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CO-OP OWNERS REFUSED LIST OF BONDHOLDERS Bank Receiver Smiles at Court Ruling. BY AL CHASE. Citing a recent decision of Circuit Court Judge Philip J. Finnegan that an equity owner has a right to know whom he owes, the twenty-one tenant owners of the Essex cooperative apartment building at the northeast corner of 76th street and Essex ave. nue, asked H. C. Vernon, receiver of the Woodlawn Trust and Savings bank, for list of bondholders. This was refused by Mr. Vernon who stated that it would be turned over to a bondholders protective committee composed of himself, the forfer president and two former directors of the closed bank. None of these, It is claimed, own any Essex bonds. The full amount of interest due on June 20 on the outstanding bonds, or $2,748. was on deposit in the Woodlawn Trust and Savings bank ready for payment when that institution closed. Wishing to preserve its equity, the tenant owners, organized as the Essex Building corporation, whose stockholders are the tenant owners, raised additional funds to meet interest payments. Cash Ready for Interest. Burke F. Ward, one of the tenant owners and secretary of the Essex corporation, announces that funds are now on deposit at the Northern Trust company and bondholders may obtain payment by application at his office at 2602 East 75th street. Mr. Ward, when asking Mr. Vernon, as receiver, for the bondholders' list in order to notify the owners of the bonds that cash was on hand for interest payments, told of the Judge Finnegan decision which ordered the receiver of the Depositors State bank to turn over list of bondholders to the equity owner. Mr. Vernon said that was ridieulous no such decision had been made or would be made," said Mr. Ward. His comment was: We've beaten a number of such cases.' I persisted that my information was based on fact. Dares Him to Try. His anewsr was: If you're so sure. why don't you get an attorney and try and get the list explained that was just what I was trying to avoid, expense, so that we might continue to pay our inter est, taxes and other running expenses: that had no desire to run up needless bills that in the end would only force us into foreclosure Mr. Ward stated that since the building was built the corporation has paid $6,400 annually on the principal: also interest, taxes, repairs, and all current expenses. The original mort gage of $130,000 has been reduced to $31,600. This was due in June, 1932 We fully expect to be able to re finance the building on favorable terms and we're anxious to save possible $7,000 or $8,000 expense on a bondholders' committee so that such an amount could be used for further amortization of the bonds and pay ment of taxes," said Mr. Ward. Taxes All Paid. Following is financial statement of the Essex for twelve months ending Jan. 1, 1932: INCOME From assessments Jan. 1931. to Jan. $21,051 Interest paid Taxes, paid full. coal decorating and all other expenses 4.470 Total expenses $13.791 Prepayments made on loan 6,400 Total Cash on hand Jan. 1. 1932 860 feel that the directors of the corporation. all responsible business and professional men, are entirely capable of being an officto bond. holders' committee to work out the present difficulties which were in no way the fault of the company," said Mr. The Essex was financed originally by the Woodlawn Trust and Savings bank. The directors of the Essex Building corporation are: Cecil W. Judd, president: Andrew Todd, treasurer; Burke F. Ward, secretary; James Fox and Herbert Miller.
