Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-14
WARDMAN NAMED
IN RECEIVER SUIT
Six Aides Also Accused In
Action Charging Stock
Juggling and Fraud.
CONTINUED FROM First page.l

they announced the plan upon which
stock was to be issued, to wit, that the
authorized capital stock was 10000
shares of per cent cumulative pre-
ferred stock at 500 par value and 90
600 shares of common stock Of no par
value, that with each share of preferred
stock would be allotted one share of
common stock and that this unit was
70 sell Tor SIPS. It is charged that the
defendant corporation should have. re-
celved from the sale of this stock APP
proximately 100000. all Of which sum
OF money should have been received
while Wardman, Bones and Hobbs we're
In control Of the corporation.
In another section of the suit Il is
charged that one Jane Frances Rankin
on Marcn l, 1924, at the solicitation
OF the defendant, Harry Wardnnan,
purchased from the defendant corpo-
ration $50 shares of preferred stock
and in payment thereof executed and
delivered deed to a certain pronertv
owned by her. 1t is further charged
tnaG the woman was issued no common
stock and that, although she Intended
70 convey the property to the defendant
GSorPoration, 1t was in fact conveyed to
marry Wardman and Thomas P. Bones
ana that the names of these grantees
were inserted in the deed without her
knowledge or consent.
IL Is further alleged that a large
number OF shares of stock of the de-
fendant corporation were issued IN
creditors OF Wardman, Bones g. Hobbs,
or some OF the corporations controlled
Dy tnem, and In lieu Of payment for
the stock, in accordance with the an.
nounced plan, the indebtedness of the
said defendants or corporations was
Cancelled without the payment of any
money or other valuable considerations
into the treasury Of the defendant cor
poration.
s : SS32,0O0 Loan Claimed.
In 1929. it is charged, wardman,
Bones g. Hobbs. acting through the
Wardman Corporation, borrowed from
the defendant corporation 1892 900,
giving notes as security.
It Is further charged that a meeting
of the stockholders of the defendant
corporation was held in Alexandria on
August 4, 1880. At that time wardman,
as president, is alleged TO have advised
the stockholders that the $685., 900 OBJ
legation of the Wardman corporation
was secured by q deposit with the Riggs
National Bank, as trustee, of all the
common stock of the Wardman Realty
81 Construction Co., and IN order to
raise an additional half million dollars
represented to the stockholders that
"the Wardman corporation must give
up this stock in order that people may
put up their money" Wardman is said
TO have advised the meeting that the
directors, who had full power and au-
thority, had already substituted the
preferred stock for the common stock
and wanted the stockholders to ratify
and confirm this action. A vote was
taken, It is alleged, and Wardman, still
holding the controlling voting power,
passed the resolution over the protest
Of the preferred stockholders present.
Manipulation Charged.
Further charging that the officers
and directors Of the corporation, and
principally Wardman, Bones and
Hobbs, have manipulated for their in
dividual profit and benefit the common
stock and assets of the defendant COR
poration, the suit alleges that the COM
plainants have been unable at any
time to secure, q satisfactory financial
statement Of the corporation from the
defendants.
The compliments allege that divi-
dendS at one time were paid when
there was no surplus available for such
purpose and that no dividends have
been paid on the preferred stock since
July, 1927, except IN the cases Of GER
tain favored individuals.
On these grounds Judge william p.
Woods of the Alexandria Corporation
Court was asked to grant the restrain.
ing order and receiver and such furs
ther relief as the court may see Mt"
A hearing on the petition for tempo
rary receiver and injunction was set for
Friday morning.