A Businessmen’s Council has been formed, it was learned yesterday, to take charge of the affairs of the Palestine Securities, Inc., an agency created by the Zionist Organization of America several years ago for the purpose of selling in the United States mortgage bonds of the General Mortgage Bank of Palestine. Joseph J. Back, banker and chairman of the West Side Division of the United Palestine Appeal, is chairman of the Council. The other members of the Council are: Abraham Liebovitz, Norvin R. Lindheim, N. I. Stone, M. M. Teicher, I. D. Morrison, Jacob Goell, Dr. A. J. Rongy and A. T. Thomson.
A complete reorganization of the Palestine Securities, Inc., is to take place soon. The company is to be capitalized at $250,000. Sixteen thousand five hundred dollars have already been subscribed. The company was previously capitalized at $4,000, it was stated.
Mr. Bach, when interviewed yesterday by the representative of the “Jewish Daily Bulletin”, confirmed this report. The action was taken at the suggestion of Dr. Chaim Weizmann and Dr. Georg Halperin.
“Our plan,” Mr. Bach stated, “is to help the Palestinian cause as businessmen. We feel that our largest opportunity for aid lies in the providing of a market in the U. S. for the sale of mortgages on Jewish property in Palestine. These mortgages, which we propose to sell, are guaranteed by the Mortgage Bank of Palestine, which has a capital of $250,000, and will yield interest at 6 1/2%.”
“The personnel in charge of the Palestine Securities is to be entirely changed, all the former officials having handed in their resignations. The company is to undergo a complete change of policy and will organize on a much larger scale.
“The Business Men’s Council for Palestine,” Mr. Bach said, “feels that the Palestine Securities is a money-making proposition and our aim will be to stress this point above all others. We do not intend to sell bonds merely to those who are interested in Zionism, but are planning to make a nation-wide sale based on the fact that these mortgage bonds are a real investment for all classes of people.”
Mr. Bach stated that the reorganized company will have no affiliations with the Palestine Foundation Fund or the Zionist Organization. “We are going to sell to the general public, to all intested in just one fact, whether or not the investment is secure. The bonds will range from $50 up. The capitalization of the company will be undertaken by business men who are interested in Palestine.
“Loans in Palestine are made in such a way as to make these mortgage bonds absolutely secure in every manner, for only the value of the improvements on the property are taken into consideration there, and then only a loan up to 60% is allowed.
“The Board of Directors of this company is to be composed only of men who themselves have invested largely in the mortgage bonds. Another radical change in policy is our decision not to be mere brokers for the General Mortgage Bank as was the Palestine Securities until now, but to buy the mortgage bonds outright.”
Mr. Bach has already invested $10,000 in the reorganized Palestine Securities. Among the other investors are: Jacob Goell, $3,000; Eugene Schoen, $2,500 and Nahum Stone, $1,000. The Business Men’s Council includes besides Mr. Bach, Abraham Liebowitz, Norvin R. Lindheim, N. I. Stone, M. M. Teicher, I. D. Morrison, Jacob Goell, Dr. A. J. Rongy, A. T. Thomson and A. M. Stavisky.
The reorganization of the company is now under way and will probably be completed in the latter part of February, at which time directors of the company will be chosen and offices obtained. Following this, Mr. Bach said. the first step would be a nationwide advertising campaign.
“We plan to reach people who have never heard of the Zionist Organization or the Keren Hayesod,” he declared.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
