Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-15
Misrepresentation in Sale
of Real Estate Claimed
by Witnesses.
HIDDEN TRUSTS SHOWN
LATER, OWNERS DECLARE
Assuring Papers and Deeds Fol.
lowed by Notice Of Another
Mortgage, Court Hears.

The Government today dug deeper
into the alleged hidden trust" scheme
Of the j. B. Shapiro Co.. realty and
building operators, by introducing a
mass of letters into evidence at the
District Supreme Court trial of Jacob
Shapiro, president of the former con-
Germ, charged with using the mails to
defraud.
witnesses, all purchasers of homes
| from the Shapiro company identified
the letters as having been received
through the mails by them and testi-
fed that many of the misSives assured
the purchasers that their properties
were only incumbered by FIRST and Sec
ond trusts, as stated in the deeds also
sent to them through the mails.
On direct examination, conducted by
Assistant District Attorney John W.
Fihelly, the witnesses testified that from
three months 10 two years after their
first transactions with the Shapiro Co.
and after they received the assuring
letters through the mails they were
notified by mortgage houses OF the
existence of an alleged hidden trust.
This trust became the second trust and
the. original second mortgage became
the third lien.
Describe Threats
They testified the mortgage in each
instance notified them that payments
on this trust were overdue and that UNI
less prompt action was taken fore
closure proceedings would result.
In denying this trust was hidden, Al
vim w. Newmyer, chief Of defense coun-
sci, in his outline to the jury of eight
men and four women last wednesday,
said 1t was merely a ground trust OF
500 900 on "a pieces OF property. The
Aafo he eoid had obtained a mo-
sition in this transaction With the mort
gagee which permitted him to release
the title on any one OF these homes
when he saw 1T.
The first witness today was Walter
S. Brisbee, purchaser of a home at
l718 Irving street from the Shapiro
Co. Mr.. FriSbee was a witness before
the Senate District subcommittee
which last year conducted an tnvesti-
CATION into the operations of the
Shapiro Co. and he also testified before
notified by the j. C.. Weldon Co, deal
ers in mortgages, that payment on
trust, which the witness CLASSIFIED as
a hidden trust, Of $4,000 was due.
Tells Of Visit to Firm.
He said he called on the Shapiro COM
pany and was assured by its officers
matter would be promptly Strengthened
out. He was called before the Senate
subcommittee and the grand jury, and
the day before the grand jury was ex-
pected to take up the Shapiro case, ne
said, he received a telephone call from
the Shapiro company. informing him
that everything had been taken care
Of" One month later, he said, he re-
ceived the certificate Of title to his
property.
Twelve exhibits, nine of which Mr..
Frisbee said he received through the
mails, were introduced into evidence,
as were letters received by Mrs. Daisy
B. Kelley, who testified she purchased
home from the defendant at 1908
Hobart street, and William j. Haste,
another home purchaser, at 36l5
Eighteenth street northeast.
Mrs. Minnie w. REED, purchaser OF
a home at 1874 Irving street, partially
identified the defendant, Shapiro, as
the man who informed her mot to
worry" after she had called at his
office upon receiving word from the al
lsged hidden trust mortgages that pay
ments were overdue.
The Government is expected to close
its case late today.