haitian Property.
TROUBLE is LAID
TO OPEN WINTER
Poor Business Made Tenants I'm
able to Pay Rent-Embarrass-
ment Only Temporary.


ment Only Temporary.
The New York Real Estate Security
Company went into the hands Of re-
ceiver Yesterday because Of its inability
TO pay S4066O, due to the Nethul Realty
Company. SS.OS7 10 Berry b. Simons and
$500 70 Hugh McAtamney. Everybody
connected with the proceedings agreed
that they were friendly and that the con-
Germ was almost certain to extricate itself
from it's financial difficulties at an early
date.
The concern is one Of the largest own
ers Of apartment houses on Manhattan
Island. II owns Heathcote Hall, mod
ern apartmenr house in 4th street; the
Irving Arms. oath street and Riverside
Drive: the Larchmont. 105th street and
central Park West; the Glendale, No. 100
Claren,ont avenue: the Stadium View.
Nos AS and 446 Riverside Drive; the
Shore View. Nos. Az and AS Riverside
Drive. and many other up-to-date apart
ment structures. besides some skyscrapers.
including No. 40 Broadway, where il has
its Offices.
Although its real estate cost more than
Sl2.S 500 900 experts estimate that the COM
pany could fnd buyers for its properties
in normal times at about S25.000.000.
The financial perplexities Of the COM
pany overlook it apparently very suddenly,
for il was only few months ago that the
company purchased from Levi ?. Morton
four six story apartment houses on upper
Broadway and st. Nicholas avenue IL
was said at that time that Ex-Governor
Morton took in part payment for his prop
critics about 100000 in bonds Of the COM
pany
Open Winter Blamed.
The oper winter last year was blamed
mostly for the difficulties Of the company
" man who has been closely identified
with its affairs for a long time He said
many tenants Of the company had been
unable To market their products. and &C
cordine'y could not pay their rent. Their
dilemma could not be Of long duration, he
added. and when they were able to market
,heiI goods they would pay. None of the
apartmant house tenants had caused any
trouble They met their obligations quick
Is and with smiles.
The claims Of the creditors are for
balance due on the purchase Of bonds,
and for advertising. Preferential pay
ments amounting to 5000 are alleged IN
their bankruptcy petition.
The company was formed in October
1905. with a capital of 5000. Thomas B.
Hidden is president; W. Z. c. Gaillard
and Charles r. Mccarthy, vice-presi-
dents. Legare Walker. treasurer; Oliver
b. Hill. secretary, and Z. j. Roberts, con-
troller.
The Hudson Trust Company is trustee
for the bondholders
Its statement issued by the company
10 the state Banking Department, as 10
its condition at the close Of business on
December 81, showed that its total assets
were Sl4.OlS5l4. It's holdings in real es-
tate at the purchase price had cost sl2,-
S2s 9ll and its loans and investments, in
Guiding prepaid charges and first pre-
ferred stock in treasury amounted 70
$685.. To protect its bond and share
holders II had a sinking fund, which,
with accrued interest. amounted to ST.
SIS There was SlS5,97S in banks to its
credit
The statement showed that its proper
ties were mortgaged for 1921, 2Os, that
there were outstanding 1885, sos gold
mortgage bonds due in fifteen years AT
Elk per cent. The interest due on the
bonds was added TO the face value OF
the mortgage certificates The capital
stock and surplus were s4052,O3s Ever
the depreciation OF its buildings from nat
ural causes was considered and figured al
a $4,000 liability.
The bankruptcy petition was filed early
yesterday by Wescheler & Kohn. In the
United States District Court, on behalf
of the Nethul Realty Co. Judge Hougf
named James n. Rosenberg, receiver. un-
der a bond of $4,000. Rosenberg held
several conferences in the afternoon al
No. ~ Broadway. with the officers of the
company Later he said:
while should have been glad to issue
a detailed statement of assets and la
bilities, il is utterly impossible at the
present time TO do so. Until accountants
complete a statement for me, / cannot un
dertake TO issue one. understand that a
lied and 1t appears 10 me that with
proper cooperation among the creditors
"A satisfactory reorganization should with
out doubt be effected.
LAS the equities in the various proper
ties are described 10 me, they seem thor
oughly sufficient, with proper handling,
10 assure the bondholders and other cred
itors full payment. ] shall bend all ms
efforts TO bringing about the best pos
sible constructive results for the benefit
OF all interests
W. f. G. Gaillard. who has been direct
ing the company ever since its inception,
said after the conferences:
Embarrassment Only Temporary.
I'VE are only temporarily embarrassed.
We found ourselves unable TO take care
of pressing financial obligations, and
hence the bankruptcy proceedings fol-
lowed.
This action is a friendly one. IL was
arranged that a receiver take hold OF
our affairs. that the interests of every
body might be conserved, and that we
might be able TO emerge from our finan-
cial difficulties as soon as possible
Are your obligations heavy?' he was
asked.
No" quickly replied Mr.. Gaillard'
they are small. and for that reason
we are confident that it will not be a
long while before we are able 20 resume