New-York tribune., 1922-03-25
Sunshinefione
Builder Insists
Firm Is Square
Simon Lake, Inventor, Says
the Lack Of Ready Money
Has Cause Delay in
Fulfilling Of Contracts
Four at $500 Ready
Prosecutor Considers IN
quiry After Receiving
Complaints From Buyers

Lack of ready money, which has de
layed the production program Of the
Sunshine Homes and Cement Products
Company, is the single difficulty which
hampers the plans Of that organization
to make and sell suburban residences
at 1900 each.
This was the declaration yesterday
Of Simon Lake, inventor Of the even
keel submarine and, incidentally, OF
the Sunshine Home, whose venture re
Gently has been under fire because Of
alleged failure of the company to keep
its word to home buyers who are said
to have paid in more than $135,00
without a return. Miss Julia Alice
Gainey, Assistant District Attorney Of
Bronx County has received twelve com
plants against the company, and is
considering grand jury investigation
into its activities.
Mr.. Lake, one Of the most famous
Of American inventors and specialist
in submarine engineering. recited the
history Of the Sunshine Homes Com
psny in his Office, which also is the
Office Of the Sunshine Homes organiza-
ton, at % West Forty-thirG Street. The
inventor stoutiy maintained that his
company had all along acted with the
best Of intentions, actuated by the
finest ideals, and was still carrying out
its original plans des signed to relieve
the shortage Of moderate priced homes
for working men. Under capitalization
and tight money market, he said. had
only delayed the work. The company
would shortly, he declared, be in bet
ter position than it had ever been to
fulfill It's contracts and completely
eliminate the housing problem for
people Of paratively small incomes
Received $500 Inquiries
we saw" he declared, that we
would require more money than We
were able to raise between US 10 finance
our plant and necessary initial eS-
penditure. Therefore we contracted
last spring with certain individuals
who undertook to raise the necessary
funds to enable US to manufacture on a
large scale After the display Of our
models at the own 7 our Home EXhibi-
ton we received personal inquiries
from $500 people who wanted to buy
homes from US, and we received LOO
more inquiries through the mails.
"Acting on the belief that our con-
tract for financial support would be
carried out we went ahead with our
plans to manufacture, organize a sell
ing staff, and began TO take orders for
our houses. One Of our homes. manu-
featured at our plant at Stratford,
Conn, was delivered last fall, and We
have four more ready for delivery now.
Meanwhile I myself put $134,000 into
the enterprise, and Robert c. Laferty,
an architect, put up several thousands
Of his own money. None of the officers
of the company has received any sal
airy. Our whole effort was concentrated
on what we believed and still believe
to be practical and economical solu-
tion Of the housing problem.
Plans Went Wrong
unfortunately our financial plans
went wrong. The persons who had con
tracted to get the necessary capital
for us failed to make good, and We
were compelled to suspend operations
last January. Since then we have tax
en- no other new contracts. We have
resold for several clients contracts
previously entered into for the supply
OF homes, but we have made no new
sales.
Sunshine Homes are manufactured.
not built, in units, each of which