92S 
RURAL  NEW-YORKER 
June  24,  101 *5. 
The  first  report  by  the  receivers  of  the 
American  Real  Estate  Co.  is  published 
under  date  of  June  1st,  1916.  It  shows 
the  following  figures  taken  from  the 
books  of  the  company  in  reference  to  the 
7-  al  estate  properties  held  by  the  com¬ 
pany  : 
Cost  . $17,788,209*9 
Book  value  .  24,845,700.12 
Assessed  value  .  18.488,580.00 
First  mortgages  .  0.509,205,00 
Second  mortgages  .  711.410.01 
Total  mortgages  .  10.250.051.01 
It  is  evident  that  the  $7,000,000  differ¬ 
ence  between  the  “cost’'  and  the  '‘book 
value”  was  due  to  an  op;;  i  m  by  some¬ 
one  that  the  property  v,;1s  worth  $7,000.- 
000  more  than  it  erst.  The  relation  be¬ 
tween  the  cost  value  and  the  assessed 
value  is  normal.  New  Yor,r  "on  -tv  is 
supposed  to  h“  assessed  up  to  its  full 
value,  but  practically  the  assessment  is 
a  little  less  than  the  selling  value, 
though  at  the  present  time,  under  the 
present  conditions  of  real  estate,  there  is 
a  large  part  of  the  property  in  the  city 
that  would  not  sell  at  the  assessed  value. 
For  the  last  two  years  city  property  sold 
at  foreclosure  invariably  goes  for  the 
mortgage  or  for  less.  Of  course,  proper¬ 
ties  in  different  sections  are  increasing 
or  depreciating  in  value,  according  to  lo¬ 
cation.  It  is  said  that  the  book  value  of 
these  properties  is  the  result  of  appraisal 
by  a  number  of  well-known  real  estate 
men.  On  the  other  hand,  if  is  asserted 
that  other  appraisers  have  estimated  the 
value  at  a  substantially  lower  figure  than 
the  estimate  given  here. 
According  to  this  appraisal,  the  equity 
in  the  properties  above  the  mortgage  is 
$14,595,145.11.  Against  this  there  are 
coupon  bonds  of  $7,484,198.91*.  accumu¬ 
lated  bonds  for  $5,609,885.74.  Roth 
classes  of  bonds  carry  interest  at  6%. 
The  interest  accrued  on  them  is  $247,- 
493.18.  These,  together  with  some  other 
fixed  items  amount  to  a  total  of  $1 4.006.- 
624.82.  so  that  if  the  real  estate  could 
be  Sold  promptly  at  its  book  value,  the 
equity  in  the  property  above  the  mort¬ 
gages  would  just  about  equal  the  obli¬ 
gations  in  bonds.  If  sold  at  what  it  cost, 
it  would  bring  $7,000,000  less.  The  cost 
of  selling,  however,  would  be  an  addition¬ 
al  l< iss  to  the  bondholders  in  either  case. 
The  books  show  mortgages,  securities, 
cash  on  hand,  accounts,  etc.,  in  personal 
property,  aggregating  a  trifle  over  $2.- 
000.000.  which  of  course  will  help  cover 
the  bondholders  in  the  value  of  the  prop¬ 
erty  under  the  book  value.  The  receiver, 
ho  tv  ever,  estimates  that  $600,000  of  this 
personal  item  should  be  set  aside  to  pro¬ 
vide  a  reserve  for  possible  shrinkages.  He 
nl-o  estimates  an  annual  deficit  of  $100.- 
00'*  in  the  operation  of  the  company.  His 
estimate  is  that  the  earnings  will  be  that 
much  less  than  the  fixed  expenses  and 
this  would  he  in  excess  of  the  adminis¬ 
trative  expense  of  the  receivership. 
A  list  of  the  properties  with  their  lo¬ 
cation  is  given  for  the  first  time,  and  a 
tabulated  statement  is  furnished,  show¬ 
ing  the  salaries  paid  executive  officers  for 
a  series  of  eight  years,  president  draw¬ 
ing  a  salary  from  $18,000  to  $25,000  an¬ 
nually,  and  a  total  running  from  $03,- 
000  in  1915  to  $127,000  for  1913. 
The  failure  was  inevitable  from  the 
first.  It  was  only  a  question  of  how 
long  the  officers  would  hold  out  on  a 
proposition  of  this  kind.  Tin-  company 
would  have  shown  a  deficit  and  been 
bankrupt  long  ago.  if  it  were  uot  for  giv¬ 
ing  the  properties  on  the  books  of  the 
company  value  in  excess  of  the  cost  of 
the  properties.  The  properties  were 
bought  for  the  most  part  subject  to  a 
mortgage  and  in  some  cases,  subject  to  a 
second  mortgage.  There  was  less  than 
$1,000,000  of  property  all  told  not  mort¬ 
gaged.  On  the  assumption  that  these 
properties  increased  in  value  after  be¬ 
ing  purchas'd,  the  company  appraised 
them  at  a  higher  value  on  their  books 
and  in  their  literature,  and  sold  bonds 
against  this  estimated  value  to  small  in¬ 
vestors  in  different  parts  of  the  country. 
It  maintained  agencies  in  different  cities 
outside  of  New  York,  for  the  purpose  of 
.selling  bonds.  These  agencies  were  sup¬ 
ported  at  considerable  expense,  and  other 
expense  in  the  sale  of  these  bonds  un¬ 
doubtedly  made  the  use  of  the  money 
come  high.  Whatever  it  was.  and  more 
too.  wall  now  come  out  of  the  bond¬ 
holders. 
The  company  carried  advertisements 
in  many  of  the  better  class  publications 
of  the  country.  The  advertisements 
were  carried  by  some  really  high-class 
publications.  It  was  offered  to  TriK 
Rural  New-Yorker  years  ago  and  re¬ 
fused.  It  did  not  seem  to  us  that  any  in¬ 
telligent  publisher,  familiar  with  the  oj>- 
e rations  of  the  company,  and  with  real 
estate  business  in  and  around  New  York, 
could  have  any  illusions  as  to  the  na¬ 
ture  of  the  business,  nor  any  misconcep¬ 
tion  as  to  the  final  loss  to  investors. 
Many  of  our  subscribers  were  can¬ 
vassed  by  the  agents  of  the  company  and 
solicited  to  buy  the  bonds,  the  allega¬ 
tion  being  that  they  wore  based  on  real 
estate.  We  tried  repeatedly  to  protect 
our  people  from  the  allurements,  and  we 
believe  that  for  the  most  part  we  suc¬ 
ceeded.  We  made  it  very  plain  from  the 
start  that  these  bonds  were  not  mort¬ 
gages  or  liens  on  real  estate,  but  simp’y 
notes  or  personal  obligations  of  the  com¬ 
pany.  We  do  not  refer  to  this  to  remind 
anybody  boastfully  of  our  record  in  re¬ 
gal'd  to  it.  The  facts  are  g:verv.  first, 
for  the  information  of  the  cred’tcrs,  and 
second,  in  the  hope  that  the  record  of 
their  experience  will  be  a  warning  to 
others  when  promoters  of  similar  schemes 
are  in  the  country  looking  fnr  invest¬ 
ment  victims. 
When  a  bunch  of  promoters  can  buy 
real  estate  and  borrow  $7,000,000  more 
than  it  cost,  some  one  must,  be  caught 
napping.  Of  course,  the  mortgage  money 
is  practically  safe :  but  the  $14,000,000 
borrowed  from  small  savers  on  a  mere 
promise  to  pay  it  back  will  necessarily 
show  a  heavy  loss  if  it  is  not  wiped 
out  entirely. 
In  the  meantime,  people  who  bought 
stock,  relying  on  the  representations  of 
publishers  that  guarantee  their  adver¬ 
tisers.  would  do  well  to  put  in  an  early 
claim. 
I  enclose  au  advertisement  of  the  South 
American  Land  and  Cattle  Company, 
1328  Broadway.  Now  York  City,  that 
appeared  in  our  local  paper,  and  would 
like  to  get  some  information  in  regard 
to  it.  They  are  asking  people  to  write 
for  prospectus,  etc.,  but  I  have  been  too 
busy  to  look  into  the  matter.  It  all  looks 
big  on  paper,  and  may  be  the  veal  thing 
to  get  rtch  on  for  somebody.  I  believe 
This  “Tex”  Rickard  is,  or  lias  been,  a 
promoter  of  prize  fights  in  different  parts 
of  the  world,  G.  0.  C. 
Connecticut. 
The  advertisement  states  that  the 
South  American  Land  and  Cattle  Co. 
own  325.000  acres  of  land,  presumably 
in  South  America.  The  company  is  cap¬ 
italized  at  $2,000,000,  par  value  of  $100 
per  share.  A  limited  amount  of  the  stock 
is  offered  at  75  cents  per  share.  And  Tex 
Rickard  personally  guarantees  it  a 
sound  investment.  Ilie  fails  to  show 
whether  his  “guarantee”  is  good  for  any¬ 
thing  or  not.  We  suspect  not.  Broad¬ 
way  is  a  fine  location  for  cattb-  ranch¬ 
ers — some  of  the  hog  rancho  schemes 
were  promoted  from  that  locality  a  year 
or  more  ago.  This  proposition  has  all 
the  get-rich-quick  earmarks  of  the  hog 
scheme.  Leave  it  alone  and  refuse  to 
read  papers  carrying  advertising  de¬ 
signed  to  separate  inexperienced  people 
from  their  savings  on  schemes  of  this 
kind. 
Enclosed  find  a  catalogue  from  the 
35%  Auto  Supply  Co.  of  86  Chambers 
Street.  New  York.  Is  this  the  same  com¬ 
pany  that  did  business  at.  I  think.  4> 
Dunne  Street,  last  year?  I  had  unsat¬ 
isfactory  dealings  with  that  company.  I 
bought  au  inner  tube  from  them  that 
was  so  rotten  you  could  tear  it.  but  they 
claimed  it  was  a  perfect  tube  and  would 
make  no  adjustment.  Please  note  care¬ 
fully  the  reading  blotted  out  on  the  front 
cover,  w.  j.  g.  • 
Now  York. 
We  understand  this  concern  is  a  re¬ 
organization  of  the  original  35 %  Auto 
Supply  Co.  which  failed.  The  very  name 
of  the  concern  is  deceptive — the  infer¬ 
ence  the  name  is  intended  to  give  the 
public  is  that  automobile  accessories  can 
be  purchased  at  this  house  at  35%  of 
the  regular  prices.  This  of  course  is  riot 
true.  Tn  the  matter  of  tires  and  tubes 
the  experience  of  most  people,  patroniz¬ 
ing  these  cut  price  houses,  is  similar  t<> 
that  of  W.  ,T.  G,  The  quality  can  only 
be  determined  by  use.  and  the  only  safe 
course  is  to  purchase  standard  makes  of 
tubes  aud  tires.  Then  the  purchaser  has 
the  assurance  of  service  in  the  guarantee 
of  a  reliable  house. 
r< 
A  WET  HARVEST— 
Or  hot  and  dry  weathe  need  cause  you 
no  worry  if  your  grain  and  corn  binders 
are  equipped  with  the  one  reliable  All 
Purpose  and  Binder  Engine  which  will 
save  its  cost  in  one  season. 
uGoz&A*»GoEr$  Rtetr rw 
It  has  advantages  not  offered  by  any 
other  such  aa  light  weight,  compactness 
of  design,  and  high  grade  construction. 
We  can  furnish  attachments  for  mount¬ 
ing  engine  on  any  make  of  corn  or  grain 
binders.  Thia engine  has  proved  its  merit 
under  actual  teat  in  all  conditions  and  is 
an  acknowledged  saver  of  horse  flesh. 
Write  for  This 
Big  Free  Golden  Harvest  folder  giving 
val uable  information  to  every  f arm er  who 
has  use  for  farm  power.  You  can't  afford 
to  min  ill  Write  for  it  today. 
WrnfM 
Motor  Company 
Lansing 
Michigan 
10  Hale  Street 
FULLER  &  JOHNSON 
FARM  PUMP  ENGINE 
On  the  job  is  surecelief  in  dry  weather, 
Preventsloss  to  your  stock  caused  by  I 
lack  of  sufficient  water. 
The  original  Farm  Pump  Engine  | 
endorsed  by  thousands  of  users 
over  the  world. 
This  is  the  Engine  con¬ 
ceded  by  everyone  to  be 
the  greatest  and  most  sat¬ 
isfactory  pumping  engine 
made. 
Our  illustrated  booklet 
•8  valuable  to  every 
farmer.  It  tells  how  to 
supply  your  farm  with 
plenty  of  water  and  con¬ 
tains  many  other  things 
you  will  be  glad  to  know 
about. 
Send  for  it — it’s  free. 
Fuller  &  Johnson  Mfg.  Cci? 
Eat.  ISM. 
60  Rowe  51.,  Madison,  Wis. 
Fleece  Wools 
Gel  our  prices  before  selling-  Wrile  us.  slating  the 
quantity  you  have,  with  the  grade,  and  we  will  quote 
you  price  delivered  on  caisyour  shipping  point. 
H.  A.  PERKINS  &  CO.,  Wool  Merchants 
8  Railroad  Row,  White  River  Junction,  Vt. 
THE  FRONT  t hat  gave 
GRIFFIN  SILO  FAME 
Conti  minus  Open  burn  front.  Per- 
iniiiH’iit  Steel  Ladder  Attached. 
Size  8.VJI)  .  .  .  .  S  80.00 
••10x34  .  .  .  .  116.W 
"  12  x  .  .  .  .  ltti.UO 
Other  Sizes  in  proportion  bis- 
count*  to  Agents. 
GRIFFIN  LUMBER  CO¬ 
BOX  1  1  -  -  HUDSON  FALLS.  N.  Y. 
When  you  write  advertisers  mention 
The  Rural  New-Yorker  and  you'll  get 
a  quick  reply  and  a  "square  deal."  See 
guarantee  editorial  page. 
BARNS  and  SILOS 
Our  Specialties 
Wn  ran  parts  you  money  on  any  building 
material  you  nitty  require.  We  can  ship 
direct  from  our  mills  or  from  our  supply  here. 
We  have  been  manufacturing  silos  for  12 
years.  We  can  give  you  low  prices  on  early 
orders  and  one  of  the  best  silos  on  the  market. 
Ask  for  free  Catalogue 
and  wholesale  prices 
ENTERPRISE  LUMBER  &  SILO  CO. 
North  Tonawanda  New  York 
TRIPL^WALLCH  fl 
FROST-PROOF  ylLU 
i  lire*  walla,  insivail  of  l lie  usual  one,  make 
this  ?ilo  air  tig-lit,  frost  and  irittci*  proof  , 
Preserves  silage  perfectly.  Require#  no 
hoopf.  Costs  no  mor*»  than  single  watt  silos. 
Most  ciurtxhl**.  Guamutccd.  M«in>  nan  .fled  uwM 
Send  postal  for  c*tulo*:.  Arlitt  Agrutm  Wanted. 
\V .  I..  Scott  l.muber  t’o.. 
Box  110  Norwich,  N.  V. 
Attests  Unadilla  Superiority 
,  -  —  .  •• rw  %■ 
The  practical  construction  of  Unadilla  Silos  from 
best  materials  met  the  approval  of  H.  V.  Hood  Jb 
Sona  and  lwi>  wen;  installed  on  their  famous  Cherry 
Hill  Farm,  Beverly,  Mass.  Sixteen  Uuadilias  erected 
on  N.  V.  State  Agr.  Farm  within  five  years.  Every 
Borden  Experiment  Farm  has  Its  Unadilla.  IT.  S. 
Govt,  uaea  several  and  scores  of  county  farms  from 
Maine  to  Mexico.  The  Unadilla  works  wonders  with 
cornstalks.  Write  today  for  catalog,  prices  and 
terms. 
UNADILLA  SILO  CO..  B0XC,  UNADILLA.  N.  Y. 
Give  It  a  Mold-Proof  Cut 
If  yon  are  feeding  dairy  cows  or  fat  stock,  by 
all  means  get  our  booklet  on  Si  I  vwrized  Silage 
Know  the  money-making  mason*  why  coni  cut 
in  Silver’s  “Ohm”  mokes  better  silage— packs 
air-tight  in  the  silo—  properly  ferments- con¬ 
tains  greater  food  value  for  stock  Write  us 
—today- for  honk  telling  all  about  it  and  the 
unbeatable  construction  of 
Silver's  “Ohio” 
The  Lexical  Silo  Filler 
Backed  by  *12  years’ manufacturing  experience. 
The  big  leader — uacd  by  most  of  the  Experi¬ 
ment.  StaMnua  and  Colleges.  Famous  features. 
Automatic  beater  feed— spring-proof  knives, 
direct  drive— friction  reverse,  single  lever  con¬ 
trol  low  speed  cxplosion-prOof  blower  far. 
enormous  capacity  on  fine  cut.  7  sizes— 40  to 
300  tons  a  day.  4  b.  p.  gas  to  b-.g  tractor 
power.  Book  FREE.  Write  today. 
Appleton 
Silo  Filler 
Actual  records  prove  that  Appleton 
Silo  Fillers  cost  the  least 
per  ton  of  silage  put  up  or  per  year  of  life.  Tremendous¬ 
ly  strong  construction  makes  an  Appleton  practically 
proof  against,  breakdown.  Solid  oak  and  steel  frame, 
mortised, braced  and  bolted;  jmpo6slbleto  pull  outol  line. 
Many  exclusive  power  and  labor  saving  features,  such 
as  independent  belt  driven  blower  allowing  speed  to  be 
adjusted  (or  minimum  use  of  power  for  uny  height  silo; 
frictionlee8  feed  table  running  on  chilled  Iron  rollers; 
knives  spiraled  to  give  clean  shearing  cut,  requiring 
least  use  of  power.  tlOlengtbs  of  cut,  b-ll»  to  inches  ) 
Lowdowu  cut-under  frame,  easy  to  handle.  Both  feed 
rolls  and  table  controlled  by  single  lever.  Positive 
self-working  safely  device. 
Two  Book*  Free:  One  on  silo  building  and  silage  crops; 
the  other  a  complete  catalog  of  Appleton  Silo  Fillers 
in  four  sizes  for  4  h.  p.  gasoline  engines  aud  up.  Write 
Appleton  Mfg.  Co.,  427  Fargo  Street,  Batavia,  UL 
Guaranteed  to  do 
more  and  better  work 
wjith  less  power  than 
any  other  silo  filler. 
