Evening star., 1933-03-20
WASHINGTON POST
RECEIVER IS ASKED;
EARLY SALE URGED
Recommendation Made to
District Supreme Court
by Co-Trustees.
TWO OFFERS DECLARED
MADE FOR PURCHASE
William Randolph Hearst and
Mrs. Evalyn Walsh Mclean
Reported Bidders.

Reported Bidders.
Appointment of a receiver for the
Washington Post and an early sale of
that paper was recommended in Dis
trict Supreme Court today by Corcoran
Thorn, president of the American Sc
curity g. Trust Co.
The trust company is co-trustee Of
the estate Of the late John r. Mclean,
which owns the Post.
Mr.. Thom's recommendation was
given during the course Of his testi-
mony before Justice Jennings Bailey in
a proceeding to remove Edward 3. Nc
Lean, son Of John R. Mclean, from his
co-trusteeship in the estate.
Mclean Removed.
The court last year removed Mclean
as co-trustee in so far as all matters
pertaining to the Post were concerned.
He had been publisher of the paper.
Mr.. Thorn said the Post has been
operated at a heavy loss and that there
is no practical way of raising the
money necessary to continue it in op-
Grafton.
He revealed that there are two pend
ing offers to buy the paper-one from
william Randolph Hearst and the other
from Mrs. Evalyn Walsh Mclean,
estranged wife of Edward B. Mclean.
Both Of these offers, he said, are
tentative and contemplate a purchase
price Of sl,000,000.
He pointed out, however, that the
Post has incurred debts Of nearly $780,
600, which would have to be paid out
of the purchase price, leaving balance
of only approximately s500,000 for the
estate.
Heavy Loss Reported.
Mr.. Thorn said the Post lost s150,00o
during the first six months following the
removal of Mclean from control over
the paper. Economies aggregating
| $4,000 year were effected. he said.
but the losses continued as the result
of decline in advertising revenue. He
said these losses during the last six
| months of 1882 and in January, 1888,
we're:
July. $4,000; August, s2s 900; Sep
tember. $4,000; October, $1,000; No
vember, $4,000; December, 5000, and
January, $4,000.
These figures, he said. indicate that
L
not be operated profitably.
The Hearst offer, he said, contem-
| plates the assumption of existing debts
and the payment of 100000 a year for
| five years He testified that Mrs. Nc
] Leans offer was conditioned upon her
ability to raise s500000 by mortgaging
property she owned. She also would
pay the balance in five 100000 yearly
| installments.
He said he advised Mclean of these
offers and that the only reply he re-
ceived was: Think Mrs. McLean's
offer ridiculous"
Advances Made.
The American Security & Trust Co.,
| he said, has advanced the Post S155, 900
to meet operating expenses. Rather
than let the paper collapse, he testified.
| the Executive Committee of the trust
company decided last week to advance
| $50 900 more This advance, he said,
was to tide the paper over the present
| hearing, and that no more money
could be expected from that source.
The only other possible means Of rails
ing money, he said, would be through
a sale of other assets Of the estate at
tremendous sacrifice.
He listed the free assets of the estate
at this time as follows: The property
known as Friendship, 23,O71 shares of
stock in the American Security & Trust
Co., 81 shares in Riggs National Bank,
135 shares in the National Savings &
Trust Co., so shares in the Munsey
Trust Co. and 6 shares OF Virginia
Brick Co. Stock.
In view of the improbability Of be-
ing able to raise any more money to
support the Post" he said, II recon-
= - @ty.A@ e.
conserve the assets Of the paper and
effect an early sale"
Holds Sale Authority.
Under the terms of his fathers will.
Mr.. Thorn said, Mclean has the au-
thority to approve or disapprove sale.
This difficulty has caused some pur-
chasers to "veer away" he testified, but
would be eliminated if the paper should
be sold by a receiver.
Mr.. Thorn also said that in 1929 Eu-
gene Myer offered s5,00o,000 in cash
for the Post, but that this prospective
sale was blocked by Mclean. He said
he would be most reluctant to sell the
paper for ST 900 900, but didn't see any
other solution for the difficulty.
Mr. Thorn said he has not seen
Mclean since the Fall of 1881 and has
been unable to communicate with him
satisfactorily IN matters pertaining 10
the estate.
Mr.. Thorn said he thought the
American Security & Trust Co. should
cooperate with some of the creditors
Of the Post in the receivership proceed
ing. He said he thought the Post was
valuable asset, but that it would be
disastrous for a receiver to attempt to
run the paper for any length of time
The only other witness heard was
Wilton j. Lambert, attorney for Nc
Lean as co-trustee. The only purpose
of his testimony was to establish that
he had served in this capacity.
Before adjourning for lunch Justice
/ Bailey indicated he had some doubt
as to whether he could legally ap-
point a receiver for the paper in view
of the fact that there are no unpaid
judgments outstanding against it.
Counsel for the trust company, how
ever, contended the court had authority
to take such action.