New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-26
Loan Commissioner Acts
on Advice of Expert In
vestigatorS, He Says.
CONCERN CONTENDS
BUSINESS is SOUND
Laws Prohibitive Order to Local
COnditions-Many Small
Shareholders Here.

Hartford. Conn, June %. renewal
Of the license o. the American Real Es-
tate Company 70 do business in this
state was refused by John L. Dover,
State Building and Loan Commissioner,
to-day.
The commissioner says that he had
been investigating the affairs OF the
compapy for some time and had en-
nloved experts on the case. Denial OF
the license was the result Of their re-
mort. He refuses to make public any
evidence. Mr.. Dover has lodged his in
formation with Attorney General Hin
man. c,,.
;s New York concern, incorporated
under the laws of Rhode Island. ana
claims TO have assets Of S30.0OO,OOO.
Officers Of the State Banking Derort-
wont in this city said yesterday that
tbcrn was no question Of the soundness
~ tho American Real Estate Company.
though there is some doubt as to the
right Of the department 10 exercise SUI
pervision over it. Section Of the
state banking law was thought TO give
that power TO the department, but
decision in the Monaton Realty Com
many case has left the department in
doubt as to its exact status.
Owns Property Here.
The company has been in business IN
New York for twenty-seven years, ana
has titlo to some of the best properties
in New York. It has a comparatively
small amount of capital stock outstand-
ing. doing most OF It's financing through
the sale Of s per cent bonds. or these
there are almost s1aO0O,000 outstand-
ing. end the company has book sur
plus Of 81 .6l0,555, according to It's re-
port of January l, 1915.
It's bondholders are in the main per
sons of small means, such as school
teachers. clergymen and small trades
men. and il has never defaulted on an
interest payment. Some criticism has
been made from time to time because
the bonds are not secured, but in this
connection all of the advertising and
literature of the company makes that
statement in bold-faced type. It is the
sale of these bonds that is prohibited
in Connecticut until license is issued.
No attempt has been made to close the
Offices in that state.
As explained by the company the dif-
ficulty in Connecticut is purely local
and arises from the fact that the Build
ing and Loan Commissioner, whose office
ceased to exist on June l, has allowed
it to do business without a license
since June /, 1918, owing to the desire
of the Connecticut department to get
the decision of the New York Banking
Department as to whether or not it
came under the scope of such boards.
"The officials of the American Real
Estate Company state in connection
business in Connecticut by the Build
ing and Loan Commissioner that the
company has done business in the State
of Connecticut for more than twenty
years and that it has always met its
obligations promptly when due" reads
the formal statement issued yesterday.
"They state further that the company
is entirely solvent and that its net as
sets on January /, 1915, above mort
cages were 7,721 ,700.s3; that its total
liabilities were S14 ,160, 845.42, and that
it has capital stock and surplus above
every liability of s9,560,S55.41.
1.-THE Building and Loan Commits
sioner, whose term Of Office expires
June |. 1915, stated to the representa-
tivcs of the company at the time Of the
refusal to issue the license that IL was
for the year now ending and that he
expected the company would take an
appeal from his decision or that an ap-
plication would be made to his sue
cessor for a new license.
ain its annual statement the COM
pany publishes an appraisers certif-
cate made by such well known experts
in New York as Joseph P. Day, Edward
, L. King & Co., by Edward l.. King;
Pease & Gilman, by Lawrence B. Eli
man, president; F. Osborne Smith, J,
Romano Brown Company, by Charles