Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-07
,,c in lawsuit between the Southern
building corporation and the builders.
Probe of Southern Building Ana1rs'


Probe of Southern Building Affairs.
After The Stars report of yesterday
had closed Mr.. Baker went deeply Ih'o
the affairs of the Southern building SoI
poration, under queries directeo oy rop
resentative Redfield. He was asked sew
orr, ouestiOns as to the details OIL t"e
oruanization of the Southern buiioihs
Corporation, the answers to Wnlch were
en;tomized by Mr. Redfield in the foiiow-
ing statement:
..rbat bonds were issued. secured by
second mortgage. for the amount OF 80,
go: that bonds were issued; securtu os
a third mortgage. for $4,000. making a
total Of 100000 in bonds: that there we
of preferred stock $4,000. common STOCK
sas.UO making total capltahza'ioii
of $1.1p,Uo a Mr.
Raker. 1.-The records show. as | stated III
my former testimony. that the Seconu
and third mortgages amounted 10 sl.'V'
tpst but that the contract\provlded LOT
cancellation of practically $4,000. your
Statement of il is correct if you Will
add the cancellation that the contract
called for of $4,000 Of the second mort
gage bonds.
Flight hundred thousand dollars was
the first trust; $4,000 of second mort
gage bonds, s325.OOO of third mortgage
bonds. $4,000 of preferred stock ana
$4,000 of common stock That makes
S2OCOOOO OF that issue OF S31o,uU or
second mortgage bonds, there was a con-
troversy, as I said moment ago. that
has not been determined-that Is, IN
litigation.
Thompson-Starrett Claims.
My recollection is that If the Thomp-
son-Starett people establish their conten-
ton as to their claims 1T would leave
about $4,000 of bonds to be Cancelled,
which would bring the mortgage indeot-
edness Of the Southern Building Corpora
ton down to s1.41O,OOO. but that is as
Stunning that they have to settle with the
Thompson Sta rrett people"
"And to that extent would reduce the
total capitalization to S1.91O,0O0?'' in
quired Representative Redfield.
Yes, sir.
Mr.. Redfield then led Mr.. Baker for
nearly an hour through details concern
ing stock sales and transfers. Mr. Baker
explained his reasons for leaving the
company.
LAS treasurer of the Southern Building
Corporation" he said, Il had some differ
ences with Mr.. Sands and the Richmond
Real Estate Corporation. and i thought
it justified me in getting out, so l was
not reelected treasurer. / had subscribed
for $4,000 worth of second mortgage
bonds and paid cash for them al I5 as
a part of the Richmond deal Those diff
ferences led me to the conclusion that I
ought to get out of the building cor
poration. | turned the bonds in to the
Richmond Realty Corporation before l
had these differences and took stock In
the Richmond Realty Corporation
"On what basis did you do that
1t was straight business transac-
ton at -. the same as l paid for them.
Then I had the Richmond Realty Cor
poration stock. and when 1 had these
differences / sold my Richmond Realty
Corporation stock and got out of the
Richmond Realty Corporation and resign
ed from the board of directors of the
Southern Building Corporation. 1 took
the other stock i had and turned it into
my lock box and went off fishing"
Sells at Twenty Five
Mr.. Redfield asked. Did you sell yodr
stock In the Southern Building Corpora
ton at 25?"
Il was in South Carolina fishing and
my brother telegraphed me and asked
me IL 1 would take % cents for it, and
i telegraphed him yes, to sell it and
deliver it."
That was the preferred stock?"
Yes, sir. and the other went with it,
So that you actually gave away the
common stock; got nothing for that?'
Representative Redfield asked.
Yes, SIR was Mr.. Bakers answer.
And sold Your preferred at go
That is right