Business & Finance: City Trust

Stephen Girard, Philadelphia's late great 19th-Century shipping merchant, financier and philanthropist, bequeathed so much valuable property to the city he loved that a special board was created to administer it. Set up in 1869, Board of City Trusts went about its business so quietly most Philadelphians hardly knew it existed until rambunctious Mayor Samuel Davis Wilson, who likes to poke his nose into odd places, started talking about it when he took office early last year. By last week the affairs of the ancient & honorable board were making a resounding racket in Philadelphia's narrow streets and connected with the noise were two other ancient Philadelphia institutions—an equally old department store and a venerable firm of attorneys.

N. Snellenburg & Co., catering to thrifty buyers of low-priced goods, has been doing a lively business on Market Street since 1889 when the Snellenburg boys moved into that famed shopping centre from South Street. Distinctly high-class was— and is—Snellenburg's firm of lawyers, Brown & Williams, a rock-ribbed partnership of dignified Philadelphia tradition which employs only male stenographers. "General" Francis Shunk Brown, a righteous oldster of 79, is the senior partner. "General" Brown is also president of the Board of City Trusts, and that institution, through its administration of the Girard Estate, acts as Snellenburg's landlord.

Mayor Wilson, an ex-officio member of the Board, pried into its records and last April made the following claims: Snellenburg's had an agreement with its landlord. Board of City Trusts, whereby, due to Depression-cut income, it could get its $682,000-per-year rent reduced; in 1933. Snellenburg's eight partners (including six named Snellenburg) withdrew $425,000 "of the profits . . . so they would get the $100,000 [rent] reduction." That agreement provided for repayment should Snellenburg's subsequently show a profit, but was subsequently granted again as an out-&-out abatement.

Snellenburg's answered Mayor Davis' blast by filing against the mayor not one but nine defamation suits—one for each partner and one for the corporation.

Meanwhile the Pennsylvania Legislature's investigating committee under State Senator Harry Shapiro started taking pot shots at the Board. First stir was caused by Board Member Albert Monroe Green field, Philadelphia realtor, who testified: "In view of the facts we have learned since, Snellenburg's was financially able to meet all obligations and didn't deserve the aid the Board tried to give them, and do not now deserve it."

Then to the stand stepped lantern-jawed, short-haired Ira Jewell Williams, who testified that his partner General Brown had never, never, in 34 years on the Board, considered or acted on any matter involving the Snellenburgs.

Last week the Board of City Trusts at a special meeting voted to rescind the rent reductions, require payment in full of the $200,000 concessions already granted. Be fore they could vote, old Francis Shunk Brown pointedly stalked from the room. Three days later, looking more than ever like a Philadelphia lawyer in a wrinkled black alpaca coat, brown trousers and shoestring tie, Mr. Brown showed up in the City Hall courtroom where the Shapiro committee was sitting. He stormed: