The New York herald., 1922-01-21
Owner Who Served a Vice
Sentence Admits Endless
Chain of Titles.
SMALL CASH IN BIG DEALS
Lockwood Committee Counsel
Hears of lamps and Plans
to Sue General Electric.


yesterdays session of. the Lockwood
legislative committee on housing were
The expressed conclusion of Sam
uel Untermyer, chief counsel to the
committee, that the Justices of the
Municipal Court are being hood
winked on all sides by fake trans
fers and conveyances of properties,
through. which titles are juggled as
basis for rent gouging and black
jacking of tenants occupying the
cheaper class of apartment houses.
Announcement by Mr.. Untermyer
that. when the committee recon-
venes next Thursday he will outline
course of procedure against the
General Electric Company that may
involve both criminal and civil suits
growing out of the company's al
legged violations of the Federal de-
cree entered at Toledo in 1911, to
which tke company consented
Suspending this phase of the inquiry
Mr. Untermyer took up the charges OF
John +. Burns. chief clerk of the Sew
enth District Municipal Court. that ten
landlords, operating under various busi-
ness identities, were responsible for "a
per cent, or between 1900 and 10000, OF
the rent litigation cases that have been
started in that court during the last two
years When the examining lawyer fin
ished with two or three witnesses, In
cluding an attorney for one of the larg
est operators, the committee was of the
opinion that Mr.. Burnss estimates were
not far astray.
AS a result mainly of the examination
of Joseph II. Shenk 11s West 12oth street,
who admitted operating under an almost
endless string of corporate titles. and OF
other witnesses, the committee decided
to send a copy OF the record to Aaron
J. Levy, presiding Justice of the Munich
pal Court, at the same time directing
his attention to the facts.
Amazing Realty Operations.
Shenk. who two years ago served a
term on Blackwell's Island after being
convicted of leasing apartments for
s'disorderly purposes told an amazing
tale OF financial wizardry by which titles
were passed from one owner 10 an
other with an almost invariabe jacking
up of rents.
AS Mr.. Untermyer developed il from
the testimony, the practice for Shenk,
when he wanted rent increase from
any one of his hundred or more prop
critics, was to arrange for transfer of
title. lie testified concerning long list
of these transactions i'm which he re-
ceived comparatively small cash pay
ment and took a mortgage for the bal
ance. Sometimes the mortgages were Of
the second. third or even fourth class
variety: while in some Instances 1t was
shown that the new concern acquiring
the property got the money for its cash
payment from one or another of the So
called financial corporations In which It
was shown Shenk was interested.
One of these operations that interested
the committee particularly was the
transfer OF 90 parcels from the Shenk
Realty and Construction Company.
(Which the witness said undertook no
construction TO the Ardmore Estates.
The deal involved about 5000. 900. about
100000 of which was represented by a
blanket mortgage. Shenk admitted that
ho owned the entire preferred stock
amounting to 500. 900 of the Ardmore Es-
tates. that the common stock OF an
equal amount was divided. but would
not admit his control of the corpora
ton. Mr.. Untermyer brought out, how
ever, that Jacob II. Schiff. of the law
firm of Morrison &: Schiff. 800 Broad
way, acted for both the buyer and seller
in this transaction and told Mr. Inter
myer he could see nothing uncthical In
the fact.
Shenk also admitted that he organized
tho Pennant Realty Company, without
any associates. TO take over his lease
of an apartment house at Broadway
and 15Sth street Ills reason, he frankly
admitted. was that he had made an
agreement with the owner to keep him
informed OF the rents he was receiving
from the stores on the ground floor OF
the building. BY transferring the
lease, he explained. he got out OF keep
ing that part OF the agreement.
shcnk's Vice Accuser Talks.
Frederick Ir. Within, secretary OF the
OF Fourteen. an organization
formed TO suppress commercialized vice.
which was largely responsible for
Shcnk's conviction aud prison term, pro-
duced the record OF that trial and de-
MED omphatically Shcnk's declaration
that he had been framed" IL was
Mr. Within told the COM
mttee. for the landlord to be convicted
on such q charge without prior knowl-
edge of conditions because the COM
mittee made It u rule to warn sus-
pected landlords.
This line OF inquiry showed that
S;henlS last year was lessee OF n build
'ns az Broadway and Fifty-third street
Tho place had been raided twice by tho
police, he said. and he wanted TO get
rid Of the lease, SO he had himself dis
Possessed.
Shcnk said he later arranged now
lease for the property in tho name Of
the Newton Estates, which in turn
oased to n firm known as Feinberg &
Levy. When asked by Mr. Untermyer
II he did not think IL was time he