Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-23
SH0REHAM SALE
ATTACKED SUIT
Bidding Was Improper and
Price Inadequate, Say
Five Creditors.

The District Supreme Court was
asked today to prevent the closing OF
the recent sale at auction Of the
Shoreham Hotel property, AT Fifteenth
and n streets. 10 Harry Wardma n
and Thomas =. Bones for Sl.055, 900;
for resale Of the property by Louis
s. Levy. the receiver. with an add.
, tional receiver to he named by the
court. The price obtained at the auc-
t ion Is claimed to be inadequate and
he conduct of the sale by George
Calvert Bowie and Harry l.. Rust, jr.,
trustees under a second deed OF trust
is criticized
The aid of the court is requested
in an intervening petition filed by the
j. Msury Dove Co, Arcade Sunshine
Co., Inc: John H. Wilkins Co, A.
Sls. Inc, and Guide Brothers Co.,
creditors of the Shoreham, for them
selves and all other creditors of the
corporation. The creditors are repre-
scented by Attorneys Gibbs l.. Baker,
Conrad Fl. SyIne. William {. Prentiss
and G. kibhy Munson.
Bid Called Inadequate.
The court Is advised that the Shore
ham co. owed on unsecured claims a
total Of Sl15 900, and that the com
panV's equity in the real estate, II the
sale had been properly conducted, was
more than sufficient to satisfy all such
Indebtedness The sale was made
r1Iately advertised, II IS claimed. and
the terms, which required all cash,
were prohibitiVe to most persons In
WASHINGTON The creditors assert that
there was no competitive bidding, and
that the trustees let the property go
after the bid reached figure that
would satisfy the second deed OF trust.
held by the Real Estate Mortgage and
Guaranty Corporation. despite the pro
test of Leon Tohriner. counsel for the
receiver. who claimed the bid To be
grossly Inadequate.
The creditors say they are informed
and believe that Wardman and Bones
have been offering the property for
sale. and are holding 1t at 81 500. 400.
an increase Of nearly 100000 over the
price bid at the auction. The sale, say
the creditors, should have been de-
ferred until Fall. and should not have
been conducted at the end Of the hotel
season.
Affidavits are Filed.
AfIidavits attached to the petition
are made by Leon Tobriner and
Byron L. Graham. who say that with
one exception all the bids made at the
auction sale came from persons
affiliated with Harry Wardman. The
atlantis declare that Wardman. Harry
Kite and James ID. Hobbs attended
the sale together and consulted during
the luilding. According to the affida-
Wits. Mr.. Kite opened the bidding at
500, 900 over certain encumbrance
and at the suggestion of Mr.. Ward
man boosted it to s150000. The next
hid came from w. Frank Thyson,
who stood within short distance
of Messrs. Kite. Wardman and Hobbs.
Mr.. Kite then bid S1S5. 900 and after
this bid had been made Mr. Thyson
beckoned Ia Mr.. Wardman, who
walked to where Mr.. Thyson was
standing and after whispered con
ference between the two." Mr.. Thyson
bid $4,000. This bid was followed
by one OF 100000 from Mr.. Kite
and the actioneer was asked to wait
few minutes while Wardman dis
appeared in the crowd. He returned
shortly. the atlantis say, held a
whispered conference with James d.
Hobbs. one of his associates. and the
later bid $205.o0o over the encum-
berance, at which price the property
was sold.