People v. S. W. Straus & Co.

Harry A. Gordon,

Referee.* S. W. Straus & Co., Inc., a domestic corporation, was engaged in the business of underwriting and selling to the public serial bonds, secured by real estate mortgages. On November 15, 1917, it underwrote for Rockwood & Co. a series of 1,035 six per cent coupon bonds, in denominations of $100, $500 and $1,000, aggregating $650,000, balance of principal payable in ten years, with privilege of earlier payment. To secure the payment of these bonds, it made a mortgage to Simon W. Straus as. trustee. Under the terms of the mortgage Rockwood & Co. agreed to deposit with S.…