Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-27
]. D. Hobbs Accused of Try
ing to Cheat J. V. Morris Out
of Interest in Property.
CONVERSION OF $165,590
IN NOTES is CLAIMED
Elzina Howells Is Indicted Again
Total of 80 True Bills Re-
turned by Jury.

Use OF the mails to defraud /.
charged in an indictment reported to.
day by the grand jury against James D
Hobbs, former vice president and treas.
ureY of the Wardman Construction Co
He is alleged to have devised a scheme
or artifice to defraud John v. Morris
1927 Girard street, out Of his interest ir
premises 1920 r street and in further.
ance Of the alleged scheme to have
placed letters in the mails. The letters
are said to have been mailed June 10
1927; August 10, 1927, and November
8, 1927.
The indictment alleges that March 6,
1927, Morris purchased an apartment
house at 1920 r street and Hobbs rep
resented to him that because of the
unusual facilities at his command he
could facilitate the management of the
property and induced Morris to have
the title taken in the name of Ruth
M GeSsford, in trust for his benefit.
Later, it is alleged, Hobbs directed the
woman, who was an employe Of the
company, to execute and deliver to him
s5 promissory notes, aggregating $685.
$3.50, all maturing at varying times
and secured on the real estate.
1t is claimed in the indictment that
Hobbs converted the notes and their
proceeds "all without the knowledge and
consent of Morris. To carry out the
alleged scheme, it is said, Hobbs June
10, 1927, mailed a letter OF Joseph H.
Hines, Transportation Building, setting
out: You hold the notes of the Lin
coin Hotel Corporation secured on lot
los square 179, premises 1920 r street,
totaling $4,000. We recently completed
a ref1nancing of the first trust on this
property placing a new trust in the
same amount of $400, 900 and it is neceS-
sary to substitute new second trust
notes for those which you hold"
Sale Offer Is Claimed.
August 10, 1927, another letter is said
to have been mailed and addressed to
George NARROW, 1913 Meridian place,
setting out that the letter contained a
statement on the apartment house 1920
r street and while the Wardman COM
pany did not have the property for sale
and was only managing it that It was
believed the property was worth $3.50, 900
and that an offer would be gladly re-
ceived.
A third letter was mailed, 1t is stated,
November 8, 1927, to Morris inclosing
q statement covering our operation OF
1920 r street" and asking Morris to
"can and see me regarding this matter
as soon as possible. The statement
referred to is set out in the indictment
and shows deficit Of $4,000.
Morris recently filed suit in the Dis
trict Supreme Court to recover $325, 900
damages for alleged conspiracy to de-
fraud him of his interest In premises
1920 r street and in the Lincoln Hotel
Corporation. Named as defendants in
that suit are the WaKdman ConStruc-
ton Co., the Wardman Corporation,
Harry Wardman, James D. Hobbs and
others. The plaintiff in the suit de-
clares that he was approached by the
Wardman Construction Co. to I'LL the
property with tenants and effect sale,
which would net him 5000. He trans
ferred the property to an employe of
the Wardman company, he asserted,
and subsequently a third deed of trust
for $165 $3.50, the amount named in
the indictment, was placed on the prop
erty and the proceeds used to pay the
debts of the defendant corporation, it
was alleged. Attorney w. BiSSell
Thomas filed the suit for Morris.
Moved to New York Recently.
Hobbs has been identified with the
real estate business in Washington for
q quarter of century. He became
associated with the Wardman COM
panies more than 20 years ago and in
recent years has served as vice presi-
dent and treasurer of the Wardman
Construction Co. and the Wardman
Park Hotel Co. A number of months
ago he severed his connection with
Wardman, however, and went to New
York to engage in real estate business
there. AS treasurer of Wardman organ
izations he was primarily engaged in
the financial phases of their activities.
Hobbs is a native Of Washington and
received his education here, and holds
a bachelor of law degree. He is widely
known in local social, golf and hunt
clubs, being member of several here,
and laso has fraternal Affiliations in
Washington.
EIzina HoweIIs Indicted Again.
Elzina Howells, recently released by
Justice Gordon on her personal bond
under an indictment charging her with
defrauding certain persons in stock In
vestments, was again indicted today on
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