The Bridgeport evening farmer., 1916-04-21
REALTY FIRM IN COURTS FOLLOWING
 CONN. DECISION
Equity Suit Against Ameri- can Real Estate Company
 Results in Receivership.


 New York, April 21.-Judge Learn ed Hand. in the United States District Court yesterday, appointed ex-Judge Walter c. Noyes and Alfred D. Mar ling receivers for the American Real Estate Company, of 527 Fifth ave- nue, under a joint bond of $1O0,O0O, in an equity suit brought by Gin J.. Stephens, Inc. and Henry Schnl-tt, Jr. on behalf of the mortgage bondho1d- CTS. The company's holdings in Man haitian and The Bronx were appraised on January IS at $22, ,698, ,O0O. Robert T. Wood, of 527 Fifth avenue, attorney for the. defendant company, consented in writing to the receivers appoint ment. Cadwa1ader, Wickersham & | Taft, of 40 Wall street, are the attor- neys for the plaintiffs in the action. The receivers are authorized to hold, manage, and operate the defen- | dant's properties in this district, to in cur such expenses as may be neces-. sary in the management of the estates, to make all necessary purchases, and | attend to all other details in connec- | ton with the business of the com pany until further order of the Court. 1 The complaint alleges that the de- fendant owes $5,719.462 on 6 per cent. accumu1ative bonds and certificates, and $7,849,989 on per cent. coupon bonds and certificates. The holders of coupon bonds have the privilege of surrendering their. bonds on any cou-' pom date after the expiration of two years from the date of their issuance, and a large number, aggregating in excess, of S5,0O0,O0O became due and upayab1e at their face value with in terest last Tuesday.
 In an affidavit filed with the Court, Roderick Stephens, viceLpresident of l Olin J. Stephens, Inc, states that the iT7f17 of ia at this time to prevent the assets of 1 the defendant company from ping dis l sipated and that the intervention of ] the Court is necessary for the pro 1 lection of the bopdholders. He also asserts that it is necessary that the business be continued, in order that a fair price may be obtained upon the assets, and their value preserved. All of this is admitted in the answer of the defendant company, filed by Edward B- Boynton, president. The American Real Estate Company is incorporated under the laws of the State of Rhode Island.
 MT. Boynton said to-day that the action was precipitated to conserve the assets pending a reorganization. The creditors, MT. Boynton said, felt that 1 it would be wise to take such an act Ition at this time, on account of the l large withdrawals Of bonds which oc- 1 cured in the last few months. Ut l is not a question of Insolvency MT. IBoynton asserted. Hbut one of conser- Ivation.''
 In a statement Issued to-day, the board of directors announced that at a 1 meeting of the board yesterday, it was l resolved that under existing conditions 1.-the interests of the creditors and stockholders of the company would be l promoted by the appointment Of re- ceivers. This the statement says, I #"shouId conserve the very large and valuable assets of the company, and should enable it's financial affairs to be speedily reorganized upon sound and conservative basis, and it's assets | realized upon, and it's financial af- lfairs Hquidated as soon as the real estate market will permit
 The company has now outstanding more than $13.ooo,o00 of bonds, of which over $1,0O0,Ooo will mature within the coming twelve months and I in addition, over $11, 100000 of bonds can be made to mature at the election lof the holders within twelve months 1.-the directors assert
 The embarrassment of the company dates back from last June, at which time the Building and Loan Commis- l sioner of the State of Connecticut, five 1 days prior to abo1ishment of his office, I refused to renew the license of the I company to sell bonds in that State.
 
 4 over the duties of the Building and T Loan Commissioner declined to re- verse this decision, and the com mpany 1 then took the matter into the Superior Court at Hartford. the case still pend ing in the Court of Appeals.
 l This iss attributed as the cause for the withdrawing of bonds, which the company has paid off as quickly as presented, but the drain has been so steady as to interfere with it's busi- ness, the present receivership being l asked for with the view to prevent a sacrifice of the assets According to 1 the last annual statement of the com pany in January it had net assets az gregating $16,773,161 and capital I and surplus ofS$2 ,577,011, the total ap- praised value of its properties at the time being $24,627,745, against which there were mortgages aggregating $9,- 95297O In addition to $400,00O in I cash. the company had other sundry l assets totanng about $1,500,00O, rep Presenting mortgages owned. office equipment, etc.
 The principal realty possessions of the company include the Hendrick Hudson and Annex, eight and twelve story apartment houses covering the l block fronts on 10th street, Broad Iway. Riverside Drive; the Arena build ing on West 31st and 32 streets, the Mercantile building on West 21st St, a nine-story apartment house at 40 to 46 East 62d Street. Chester Hall; Are co Court apartments in the Bronx, and I the Park Hill apartments on Broad way. Yonkers In addition. to these the company owns the Park Hill res iidential development in Yonkers, the Watson and Mace estates near the new Bronx subway lines, and tract of l. 100 improved lots at the terminal of the Second Avenue line of the dual subway system in Astoria, Queens. Articles of incorporation were filed lat Indianapolis by the Roosevelt
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