Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-02
BOND FIRM PROBE
AWAITS REPORT BY
U. 5. ACCOUNTANTS
Assistant Attorney General
DoddS Expects to Receive
and Study Data Today.
MORTGAGES RELEASED
ON OTHER PROPERTIES
Receivers Recently Appointed for
Concern Announce Additional
List.

The investigation of the affairs OF
Swartzell Rheem g. Hensey, bankrupt
mortgage house, was at standstill to-
day pending completion of the report
from Department of Justice account
ants.
This written report is expected to
reach Assistant Attorney General MI
gent Dodds this afternoon. After
studying its contents Mr.. Dodos ana
Assistant United States Attorney Neil
Burkinshaw will determine their III
ture course of action.
Charles T. Malone and E. j. Arm
bruster, special agents of the Bureau
of Investigation, are drawing up the
report It is based upon conclusions
reached by them as result OF tneir
examination of the books OF the COM
pany.
These two accountants have had &C
cess to the books for only few days;
but are understood to have completed
their initial study Saturday.
Other Mortgage Releases.
Mai. julius I. Peyser and Henry P.
Blair. receivers recently appointed for
the mortgage house, announced TO-DAY
they had discovered mortgages had peen
released on the following additional
properties:
nue. 2Oi9 1 street, 1870 Nineteenth
street. 1349 Connecticut avenue, l4lb
irving street. an apartment; Thirteenth
and Monroe streets, and lots 5, and 4,
square 369. All of these are projects
financed originally through Swartzell'
Rheem & Hensey.
Mr.. Peyser also reiterated his sug-
gestion that the holders of mortgage
notes on the various properties form
Bondholders' Committees for their own
protection.
Investors Seeking Facts.
Another situation, which is causing
the receivers considerable trouble, de-
veloped today.
There are numerous persons who
dealt with the mortgage house, 1t was
said who simply placed their funds
there for investment and received In
return receipts for the amount. In
many cases now they have nothing but
this receipt, which bears only their
name, the amount and the date. TO
show for their investment. Being with
out knowledge as to the property in
which their money is invested, they are
now making strenuous efforts to ascer-
tain this fact.
It was pointed out. however, that
only a thorough examination Of the
books will disclose this information.
Asks New Receiver.
Edward T. Harding, holder of the
second trust on the building occupied
by Demonets, Inc, at IS Riggs court,
which is beng operated by Mr.. Peyser
and Mr.. Blair as receivers for the bank
rupt mortgage house. this afternoon
filed a petition in District Supreme
Court for appointment of a substitute
receiver to take over the building.
The suit named George F. Hunt as
owner of record and Randall H. Hagner
Co. as agent. Hunt was the rental
agent for Swartzell. Rheem g. HenSey.
The petitioner, through Attorney Ed
mund d. Campbell Of the firm Of
Douglas, Obear a. Douglas. tells the
court the trust is in default and that
the money being collected in rents is
not being applied to the mortgage in
debtedness. II Mr.. Blair and Mr. Pey-
ser are continued in their present ca
pacity. the petition says. the money due
Harding will be mingled with the gen.
eral assets of Swartzel. Rheem 81
Hensey instead of being paid TO him.
The court is asked to restrain the re-
ceivers from collecting any more rent
on the building.