Daily News from New York, New York on December 24, 1974 · 323
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Daily News from New York, New York · 323

New York, New York
Issue Date:
Tuesday, December 24, 1974
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DAIBY .NEWS,! TUESDAY, DECEMBER .24, ;r JL3- XX- 4 i, f- 4 Iff Bm Pmduiina V Alice DeMarg in her Nutley home with her children, John Police Hunt-Vanished Motley Banker By PATRICK CLARK John A. DeMars, a Wall Street bank officer from Nutley, failed to arrive home from work Friday night, and his mysterious disappearance sparked an intensive search by police which continued yesterday. Instead of making joyful preparations for Christ mas, his family is holding a "He is devoted to his family," declared Mrs. Alice DeMars, his mother, bhe said that her 6-fePt-3, 210-pound ex-Army officer son had planned to decorate the Christmas tree Sunday" evening'. "We're frightened. We're hoping John is a victim of amnesia," she said, her eyes brimming with tears. Nutley detectives and the New York Police Department's missing persons bureau are conducting a widespread investigation. They have checked hospitals, arrest reports and the morgues. The investigation revealed that DeMars, 30, the father of two sons, John Jr., 2, and Andrew, 1, is a model husband and father with a perfect work record. A former intelligence officer who served in Vietnam, DeMars is assistant loan officer at the Canal St. branch of the Chemical Bank of New York, where he has been employed for five years. J rappea m mm m A New Jersey gold and silver dealer admitted yesterday that he struck it rich selling contracts for bullion that in effect, turned out to be "fool's gold." Mason Buddy, 37, of Harring ton Park, pleaded guilty in Newark Federal Court to mail fraud charges that he cheated his customers of more than $210,000 in just four months. Buddy, president and sole stockholder of a company called Eastern States Monetary. Exchange, Inc., in Englewood Cliffs, launched his scheme just as Congress approved a bill last August allowing American citizens to buy gold bullion. That law takes affect Jan. 1. Enticed 75 Clients Until then, American citizens can purchase gold only in the form of coin or jewelry, but not the bullion itself. Buddy enticed 75 clients in newspaper ads promising "you can protect yourself and even profit from inflation." Invest in gold and silver, the ads urged, and people did. But unknown to them, the- federal wt?" A ' ' iO , S' vigil of fear. "He is one of our most highly regarded young officers," a bank spokesman said. "His honesty is above question." According to police who have retraced his steps, DeMars was last seen shortly before 5 p.m. Friday walking toward the World Trade Center PATH station. DeMars commuted daily, using PATH to Hoboken and ihen the Erie Lackawanna Railway to Clifton, where he parked his car for the short ride to his one-family home at 284 High St. The family had the car towed home to the quiet residential neighborhood Saturday. His mother and his wife, Elaine, said that DeMars called home Friday morning and said he would have lunch with two old friends and leave work early. The friends said that DeMars told them he had a bowling date that night. charges alleged, Buddy purchased the precious coins and silver bullion in his own name, hoping for the price to rise so that he could turn a nnick nrnfit. Unfortunately for Buddy and? his customers, the market hit a price slide. He was forced to come up with money for the legitimate dealers from whom he purchased the gold and silver. Customers Complain With prices fluctuating wildly, some of his customers demanded their money back. Buddy couldn't pay. He attributed the delays in payment to office backlogs and market conditions. Finally, some of his clients complained to the U.S. Attorney's Office in Newark, and the scheme was unraveled. Buddy faces a 'maximum pen- go MB II fir . News photo by Bob Koller Jr. (left) and Andrew. His secretary told police that DeMars left the office saying: "I'm going home to play with the kids." When he didn't arrive by late evening, his family called police. Friends Join Search On Saturday, fellow members of the St. Mary's Church chapter of the Knights of Columbus scoured lower Manhattan, retracing his footsteps and checking hospitals and police stations. A lieutenant with the missing persons bureau said such disappearances are not uncommon. "It happens often. In fact, it happens every weekend," he declared. Meanwhile, the DeMars family stunned by the strange absence spent yesterday putting up the tree, wrapping presents and getting ready for Christmas day. "John would want it this way," his mother said. "To him, the family always comes first." $$mt, mum r mm i r alty of five years' imprisonment and a $1,000 fine. Philip Wechsler Banks Get Warning On Gold Purchases State Banking Commissioner Richard F. Schaub warned New Jersey banks yesterday not to conduct excessive or misleading promotional campaigns after the private ownership of gold becomes legal. Schaub said that the risks inherent in serving as a principal in gold deals is great, and the practice should be avoided by most banks. He recommended limited trading in gold futures as a hedge against price fluctuations. "The public in general has had virtually no experience with buying and selling gold and can easi T.r TnilV TlfT A I T,- 1 1 1 TV A meeting between Gov. Byrne and 24 of New Jersey's 40 state senators produced substantial agreement yesterday on a tax package aimed at school financing system. But disgruntled Assembly leaders, after meeting with the governor, reported that hopes of resolving the issue before the end of the year appear to be as dim as ever. Still. Senate President Frank Dodd (D-Essex) held out the hope that both houses may he called into special session on Friday or early next week to vote on a tax program. There is an outside chance we can put something together," Dodd said. But Assembly Speaker S. Howard Woodson disagreed. "There will be no special ses- John A. DeMar Missing since Friday ly be misled," Schaub said in a letter to bank presidents. "People will look to their local banker for advice and guidance. You should not, therefore, in your desire to serve the public, mislead them and lessen their respect for your financial institution." He urged banks to keep the costs of gold transactions to a minimum. "Your personnel should be trained to advise customers to leave the gold they purchase in safekeeping with your bank to avoid the expense of assaying the bullion upon subsequent repurchase by your banks," the commissioner said. The processing costs, acquisition costs, taxes and commissions will drive the gold substantially beyond the market price, he said. Schaub also noted that the "emotional factor" in owning gold must be considered as a factor adversely affecting its price. f1TTflMi1riViV(1ltin'iriniiiin' flHfflffli ItlMfflil -fa id Aitrini m I Admits Fraud Guilt sion under these circumstances, Woodson said. In any event, Byrne will meet with the Assembly leaders again on Thursday and with the senators on Friday for a last-ditch effort to comply with the State Supreme Court mandate that the school funding program be revised and made more equitable by the end of the year. rr" 1 n-a r . A head count of the senators meeting with Byrne yesterday produced 17 votes (including three Republicans) In favor of a package including a one-ont raise in the sales tax, a new stale tax on capital gains, inren-st and dividends, and an Increase in the corporate income tax. However, a Senate consensus ; . r .1.1 . , . I in lavor 01 uiau piugiaui wuutu not necessarily mean that the Assembly would follow suit. In addition to at least $300 million needed to fund the school program, some $400 million more will be needed to balance next year's budget. No senators are up for reelection until 1977 but ail 80 Assembly seats are at stake next year, and the Democrats in the lower house do not want to be in the position of passing one tax package this year and another in 1975 when they have to run for reelection. "The way things are goinff now, our guys will not agree to a special session. We are committed to solving both problems school funding and the budget shortfall. We just won't buy doing one without the other, Woodson said. "WTe went round and round and we got off at nowhere," an administration source said of yesterday's meetings. Richard F. Schaub ' Outlines the risks - X ' Jf . r - , a --I : - ; 4

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