The New York herald., 1922-01-12
HUGE sums IN FEES
KEPTFROM TENANTS
Three Municipal Judges In
vited to Tell Lockwood Body
Of Trial FOrfeits.
10 MEN KEEP COURT FULL
Harlem Landlords Behind IS,
Per Cent. Of Actions Tnvolv-
ing Millions, Says Clerk.

Investigation of the General Elec-
trio Company's alleged monopoly in
the manufacture and sale of incan-
descent bulbs by the Lockwood Iegis-
lativc committee gave way tempo
rarily yesterday to consideration OF
the accounting methods of the New
York Municipal Courts. Determine
ton Of the ownership OF large sums
OF money paid IN for jury trials by
tenants wp never received such ad-
judication was attempted.
Samuel Untermyer. counsel, and the
committee considered the revelations
about the courts so startling and the
Interpretation OF the law governing
the repayment OF deposits for jury
trials that never are held so unique in
the Seventh District Municipal Court
that the three Justices of that court.
John r Davies. Samson Friedlandef
and s. Clinton Crane-have been In.
vited to appear before the COMMITTEES
to-day.
John +. Burns. clerk of the court.
who testified under waiver OF i'm
nunity. said he had collected about sto.-
900 In payments OF So each by tenants
for jury trials. In hundreds OF cases
tenants OF one landlord pooled their in
tcrests and agreed to accept the decision
i'm one case. although each had paid a
deposit for jury trial.
Burns testified that, according 70 the
law as he learned Il from an examiner
I'm the office of David Hirshfield. Com
missioner OF Accounts. and by n ruling
of the three Justices OF the Seventh Dis
trict Court, the money deposited by ten
ants who did not get jury trials was pot
returned. His idea was that II belonged
to the city and he accordingly forwarded
II to the Comptroller on the disposition
Of u test case.
The committee instructed Mr.. Burns
TO hold any similar funds now in his GUS
tody pending an opinion from the Cor
poration Counsel.
Rent Money Draw. FER Cent.
Ownership Of interest money sccriing
on the far greater sums representing
rents paid into the court in cases under
litigation will be considered by the COM
mittee. Burns testified that In his dis
trict alone under the emergency rent
laws he had collected s1.s00.000 In rents
and had paid out s1.T00. 600. The money
was deposited In the Harlem branch OF
the Corn Exchange Bank. which allowed
interest at 2 per cent. on the average
daily balance.
Burns could not cay how much the In
tcrest totaled, but Il was not paid over
10 the Comptroller Burns explained he
had no right 10 pay Il over. Tic said
he had an idea the money belonSed 10
the landlords Tho interest money. he
said, remained IN the bank 20 his credit
in an account designated James Burns.
Rent Account" Tic told the committee
that Il was his purpose ito dispose OF
Il when this thing f. over.
Pressed as 70 what he meant the wit
meas said no intended to return to the
landlords the interest that had accrued
on the accumulated rents. His expiana-
ton OF how he proposed 70 do this inter-
ested the committee and revealed tnst
it IN Burns's belief that ten individual
landlords IN his district are responsible
for 7s per cent. OF litigation involving
81. 500. 900 rents. They appear again
and again. in hundreds ot cases. he said
and under different names through tito
transfers
Name. Out Nest Week.
"Can you give rs their names? We
want those ten men,, Assembly man
McWhinney demanded. while ripple OF
applause burst out from the audience.
most OF which. u was evident was from
tho Washington Heights section Burne
was instructed TO return p week from
to-day with the names OF the landlords.
the number of cases each was concerned
-