Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-29
Walter M. Ballard Co. Claims
Credit Against Corpora
ton of 100000.
SWARTZELL CLIENTS
URGED TO HOLD NOTES
Officials launch Inquiry to Ascer-
tain Financial Status Of
Securities.

Creditors of the Shoreham Hotel
Corporation, originally financed by
Swartzell, Rheem g. Hensey, bankrupt
mortgage bankers, asked the District
Supreme Court to appoint receivers for
the hotel corporation today. as the in
vestigation into the affairs of the mort
gage banking house by the Govern
ment continued.
The Shoreham Hotel project, started
during the past year, was regarded as
one of the largest Of recent building
undertakings. The construction work
was done by Harry M. Bralove.
The petition for a receiver was filed
by the Walter M. Ballard Co., 1922
Connecticut avenue The plaintiff
claims credit against the hotel cor
poration of 100000 for furniture.
The Shoreham Corporation, through
Attorney William C. Sullivan, consented
to the petition.
Claims Are Admitted.
The corporation, in its answer, ad-
mitted the claims of the petitioner, and
said further that trust aggregatine
$2,750,000 on the two units of the build
ing, neither of which could be sepa-
rately occupied, are in existence. The
answer was filed by the firm of Peyser
Edelin, & Peyser.
question may be raised" the answer
continued, "as to who actually owns the
stock OF the corporation and as to the
validity of the second trust note. An
accounting between Swartzell, Rheem
81 Hensey and the hotel corporation, in
UnIUlTlCr q loron If -~vSII L
necessary"
Neither the amount of the second
trust nor the total of the money for
which the accounting is allegedly neces-
sary was set forth.
The answer concludes with the
statement that "the corporation believes
the value of its assets far exceeds its
total liabilities and feels that the ap-
pointment of a receiver will be the best
protection for the creditors and stock
holders
Justice William Hitz said he would
receive the attorneys this afternoon and
decide the receiverShip question.
The petition also alleged that claims
ment total $250,000 and that the con-
struction claims against the hotel ag-
gregate 100000.
Clients Urged to Hold Notes.
Receivers appointed by the court to
take over the company'S affairs urged
all holders of mortgage notes issued by
the concern not to dispose of their
holdings at this time.
The receivers, Julius L PeySer and
Henry P. Blair, were at the firms Offices
this morning endeavoring to ascertain
the exact financial status of all the
cOmpanyS projects.
while we have not as yet determined
the precise intrinsic value of the vari-
GUS mortgage notes sold through
SwartZell, Rheem & Hensey," Mr.. Pey-
ser said, I'VE believe the assets of the
company are such that it would be in
advisable for the holders to dispose of
these securities at this time"
1t is understood that detailed state
ment as to the actual worth of the COM
pany'S paper will be ready for publica-
ton in the near future.
Experts to Take Charge.
1t was decided yesterday to place the
inquiry in the hands of the expert in
veStigators of the Department of Justice.
Assistant Attorney General Nugent
Dobbs will be in general charge, assisted
by Nell BurkinShaw, assistant United
States attorney.
The details of the investigation will
be in the hands of the same agents of
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