Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-06
EXPECT WARDMAN
TO TESTIFY TODAY
Suit for Appointment of Cor
poration Receiver May
End Tomorrow.

Harry Wardman was expected to
take the stand this afternoon as de-
Tense witness in the suit of minority
stockholders for appointment of re-
ceiver for the Wardman Mortgage &
Discount Corporation, which is being
heard before Judge William P. Woolls
in Corporation Court at Alexandria.
Plaintiff attorneys scored a point just
before the court adjourned late yester-
day, when Judge Woolls ruled that
notices served on Harry Wardman and
Thomas P. Bones in the court room by
City Sergt. r. H. Cox were valid. These
notices make Wardman and Bones
parties to the suit and require that they
answer the bill filed by the plaintiffs
not later than January 10.
Defense Attorney Judge Daniel Thew
Wright attempted to have the notices
ruled invalid on the grounds that both
Bones and Wardman were in court in
answer to subpoena served by one of
his associates, but plaintiff attorneys
we're able to show the court that the
subpoenas had expired as they called
for the presence of the men for a date
early in December.
Harry Wardman Is expected to give
testimony along the lines of that given
by Mr.. Bones, who occupied the stand
more than two hours in the closing
hours Of the case yesterday. Bones
testified that the present condition of
the defendant corporation and all of
the Wardman companies was brought
about by depreciation in the value Of
real estate in Washington, which he
said began to be felt as early as July,
1928, and which he stated had in his
opinion debated real estate values here
from one-third to one-half
Refinancing Called Desirable.
Bones testified concerning the de-
velopment of the Wardman Co. from
small beginning, the extent to which
the business grew until, he said, it was
the largest thing Of its kind in Wash
ington, and the effect of the depression
upon it. He said that at no time did
he have any doubt as to the financial
security of the company. The refnan-
cling of the company, he said, was de-
sirable in his opinion to give it bet
ter financial security.
Plaintiff attorneys sought to bring out
from Bones testimony that all of his
actions were dominated by Harry Ward
man, and along this line Bones testified
that anything MFR. Wardman did was
all right in his estimation and that
he had always had implicit faith in
Mr. Wardman during the 80 years of
IL
fed that much of the real estate of the
company was carried in the name of
himself and Wardman and that he
never questioned any papers he was
asked TO sign in regard to them.
Concerning large block Of the shares
of common stock of the defendant
corporation, Bones testified that he did
not receive the stock certificates until
some time in 1928, although plaintiff
attorneys showed from the books of
the company that they were voted him
in 1925. Bones said that he turned
these shares over to Mr.. Wardman
when he was asked TO do so.
ADULTS Offered as Evidence.
This morning r. Gordon Van Vran-
ken, auditor of the Wardman Corpora
ton, testified concerning the stock pur-
chased by the Wardnan Co. Several
brought into court by defense attorneys
to support his testimony.
Harold S. Roberts, formerly Of Stoy
81 Roberts, who audited the blocks of
the defendant corporation regularly
from its organization early in 1924 I'M
til last September, occupied the stand
most of yesterday. Defense attorneys
sought to show from his testimony that
there were sufficient profits from which
to pay DIVIDENDS at eacn dIVlQeno Pc
Rod. Roberts testified that he never
found anything irregular in the books
in all of the time he worked on them.
Nine audits made by Stoy & Roberts
were introduced as evidence.
Roberts also testified that the Ward
man corporation paid the defendant
corporation $283, ACT interest in cash on
loans made to the Wardnan corpora
ton from December 81, 1924, to June
81, 1929. The case may be concluded
tomorrow.