New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-05
ADVISES FRAUD
ORDER ISSUANCE
Postoffce Solicitor Re-
ports on Real Estate
Prize Scheme.

J. J. Switzerland. acting solicitor OF
the Postofiice Department, mas SUD
mitted a report TO the Postmaster Cen
eral Of an investigation Of charges al
leging fraudulent use Of the mails
against the James Realty Company OF
this city.
Il find this is a scheme for obtain
ing money through the mails by means
of false and fraudulent pretences, rep
reservations and promises, in violation
Of Sections 1929 and 4,04l OF the Re-
vised Statutes as amended. and there
fore recommend the issuance Of fraud
order against the name contained IN
the caption Of this memorandum" the
report ends.
According 20 evidence obtained
through Mr.. Sutherland this company
was Incorporated under the laws of the
State of New York in December, 1906.
Its capital stock is $500, divided into
fifty shares, the par value Of which Is
$40 per share. OF this stock James
Bottenus, the president Of the com
pany, is the holder Of forty-ive shares.
The business of the company is sell
ing lots on two tracts of land known as
Bound Brook Manor" and Grand
View" in the vicinity Of Somerviile,
y. J. To attract buyers the company
inserted IN various newspapers OF gem
eral circulation an advertisement con-
tanning a figure puzzle, OF which the
two nearest correct answers we're each
20 receive one lot free at Someryille.
This puzzle consisted Of three figures
on three lines, and the contestants
were asked TO arrange numbers IN each
row so that the total of each would DO
fifteen. Answers were TO be sent to tho
James Realty Company, at 2095 Web
ster av., The Bronx.
Persons who answered the advertise
ment were later visited by repre-
sentative of the company and informed
that their answers were correct, but
that the City Council az Someville had
passed an ordinance making II impos-
slble 10 build upon a lot OF the size of
that TO be awarded as a prize. The
prize lot was therefore worthless I'M
less an additional lot of similar d.
mansions and adjacent thereto was
purchased. This lot could be bought
for 500, payable in instruments of 50
| down and 81 weekly. The extra lot was
supposed TO be worth from $500 TO $500,
and was supposedly sold for $50 be-
cause the prospective purchaser had
| solved the puzzle. The purchaser was
asked TO agree 10 allow the use OF his
name for advertising purposes.
! A blue print showing lots laid out on
/ street., avenues, bouleyards and park
ways was sent TO prospective purchas-
ers while negotiations for sales were
I going on. II a sale was made the
weekly instalment of 81 was RENTED
to the company through the mails
According to Mr. Southerland's re-
| port the representations we're false
| and fraudulent. He declares that $50
more than covered the value OF the lot
/ offered as a prize and the additional
one offered for sale. He says that the
| streets, avenues, boulevards and park
ways referred TO were not laid out "a
/ indicated by the blueprint. and were
| not within walking distance OF the
1 railroad at Somerville,. as represented,
| but were situated from three 10 hye
miles therefrom. They were sold from
tracts of poor land, Of little II any
value, of which part was low and
swampy.
On November 20, 1914, the James
| Realty Company was charged with con-
/ Quoting a scheme for obtaining monef
/ through the mails by means Of fraudu.
| lent pretences. On request OF counsa
| for the company a continuance was
granted until December 10, 1914. An
answer was filed TO the charges con
| tanned in the citation, but the re-
| spondent failed to appear at the hear
ing and defend either in person or by
attorney