Evening star., 1932-06-09
COBLENTz REALTY
FIGURES GIVEN
Pittsburgh Broker and James
B. Hobbs Of This City Heard
at Cumberland.
Special Dispatch TO The Star.

Special Dispatch to The Star.
CUMBERLAND, Md, June e.-The
defense at the trial of State Senator
Coolentz, president Of the Central
Trust Co., Frederick, indicted on a
charge Of accepting a deposit when he
knew that the bank was insolvent,
which presented its first witnesses yes
terday afternoon. offered testimony this
morning Of real estate experts as to
the values of various properties held
by the bank as securities on loans.
Leonard P. Kane, Pittsburgh, licensed
realty broker. vas interrogated as to the
Insurance Exchange, a 21-story Office
building in Pittsburgh. He said he
cpened the building May l, 1929, and
operated 1t for over year The gross
yearly rentals when all occupied was
S288, 600.
He testified that in the Summer Of
1929 Senator Coblentz came to Pitts
burgh and investigated the building.
Kane gave S2,000,000 or S2,250O00 as a
good figure to buy. On cross examina-
ton Kane admitted four new similar
buildings were erected in Pittsburgh
that year. The Insurance Exchange
Building he said was erected by the
r. H. Smith Co. of Washington. 1t
brought in $4,000 month rent and
the operating expenses were $50, 900 a
year. The Central Trust Co. holds
notes and bonds amounting to approx
bately s976,000 in this building James
J. During. the States real estate expert
from Pittsburgh had testified the build
ing was worth only $1,000 900, although
capitalized at S2,000,000
James B. Hobbs.
James B. Hobbs. vice president of the
Wardman Corporation. Washington
builders and real estate brokers, was
put on the stand to give values on
Washington realty held by the Central
Trust Co. in rebuttal to the evidence Of
George r. Linkins of Washington, who
testified for the State along the same
line. Hobbs said he had % years ex-
perience in selling, renting and ap-
praiSals.
States Attorney James Clark asked
him. that as result Of his optimism
on Washington realty values. if he had
not become financially involved. An OBJ
lection by the defense to the question
was sustained. He was asked as to his
opinion as to the values of the prop
critics as Of September 2, 1881, and In
1928.
He put the Astoria value at $4,000
last September and at $l25, 900 in 1923;
he said the apartments should bring in
$4,000 a year. He put a value of
SITS. 900 on the Arlington Apartments,
but he could not say that the property
could be sold for that and he did not
know the market value. He put a value
Of S375.000 on the Franklin Park prop
erfv If 1oct opd cQ0 nm
on the Prince Carl Apartment, or S., 900
less than in 1928. In his opinion the
wyoming Apartment building was
worth 100000, or 100000 less than
the value he placed for 1928.
Quizzed on Deal Here.
Vice President Charles McC. Matthias
was interrogated about the transaction
in the Investment Building. in Wash
ington, D. c., amounting to S1,200,000.
He cited at Frederick group borrowed
money from the Central Trust Co. for
a second mortgage or deed of trust and
for cash and securities. He was asked
bleton & Co. of Baltimore paid the
Central Trust Co. He enumerated
100000 used in an increase in capital
stock, $4,000 went to surplus and the
remainder was distributed in invest
ments.
Mr.. Matthias was then asked to
enumerate from the dividend earnings
report for the five and one-half years
beginning from 1925, which he did,
reading from the consolidated report
the amounts distributed in dividends
and to the respective amounts credited
to undivided profits each year, includ-
ing the first six months of 1881, until
July 81, when. he said. $53,456.37 was
charged off to loss
Mr. Matthias made reference to bad
loans and uncollectable transactions of
the bank, especially during 1880 and
half of 1881, and his discussions with
John D. Hospelhorn of the State bank
commissioners Office in Baltimore in
1881.