Evening star., 1931-06-18
SHAPIRO, ON STAND,
SAYS HE AMASSED.
$'2,OlO,0DD|N7 YEARS.
Started Building Houses Year
After He Graduated
at Age of 19.
BORROWED 1000 TO BUY
OFFICE, HE DECLARES
Prepares to Answer Charge of
Selling Property With Hid
den Trusts"

Jacob B. Shapiro, 30-year-old real
estate and building operator, today tcok
the witness stand in his own behalf at
his trial in District Supreme Court for
fraudulent use of the mails.
The charges grew out of an alleged
scheme by the defendant to induce
purchasers of real estate to buy prop
erty incumbered by hidden trust"
The defendant started his recital
after the defense introduced evidence
from a clerical assistant in Shapiros
cfflce, and from several character
witnesses to show the defendant was
honest in his real estate transactions.
Shapiro was expected to be the last
defense witness.
He said at the outset that he first
engaged in business here in 1919. after
graduating from George Washington
University at the age of 10. One year
later he started building houses, COM
pleting %, and started Is more. These
houses, he said. sold very rapidly.
In answer to queS ions by Alvin L.
Newmyer, Shapiro said he was pcnni-
less when he started in business. bor-
rowing 81 900 from a bank to buy
real estate Office. He recited how he
built houses during the next four years,
having a banner year in 1925. In 1926
he built 200 homes on Irving, Hobart
and Madison streets and Marietta
place.
Twenty-four of these homes are in
volved in this case. lie said ground
trusts were placed on this property to
aid in financing the project, and that
he released this trust in groups as the
property was sold.
Amassed S2,000.000.
Shapiro said that by 1927 his net for
tune had grown to approximately
$4,000, 900, of which a large amount was
in cash and the remainder in real
estate. During the early part of 1927,
however. he said the real estate market
here collapsed, causing heavy financial
losses on his part.
He also is expected to deny he in
structed Edwin Shelton, former settle
ment clerk in his Office, and Govern
ment witness, to tell suspicious home
purchasers that no ground trust existed
on their property. and also to deny any
fraudulent intent by sending property
deeds through the mails showing the
existence of only two trusts when, ac-
cording to Government testimony, the
homes also we're encountered by hidden
trusts.
Version Long Awaited.
The defendants testimony has long
been awaited. The operations Of his
Office first gained the limelight when
subcommittee of the Senate District
Committee conducted an investigation
last July and decided to turn the evi-
dence over to the United States at
torney.
Shapiro subsequently was indicted on
a charge of fraudulent intent. He OBJ
tot q Airnofnd Hyor5ipf after tho raSa
had been tried for several days in the
District Supreme Court last December
because of faultily constructed indict-
ment. He was reindicted later on the
mail fraud charge. Throughout all OF
these proceedings, Shapiro, now only
80 years old. has remained silent.
The first defense witness. Mrs. Mary
L. Taylor of 484 Maryland avenue
southwest, head bookkeeper and the
successor to Shelton as settlement clerk
of the company, resumed the stand at
the outset of today's proceedings. She
came laden with bundle of office files
to resume her testimony of yesterday
that she kept track of all trusts out
standing on Shapiro's properties. Mrs.
Taylor was first called by the Govern
ment to testify as to the routine work
she did in the defendants office.
The defense produced the letter writ
ten for Mr.. and Mrs. Howard M. Car
ter, purchaser of a home from the de-
fendant at 420 Marietta place. and
which Carter, in turn, submitted to
the United States attorney unsigned.
The letter purported to absolve the de-
fendant from any fraudulant intent in
selling Carter a home which had
so-called hidden trust on it. The let
ter was introduced in evidence several
days ago by the Government.
Admits Writing Letter.
The witness admitted writing the
letter. which was typed by her on plain
stationery, but she said she did so at
the instigation of Carter. so as to en-
able Carter to satisfy the B. F. Saul Co.,
mortgage of the ground, or hidden
trust that Shapiro had no objections to
Carter repurchasing his home, which
the Saul Co. had bought in because Of
default in payment of the so-called
ground trust.
q price reduction If he signed the letter,
and when he refused and kept the let
ter, the defendant belittled him, he said,
"for being so foolish" The letter was
drafted in an amateurish manner, and
on croSS-examination the witness ad-
mitted she had been a typist for sew
eral years, but the letter was only a
rough draft which she submitted to her
employer for his approval. She said she
did not recall, in answering a question
by Mr.. Fihelly, an alleged heated con-
versation between Carter and Maurice
Shapiro, brother OF the defendant, be-
cause Carter refused to sign, nor did
she remember any conversation taking
place between Carter and the defendant.
The witness identified a Christmas
card received by Shapiro from Mrs.
Daisy B. Kelley, bearing the usual
Yuletide greetings. The card was in
troduced by the defense to show that
property purchasers had no nl-feeling
against the defendant. On cross ex-
animation, the witness admitted the
card was received only a short time
after Shapiro had personally carried q
certificate of title on Mrs. Kelley's
home. 1708 Hobart street, to her. The
certificate, showed that ground trust
Of $4,000, of which she testified she had
no knowledge at the time she bought
the property, had been paid OF by the
defendant on December A. After Mrs.
TQvlor left the stand the defense calIed