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RECEIVERSHIP Decreed For Straus. Court Conditionally Enjoins Security Sales, Sponsored By Real Estate And Bond Scores Alleged Misrepresentation. New York, October Supreme Court Justice Alfred today would appoint shortly Straus large real In granting Court selected take the conallied with tion and conduct the business liquidated. Justice Norton also granted sale further the unless the buyers given and true informastatus of estate security upon which they are based. Regulate Further This requested the in effect the regulate further bond The Government charged that the bonds property which there default. The comdenied President Straus issued the following regarding Justice Norton's "Insofar the tices the Attor ever untarily discontinued by them than 18 the will promptly vigorously and that appeal the action the will "Holders Co., should their ings their real value. temporary not adversely af fect their interests. not involve W. Straus Co., Illinois cor poration: Co., California corporation: the Straus National Bank and Trust W. Straus Investing Corporation. UNITED PRESS) Joseph Lazarus. assistant to BenStraus firm's and reprehenHe alleged that salesmen the house were given bonuses inducing take issues default, bonds were sold properties whereon taxes and terest unpaid, without knowledge the purchaser, and that represented the house first mortgage institution were backed by second, third and fourth mortgages. Climax Months Of Effort. The state's proceedings against Straus ried the late summer and early Deputy who the initial asserted that worth Straus bonds were default that he had who had asserted they had lost $500,000 bonds Justice ruled in am fully recbefore that the defendants permitted unsuspecting public the so-called Straus bonds' the belief that the defendant, W. Straus Co., issuing same direct obligation and consequence was responsible for the payment thereof. "After defendants' many years intensive advertising the they issued tate mortgage bonds which liens every can readily be heterpublic might well be led into believing that tually bond mortgages, when in fact the securities received junior Claim Defaulted Bonds "A further charge made since January 1928, these fendants hundreds of thousands dollars, perhaps aggregate of millions dollars, real estate bonds to the public time faults the and principle the payment gaged property. bonds in standing the time the sale to the public. "It tragical, to say the least, to the practices gaged in by the defendants with the faith set forth the particular issued by the defendants. "Defendants maintain injunction should be denied. since they are using their energies aid the holders in the organization of defaulted property. No doubt these efforts mendable evidencing partial and subsequent however, do not falling within the of the proscription The one the oldest the Fifth founded 1882. Simon Straus, the founder, the originator mortgage bond plan, which enabled participation the small investor major estate operations.