Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-11
RHEEM NOTE SALE
BAN IS SOUGHT
Creditor Seeks Injunction to
Prevent Auction of Loan
Collateral.

Application was made today to the
District Supreme Court to enjoin the
sale Of notes aggregating $2s4,SS5.7O
placed by Edmund D. Rheem, former
executive vice president Of the bank
rupt corporation of Swartzell, Rheem
g. Hensey, as collateral with the Ma
tional Mortgage g. Investment Co., and
which are being advertised for sale at
auction next Monday by Thomas j..
Owen & Son, auctioneers, for default In
q note given by Rheem, the amount OF
which is not stated.
The petition was filed by Carrie E.
Allnutt. one of the three creditors VINO
began an individual bankruptcy pro-
ceedings against Rheem yesterday
fhroIIch Attorney E. Hilton jackson.
.Jlstice Adkins issued rule on Rheem,
the National Mortgage 81 Investment
Co. and the auctioneers to show cause
FRIDAY why the sale should not be en-
ioined and why 1.-The collateral notes
should not be surrendered TO q receiver
ia be appointed to conserve the assets
of the bankrupt. ,.o..o,
The petitioner declares she oeleveS
the notes sought to be sold, or some
mart of them, belong to the assets OF
Rheen1. and that the sale at TINS time
would result In a preference OF tne
mortgage company as creditor III W.
lation of the bankruptcy laws. AtGen a+
ton of the court Is called 10 Ltls AS an
that it will be several days before an
adjudication in bankruptcy can pe Sc
cured against Rheem, personally, ano
then more time viii elapse before tne
filing of schedules as to his assets anu
1iah;lities- and his creditors VIII pc
placed at a disadvantage If the sale Is
permitted to proceed -,,+
The advertisement Of the sale sougng
70 be halted declares that collateral
note was signed HAY 5, 1880, by Hneem'
payable to the National mortgage q IN
1restment Corporation, but does not dis
close the amount loaned on the secur1-
ties nor the date Of maturity OF the
note.
Seeks TO Re-establish Deed.
suits To re-establish deed Of trust
for S375. 900, said to have been n!egany
released by Luther H. Swartzen ano
Rheem, trustees also was MED toaay
IA the District Supreme Court ny MIL
HE z. Simpson OF Baltimore, tnreusHH
ATTORNEYS ii. Wiushtp Wheatley ana
~. WlI6lllU WAACaOACJs
a asked to declare the released trusL
to have priority over the later sruse
az $685.. 900 In favor Of the. New 1oIk
Life Insurance Co. on the properly
known IS the Ponce De Leon Apart
Tnent at Connecticut avenue and APP
pleton street.
Z Discovery is also asked OF DAVID L;
stern. builder of the apartments, ana
the Abner Drury Co., to which ne Is
eaid to have transferred the properly
and which placed the new trust TO the
life insurance company, as to the pur-
chase price and other details OF the
transfer Of the property. Arthur ..
Bishop and Randall H. Hagner. trustees,
and John H. Holmead, payee OF the
notes. are Joined as defendants
The plaintiff says she owns two ~ ,OOO
notes OF the FIRST issue Of $375, 900 placed
On the property January 80, 1879. ny
stern. and which was released Novem-
Der i. 1929, by Swartzell and Rneem
without notice to plaintiff, who learned
a. IL only since February /, she claims.
She saws she does not know the names
AZ the holders Of the remaining oOc
notes included in the f1rst deed OF trust
nor of the holders Of subsequent en-
eumbrances on the property and Is I'M
able to make them parties to the suit.