Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-17

witnesses had bought homes from the
Shapiro Arm, receiving no title, and
that months later B. r. Saul Co., who
had placed the blanket mortgages on
the various subdivisions, had made de-
n1and for payment Of q second trust.
the existence of which was unknown TO
the property owner.
The early witnesses heard today were
Mrs. Minnie W., Reed, 1884 Irving
street, Mrs. william j. Slattery, 1922
Otis street northeast; Howard N.
Carter 400 Marietta place; Clarence
M. Hughes, 1925 Eighteenth street
northeast; Mrs. Mildred Haste. 3615
Eighteenth street northeast, and Horace
w. Hu1linger. 40l Madison street.
The transaction In which they were
foreclosure proceedings having been
threatened and in some instances
started after demand had been made
for payment Of the blanket trust, which
amounted to considerable sums in some
cases.
Not Told, Say Witnesses.
In each case the witness testified that
he had not been informed by the
Shapiro firm at time of settlement of
the existence of an additional trust
on the property purchased.
A large number Of real estate opera
tors, bankers and others, some OF whom
may be called as witnesses by Mr..
BrinkmAn, were interested spectators
during the committee session today. At
the outset it was indicated that the
investigation Of the committee would
be Of sweeping nature.
Witnesses AS Victims"
When Senator Blaine called the hear
ing to order, he announced that the
committee would start with witnesses
With this matter of mortgages" not
as principals, he explained, but 'aS vic
Tins" Later during the hearing he In
ouired of Mr.. Brinkman If there were
any relation between the Shapiro and
the Saul firms. He replied that ap-
parently the Saul company held trust
on property sold by the Shapiro firm.
Reed, who In June, 1928, had purchased
from Shapiro for $13,950 her residence
ct 1884 Irving street. Although in
formed by the Shapiro firm at the
time of settlement that no other trust
existed except the two that she as
sumed. she learned a year later of the
existence of third trust Of $4,000.
Mrs. Reed testified she secured q re-
lease from this trust through the Fed
eral-American National Bank in April,
1880.
But the deed was in existence when
you were told 1t was not" asked Senator
Vandenberg of Michigan, one of the
committee members.
She replied that that was so.
Mrs. Reed testified that four or Ave
houses in her neighborhood had been
sold or auctioned to meet the payments
Of these hitherto undisclosed mortgages.
avn
had and others got disguised and quit,
she said.
Informed by Firm.
In Mrs. Reeds case, as with other
witnesses. the existence of the addl-
tional mortgage was learned when they
went to B. +. Saul Co. to renew their
first trusts.
Mrs. Reed testified she had asked
Shapiro for a title, but had never re-
ceived q certificate.
At this point Rufus s. Lusk, executive
secretary of the Operative Builders AS
ISOLATION. sought to question the wit
ness, but Senator Blaine objected. Lusk
insisted he wanted merely to 60 into
the ordinary questions involving the
purchase Of houses. He explained later
that he wished to bring out that in
each of these cases being heard by the
committee the purchaser had not In
sisted or taken the trouble to obtain a
title or have their titles searched by a
regular title company:
Senator Blaine said the committee
intended to examine the officers of the
firms and ask them to sign a waiver of
immunity and that all these questions
would be gone into in an orderly man
ner.
same experience, discovering the exist
ence Of o $3.50 deed Of trust when she
had gone to the Saul Co. to renew her
first trust on 1922 Otis street northeast.
She testified she knew of no other
mortgage when she made settlement
With the Shapiro Co.
Holder Of Trust.
The Real Estate Mortgage a. Guar
antee Corporation held the trust, Mrs.
SIattery testified, and later notified her
that 1t had been paid.
"Sie didn't say who had paid and
explained that 1t didn't make any dif-
ference to me-" she said. The deed OF
trust was dated in October, 1925, and
she purchased her house In November,
1927, assuming q FIRST trust Of $4,000