New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-19
INSURED NO One,
SAYS MCMAHON co.
Two Witnesses Tell the
District Attorney They
Got Policies.
INQUIRY WILL COVER
PHILADELPHIA BRANCH
Purchaser of Gold Certificate
Testifies Bank Refused to
Honor Coupon.

Although two witnesses examined by the
District Attorney yesterday said that
when they bought cumulative proht
sharing certificates" of the Monatoh
Realty Investing Corporation they
thought they were investing In lie lnsur-
ance n statement issued by the company
declared that II did not do an insurance
business.
The corporation is under investigation
by the District Attorney at the request OF
the State Insurance Commissioner. Ar
thur c. Train and Leslie $. Lockhart'
Assistant District Attorneys. have charge
of the inquiry. They are also assigned 10
the investigation of the hypothecauon OF
opera tickets and il is probable that IL
will be several days before they come 10
a conclusion regarding the realty com
pany. If the evidence warrants II the
matter will be laid before the grand jury
Mr.. Train intends to get in touch with
the Philadelphia authorities 20 learn OF
the status of the branch there. ana win
Assistant District Attorney Goldstein. oil
BROOKLYN, who served on a commission oil
the Banking Department 10 look into the
affairs of the company.
Mrs. Margaret Il. Waters. OF the Hotel
Bristol, was one Of the witnesses eN-
amined yesterday. She said that she
bought a $500 cumulative proht shaiIhb
certificate" which she understood IN
sured her life for 500, and N,Vo 'sold
certificate coupon bond" She told MT
Lockhart that she was told that the 'soid
certificate coupon bond" was secured py
a mortgage on the Times Building.
Mrs. Waters said that she had an once
in the same building with the Monatoh
Realty Investing Company and that ire
ouently she heard persons going down IN
the elevator complain OF their failure 10
get their money from the company
Mrs. Waters said she clipped her Au-
gust coupon for $50 and presented 1t at
the Hartman National Bank. Payment
was refused. she said, the bank oihcialS
informing her that the company had no'
that much money on deposit there.
Rudolph Dillman, who is employed IN
the Fire Marshal's office. told MI Lock
hart that he bought $3.50 cumulative
profit sharing certificate" payable In ten
wears and that he was under the I'M
preston that MS INV
thereby.
Mr.. Dlllman said that he was Informed
by the recorder OF the State Insurance
Department that this year In It's cor
poration tax report the company certihe"
10 assets amounting 10 $1,000. lncludlhs
property at No. 1913 West both street. NO
2s7l Broadway, No. lS9 Claremont ave
nue and thirty-seven parcels Of land IN
Rrooklyn. Mr.. Dillman's informant toId
him. he said, that the equity OF the com
pany In almost every instance was eaten
up by mortgages.
The District Attorney found that In the
statement OF the company issued on De
cember 81. 1912, real estate made UP more
than half the assets. The statement
shows assets OF s2,359O67 60, the real estate
amounting 70 $3.50 s5S 81
A statement issued in behalf OF the
company yesterday includes the follow
Ing declaration. The company never
has done and never attempted TO DO an
insurance business
In the statement IL is said that the
company is prepared TO SUMMIT It's aHalFs
TO the fullest investigation and asks sus-
pension Of judgment until the invesuga-
ton is completed The question as to
whether II was conducting a banking
business II is said, is pending In the
Appellate Division of the Supreme Court.
and since the propriety Of It's Issuing
stock certificates in the old form has been
questioned no certificates in that form
have been issued.