The Washington times., 1931-02-13
CARLTON HOTEL
RECE|vERSH|P
ASKED
.Wardman and Rheem Firms
Must Show Cause Why Plea
Should Not Be Granted

Should Not Be Granted
George NJ. Hamilton, of Pitts
burgh, today asked the District
Supreme Court to appoint a re-
Ceiver to take over the Carlton
Hotel at Sixteenth and K Streets
northwest, alleging that the hotel
property, owned by a WaI oman
subsidiary, was financed to the
extent of $1,200,000 by the
s. artzell Rheem and Hensey
Company. and that the idS5 was
released before the notes we're
paid.
Justice Jesse C. Atkins signed
o rule directing the defendants
In the action, Wardman Real Es-
tate Properties, Inc, Luther A.
Swart7er Edmu~| z Pneem,
Central Hanover Bank and Trust
COm~anv "F New York, and Frank
Wolfe, of 10 Broadway, New York,
TO show cause February 2T why
the receivers should not be ap-
pointed to take over the hotel.
Sues for Sister
Mr. Hamilton informs the court,
through Attorney Joseph A. Raj.
ferty, that he is suing in the
capacity of administrator of the
estate of E. Blanche Hamilton,
his sister, who owned $2.5O0 worth
OF notes secured by the deed of
trust on the hotel at the time
Of her death.
He says that May IA, 1925,
Harry Wardman and Thomas P.
Bones delivered a deed of trust
to Swartzell and Rheem to secure
John H. Holmead in the sum
of $1,000 on the Carlton Hotel
property. The notes were to ma
ture in five years, he alleges, and
were purchased by the defunct
investment banking firm. His
sister died December 3, 1927, he
says, and he qualified as admins
traitor of the estate. No principal
has been paid on the notes, and
the interest since September Is
last is overdue.
Trust Is Released
Swartzell and Rheem, August
1, 1928, released the trust accord
ing to the petition, and Wardman
and Bones then conveyed the
property to the Wardman Realty
Construction Company.
Shortly after the trust was re-
leased, it is alleged that the
Wardman interests obtained a
large loan from New York bank
ing houses with view to refi-
nancing their various properties.
He claims that if such loans were
placed on the Wardman proper
ties it was the duty of the bank
ers to ascertain whether the $16,-
100000 outstanding on the prop
critics had been paid. He points
out that although the $2,500 note
on which his suit is based, had
, been left with the firm Of Swart-
Zell, Rheem and Hensey for safe
keeping and collection they had
not been paid, although the deed
of trust securing them has been
released on that representation.
In addition to the appointment
of a receiver he asks the court to
set aside the deed of release exc
cuted by Rheem and Swartzell
and to reinstate the trust Secur-
ing his note and other notes
outstanding.
Officials Of the safe deposit
sections of the Pennsylvania and
Maryland State associations of
bankers will represent their Or
ganizations at the monthly meet
ing of the safe deposit section of
the District of Columbia Bankers
Association at the Hamilton Hotel,
February 10, Chairman F. H. Cox,
of the Commercial National Bank,
announced.
L. A. Writ, of the Pennsylvania
association, and President Charles
0. Kieffner. w. P. Dovall and
George M. Belt, of the Maryland
organization. who will attend, will
give informative talks on the in
teresting program which is being
arranged.
Clarence F. Norment has been
elected chairman of the execu-
tive committee of the American
Security and Trust Company. He
will fill the va0ancy caused by
the recent death of B. F. Saul.
Officials of Washington banks
who plan to attend the Ameri-
can Institute of Banking ban
uuet in New York Saturday night
include Vice Presidents Wilmer j..
Waller and Frank M. Perley of
the Federal American National
Bank and Trust Company; Vice
Presidents A. M. Nevius and I.
Roberts of the Riggs National
Bank, and the Misses Mabel ".
and Rose L. Royce, of the Wash
hn0t0n I0an and Trust C0mnanv