The Washington herald., 1913-01-08

Smith, counsel for Supt. Ingham, In
cross-examining Mr.. Curry. there was
no suggestion on the part OF the Su-
perintendent OF Insurance when he
gave you the order to examine in No
vember. that you in any manner de-
part from your regular method Of ex-
animation
NO, sir"
WAS there anything at all unusualT'
asked Easby-Smith, reverting to the
question OF the appraisement and subse-
quent increased valuation on the South
ern Building, "in the superintendent ap-
pointing appraisers. accepting their ap-
praisement and giving the companies
credit as appraised?''
That Is the custom of the once.
Cost of Construction.
Municipal Architect Snowden Ashford
was on the stand for several hours testi-
| flying as to the cost of construction OF
buildings in the District and the in
creased rate in building materials and
cost of construction. He said, in answer
| to questions by Redfeld. that some build
| ing materials had increased in cost, while
others either had remained stationary or
had decreased. Steel, he said. had In
creased about 81 a gross ton in the last
two years.
| Mr. ASHFORD was as " q
| request by Hopewell Darneille for an
| estimate Of the cost OF the Southern
Building He replied:
| "Mr Darneille asked me last August
what I thought the value OF the South
| ern Building was. ! told him I did not
know and had never formed any idea.
| He said: Gould you not find out for me-?
| He said the building was of certain
| dimensions. ] figured IL up. and my rec
| objection is / placed II at Is cents a cubic
| foot / had had experience with a good
| many of the apartment houses and other
| fireproof buildings. and / know that they
can be built around q or . cents a cubic
foot This building was little more
elaborate. and ! put II at % cents
cubic foot I figured It out for him. and
my recollection is that, on the dimensions
which he gave me, IL came to about
| s10SO OS.
Then he came in to see me a second
| time, and / went o n TO the building
| inspectors Office and got the permit for
the building, and I figured il out from
the permit dimensions-the dimensions
given in the building inspectors office
| and put II at IS cents a foot. and II came
to sss2, ,OsO. I gave him that as my esti-
mate OF the cost OF the building. My
| recollection is that he took the pencil
| memorandum. but what he wanted II for
! did not know and did not ask him
l do not recall his making any statement
| as to my valuation / have an indis-
| tinct recollection that he told me that
somebody else valued 1t higher. but I
do not recall any remarks as to mine"
| RcIationship Between Two.
The committee began to delve into the
relationship between the Southern Build
ing Corporation and the Richmond Real
| ty Corporation when the hearing COM
menced in the morning. plan. sug-
| gested by o. p. Sands. the real power
in the Richmond. for a pooling arrange
ment. was contained in letter TO
Charles A. Douglas. a director OF the
| Southern. The letter concluded:
Now. as to the organization OF the
Southern Building Corporation and the
Y Richmond Realty Corporation. 1t is un-
derstood and agreed that the Richmond
| Realty Corporation and J. NJ. Baker. c.
A. Douglas. R II. McNeill. and such
others as are willing to do so, will de-
| post their stock with a trustee and form
| a voting trust composed OF J. NJ. Baker,
| r. II. McNeill c. A Douglas, o. ].
| Sands E G. Gum, Warner Moore, and
A. l. Hawse. and that these same gen.
tlemen will be the directors OF the
Southern Building Corporation.
| 1T is also understood that the direc-
tors of the Richmond Realty Corpora
the following list: A. I. Hawse. War
| ner Moore. Thomas Gresham. ]. o.
Scott W. c. Schmidt. H n. Eichelber-
ger J. r. Paschall. c. Bolce."
This was the basis upon which they
took over: All Of the Washington people
subscribed for the Richmond Realty Cor
poration stock under these terms, turn
ed in their bonds at cost. %. and took
stock in the Richmond Realty Corpora
ton.
| ''The pooling agreement referred to
here was made part OF the minutes of
the Richmond Realty Corporation. but
latter they had got the stock in their
hands they never would execute the pool
ling agreement. l know that"
| Wanted to Get Control.
"Why not?" asked Redfeld.
| aWeu IL was a modus operandi by
which they wanted to get control OF the
lSouthern Building Corporation. pure and
simple. They got 234 shares of the pre-
ferred and common stock. and they made
1.-THE Washington stockholders minority
stockholders after we had turned In these
lassets. That was the point that wanted
10 hiring out. They got control by virtue
Of this proceeding. and then refused to
execute the agreement
$50 that, as a matter of fact, you wish
us to understand that the Richmond
Realty CORPORATION got control, under
this agreement. OF the property OF the
southern Building Corporation and then
failed to carry out. or, as a matter OF
fact, has not carried out the other arti-
cles of the agreement entered into be-
tween the two companies!
II so state that.
IT used my best persuasion to get them
to execute that agreement and L failed.
and that led to my speaking out my
mind. to tell them what I thought
about it"
As to the profit made on the sale OF
the Southern property. after a good deai
Of backing and filling and a careful
mathematical calculation. Mr.. Baker was
assisted by Attorney Douglas.
Made s5 n Foot.
ITO clear up this whole matter" ques-
toned Mr.. Douglas, as see II, Mr'
Baker. this property was bought from
Mgr. Lee, OF ST. Matthew's Church, for
SIS a foot, amounting TO $4,000. and sold
to the Southern Commercial Congress at
/, so3 a foot, amounting to $4,000 or s5ll,-
0oo"
; Yes, sir
The 10000 that represented the diff
! ference between the purchase price that
. | McNeill and his associates paid and the
purchase price they got, or were to get
was taken in preferred stock Of the
. southern Building Corporation, was II
notT'
, That is true
!; This 100000 profit in the purchase and
saia 30 this niece of real estate" asked