Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-27
MORTGAGE GROUP
RECEIVERS NAMED
H. p Blair and ]. !. PeySer
Appointed for SWartzelI,
Rheem & HenSey.

Justice william Hitz of the District
Supreme Court today appointed Henri!
p. Blair and Julius /. Peyser as re-
ceivers for Swartzell, Rheem g. Hensey
Co., which yesterday filed petition ir
voluntary bankruptcy. The receivers
are to conserve the assets pending the
appointment of a trustee in bankruptcy
when the creditors of the company have
held a meeting. Bond of the receivers
was fixed at 100000.
Through Attorney Leon Tobriner, the
company in its application for re-
ceiver tells the court that there are now
outstanding notes aggregating $18,0o0,-
600 which have been sold from time
to time to some 5000 clients Of the
company in sums running from small
to large amounts.
Under the provisions of the various
deeds OF trust securing these notes the
principal as we'll as the interest has
always been payable at the company
Office and it has been the custom that
the proceeds be distributed or credited
to the various customers either in cash
proceeds or upon the books of the COM
pany.
Collected Rents.
In addition to its investment bust
ness, the company tells the court, it
has been engaged in the collection OF
rents of various properties including
apartments, private residences and bust
ness properties for clients and in the
fire insurance business.
r1bero &c aoW rnnHinp for settlement
In the District Title Co.'S office a GER
tain deed Of trust on premises l445
Park road in the sum of $175,000. this
fund being applicable to the payment
of notes secured by the deed of trust
at the Office of the petitioner for dis
tribution among the note holders.
Interest is to be corrected from day
to day on the $l8,000,000 of notes, the
court is told, and the makers of these
notes have no other means or place OF
meeting their payments except at the
Office of the company.
Holds Notes Of Customers.
AS an additional reason for the re-
ceivership, the company points out that
1t has in its custody and in its vaults
for safe keeping notes representing many
thousands of dollars which are the prop
erty of its various clients and also other
notes which are held for collection be-
longing to clients, and to whom remit
lance has to be made at various interest
periods. In the ONCE Of the company
are q great number of books of account
and records of its various transactions,
the court is told.
The volume of business transacted by
the company has been large, the court
is told, and its assets as well as its
business records and the conduct OF its
business cannot a this time be aban-
doned or its Office Nlosed without serious
loss and injury ncE only to its creditors
but 20 the investing public.
The attention of the court is called
to the fact that the election of trustee,
considering the great labor necessary to
the preparation of the schedules OF
assets and liabilities to be filed In this
case, cannot be had for at least 30 days
in the ordinary course of procedure. It
would be unfair to all parties In interest,
counsel asserts, whether creditors or
otherwise, that the business of this COM
pany be discontinued for that period.
The receivers are authorized to con-
clude all pending negotiations and re-
ceive payment of all transactions which
in the ordinary course or the bankrupt
business would have been payable to It.
They have authority under the order
to employ and pay such clerks, agents
and assistants as they may find neces-
sary TO properly perform their duties as
receivers.