Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-20
BLAINE COMMITTEE
GETS FINANCE PLAN
Wardman Methods Intro
duced in Effort to Show
"BIue- Sky" Law Need.
Continued From First Page.)

Co., had submitted sworn statement
to the District government in the form
of tax return on the furnishings and
equipment of the motel, listing its value
as S500,000 the appraised value of the
same equipment was cited in a bond
issue prospectus as $1.500,000.
In statement outlining the need
for Blue sky securities law, Mr. Brink
man declared that experiences here and
elsewhere convinced him that hundreds
of mortgage bond issues, floated by rep
utable concerns, had proved disastrous
to investors
He said he found in his investigation
there were many local bond issues
which had been sponsored by men who
would have had no difficulty in obtain
ing a license to sell such bonds under
the type of fraud bill introduced by
Senator Capper, but that these securi-
ties never would have passed muster
under the blue sky law proposed by
Senator Blaine.
In further criticizing the fraud type
legislation, which last Friday was
sponsored by joint committee of local
business and professional groups, Mr.
Brinkman said that the United States
attorney for the District now has all
the powers which he would be given
under the Capper bill, except for the
provision Of an injunction by court
stopping the sale of securities found
not good"
Law Must Provide Study.
Mr.. Brinkman declared that the
law in this regard must provide first for
parliamentary study of securities be-
fore they are permitted to be sold.
Mr.. Richards gave a lengthy eX-
PLANTATION as to how the District gov
eminent seeks to find the full market
value" as required by law in the max
ing of local assessments.
Our assessments" he said "repre-
sent the full market value of local
property. just as closely as we can ar
rive at it. A survey of our assessments
in comparison with actual sales shows
that the government valuation ranges
between 80 and 100 per cent of full
market value. Some sales run above
the assessment and some fall below"
He then submitted records showing
the assessed value of the Mayfower
Hotel property in the fiscal year 1929
$780, to have been $5,232, 100.
Later. Mr. Brinkman introduced as
evidence circular issued in connection
with the sale of bonds carrying an
appraisal of the value of the Mayflower
made by Wardman, of $12.600, 900. The
bond issue amounts to $9,900,000.
Richards Gives Figures.
Mr. Richards, at the request of the
committee, introduced the following as
sessment figures, to which the commit
tee added the private appraisal made
by Ford, Bacon & Davis:
Wardman Park Hotel, including the
large annex, assessment, $4,777,2 56, pri-
vate appraisal. $8,569,242; Carlton Ho-
tel, assessment, $1,856,816, appraisal,
S3,438,4l4; Boulevard Apartments, as
sessment, S1,082, 408, appraisal. $1,771,-
972; Cathedral Mansions, north, as
sessment, $1,105, 208, appraisal. 81 $685.
627; Cathedral Mansions, center, as
sessment, $1076,112, appraisal, $685.
773; Chastleton Hotel, assessment, ST.
697, 521, appraisal, $2,624,670; Connecti-
cut avenue and Davenport street apart
ments, assessment, 81 ,289,074 appraisal,
81, 1872, 1928; Highland Apartments, as
seSsment. $565,835, appraisal, 1914, 400;
Stoneleigh Court, assessment, 81 ,643,-
948, appraisal, $2,527 ,843; Twenty-seven
hundred Connecticut avenue, assess
ment, $279,267, appraisal, $735,203.
The assessment on the Department
of Justice Building was given at $685.
The total assessments reached the fig
ure of $17,147 ,525, and the total of APP
prasalS listed above, with large addi-
ton which the committee table did not
explain, reached the figure of $751;
040,833.
Bond Firms Favor Capper Bill.
Mr.. Brinkman brought out in con-
nection with the Mayflower Hotel bond
issue, that both the American Bond &
Mortgage Co. and Halsey, Stuart Co.,
bond firms having to do with the issue,
were members of the Investment Bank
ers of America, whose spokesman last
Friday Endorsed the Capper fraud bill
in preference to the Blaine "blue sky
bill.
Also in connection with the May
flower bond issue it was brought out
that Wardman had made an appraisal
of its value as totaling $12,600,000 and
when Senator Blaine asked Mr.. Brink
man if Mr.. Wardman was interested in
the hotel project the latter replied that
he was not, except that he owned large
properties nearby and, therefore, of
course, was interested in the value of
the hotel. He referred to the old Brit
ish embassy and the Stoneleigh Court
Apartments, both of which are near to
the Mayfiower.
p 1t was also brought out that the firm
of Lockwood, Green g. Co. had appraised
the Mayfiower value at $11 100000.
Mr.. Richards gave lengthy account
of how he and his assistants arrive at
the market value of property, detailing
income of buildings, the cubic cost Of
CT n lnNQ-