The Washington herald., 1913-01-10
seven DIRECTORS
Of TWO firms
we're IDENTICAL
Same Men Control Southern
Building Corporation and
Richmond Realty Co.
COMMERCIAL TOOK STOCK
Insurance Investigators Tentatively
Rest Case, Following Testimony
by Charles H. Davis.

4 detailed account of the negotiations
involving the original purchase of the
property now occupied by the Southern
Building. the transfer of that property
TO the Southern Building Corporation by
the Southern Commercial Congress, and
the purchase of Southern Building Cor
poration stock by the Commercial Fire
Insurance Company through John P.
Story. jr. was given In the testimony of
Charles Hall Davis. chairman of the
executive committee of the Southern
Commercial Congress. at yesterdays
hearing before the committee investi-
eating the Commercial and First Ma
tional Fire Insurance Companies, the
iirm Of Tuttle, Wightman & Dudley. Inc,
and the office of the District superin-
tendent of insurance.
At the conclusion of the afternoon
session. the prosecution rested with the
understanding that 1t might sandwich in
any additional witnesses it may choose
TO call while the defense is presenting
Its case.
Charles Hall Davis is one OF the few
stockholders in the Southern Building
Corporation who refuses to sell his stock
To John P. Story. Jr., at . cents on the
dollar Mr.. Davis. who owned stock of
q face value of $500, asked Sl.625 for his
stock This offer was refused by Mr..
Story. who already had acquired the
requisite twO-thirds Of the entire issue
to fulfill his contract with Charles +.
Carusi and Robert y. Harper, who acted
:or the Commercial in the transaction.
Clash in subcommittee.
a clash between members Of the COM
mittee in the morning as to the range
10 be permitted IN the questions. en-
phasized a feeling which has been ap-
parent for some time in the committee.
Chairman Johnson and Representatives,
George and Prouty lined up against
Representatives Redfeld and Berger in
favor OF curbing the tendency to wan
der of from the main issue and encum-
ber the record with irrelevant testi-
mony Following the closeting of the
committee in executive session. rumors
of a serious breach which threatened
10 result in the resignation Of Mr. Red
field were circulated. but the differ
ences were patched up and the COM
Inittee continued without further trou-
BILE
Testimony of Davis.
Mr. Davis testified that in January.
1"O9 he heard that a. f. l. Leclde. r H.
Mcneil. and perhaps Charles A. Douglas
had obtained an option on the old ST
Matthew'S Church property. Mr.. Davis
was then chairman of the executive COM |
Eress He knew at the time that they |
were asking S23 a foot for the property, |
and this price was IN excess of the option !
price In the negotiations looking to the ,
purchase of this property for the South |
ern Commercial Congress il was agreed !
that a first payment of 5000 should be
made to Mgr. Lee. pastor of ST. Mat |
thew's Church. for the property. to be !
followed by payments of $4,000 and SSo,- |
poo. The first two payments were made |
and the third with difficulty
Members of the Southern Com !
mercial Congress contributed ttward |
this fund. Charles a. Douglas, |
he said, contributed $1,000. and
IL was his recollection that \. y. Leck- |
lie. r. H McNeill. Alexander Mcneil and !
possibly Thomas n. Baker. contributed |
equal amounts. John NJ. Parker, Of New |,
Orleans, president Of the Southern Com |
rnercial Congress. contributed $4,000, and
secured 5000 in 5000 contributions from !
his friends.
Agree 10 Pay in stock.
Following the difficulty over the pay
ment Of the S25, 900 installment it was de- |
Cided to commerCiallze the building by |
the conveyance of the property TO the |
Southern Building Corporation, the cor
poratiOn to pay by assuming debts al !
ready existing against the property, those !
incurred by the congress in its efforts |
To finance the proposed building, and a |
5000 note which had been indorsed by |
Douglas and David, and discounted TO |
meet a part of the $35, 900 third payment !
to Mgr. Lee. II was agreed TO pay in |
stock Of the corporation to the original
syndicate. represented by Messrs Leckie, !
r. H. McNeill. and Douglas. the differ |
ence between the price which that syn !
diCate had agreed to pay Mgr. Lee and |
that which the Southern Commercial |
Congress had agreed to pay the syndicate. |
Mr.. Davis testified that it was clearly !
understood that those who had oen- |
trihutcd 10 tn" fund from which the |
southern Commercial Congress expect |
Cd to pay for the property and building !
would receive preferred stock in the cor
pOratlon and he taken care of in any |
future transaction, receiving back the /
money which they had invested before |
the syndicate declared any profits.
Mr.. Davis emphasized his belief that !
the members Of tine original syndicate /
apparently were using every effort to
help me raise the money to finance the
deal for the Southern Commercial Con-
Sress.'
Mr. Davis said that the conveyance
was made as arranged. and after the
organization Of the building corporation
ne had nothing to do with the property
or the company. He said that in 1872 |
while he WAS dining with Mr.. Leckie at
q local club. the latter was at particu-
lar pains to impress on him the fact
that he G-ecki"I had sold his stock in
the building corporation.
In September. 1911, he said he received
a letter from John p. Story. jr., of this
{ !ty. asking him for two weeks option
an thirty-ftvc shares of stock which he
l',id and offering him . cents on the dol
lar for this stock. Story informed him.
recording to the letter. which was read
into the record. that he CStoryl had re-
C'ived an option from the Richmond
Realty Company. which owned nearly
OF the entire stock issue OF the
building corporation at lower figure. II
laH been developed in the testimony that
Story paid l2l3 cents on the dollar for
the Richmond cOmpany's stock lie in
hrmed Davis that he was Offering him |
tho same price as Charles A Douglas,
James NJ. Baker. and others"
Davis then read into the record a
number Of letters which he had written
TO and received from Story. Douglas,
and others in which he asked for in
formation as to Story, his plans, and the
necessity and advisability Of dissolving
the building corporation.
Objects TO Evidence,
Judge Prouty. of Iowa, a member of
The committee objected strenuously to
the introduction of this correspondence
as irrelevant. and the committee retired