Evening journal., 1921-08-24
SELL S4OLOTS
Up TO $1,000
Newark Title Company's
Name Employed in Litera-
ture Shown at Inquiry
INVESTORS LOSE
THEIR CREDITS

That one Of the companies under
investigation in connection with land
fraud charges was assisted in its
deal by literature naming a title
guaranty company Of New Jersey
was brought out in the evidence sub
mitted in the John Doe proceedings
continued before Magistrate Francis
\. Mancuso.
James J. Wilson. Assistant District
Attorney. who is conducting the case
for the people. produced several wit
nesses whose savings bank deposits
had been drawn upon TO pay install
ments for New Jersey lots. Their
money had not been placed to their
credit by the real estate company
from whom they purchased the prop
erty. il was said. The company re-
fused to credit these sums because
its collectors had not turned in the
money, the witnesses declared.
Magistrate Mancuso asserted that
the lots which certain companies had
sold at prices ranging from 500 10
$1,000 were really worth not more
than $50. $50 or $40 each.
The title guaranty company en-
tered the case when a form letter
which had been used by one develop
ment company to further sale was
offered as an exhibit. At the head OF
the letter was the name of the Guar
antee Mortgage and Title Insurance
Company. with Offices in the Kinney
Building. Newark The letter in ques-
tion was dated July 21 and was
signed Charles II. Buck, secretary %
The president Of the company is An
drew Mclean. Whether this form
letter actually was issued by the
Guarantee Mortgage and Title Insur-
ance Company, or was used without
it's permission. will be investigated
The letter states that the company
shad examined the title to the prem
ises in New Market Heights and
south Plainfeld Heights, Middlesex
county. \. j., and to Grand View
Park and to Grand View Park An
mex. Union county. n. j.. and have
issued our guaranty Of title in favor
of the United Land Development
Company, Inc"
In the last paragraph OF the letter
this statement. which the Assistant
District Attorney characterized as a
'gratuitous piece Of information"
was made:
The United Land Development
Company, Inc. is the owner of sew
eral large developments in the state
OF New Jersey and has been client
of this Office for about two years. and
SO far as we know carries out its con-
tracts of sale as fast as they mature
Franceszka Borczynska, OF bS2
West Fifty-hfth street, one of the
w,tnosses. offered in evidence her
pass book with the Home Associates
Owners Of Property at Dundee Lake
Heights. Bergen county, n. j. with
ofices at 6s Park Row. IL was stated
recently the Offices Of the company
have been moved to West street
Two payments. one OF IS and an
other of s12. had not been credited
10 her. Mrs. Borczynska testified
When she demonstrated with rep
resentative of the company she was
told that their agent who collected
the mcney had not turned IL in. Mag
istrate Mancuso instructed the AS
sistant District Attorney 20 issue
subpoena againS this company and
ali others whose agents are known
10 have turned in collections Of in
staiments paid on real estate.
The method pursued by the real
estate companies TO interest purchas-
ers was TO send a representative 70
call. II the man or woman visited
did not agree to purchase a lot this
cali was followed by another, in
which the representative announced
to the man or woman that he or she
had won a lot free. Tho next ster
was to persuade the victim to go C
New Jersey and inspect the lot
which usually turned out TO be in ;
swamp or for some other reason un
desirable.
Then the real estate representative
suggested that the man or woman
pay $49.50 to record the deed Of tn
free lot and this lot would be ex
changed for one or two others cost
ing $500 or $1,000. as the case Nigh
be. this sum to be paid in install
ments.
When one-third OF the full amour
had been paid the owner could star
10 build a house The real estate rep
resentative offered TO arrange 70
this with "the cheapest builders 1
the city"