Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-14
Mrs. Augusta Brown, Mort
gage and Discount Corpora
ton EmpIoye, Testifies.
ANNAPOLIS HOTEL
MONEY ONCE USED"
Personal Check and Instructions
Recalled in Receiver
ship Suit.

Harry Wardman personally supplied
FUNDS for the payment of dividends In
1928 on the stock Of the wardman
Mortgage g. Discount Corporation Il
was testified today at q hearing before
Judge William p. Woolls, in Alexandra
corporation Court, where q group OF
minority stockholders is seeking ap-
pontment OF receiver for the cor
This testimony was given bv Mr..
augusta Brown, cashier and book
keeper for the mortgage and discount
corporation.
She also said that money received
from the Annapolis Hotel, a WardmaKi
concern, was at one time used to paw
dividends on the stock of the Mortgage
and Discount Corporation, and that
she was instructed to pay dividends
only to certain stockholders,
Tells Of Wardman Check.
On November 3, 1928, she said.
Wardman handed her his personal
cneck Tor 1888, and instructed her to
use the money In paying dividends be-
cause there was insufficient money IN
tne corporations treasury for this pnr-
The plaintiffs contend in their INIT
that dividends should only Be paid frum
the earnings Of the corporation, and
that payment with money received from
other sources Is misleading
Mrs. Brown further testified that In
January, 1928, Wardman told her to
Keep stockholders satisfied as far AZ
possible and that things would work
She denied entering a mote far
$685., 900 in the ledger and said this
was done after she left. She said ~,
AUDIT could not be completed in 1929
because of this item.
John Berg, certified public account-
ant employed by counsel for the sIair-
yilIs Is expected to testify this after
noon and Monday. He recently com
Pieseo an audit of the corporations
BOOKS. There win be no hearing to-
Payment I'm Stock.
Testifying yesterday, Judge Daniel
Inew Wright Of counsel for the de-
Iendants said he had been paid to
represent the corporation at the hear.
ing by the transfer to him Of 100 shares
Of the Wardman Realty a ConStr1sr-
ton Co. The plaintiffs contend that
this stock Is actually owned BY the
Mortgage 81 Discount Corporation.
Judge Wright also testified that At
torney Gardner L.. Boothe. statutory
agent Tor the corporation agent here.
and his associate at the trial, had re-
ceived 10 shares of the preferred stock
Tor his part In the trial, Minutes Of
the board Of directors meeting, grant
ing the two attorneys this stock. were
read BY plaintiff attorneys from the
books Of the defendant corporation.
Attorney Harry r. Kennedy for the
plaintiff then called on the court to
take recognition Of the fact that part
OF the $500 shares Of Realty and Con-
struction Co. stock which are the sole
assets Of the corporation at this time
were transferred by the board Of direc-
tors to the lawyers and that about the
same time the board Of directors passed
the resolution to the effect that the
corporation should be dissolved and set
q date for a meeting to take this action.
It was this meeting that has been post
poned by agreement following q state
nent from Judge Woolls that he would
grant an injunction against It II 1t was
not postponed.