Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-26
WARDMAN GIVES Up
S3O,O[O,O(O REALTY
HOLDINGS IN CITY
Hotels and Apartments Taken
Over by Corporation That
Has Been Running Them.
NO MONEY INVOLVED
TN HUGE TRANSACTION
Transfer Marks Retirement Of
Well Known Leader Of
Local Field.

Harry wardman, for a decade the
leading figure in Washington's con-
struction industry, but who has been
waging a battle during the past sew
eral years to meet huge financial OBJ
legations arising from extensive hold
ings, has lost possession of ali his major
hotel and apartment properties here.
Final papers we're signed at Z o'clock
last night by which the Hotels Man
agement 81 Securities Corporation ac-
quired from Wardman and his as
sociates the ownership of these proper
ties, which have total value appraised
at more than $4,000, 900, according to
the new owners.
This brings into realization de-
velopment that was, in the opinion OF
some, forecast in July last year, when
the same interests which comprise the
new owners of the properties obtained
active management and control Of the
hotel and apartment structures.
The properties transferred to the new
proprietors of this large group of build
ings inolude the Wardman Park Hotel,
one of the largest hostelries in this
section of the country; the Carlton
Hotel, the Hotel Roosevelt, the Chastle-
ton Hotel, the Hotel Annapolis and va
rious apartment, houses containing more
than 1000 rooms.
No Cash Was Involved.
Mr.. Wardman told The Star last
night that no cash was involved in
the transfer of the properties to the
new corporation and that he would re-
ceive no financial consideration in the
deal.
The loss of possession Of these huge
properties, he stated frankly, marked
his retirement from the hotel and
apartment management business. He
will devote his time to strictly zeal
estate business, he announced, and
would proceed with program for two
residential developments and would
continue plans for other realty bust
ness
The executive officers Of the Hotels
MANAGEMENT & Securities Corpora
ton are Emory L. Coblenz, Frederick,
Md, capitalist, chairman of the board;
hotel executive, president: George E.
Allen, Chicago, vice president; f. Roger
Miller, Ashevilie, N. c., vice president,
and Alfred @. Torgeson, New York, vice
president.
The change occurring today, accord
ing to an announcement from the new
ownership corporation, marks the re-
tirement of Wardman and his aSso-
ciates as officers of the Wardman
Realty 81 Construction Co., and its
subsidiary, Wardman Real Estate Prop
critics, Inc, the new proprietors aSSum-
ing full control and active management
of the two concerns formerly headed
by Waroman interests.
The official announcement Of the
closing of the contracts last night at
meeting at Wardman Park Hotel
stated that at was the opinion of Mr..
Lane that In acquiring the Wardman
interests In the Washington properties,
the respective rights of NIL interested
parties had been materially benefited.
"I am glad to announce" Mr.. Lanes
statement continued, that all inter-
est and sinking fund obligations due
at this date have been deposited with
the respective trustees and that ample
working capital is available for neces-
sary current requirements.
Additional funds are available for
necessary capital expenditures and we
have already approved appropriations
aggregating betweeh 5000, 900 and $780,
900 to be expanded for improvements
during the coming year.
Believes Business Sound.
1.-THE values Of Washington real estate
in my opinion are are sound and with
the return OF ordinary business condi-
tons substantial earnings from the
properties should be available to stock
| holders"
Mr.. Lane and his associates own
Grove Park Inn, Asheville, N. c., and
also have interests in Iowa, Minnesota,
New York and other sections Of the
country.
A background for the acquisition Of
| the local Wardman holdings was fur
general management deal, closed respec-
| lively in 1928 and 1929, involving gen.
| orally the same group Of properties as
are involved in the change of posses
sion ordered last night.
In September of 1923 arrangements
were completed for the floating of bond
issues totaling $lS,50o0 to be placed
on the majority of the larger Ward
man properties here. The bond issues,
1t was announced, were UNDERWATER by
a group of financial organizations, in
| GLIDING Halsey-Stuart 81 Co, Hanhle-
| ton d Co., A. B. Leach & Co., Caldwell
81 Co. and William r. Compton Co.
Three Units Formed.
AQ Tie blIlle OF the uoaLlng or TINS
bond issue, the largest financial trans
| action on record here involving pri-
| vately-owned properties in the District,
| the Wardman concerns was reorganized
| and divided into three units known as
the Wardman Corporation, the Ward
man Realty & Construction Co. and the
Wardman Real Estate Properties. Inc.
| At that time, 1t was announced that
| officials at the head of the old Ward
| man organizations would continue in
| charge of the new Wardman concerns.
Active management of the major
hotel and apartment properties of the
Wardman Corporation was taken ever
! in July of last year ny the United
Realities, Inc, a corporation which in
| cluded officials of the Hotel Manage
| ment & Securities Corporation, which
since was formed.
Contracts in this management trans
action were TO run for 10 months, with
an option for renewal for an additional
| eight and q half years.