Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-17
WARDMAN NAMED
IN S76Q,ODD SUIT
Mortgage and Discount Firm
Receivers Charge Fraud
Against Is.

Claiming it had been defrauded OF
approximately 100000, receivers for
the Wardman Mortgage 81 Discount
Corporation today filed, in District SUI
preme Court, a suit allegedly describ-
ing the intricate financial jugglings'
Of Harry Wardman and his bushes:
associates.
The suit asks that an Investigation o.
the charges be made by some agency Of
the court and that, upon a final decree
each Of the IS defendants be held liable
for such sum of money as shall b
found to be due the plaintiff"
Named as defendants are Halsey
Stuart SL Co., Hambleton & Co., Jane:
c. Stephens, Charles B. Stuart, H. L
Stuart, Emory L. Coblentz, the Ward.
man Corporation, Wardman Realty &
Construction Co.. Wardman's Real Els.
tate Properties, Inc: James B. Hobbs
Thomas P. Bones, Harry Wardman and
Julius I. Peyser, Joseph P Tumulty
and Thomas d. ParSon, the last three
being sued as receivers for the Ward
man Real Estate Properties. Inc.
1t is charged that Wardman, Bones
and Hobbs, by misrepresenting the
true facts and conditions. sold about
5000, 900 worth of stock in the mortgage
and discount corporation, which they
controlled. This money, it is alleged,
was loaned" and diverted to the Ward
man Construction Co. After numerous
manipulations, it is alleged, 72,878
shares of the common stock of the
Wardman Park Hotel, Inc, came to be
pledged as security in part for the
loan"
Properties Refinanced.
In 1928, the suit says, the Wardmar
properties were refinanced through q
group of bankers, including principally
Halsey, Stuart & Co. However, before
the bankers would consent to under
take the refinancing, it is said, they de-
manded stock control Of the Wardmar
Park Hotel
To make this possible, it is charged
Wardman and some of his associates
removed the stock from the safe of the
Mortgage 81 Discount Corporation
and substituted other less valuable
paper as security for the loan. 1t is
claimed the plaintiff company was de-
frauded thereby and the court is asked
by Receivers Harry A. l.. Barker ano
Gardner L. Boothe to accord the dis
count company such relief as may be
merited The court Is also asked tt
appoint receivers for the Realty &
Construction Co. and the WardmaT
Corporation, and to appoint additiona
receivers to act in conjunction with
or in place of, the present receiver:
of the Wardman Real Estate Proper
ties, Inc.
The suit was filed through Attorney
Harry F. Kennedy and Norman Fischer
After the refinancing agreement hat
been reached, the first mortgage bono
issue of SIG. 1000 900 was authorized. O.
this issue, $1l ,000,0 in bonds, secured
by a group of 10 Wardman-buil prop
critics, was sold to the public. The mex
step was the issuance of $2,500000 o.
senior gold debentureS, secured by {
general mortgage in the same amour
on the properties, and the common stool
of the Wardman Realty and Construction
Co. There were also issued $2400,0 0(
of junior gold debentures, which are sale
to have been turned over to Coblentz II
lieu of his equities in the properties.
Company in Receivership.
A few months ago, the Wardman Real
Estate Properties, Inc. which appeared
on record as the maker of the mort
gage securing the bond issue, announced
it was unable to meet It's financial OBJ
legation and the properties were placed
in the hands of receivers.
The suit charges that the mortgage
and discount company never engaged IN
any business, but was organized for the
purpose of selling stock to raise capital
to be loaned to the Wardman corpora
tipn.
Stephens is identified in the suit as
an attorney working with Wardman as
representative of the banking inter-
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