Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-10
RHEEM SENTENCED
TO SEVEN YEARS AS
HE PLEADS GUILTY
Admits ConceaIing Notes for
$4,000 Belonging to
Bankrupt Company.
JUSTICE GORDON GIVES
HIM MAXIMUM PENALTY
Enters Jail NEUTRALITY-SUSPICIOUS.
Charge Against Brewer Expected
to Be Dropped.

Edmund D. Rheem, executive vice
president of the bankrupt corporation
of Swartzell, Rheem & Hensey Co.,
pleaded guilty this afternoon before
Justice Peyton Gordon in Criminal d.
vision l of District Supreme Court TO
the first count of an indictment charg-
ing him with carrying away and con-
cealing notes of $4,000 belonging to
the company and with embezzling that
amount.
The count admitted by Rheem re-
lated to the concealment OF the notes.
The second count, charging embezzle-
ment, was nolle pressed by Assistant
United States Attorney General Nugent
Dodds and Special Assistant Neil Burk-
inshaw.
Given Seven Years.
Justice Gordon imposed the maximum
penalty of seven years in the penlten-
tiary on the first count. Rheem was
committed to jail and was Immediately
conveyed to prison by Deputy United
states Marshal JOLln D. NAoAh SOAA'
The plea of Rheem was expected to
be received at the opening OF court
this morning but Rheem was a little
late in reaching the courthouse and
Justice Gordon had begun the hearing
of lunacy cases and deferred action IN
the Rheem case until 1890 o'clock.
The whole procedure in court re-
o,ired less than a minute. Burkinshaw
informed the court that Rheem was
prepared to charge his plea. The plea
was entered and then Justice GORDON
pronounced sentence.
Will Go to Lorton.
Rheem bore up we'll and there was
q half smile on his face throughout.
AS he was escorted frcm the cell room
to the automobile, in which he was
to be moved to the District Jail he
shielded his face from photographers
with his hat.
Lorton, Va. He will be eligible for
parole in two years and four months.
Attorneys William E. Leahy and Ed
mund leland accomps nied Rheem into
court and in his behalf waived the
reading of the indictment. When asked
by Clerk William S. Adkins how he
pleaded to the indictment, Rheem said
Guilty" He shook his head when asked
if he had anything to say before SEN
tence was passed
Brewer Status in Doubt.
The Government prosecutors were nct
prepared to say what action would be
taken against J. Newton Brewer, an
other vice president of the brokerage
firm, who was jointly indicted with
Rhcem, but it is generally considered
at the courthouse that the indictment
will be nolle pressed as to him.
He is at liberty on bail. Brewer Is
charged with having taken the notes
from the vaults of the brokerage firm
and to have delivered them to Rheem
at the Office of the Washington Loan
81 Trust Co.
The count of the indictment on which
Rheem was sentenced alleges that he
carried away and concealed writings
to the prejudice of another, including
notes of $l62 900. which he substituted
for notes held by the trust company
as trustee of the estate of his father,
Clarence B. Rheem. and which had
been impaired by the release OF the
trust securing them.
Harry Wardman, father-in-law OF
Rheem, was in court this morning and
conferred with him and his counsel.
Investigation into the Rheem affairs
was conducted by Charles T. Malone
and E. j. Armbruster, Department OF
Justice agents, under the direction OF
j. Edgar Hoover, director of the bureau
of investigation of the department.