Evening star., 1940-07-01
SwartzeII, Rheem
Creditors 10 Get
Second Dividend
Trustees Will Pay
At Leust a Per Cent,
Final Report Says
Ry EDWARD C. STONE.

BY EDWARD c. STONE.
Creditors of the bankrupt Swart-
zell, Rheem & Hensy Co.. which car
ried on an investment business on
Fifteenth street for many years, will
receive a second dividend of at least
4 per cent in the near future, ac-
cording to the final report just filed
with the court by the trustees in
bankruptcy.
The report states that the gen.
eral unsecured creditors, whose
claims aggregate $5,713 $685. SO, based
upon so-called released notes, have
already been paid 5-per cent divi-
dend amounting to S285 980 1t will
require S228,544 to pay the expected
second dividend of per cent, which
will be shared by host of Washing
ton creditors.
When this second dividend has
been disbursed, the creditors will
have received S514,524 The total
amount realized by the trustees in
bankruptcy from liquidation of the
principal assets of the estate
amounted to $516,7 40, the report
discloses.
The report presented to Referee in
Bankruptcy Fred j. Eden shows that
the cost of the proceedings has not
been deducted from funds available
to the creditors but expenses have
been taken out of income from the
properties held by the trustees and
managed by them during the past
nine and half years.
Referring to the fact that the
settlement has required nearly 10
years, the trustees say that the
lengthy administration was neces-
company consisted mainly of real
estate for which there was no ready
market. The creditors, back in 1881,
realized this and instructed the
trustees to manage and hold the
real estate until satisfactory sales
could be negotiated.
Cost of Administration Shown.
The account filed by the trustees
shows total receipts amounting to
S1620, 26842 and disbursements to
date of S1,344, ,301 Sd Expense of
conducting the business is placed
at S253,83066, tax liens on real
estate $21 ,386.17, prior claims $34098,
secured creditors S705, ,546, unsecured
creditors S285, ,98008. compensation of
receivers, trustees, attorney for re-
ceiver and attorney for trustees,
and referee $49,02994
Appraisers have been paid S5,710,
premium on trustees bonds S.
O4312, reclaimed by creditors So
26175, miscellaneous expenses of
administration S9,17284, making the
total of S1,3443 4301.54. The trustees
report a balance on hand of s275,-
$685.
Referee Eden, as already an
nounced, has called a meeting of
the creditors to be held on We'd
nesday, July 10, when the trustees
final report and account will be
placed before the creditors and
action taken fixing the amount of
compensation finally to be allowed
the trustees, the receivers, attorney
for the trustees and attorney for
the bankrupt.
E
Four Washington flnanciers were
given diplomas by the grauate school
of banking at Rutgers University
Friday night, and were back in the
financial district today. They are
Henry K. Dierkoph, assistant trust
officer of the Riggs National Bank;
Charles r. Fadeley, an assistant
cashier at Riggs; John M. Carlisle,
who is connected with the same
bank, and Samuel R. Carpenter
assistant secretary of the Federal
Reserve Board of Governors.
There were 232 in the graduating
class. Lewis E. Pierson, honorary
chairman of the Irving Trust Co.,
presented the diplomas, and Doug
las Southall Freemen, editor of the
Richmond News Leader and a noted
Civil War historian, delivered the
address. AS graduating gift, the
class presented $1,000 to the Rut-
gers Library.
Other students from Washington,
who were back in the city today,
included j. E. Horbett, j. Fred Eng
Iish and Frederic Solomon, connect
ed with the Federal Reserve Board;
Willard G. McGraw, Union Trust
Co.; Joseph R Fitzpatrick, Second
National Francis E. Robey and
John E. Monk, Bank of Commerce
& Savings; Kenneth o. Hulse, Ham
ilton National; Bernard L. Amiss
and George o. SchWeinhaut, Wash
ington Loan & Trust Co.; Corcoran
Thorn, jr and Robert V. Mellefont
OF the Riggs National.
Bond Prospectus Ready.
The prospectus, containing the
plan for modification, assumption
and guarantee of Anacostia & Po-
tomac River Railroad per cent
bonds and City & Suburban per
cent bonds drawn by the Capital
Transit and Washington Railway &
Electric Cos, was ready for distri-
button today at the Offices of the
companies, the Riggs National Bank
and the National Metropolitan
Bank. Details of the plan have
already been outlined
Muturities of the bonds will be eX-
tended to December /, 1851, interest
rates will be cut from to 334 per
cent and holders of $1,678,000 Ana
costa bonds and S1,074,000 Suburban
bonds, or 80 per cent of the total
amount of each issue, must agree to
the plan before October /. After
that date it may be abandoned, the
prospectus says.
Today's Trading on Exchange.
The weeks trading on the Wash
ington Stock Exchange opened with
25 shares of Washington Gas Light
preferred selling at 1882, up Y point
from the last previous sale.
Potomac Electric Power 51a per
cent preferred stock came out on a
small sale at ia and a small sale
of the per cent preferred stock ap-
peared on the board at 11312.
Riggs National Bank common