Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-12
WIN
DEMAND WARDMAN
RECORDS Be SHOWN
Corporation Ordered to Pro-
duce Books in Case to-
Force Receivership.
DEFENSE CONTENTION
ovERRULED BY COURT
Plaintiff Attorney Promises At.
tempt to Show Irregularity Of
Company Stock Issues.

Stockholders OF the Wardman Mort
gage and Discount Co., suing In the
Alexandria Corporation Court for ap-
pointment of receiver for the concern.
won point today, when Judge William
p. Woolls ordered the corporation to
In trial of the case.
The suit was brought by Attorney
Harry r. Kennedy on behalf OF Robert
B. Smythe, Theodore s. Grape and
Charles d. Davis, minority stockhold-
ers. The names Of number Of other
stockholders were submitted to the
court today as joint plaintiffs Named
discount company, Harry Wardman
and other officers.
Defense Oppose Receiver.
The hearing opened this morning
with Judge Daniel r. Wright Of counsel
Tor the defense, contending that the
piamtins request for q receiver should
not be granted because less than Is per
scented.
In the absence Of any charge OF
disnonesty," Judge Wright argued, amy
group OF stockholders representing Less
than IS per cent of the total are not en-
Tilted 70 ask. q court to interfere with
the conduct Of the corporations busi-
ness. The mere fact that they are
ass u.lssatsnea with the method Of opera
This contention, however, was over
ruled by Judge Woolls.
KENNEDY. who. Is associated. with
Harry A. L. Barker. in behalf OF the
plaintiff, then asked the court TO issue
subpoena duces tecum for the books
and records for the Wardman Real
Estate q Properties, Inc, and the
Wardman Realty q CONSTRUCTION Co.
In support Of this motion, Kennedy
submitted an afadavit which he said
was based on facts uncovered in a
recent audit OF the mortgage and dis
count corporations books.
Motion OvcrruIed.
Judge woolls overruIeti the motion
when counsel for the defendants pointed
out that these were Maryland corpo-
rations and not directly concerned in
the present proceedings
Kennedy then asked the court 70
order the production Of the books Of the
mortgage and discount corporation.
stated that these records were needed
TO show alleged irTegularity Of stock
issues, payment Of dividends when there
was an insufficient balance In the treas
ury for this purpose and to trace the
| disposition of checks which he said
were made out Tor undelivered. divi-
dend payments.
Andrew j. Sommerville Of the Wash
ington firm of Thomas SommervilIe e.
Co. testified today that his firm had
purchased $1,000 in stock Of the mort
gage and discount company, but instead
OF paying cash had credited the par
value Of the stock ON its books to the
Wardman Construction Co. At that
time, the witness said, the construction
company owed his concern more than
$4,000. The construction company was
credited with the par value of the stock
IN part payment Of this debt, he testi-
ned.
Samuel Bigger ON Stand.
When court adjourned at noon Samuel
A. Bigger of the Virginia Corporation
Commission was testifying regarding
details Of the methods Of the corpora
ton. Attorneys for the plaintiff said
che afternoon session would be devoted
to the taking of testimony from WITT
nesses who would give details OF al
legged irregularities In the method OF
selling stock employed by the company.