The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-10
RICHMOND FIRM
IN lIMEL|GhI
Figures in Sensational Insurance
Inquiry Now Under Way
in Washington.
FINANCED BIG SKYSCRAPER
Sale to Agent OF Insurance Com
pany and Subsequent Alleged
Generalization Bring Trouble.

+ \ sensational Insurance investigation
in the city of Washington. involving
an inquiry into the stock manipulStions
which brought a valuable Washington
skyscraper into the possession Of tn"
Commercial Fire and First National
Fire Insurance Comps MES. OF that city.
is bringing d Richmond real estate firm
into the limelight through the latter
connection with the deal.
The investigation at present holds
the center Of the stage in the District
of Columbia, and is crowdinS the do
ings of Congress out of preferred po-
sition on the front page of Washing
ton dailies. The story is full OF the
kinks of real estate finance. An IN
tcrview last night with a member or
the Richmond Realty Company. the To-
cal frm that figures in the inquiry.
brought out the situation as y is We"
cd locally.
In the summer of 1911 the Richmond
Realty Company acquired the holdings
of the southern Building Corporation,
OF Washington. which had planned 10
erect a large office building on the
St Matthews Church site. Fifteenth
and II Streets The Washington firm
found il impossible TO raise the full
amount necessary 10 construct tn"
building and disposed of its securities
to the Richmond Realty Corporations
This company built the building large
" with capital secured in Richmond
sell Out mt Profit.
According to the member OF the
Richmond Realty Company referred TO
J. r. Story, Jr.. Washington feaI
estate man. approached the Richmond
company last summer with an offer 10
buy its interest in the Southern Build
ing. After several conferences. the
Richmond company last July disposed
of it's controlling interest in the builo >
ing to NJ Lecky. who. as II developed
later. was acting for the Commerciai
Fire Insurance Company. one OF tne
tenants of the office building. The
Richmond Realty Company made a
handsome profit and. II appears. sold
to Mr.. I.ecky without knowing OF MS
connection with the insurance com
pany.
Together with the price paid 10 the
Richmond I.ealty Company and other
holders of stock, and the 100000 mort
gage which was assumed at the time
the Richmond company took over the
holdings of the Southern building Cor
poration. the building represented a
cost TO the purchasers OF approximate
" $500. 900.
Claims Generalization.
With this transaction completed, the
connection OF the Richmond trm WIN
the matter ended. Trouble arose short
IL afterwar ds when the Commercial
Insurance Company. in the statement
of its condition, entered the value 81
the southern Building rs s2.OO0.oOO Al
the instance Of popular demand. the
District Of Columbia ordered an inves-
tigation of the deal and an inquiry into
the remarks BILE enhancement in value
An additional grievance was voiced
by adjoining property owners. who
claim that their property has beeI
over-appraised in an effort to make
the values conform. The s2.o0o00e
valuation Of the Southern Building. II
is claimed. by these represents At least
$500. coo Of water.
In denial OF this the insurance COM
company points 10 large improvements
whic hhavc taken place In the immedi
ate vicinity. they claim, have largely
enhanced teh value Of the building. II
was brought out in the course Of the
investigation Wednesday. that the
Richmond Realty Company had eN-
pressed the opinion that the building
was worth $1,000. 600.
The Richmond Realty Company is
headed BY Warner Moore. president,
and :. L. Hawse. secretary and treas
urer. Among the directors are Henry
". Rountrce and o !. Sands