Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-26
Counsel for Mortgage Firm
Files Schedule in District
Supreme Court.
SAY LOSS TO CREDITORS
LESS THAN ANTICIPATED
Assert Local Banks Hold Unsecured
Claims Only to Extent
of $4,000.

A bankruptcy schedule listing assets
In excess of liabilities was filed TODAY
by Swartzell, Rheem g. Hensey, mort
gage banking house, now in the hands
Of receivers.
II figures as set forth in the sched-
ules are not changed by subsequent de-
velopment, it was pointed out, the pos
sible loss to creditors may be much
smaller than was at first anticipated.
1t was believed. however, that it will
be some time before final reckoning
can be made.
Total liabilities were placed at $685.
795.4o and total assets fixed at $685.
253.77, leaving a safety margin CT
$173,45837.
The schedules, filed in District Su-
preme Court by Attorneys Tobriner and
Graham, counsel for the bankrupt,
cover approximately 100 pages, They
are accompanied by an explanatory
statement that an audit of the COM
pany's books could not be made as they
are in the hands of accountants for the
receivers and representatives Of the De-
partment Of Justice.
Liability Schedule Divided.
The schedule of liabilities Is divided
into priority claims for taxes amount
ing to $17,444.8I, secured claims
amounting to $1,238, 915.77, and unse-
cured claims aggregating $5,o73, 1896.
1t was pointed out that the unsecured
claims include all released deeds OF
trust and that local banks appear as un-
secured creditors only to the extent of
said. are amply secured by collateral OF
a face value more than double the
amount of the loans
According to the statement, the I'M
secured creditors number approximate
ly 1900.
The assets are said to consist of eoui-
ties in various parcels Of real estate,
estimated to be worth $1,880,573.s2.
Included are such properties as the
company's handsome Office building on
Fifteenth street, the Securities Building
and the Hurley-Wright Building. botR
at Nineteenth street and Pennsylvania
avenue, and valuable unimproved prop
erty.
$4,27S,791.49 I'm Realty Notes.
Real estate notes owned by the COM
pany are scheduled as of the face value
OF $4,278, 1919, some Of which are
pledged to secure loans and others
being IN the vaults of the concern.
The schedule of assets also lists debts
due the company on open account
amounting to 1901 .026.39, surrender
value OF life insurance policy of sl2,-
1888, and money on deposit in several
local banks amounting to $30,47S.o7.
The un1mproved property owned by
the company includes a tract of land
on Massachusetts, avenue near Nebraska
avenue, containing about 48 acres; cor
ner OF Connecticut avenue and Apple
ton street, containing about 279l2
square feet; several parcels of land in
silver Spring, Md, and unimproyeu
land known as the Huntington Terrace
tract
The company reserves the right Ia
file amended schedules, if necessary.
wnen the report of the receivers ac-
countantS is filed.
Rheem Gives Information.
The statement ACCOMPANYING the
Scnedules informs the court that much
OF the information used in their prepa-
ration was obtained from Edmund D.
Rheem, vice president of the company.
and the receivers.
Rheem recently was arrested on a
WaTTanL charging him with embezzlinp
81 $1,000 OF the company's funds.
The schedules list the names of all
persons having unsecured claims against
the company. One of them is Luther A.
SWartzeL, president of the company,
who holds such a claim in the sum OF
81 900. Another is Mrs. CAROLYN M.
wilkins of the Shoreham Hotel, who
has an unsecured claim of 81 500.
Trusts on Office Buildings.
The schedules also disclose that there
is first trust on the company's ONCE
building of $4,000 The Securities
Building is subject to a first trust of
$500, 900 and a second trust of $4,000
Inc nrst trust on the Hurley Wright
Building is $26o,00o and the second is
In the report of debts due on open
accounts the schedule lists one to
.. D. Rheem and F. P. Morse for
Il ,22o.75; one to E. D. Rheem. spe-
c1al, for $64,21919; one to z. D.
Rheem, trustee, Mintwood place, $I3,-
al4.63, and one to E. D. Rheem, Sec
ond and d streets, for $34,228.33.