The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-11-29
Principal Assets ~ Broad.
way and Many Apart
ment Houses.
FORECLOSURES IMMINENT
Levi r. Morton. Big BOndhOlder
Among Creditors Of
Many Glasses.

owing more than 100000 on bond
and about 81 200, 900 OH first. second ant
third mortgages besides about saoo.Oot
IN interest and taxes on its variou:
properties the New York Real Estate
Security Company. one OF the largest
realty concerns In the country. decided
: yesterday that II could not meet Its
obligations and sought the protection o.
the Federal courts In all effort to save
its creditors from loss.
The company owns eighty EIGHT pai GELS
o. real estate, sixty-siX Of which are h'
this city. including the office building at
4c Broadway and many apartment houses
OF the upper West Side. 1t owns a num-
ber OF vacant properties In outlying sec
tons near New York and two parcels Il,
Pi,sburg.
James y. Rosenberg was appointed re
cever under a bond of $4,000 He spen,
the day in the companys offices. but was
unable last night To make statement
OF assets, or liabilities. lie said. how
ever. that the equities in the various
properties as described To him seemed
sufficient with proper handling To- as
sure the bondholders and other creditors
fun payment.
Among the largest bondholdcrs il
former Governor and Vice-President Levi
y. Morton. Also among the creditors
are small, investors in various parts OF
the world who hold bonds for total
Of about 100000
General Deprcssion Blamed.
Officers Of the company said that the
general depression in the real estate mar
kot and their inability 10 replace mort
cages falling due were responsible for
their failure. Knowing that unless they
rorestalled action of mortgage owner,
they would be plunged into foreclosure
proceedings on all sides they sought the
I'D OF friendly creditors and brought
about the receivershlp.
4 petition was filed b. the Ne,hul
Eealty Company. Berry H. Simons and
Hugh McAtamney. The realty company
and Simons claimed sfS,0o0 due them on
bonds given in payment for real estate
which the security company had agreed
to sell or repurchase at 95. McAtamney's
claim, amounting to $500. is for adver
iising.
The New York Rea, Estate Security
company was Incorporated In September. r.
1905. with a capital stock of s25O.OOo.
~.bich was increased on december 30. 1910,
oo s3?50. 900, consisting of 81 500. 900 COM
mon stock al! issued 81 100000 frrst pre-
ferred stock OF which S315.0o0 has been
issued, and S@50.0O0 second preferred
sock all issued. On the bond issue OF
81 900. 900 the coupons of July last were
paid. but the company has no cash assets
to pay the coupons due on January !
next. Practically all the propert,.s of the
company are behind either III intercst or
taxes.
The officers are Thomas r. Hidden,
president william l., G. GaiIlard, vice.
president; l.. j. Roberts. comptroller
i.eRare Walker. treasurer, and Oliver H..
,Iill, secretary. Mr.. Hidden, who is we'll
along in years. has not been active in the
company's affairs. though he has held the
presidency from the start. lie was sad
10 be out OF town and not to have had a
part In the matters which led up 10 the
ieceivcrship.
Inc CONlpanyS idst statement, tdltu
January /. 1913, shows assets OF $l+OlS.-
5li, including real estate owned, at cost
sl2,s2S,9l1: loans and Investments and
hys, preferred stock IN the treasury
s919.is2 sinking fund. accrued interest
and rents, $77.67s. and cash in banks and
i.ust companies. s1S597s 1t was said at
Tho offices OF the company yesterday that
The whole cash In the bank, including the
sinking fund. would amount AZ this time
+, barely $4,000.
Methods Of Bond selling.
As rant of its bond selling campa !gn
tie company issued a mass OF literature
nch was circulated in all parts Of the
country one pamphlet which is said to
nave done more than any other to help
tle sale OF bonds is small booklet OF
- extracts from various newspapers and
periodicals of the last two years, The
title OF 1t Is, what Others Say Of the
six Per Cent. Mortgage Bonds Offered
hy the New York Real Estate Security
company One Of the extracts is taken
rom TIE sun of January II. 1871. IT
rpads
Under the terms OF the mortgage which
secures the bonds Of the New Yor.; Real
Estate Security Company. money coming
rom their sale goes into the hands Of the
trustee, and can only he released for the
purpose of investment in real estate or
>artgagss. which investments immediate
ome under lien OF the mortgage, and call
not be realized upon without obtaining
another lease from the trustee. which does
ot ho oh nl,,lta