Evening star., 1934-07-15
RHEEM TRUSTEES
RECEIVE Sl6,5S
Rumors That Three Split
$125,00O Found BaseIess
in Examination.

Although there have been several
unfounded rumors that the trustees
for the defunct Swartzell, Rheem &
Hensey Co. have split $125,00o three
ways" an examination of District Su-
preme Court records reveals they have
received but sis,5ss.2s for their serv-
ices.
The trustees are Henry P. Blair. Ju-
Illus I. Peyser and Michael M. Doyle
They have served the ruined mortgage
banking house in various capacities
for the past three. years, devoting
much Of their time to salvaging what
they could from the wreckage left be-
hind by Edmund D. Rheem, executive
head of the concern, when he went to
Lorton Reformatory to begin a seven
year sentence.
Blair and Peyser were originally
named receivers for the company and
Doyle was designated as their attor-
ney. Justice Daniel w. O'Donoghue
recently awarded a total of $6,094.23
to Peyser and Blair as receivers. and
5000 to Doyle as full commission for
his legal services.
Three Named Trustees.
After the company had passed
through the receivership stage. the
three men were selected as trustees to
continue the work of liquidation.
The recent order by Justice O'Don-
nIrl,1n oil fha fr1tctnac CO 0E0 a
for conducting the business and an
additional statutory fee of S8,269.l4.
The order also awarded partial COM
pensation of $4,000 to Joseph Sullivan,
attorney for the trustee, and $5,768.30
as partial compensation to Fred j.
Eden, referee in bankruptcy, for his
services.
These awards bring the total
liquidation costs to date to S42, ,400.8l, F.,
q comparatively low figure in view OF
the fact that the men have devoted
nearly three years to the work. One
justice recently awarded a similar
amount to a single receiver who had
served but few months.
Under the management of the
trustees, a cash balance of S234 1886. .46
has been accumulated. In addition,
they have paid off the second trust
on the Hurley Wright Building and
made one secured loan for $35 900.
Despite this showing, however. a
number of the noteholders who lost
their investments when the company
failed have complained because they
have not received any dividends.
Payment to Be Made.
Although declaring it would not be
feasible to pay dividend at this time.
Doyle said yesterday a substantial
payment would be made to the note
holders as soon as the Hurley Wright
Building and the company's Fifteenth
street office building, the two prin-
cipal unliquidated assets now on hand
can be sold. 1t was pointed out that
the Hurley Wright Building, obtained
in a trade with former Secretary. 70
War Hurley, is profitably rented to
the Government, SO that no loss is
being suffered while waiting for
buyer.
Doyle said the bank moratorium
last year killed a sale for the sump-
tuous Office building. He said well
known local bank, desiring an up
town Office, had negotiated for the
purchase of the building and was pre-
pairing to move In when the mora
torium was declared, leaving the bank
in such financial condition that it
decided not to go through with the
sale.
II appreciate the feelings of the
company's creditors" Doyle said, 'and
wish we could pay a dividend at this
time. However, l can give assurance
that if and when these two properties
are sold, a substantial payment will
ne made"