New Britain herald., 1916-07-15
AMERICAN R. E. CO. l
 WAS IN DEEP HOLE
But That Did Not Stop It Paying
 $50 Day Salary

New York, July i5-The inquiry in
 to the affairs of the American Ttea
 Estate company took a new turn yes
 terday at the hearing before Georg
 c. Holt, sitting as a special master ir
 bankruptcy, in the Woolworth build 8
 ing. It was brought out that in d
 school text book used in New York , city public schools there was an exacW
 reproduction of coupons and bonds o& the bankrupt realty corporation J&
 Charles Wechsler, of No. 42 Broadwa NJ attorney for several creditors alsdM said teacher in the Wadleigh HjgrN school told pupils that the best install E. ment bonds obtainable were those (. 8
 the American Real Estate company& This message was to be delivered td#
 their parents, he said.
 Edward B. Boynton, president oA
 the company, was the witness yester
 day. He testified that the net loss of@
 the company at the end of 1914 wa E $414, 4,000, due to a poor real estatdH market He admitted that from 1911N
 to 1915 inclusive the company losses were about $5SO,000 on sales of prop-K
 erty, and that there was a loss everyS year except in 1911. when there was aN profit of $25,000. The loss in 191A
 was $21,321, he said, and in 1915 i4 was $29O,OOO. George w Wickersham, counsel for8 the receivers, questioned MT. Boynton# concerning the liabilities of the com ' pany. He said the surplus on thez books at the beginning of 1913 wasz $2,08S,S05, and that the surplus in F creased by January 1, 1914, to $2, 147, | 900. MT. Boynton also was questionedH l
 all officers of the company. He said5 | that a year after the salaries had beenH 1 raised they were cut because of thea | inactive state of the real estate rnar-s ket. Then MT wechsler produced a copv| 1 of a school text book entitled "Al l Complete Business Arithmetic" by1 George H. Van Tuyl, teacher of busi- | ness arithmetic in the High School of l Commerce. MT Wechsler turned to pages BAT, 34S and 349 on which were l reproduced photographs of coupons and bonds of the American Real Es- tate company.
 Do you know MT. Van Tuyl?" was asked.
 MT. Boynton said he did not know him.
 Was MT. Van Tuyl paid for in- serting these cuts in this book?" MT. Boynton said MT. Van Tuyl had not been paid and added he did
 not know the photographs were ln the | book until after it had been published | and put in his hands.
 Didn't you know that an instruc- | tor in the Wadleigh High school told the pupils that they should tell their parents that the best investment in | the world was an instalment bond '" | Wechsler asked. Didn't you know that this teacher told the students 1 that the best instalment bond was a l bond of the American Real Estate | company"
 The witness said he knew nothing about it. Later MT. Wechsler would
 not give the name of the teacher he alleged had so advised pupils. MT. Boynton testified that Richard | T. Lingley, formerly treasurer of the | company, resigned in April, 1915, ana
 was made consulting accountant at | the rate of $50 a day for every day he l worked Witness said his services | cost $5,S5O for one year.
 When the inquiry adjourned MT Holt said he would report to the fSo- | eral court sOon
 When the inquiry adjourned MT. Holt said he would report to the ted- l eral court soon.