The Washington times., 1931-01-27
BLAIR, PEYSER
ARE REALTY
RECEIVERS
Appointed by Justice Hitz to
Conduct Business of SWart-
zeII, Rheem and Hensey Co.

Conduct Business of SWart-
zeII, Rheem and Hensey Co.
Henry P. Blair and Julius I,
PeySer we're appointed by Justice
William Hitz today receivers for
the bankrupt estate of Swartzell,
Rheem and HenSey Company
which was adjudicated yesterday.
The appointment of receivers
for the bankrupt firm followed
the filing of petition by
Attorney Tobriner, in which the
court was informed that the firm
had placed notes on real estate de-
velopments which are now out
standing to the value of $18,000,-
900. More the.n 5000 clients Of
the bankrupt firm hold these Sc
curitieS, the court was told.
Must Deliver Books
The order appointing the re-
ceivers directs the officers Of the
bankrupt corporation to deliver
all of the property, including
books and records of the bank
rupt firm.
The receivers are authorized
and directed ito conserve the
assets of the bankrupt, conclude
all pending negotiations, and re-
ceive the payment of all trans
actions which in the ordinary
course of the bankrupt's business
would have been paying to it."
Under direction of the court,
the receivers are also ordered to
receive all payments of interest
payable at the office of the bank
rupt firm and to pay such cur
rent obligations as are necessary
to comply with the terms of the
receivership, including the pay Of
clerks and agents for the firm.
Had Rent Business
The court is also informed that
the bankrupt firm has carried on
a large business in the collection
of rents of various properties be-
longing to clients of the firm and
those rents have been payable at
the office of the firm.
A $175,000 loan on premises
1445 Park Rd. N. w. is now IN
process of liquidation, according
to the bill, and cash realized
from this settlement is also pay
able into the office of the firm
for distribution among the note
holders.
The court was told that unless
the office of the firm could be
kept open, it would be impossible
for defaults to be declared when
payments of principal and inter
est were not promptly made and
it would also be impossible TO
keep accurate check on insu1-
ance policies placed on various
properties financed by the firm
and which are necessary to
adequately secure loans made on
the properties.
Will Elect Trustee
The receivers will carry on the
business of the firm until such
time as the creditors can hold
their meeting and elect a trustee.
The bill reads:
The election of a trustee,
considering the great labor
necessary to the preparation Of
the schedules of assets and liza
bilitieS to be filed in this case,
under the ordinary course of
procedure, cannot be had for
at least 80 days nor would it be
fair to all parties in interest,
whether creditors or otherwise,
that the office and business
Of this petitioner be diScOn-
tinued during that period.
That considering all the facts
and circumstances therein be
fore set forth, your petitioner
AYERS that the condition of the
affairs of this bankrupt and its
business and assets is such
that it is absolutely necessary
for the preservation of this
estate and the protection of
the rights and interests of its
creditors, that a receiver or re-
ceivers be appointed to take
charge of the property of this
bankrupt pending the election
of such trustee"
Make Chances Equal
Although no definite statement
has been made by officials of the
firm, it is believed in the finan,
ctal district that Withdrawals
from the large stores of cash
which have been kept on deposit
with the concern may have in
duced the officials to enter bank
ruptcy on the theory that all de-
positorS should have an equal
chance in the salvage.
Assets of the firm were listed
In a financial statement a year
ago as approximately $4,000, 900.
This was described as a notable
increase over the previous state.
mentS in which the assets assert.
edly were in the neighborhood OF
$2,000,00O.
Swartzell, Rheem and Hensey
Company have financed many OF
the larger projects in Washing.
ton. Among the most recent ha-''
been included the New Shoreham
Hotel, the Shoreham office build
ing and a number of apartment