Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-16
WARDMAN GROUP
REF|NANC|NG
Committee Asks BondhoIderS
to Cooperate in Averting
ReCeiverShip.

Hoping to avoid receivership pro.
ceedings, the BondholderS' Protective
Committee of the Wardman Real Estate
Properties, Inc, which owns 10 Wash
ington buildings, has sent out circular
letter to bondholders urging them &
cooperate in working out some form Of
financial reorganization.
The owning corporation, on March
passed an interest payment on about
$11 100000 in outstanding first and re-
funding mortgage bonds.
The circular letter says cit Is the
opinion of the committee that a forced
liquidation or sale of these properties,
particularly under the unusual condi-
tons that now exist, would be contrary
to the best interests of the bondholders,
and 1t Is the belief of the committee
that a reorganization of these prop
tracted and expensive receivershlp-
would be greatly to the advantage of
the bondholders."
Specific Plan Not Offered.
The committee did not suggest any
specific plan Of reorganization, but
urged the bondholders to deposit their
securities at once with the committee, so
that prompt action toward this end may
be taken.
Although the committee disclaimed
any intention of predicting the time
Of recurrence of normal conditions in
the real estate situation in Washing
ton," it did call attention Ito the fol-
lowing hopeful elements in the situa-
ton:
The extensive public building pro-
gram initiated by the Federal Govern
ment contemplating the expenditure of
approximately $250,000, 900.
2. The Bicentennial Exposition in
1882, which Is expected to attract an
unusually large number of visitors to
the city.
3. Some recent improvement in the
city's general real estate situation as
noted in the Washington Current
Business Review.
The letter also listed the earnings of
the corporations 10 properties for the
year ending December 81 last at ST.
033,051.52 before deduction for depre-
citation, interest on first and reflnding
bonds and underlying trusts and amort-
the Indebtedness for that period, it was
said, amounted to $1,O06,69515.
Available Cash Reduced.
1t was said that such other items as
requirements and additions to build
ings and sinking fund requirements on
underlying trusts reduced the cash
available for payment of bond interest. !"
According to the letter, there were
outstanding on December 81, 1880, first
and refunding mortgage bonds Gin
Guiding $85,500 Treasury bonds) and
underlying trusts on certain properties
totaling $15,792,750. The letter does
not mention the fact that approximate
~ 100000 of senior and junior de-
bentures were issued, being secured by
a general mortgage on the properties.
The new letterhead lists julius I.
Peyser as a new member of the COM
mittee. Mr.. Peyser and Joseph P.
Tumulty are the only local attorneys on
the committee.
Mr.. Peyser said he recently secured
place on the group in the interest of
q number Of local bondholders.
He said he was opposed to receiver
ship or foreclosure of the properties
favoring some form of reorganization
instead.
The 10 properties, including such
buildings as the Wardman Park Hotel,
Stoneleigh Courts, Carlton Hotel and
Boulevard Apartments, are now oper-
ated as one unit. Mr.. Peyser said he
believed this unit should be broken
down and the individual buildings
operated separately, so that the strong
projects would not be burdened with
the weak.