Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-02
WARDMAN REALTY
GROUP DEF AULTS
No Action Taken on Semi
Annual Interest, Officials
Announce.

With semi-annual interest payment
of S357,50O due today, officials Of the
Wardman Real Estate Properties, Inc,
issued a statement that "the beard of
directors of the company at this date
had not taken any action in the mat
ter
This statement was, in effect, an an
nouncement that the interest on SILL
100000 of first and refunding mortgage
bonds, secured by deeds of trust on 10
local properties, could not be paid.
The bonds were issued by Wardman
Real Estate Properties, Inc, and sold to
the public through four nationally
known security houses.
The usual consequence Of failure to
meet such an interest payment, in the
absence of any reorganization, is for
one or more Of the bondholders to start
foreclosure proceedings against the prop
erty securing their investment.
Statement Issued by Lloyd.
The statement, issued by Humphrey
Lloyd, controller of the Wardman Real
Estate Properties, Inc, follows:
with reference to the interest due
March / on Wardman Real Estate Prop
critics, Inc, first and refunding mort
gage gold bond, Humphrey Lloyd, con-
troller of the company, advises that the
board of directors has not taken action
at this date regarding the interest pay
ment.
Committees have been formed to pro-
tect the interests of the bondholdeN
and the cooperation of all interested
parties, including the management and
the bondholders' committee, is being
given toward conserving the interests OF
the bondholders and other parties"
BondhoIders Believed Protected.
The bonds sold were part Of $16,-
000,O00 authorized. issue, put through
when the properties concerned were
taken out of the hands of Harry Ward
man, local builder, in 1923. They are
secured by the first and refunding mort
gage on the Wardman Park Hotel, the
Carlton Hotel, Chastleton Hotel, Stone
leigh Court, Cathedral Mansions north
and CENTER, the Highlands, the Boule-
ward, Davenport Terrace, 2700 Connecti-
cut avenue and the Depar tment Of JUS
tice Building.
Despite recent criticism In the Senate
of alleged excessive appraisals made OF
the property when the securities were
sold, it was believed the properties
would prove sufficiently valuable to
protect the interests of the bondhold-
ers. The Sill 100000 bond issue is sub
ject only to prior lien OF approx
mately $5,000,000 in underlying mort
cages, or mortgages that were already
on the properties when the first and re-
funding issue was sold.
Back of the first and refunding mort
gage bonds, however, come So, 500, 900
in senior gold debentures and $2,225, 900
IN junior gold debentures, issued by the
Wardman Realty and Construction Co,
and secured by general mortgage Tor
$2,500,000. placed on the properties by
the owning corporation. The interest
on the debentures, however, is not yet
due.
With the exception of the junior de-
bentures, the securities were offered for
sale by four members of the Investment
Bankers Association of America
namely. Halsey, Stuart 8S Co., Inc;
Hambleton IL Co, A. B. Leach & Co.,
Inc, and Rogers, Caldwell &c Co., Inc.
The Junior series were issued to Emory
L. Coblentz, Frederick Md, banker, and
his associates in return for the sur
render of his equities in the properties.
Two protective committees have been
formed in New York one for the bene-
fit of the bondholders and the other
for the benefit of the individuals who
bought debentures. Organizers OF the
latter committee allege that sinking
fund payment due February / has
never been made.