Chasing Speeders

Shortly before I became the Village Attorney of Nassau, the Board of Trustees appointed Martin Harrington as its police chief. “Marty” had been a policeman in the City of Albany once, but I don’t think he had risen in rank above patrolman in that employment. Marty was fairly good-natured but a bit dumpy in appearance. His uniform was typical city policeman regulation blue, perhaps a carryover from his earlier job. It was a trifle too small and accentuated his growing belly. Marty did not wear fancy braids on his uniform or scrambled eggs on his cap, but he did wear 3 or 4 military general’s stars on his epaulets to reflect his status.

The Village fathers wanted their policeman to slow speeders, help the elementary school children cross Route 20, and be available to handle the occasional domestic dispute. Instead, they usually hired someone who wanted to tackle criminal investigations that would stump Interpol. That was not the case with Marty. He was low-key. He wrote a few tickets, helped the kids cross the street, directed Sunday morning traffic when the churches let out, and generally did whatever the Village Trustees thought he should do. He was a pretty good fit for the Village. While nobody had a bad word for him, he didn’t command much respect, probably because of his somewhat disheveled appearance. Once, Marty came to a meeting of the Village Trustees to complain that an out-of-town driver he had ticketed had ripped it up and mailed it to him, addressed only to “Marty, the Fat Fuzz, Nassau, New York.” He seemed most upset that the Post Office had delivered it to him matter-of-factly. The Village Trustees nodded their sympathy, but none shared his indignation.

Marty became friendly with Wilbur, a recent retiree from New York City who had worked as a lineman for Consolidated Edison. Wilbur had been a volunteer auxiliary policeman in New York, meaning he rode around in a police car at night with a patrolman but had no police officer status. The auxiliary policeman served a useful purpose, keeping the police officer company, providing “an extra pair of eyes,” and being ready to radio for help in an emergency. Although the village had no formal auxiliary police program, Wilbur started riding with Marty to pass the time. The Village Trustees were aware of this but saw no harm, particularly since there was no expense. Wilbur even created a makeshift uniform, but he looked more like an aging security guard than a policeman.

During the 1960s, the Capital District cities of Albany, Troy, and Schenectady experienced some racial strife. A group of young Black men in Albany, leaders of that city’s protest movement, smashed some store windows during a demonstration one night, and several of them were arrested, but there was no real personal violence. That event was replicated in Troy and Schenectady and was a major news source for a while. During the height of this tension, Marty and Wilbur came to the Village Trustees, and Marty told them that he had to prepare the Nassau Police Department for this new law enforcement crisis. He had a wish list of new gear, including a pump shotgun, 2 riot helmets, 2 bulletproof vests, and some tear gas canisters. As their counsel, I unsuccessfully argued against Marty’s request, pointing out that I had only known of two young Black men in the Village. One, “Sunshine” Fairbanks, had gone to elementary school with me but had long since moved away, and Harold Hallenback, a young man two grades behind me, whose family had lived just outside of the Village for a couple of generations. While the Trustees nodded in agreement that Harold was unlikely to pose a threat, they felt that they owed an obligation to Marty to equip him with the equipment he said he needed for his safety. They also apparently felt the same obligation to Wilbur since they authorized two helmets and two vests. Marty and Wilbur rode around wearing their helmets and vests for a few weeks, with a pump Mossberg 12 gauge handy on a special rack. After a while, though, the newspaper headlines returned to normal, and the helmets and vests went into the patrol car's trunk. But if Harold ever walked into the Village and got rowdy, Marty and Wilbur would be ready.

Marty attended the Village Trustees' one September board meeting at Wilbur's prompting. He reported that the Village had become a “laughingstock” because he wasn’t permitted to chase speeders outside the Village corporate limits. Speeders would taunt him by racing through the Village, knowing he would not follow. While the law permits a police officer in “close pursuit” to travel beyond the territorial limits of his community to make an arrest, many communities had a policy restricting their officers from doing so because so many high-speed chases resulted in tragedy, frequently to innocent bystanders. Marty asked for permission to chase speeders outside of the Village. The Trustees were not enthusiastic, but neither did they like being the elected officials of a community that was becoming known for its lack of traffic law enforcement, especially considering its reputation as a speed trap just a decade before. The trustees finally agreed that Marty could, in appropriate cases, chase traffic violators outside of the Village.

When I drove into the Village for the October board meeting, I was surprised to see a shiny new police car parked in front of the Village Hall. I knew there was no appropriation for purchasing a new police car during the fiscal year, and I asked Mayor Strevell how they got it. Remembering that I had cautioned the Village Trustees against permitting close pursuit chases at the previous meeting, he was a little sheepish in explaining to me that the very Saturday after the previous meeting, Marty and Wilbur went in pursuit of a speeder heading west through the Village on Route 20. With the siren screaming and the red lights flashing, Mary drove the cruiser out of the Village and into the Town of Schodack. The speeder went faster and faster, and so did Marty and Wilbur. They raced past the veterinary clinic on the left and the fruit stands on the right, up Bunker Hill, and past Thoma Tires. As they neared Schoolhouse Road, Marty got closer and closer to the speeder, less than 100 feet from his rear bumper. Marty didn’t immediately realize that the reason he was closing the gap between the cars was that the speeder was slowing down to make a right turn into Schoolhouse Road. Instinctively, Marty turned right also. That had been a mistake because Marty lost control of the cruiser when the tires slid on the gravel of Schoolhouse Road, and the police car slid into a stand of lilac bushes and rolled over onto its side. Fortunately, Marty and Wilbur were shaken up but were otherwise unhurt except for a bruised ego.

Getting back to the new police cruiser, Mayor Strevell explained that the wrecked car would have taken at least a month to have fixed, and the Village couldn’t be without a police car for that long a time, especially with Halloween coming. Marty and the Mayor called the Dodge dealer in Albany, who promptly arranged a trade-in with the Village’s insurance company and delivered a new replacement for the wrecked car. Although nothing was said at the Village Board meeting, Marty didn’t chase speeders out of the Village again, and Wilbur’s wife decided that Wilbur should spend his spare time helping out around the house instead of riding with Marty.

Marty continued as Nassau’s police officer for several uneventful years until he had enough time in the New York State Municipal Retirement System to be eligible for a pension. He spent his remaining years as a security guard in a home for the aging in Albany.

Nassau Barbers

In my earliest memories of getting a professional haircut, probably sometime in the mid-1940s, there were two barbers in Nassau. Lou’s barbershop was on Chatham Street, just a little south of Albany Avenue. I remember he was a quiet man, and my father took me there only a few times. The shop closed abruptly in the late 1940s because Lou cut some customer’s hair completely off, and shortly after that, he was committed to a mental institution, where he later died.

The other barbershop was run by Joe Sauca, an outgoing Italian man who had a shop on the south side of Albany Avenue, just east of Alice and Artie’s bar. That shop had two chairs, although Joe worked there alone for many years. When my father took me for a haircut, he also got his own haircut and a shave. It was very common then to have the barber shave men, although I never really understood why since the men shaved themselves the rest of the time. Shaving involved a ritual: After the haircut, Joe would take a hot, damp towel and completely cover his customer’s face with the barber’s chair in a semi-reclined position. While initially, Joe used shaving soap in a cup lathered up with a shaving brush, I believe that the practice eventually ended for sanitary reasons since the brush went from customer to customer. The shaving brush was replaced with a black electric machine that spewed a rich, hot lather. After Joe shaved his customer with a straight razor, which he frequently stropped on long belts of leather attached to the chair, the remaining lather was washed away with the towel and bay rum liberally applied by hand over the customer’s face.

In June 1953, Joe died at the age of 41. He was on vacation in Maryland, fishing on a bridge with his wife. When a gust of wind blew a package of fish hooks into the roadway, he attempted to retrieve it but was struck by a passing truck and sustained fatal injuries. Joe’s son, Chuck Sauca, dropped out of high school and enrolled in a barber training course. After a few months, Chuck got his barber’s license and ran the shop for several years. As a teenage barber, he didn’t always use great judgment and infuriated one mother when he gave her son a “Mohawk” haircut.

Chuck died in his late 40s of natural causes, and the shop was sold.

I

New York's Preparation for Nuclear War

During my 1961 summer break from law school, I took a position with the New York State Department of Health Office of Medical Defense in Albany.  The official in charge was James H. Lade, M.D., a longtime department employee whose previous position included syphilis control.  When I first came on the job, Dr. Lade explained that his office’s primary mission was to take charge of medical catastrophes in the event of a nuclear war.   The office was created on July 29, 1950, during the Cold War “to draw up plans for the mobilization of medical resources in the case of enemy attack.”  It was initially funded, in part, by the Defense Production Act of 1950.

 

One of my first jobs was accompanying another employee to a warehouse in Cohoes to inventory hospital equipment and medicine.  I was told there were similar stockpiles throughout the state, some in state prisons.

 

Following the inventory, I questioned Dr. Lade why the stockpile of medicines had expiration dates of 1952 and 1953.  Dr. Lade replied that the Office of Medical Defense was created from the fear of a nuclear attack. Hospital equipment and various medicines were quickly acquired and stored, but as tensions eased, the legislature did not appropriate funds to restock medicines or maintain or purchase updated hospital equipment.  I asked Dr. Lade when, after a nuclear attack, he would know when to come out of his bomb shelter to take charge of distributing the medicines and equipment.  He just laughed and told me that he had no bomb shelter, as he believed that no one would survive such an attack.  He said he didn’t know if the hospital equipment would still work since it had been stored in various places and never routinely checked.

 

Now I wonder whether, later in this decade, there will be warehouses filled with obsolete ventilators, masks, gloves, and other COVID-19 paraphernalia that we are acquiring but may be deemed unnecessary after a vaccine is invented and put into universal use.

May 13, 2022 Update: We now have vaccines but are warned that it is unlikely that COVID-19 variances will ever go away, and there will likely be more pandemics in the future.

 

 

 

Junior's Business

On Thanksgiving Day in 1979, Peter Gibson and I formed a partnership to build a garage and office in the town of Hoosick, Rensselaer County, and lease it to Niagara Mohawk Power Corp, the local electric utility.  That was followed by similar deals in Saratoga and Essex County.  The partnership eventually became a corporation and later a limited liability company.  While we started out constructing the garage/office facilities, we soon ventured into land development and, over the years, developed more than 200 residential lots in developments that we created from rural farms.  We also purchased other properties that we could divide and sell.

One such property that we purchased in the mid-1980s was a house and adjoining vacant lot located at the northeast corner of the intersection of Rte. 2 and Rte. 278 in the hamlet of Clums Corners in the Town of Brunswick, Rensselaer County.  We sold the house and set about to sell the vacant lot, which had desirable frontage on both Rte. 278, and also on a county highway.  The lot was zoned for commercial use but was subject to the town’s planning board approval process for any construction or development.

We soon found the ideal purchaser: Dake Bros, Inc. was a Saratoga County-based corporation that was developing an expanding base of stores similar to 7 -11 stores, called "Stewart's Shops" but featured its own brand of milk and ice cream, as well as some fast food items, cigarettes, candy, etc.  It had one other store in the town, which also sold its brand of gasoline.  We signed a purchase contract at a favorable sales price, but it contained a contingency that provided that the purchaser could cancel the sales contract if the Planning Board did not approve the installation of gasoline pumps.

Unfortunately, a garage located a short distance away that fronted on Rte. 2, owned by a local man, Mr. Hudson, sold gasoline in addition to its car service and repair business.  Mr. Hudson was against the impending competition, especially since the Stewart’s Shops sold gasoline at a discounted price.  As a local resident with family members who were voters in the town, he sought protection. As a result, the Planning Board, while approving the construction of the Stewart’s Shop, denied permission for it to sell gasoline.  As a result of this denial, the purchaser terminated the contract, and we lost the sale.

Peter and I decided to fight back.  Since the lot was zoned for commercial use, planning board site approval was only required when the use included constructing a building greater than 100 square feet.  We decided to open a tongue-in-cheek business on the site, which Peter named “Junior’s” after Junior Staples, a character in a country music/comedy show called “Hee-Haw,” that ran for about 7 years starting in the 1960s but had about 21 years in syndication.  “ In that show, the Junior Staples character was a used car salesman of questionable ethics. 

Peter had a small shack constructed on the lot, together with a large sign that had removable letters.  A friend of his, who disliked the political establishment, was in the tent rental business and donated an old, torn tent he erected on the lot.  Peter had an old rusty bulldozer and some wrecked cars brought to the sales lot, and every couple of days, we would meet and change the sign.  The telephone number on the sign was one shown on the Hee-Haw show to call to purchase copies of the show.   A tent was erected, and a bulldozer was brought to the lot.   The tent was not in the best condition, but it certainly was visible.( This photograph shows our “sales office” under the 100 square foot requirement for a building permit.)

 Like a used car salesman on the Hee-Haw show, Junior needed some merchandise, which a local junkyard donated.

Junior's Tent and automobiles for sale.

The weeds were growing by this time, and the site was becoming a real eyesore.  The building in the background is the high school, and there was a lot of traffic associated with it.  Clums Corners is on the main highway between Troy, New York, and Williamstown, Massachusetts.

The Brunswick town supervisor, Romeo Naples, controlled the planning Board and the town government.  We started calling the town government “Romeo’s Circus.”  

The neighbors were up in arms over what we had done, but many in the town (especially those who didn’t like Mr. Naples or the town government) were highly amused and supportive. People from other parts of the town drove by to see what changes were being made to the sign and what was being added to Junior’s inventory.  Even the local newspapers started carrying the story.  The rumor was that we would bring some goats or sheep and stake them out on the site. 

Finally, either Supervisor Romeo or the chairman of the town Planning Board called Dake Bros, Inc. and asked them to buy the lot from us, with the promise that the Planning Board would promptly permit the sale of gasoline at the site.  The contract was reinstated, and upon closing of the title, Junior’s went out of business. The Stewart’s Shops there does a thriving business.

                                 Flyers that were passed out

Peter Gibson

I first met Peter Gibson when I sued his company, Capital Tractor Company, Inc., on behalf of the owner of Latham Village Apartments in the early 1970s.  The litigation involved some lawn equipment, and I settled the case directly with him.  Peter owned and managed the company, a large John Deere farm equipment dealer located east of Troy.  Soon thereafter, when my family moved to our Boyntonville home, I traded an old John Deere tractor for a new garden tractor and then bought a snowmobile from his company.

Peter was born in 1935 and grew up on a dairy farm in western New York.  He had extensive knowledge of farming and farm equipment.  After working as a farm equipment salesman, he purchased and expanded Capital Tractor Company, Inc., and secured franchises for John Deere and other major equipment manufacturers.  He once told me that his father's advice was to have a Jewish lawyer and a Jewish accountant.  Sidney Roth was his accountant, and I eventually became his lawyer.   

On Thanksgiving Day in 1979, Peter appeared unexpectedly at our home with a business proposition.  Through a connection he had with Niagara Mohawk Power Corporation, he was offered the opportunity to construct a garage to serve the Hoosick Falls area and lease it to the company for a ten-year term with favorable terms.  The utility had identified its preferred location, which was for sale at a reasonable price.  Peter wanted to take advantage of the opportunity but needed a lawyer partner who could handle the property purchase, the lease documents, and financing.  He knew that I lived just a short distance from the proposed location and thought that, since I was then the Rensselaer County Attorney, I could handle any necessary county 

approvals.  Peter said he could handle the actual construction as he had built some of the buildings for his farm equipment business that were similar to the one that the utility company wanted.  He was also aware that I, individually, and together with Jim Reilly, the attorney with whom I practiced law, had obtained tax titles to properties and resold them to one of his equipment customers.

Niagara Mohawk promptly sent me a proposed lease, and by the end of December, we had purchased the land and had a binding lease contract.  I arranged financing with a Syracuse lender who had supplied financing for my business clients.  Fortunately, January 1980 was very mild, and we started construction in mid-winter, and Peter had the garage completed by May.  Niagara Mohawk was so impressed that they contracted with us to build and lease similar garages in Hadley, Saratoga County, and Moriah, Essex County, both of which were located at a considerable distance from each other.  However, Peter managed the construction of both projects.

Peter was extremely knowledgeable about properties in northern Rensselaer County and had done business with most of the farmers, many of whom were facing financial difficulties and putting their land for sale.  At the same time, there was an increasing demand for land for new, low and moderate-priced home construction.  We started purchasing and subdividing properties, originally in Pittstown, but later in the adjoining towns of Schaghticoke, Brunswick, and Hoosick.  Initially, we purchased property in our own names, but I soon decided that we should incorporate.  We had a series of corporations and limited liability companies, including Renssco Farms, Inc., HG Realty, Inc., GH Realty, Inc., HG Properties, Inc., and Tomhannock, LLC.  I obtained lines of credit from local banks, enabling us to quickly purchase properties as opportunities arose.  We employed surveyors and engineers to determine the most efficient subdivision of the properties and to design the septic systems to obtain the necessary governmental approvals.  We were able to obtain discounted pricing on well drilling and septic system construction because we would complete all the work in a subdivision at once, and we always paid our bills immediately upon receipt.  We even purchased a gravel bank in Hoosick Falls to supply gravel for septic systems, and when the gravel was exhausted, we subdivided the property into a residential subdivision.  Nedda managed the checkbooks for our businesses. 

While there was immediate demand for the subdivided lots, local opposition developed, as some were concerned that we were altering the character of the rural towns and converting farmland into concentrated communities that would put a strain on the school districts, even though we significantly increased the tax base.  Pittstown, where we had the most activity, began placing the most obstacles in our path, utilizing driveway separations to limit the number of lots and requiring us to obtain waivers from the Corps of Engineers if any streams were on the property.  If the subdivision had a common private road, I had to get approval from the New York Department of State's New York City office.  One Pittstown Planning Board Chairman even said that he was trying to obstruct our subdivisions because "You are making too much money."

In fact, our real property ventures had become lucrative.  The majority of lot buyers planned to build a home but did not have the funds to do so immediately.  We offered to sell the lots to qualified buyers and took back a mortgage until the buyers could obtain a loan to pay off our mortgage and construct a home.  In total, we created approximately 300 lots, some of which we sold for up to $250,000, and greatly increased the town's tax base.  We were able to use these mortgages as collateral for our bank lines of credit.  Eventually, we began purchasing and reselling homes and other improved properties, and we also offered mortgages to financially distressed property owners who were unable to obtain loans from banks or other conventional sources.  We bought and sold a rural apartment project in Green County and a strip mall.  

While I was able to engage in the real property business without interrupting my law practice because I could handle the legal end from my office, and town planning board meetings were always held in the evening, Peter became increasingly engaged in the real estate and less interested in operating his farm equipment business, which required supervising employees.  He had purchased a second similar equipment business in the adjacent Washington County.  Finally, he sold Capital Tractor Company in 1990 to a competitor and the Washington County facility to one of his sons, allowing him to devote himself to real property development.  He found one property for which I did not share his enthusiasm, and he bought and developed it himself, but had a difficult time doing so, as I had predicted.  He also started building new expensive homes for himself and his wife in our premier community, The Meadows, and then reselling them after building another for himself.  He also started buying some rental properties.   

Eventually, Peter began experiencing financial difficulties.  In addition to his own real estate ventures, some of which were financed in part by loans from our joint companies and later by personal mortgages from Nedda's trust, he also financed businesses for his son, Peter Jeffrey Gibson.  "Jeff" had been a used-car salesman and believed he could build a business buying and selling used car parts with financial assistance from Peter.  He then started buying and selling used car parts online, and Peter financed that business, which he said was going very well until it crashed.  Then he financed Jeff’s purchase of a dairy farm, but that too went broke, and its mortgage was foreclosed.  Additionally, Jeff had some serious medical problems.

By the mid-1990s, our subdivision business had slowed as we were no longer able to find suitable land that was economically feasible to subdivide.  I closed my law practice, and Nedda and I began spending time in Florida, eventually becoming full-time residents there.  As Peter needed more funds to continue his business and became unable to repay loans made to him by Tomhannock, LLC, which we jointly owned, or the debts to Nedda's trust, he eventually sold his 50% interest in Tomhannock, LLC to Nedda's trust, and our business relationship came to an end.  Our friendship continued, and I sold him two parcels owned by Tomhannock, LLC at prices well below market value.

Then, without warning and to my surprise and chagrin, Peter sued Tomhannock, LLC, and Nedda, as well as me personally, claiming that we had cheated him by not disclosing the true financial value of the property held by Tomhannock, LLC, or by failing to give him his share of the profits.  There was no truth to his allegations, particularly since he was involved in every transaction and received a monthly financial statement from Nedda throughout our years in business.

I retained a prominent law firm to defend me in the litigation.  In retaliation, I commenced an action against Peter to foreclose a mortgage held by Nedda's trust on an apartment building in Waterford, Saratoga County.  

After months of expensive litigation, the court dismissed the lawsuit he had brought, and his apartment property was sold pursuant to a judgment of foreclosure. 

Peter died in December 2020.  He had been a great friend throughout our joint business ventures.  He assisted when we built our homes on Tamarac Road in Brunswick and in The Meadows subdivision in Pittstown.  During the late 1990s, when Nedda and I were in Florida, he checked our Pittstown home daily. 

Pittstown in Wikipedia

 I always enjoyed injecting a bit of humor about the Town of Pittstown, Rensselaer County, where Nedda and I lived for several years in two homes we built.  Pittstown is a very rural and small town in its thinking.  Our company, Tomhannock, LLC, owned by Nedda, Peter Gibson, and me, added hundreds of home sites here and substantially increased the town’s tax base, frequently over the objection of natives who dislike our changing unused land into productive housing opportunities for families.

Once I happened upon the Wikipedia entry for the town and decided to have a bit of fun by adding to its demographic description that the average IQ was 68. I used the name of a local junk dealer who the town government was battling over his violations of town law.   That modification prompted the following entry, later deleted but still available:

Talk: Pittstown, New York

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“The current page lists the average IQ of this town as 68. Assuming this IQ is the "Intelligence quotient" discussed in a Wikipedia article of the same name, this puts the average IQ of this town in the "mildly retarded" range, which is difficult to believe. No reference is cited for this data. I recommend its deletion.

"(D. Clippinger (a proud resident of Pittstown).”

“D. Clippinger obviously has not carefully researched the unusual 20th-century history of Pittstown. Sparsely populated by many Hessian mercenaries who defected after the Battle of Bennington (actually fought in the adjacent town of Hoosick, in northern Rensselaer County, New York), the town’s industry and sparse population greatly declined with the end of stove manufacturing toward the end of the 19th century, making Pittstown one of the more economically distressed areas in upstate New York.

In an attempt to bolster employment, the New York State Office of Tuberculosis and Pox (later the New York State Department of Health) chose to locate two large tuberculosis sanatoriums there, one in the hamlet of Raymertown in 1873 and later, one in Valley Falls. Although these sanatoriums initially had large patient populations, tuberculosis was substantially controlled by the forerunners of modern antibiotics. Many sanitariums closed, including those in Pittstown. The Valley Falls sanitarium remained vacant until destroyed by fire during the blizzard of 1931, but the larger Raymertown Sanatorium, located on the Troy - Bennington Turnpike (on the site of what is now the Sterup Square strip mall) was converted into a facility for the mentally ill and hopelessly retarded, named the Morgenstern Hospital.

During October 1936, a series of investigative articles appeared in the Albany Knickerbocker News that revealed that widespread use of an experimental drug made of lithium, mushroom extract, and anisette at the facility had aphrodisiac qualities, and as a result, the patients engaged in promiscuous, unprotected sex. Many female patients became pregnant and gave birth to children at the hospital. Many of the babies born to them looked normal but suffered mental retardation and, in some cases, Brewer's droop. Most were adopted out to people in the community, mainly to farmers who needed large families to help with chores. The infamy resulting from the newspaper disclosure caused the government to order the hospital to be closed and ultimately torn down when the highway was widened in 1952. These adopted children grew to adulthood, married, and mostly stayed within the Pittstown community, as did their baby boomer offspring and grandchildren. Also, many of the mentally ill and retarded patients were simply released to the community when the facility closed, and many of them stayed in Pittstown or neighboring Brunswick.

During the mid-1990s, the admissions office of Hudson Valley Community College, a county-sponsored college in Troy, noted that an unusually high percentage of applicants from the Hoosick Valley Central School, the Brunswick Central School District, and to a lesser extent, the Hoosick Falls Central School, did not meet the community college’s modest requirements for admission, and notified the New York State Education Department. That agency applied for and received a grant from the U.S. Department of Health, Education, and Welfare for a study conducted in the towns of Pittstown, Hoosick, and Brunswick in conjunction with the 2000 U.S. Census. Although the residents of Hoosick and Brunswick tested in the low to mid-normal range of intelligence, the average IQ in Pittstown was 68, using the Stanford-Binet IQ test. Educators concluded that the unusually low average IQ was due both to two centuries of intermarriage and the many descendants of the persons previously born to

or confined at the Morgenstern Hospital.”

“My understanding is that the Valley Falls sanitarium was destroyed by fire in the Knickerbocker Storm of 1922. I can understand your confusion, as the facilities were the subject of arson in 1931 (alleged to have been set by vandal farmers from the town of Nassau, but never proven).”

Retrieved from "http://en.wikipedia.org/wiki/Talk:Pittstown%2C_New_York"

Death, Taxes, and 9/11

I have been a co-trustee of some trusts created by two successful real estate businessmen. They were both attorneys and had been admitted to the New York State Bar before I was born. They made their fortunes as partners in real estate, originally buying slum properties in Troy, New York, but later, years before I became their general counsel, they shed that part of their business and invested in multifamily apartment projects, originally in the capital district of New York, but eventually acquiring properties in several states. When they started their business, there were certain tax and liability advantages to put the title to the properties in small "C" corporations, which eventually numbered more than fifty. As a result of tax law changes and because it became difficult to manage the number of corporations, I consolidated the corporations into two holding companies.

As property values increased, the partners were able to refinance the properties multiple times. Each time they refinanced, they could pay off the existing mortgages and retain very substantial funds. Refinance proceeds are not taxable, so these corporations grew in value as the refinance proceeds enabled them to expand their holdings and continually increase the value of the holding companies. However, there was a downside to the plan: Upon the partners' death, no family members were capable of continuing the operations of the holding companies, which were owned by the partners' trusts. Selling the properties, either individually or in bulk, created a huge financial problem.

The proceeds of such a sale would first be used to pay off existing mortgages. A huge capital gains tax bill would come into effect when the properties were sold since the refinance proceeds retained at the time of refinancing tax-free lowered the "cost basis" of the properties and the gain.  Thus, the tax would be more than could be realized by the sale. 

Fortunately, our New York City counsel came up with a solution  They knew of a wealthy businessman, a CPA, who had figured out a method of avoiding the capital gains tax on a sale and purchased the holding companies from the trusts for a sum that netted thetrusts'' cash in the mid-eight figures  Suddenly, the trusts were flush with cash to invest for the benefit of thepartners'’ families, the ultimate beneficiaries. 

Trustees must be prudent when investing in trust funds  This normally involves dividing funds between fixed-income investments (bonds or bond funds) and equities (stocks or managed stock funds)  It is also prudent to spread the investments among various brokers to benefit from various investment options and advisory opinions.

One of the brokers with whom the partners and the trusts had previously used in Albany suggested we go to the New York City office to speak with thecompany'ss investment specialists  That office was located in the World Trade Center  We arranged for a morning meeting on September 11, 2001, the date when the man who had purchased the holding companies planned to host a celebratory dinner for us. 

September 11 was a Tuesday  My original plan was to take the 7:00 a.m   Amtrak from Rensselaer to Manhattan, meet up with the other trustees and thbroker's’s Albany representative, and go together to the Trade Center for the mid-morning meeti    However, after the arrangements had been made, I remembered that September 11 was Primary Day in New York State. I wanted to vote in the primary election because of its potential effect on the forthcoming local election.  I contacted the other parties and pushed the meeting back to the early afternoon so I could take a later train to New York City.

After returning from voting in the primary election, I returned home to gather my materials for the meeting.  As I was preparing to leave our home, my wife called me to look at the television, which was reporting the first airplane that hit the north tower of the World Trade Center.  At that time, it was thought to have been an accident that would affect a few floors of one of the tower buildings.  I did not immediately believe that it would necessarily cause my meeting in Building 7 of the World Trade Center to be affected, and I still planned to go to New York City, if only for the planned dinner party.  

Then the second airplane hit the south tower, and I realized that the meeting or the dinner would never be held.. Likeke millions of others around the world, I spent the next hours and days watching the horrible destruction the terrorists had brought as they struck the Pentagon in Washington and then the airplane brought down by passengers in Pennsylvania to prevent it's hitting an intended target in Washington, D.C.