DRAKE SECURITY HOLDERS OBTAIN HOTEL CONTROL

September 26, 1933

(Chicago Tribune) - The Drake Hotel yesterday passed into another phase of ownership when it was sold at a bankruptcy sale by Referee Garfield Charles to the Drake Management Company for $10,000.

It is understood that the management company is backed by the Metropolitan Life Insurance Company of New York, holders of a lien amounting to nearly $2,000,000 against the hotel, and a group of Chicagoans, headed by Benjamin H. Marshall, architect, who are holders of a large block of stock in the old hotel company.

Operation of the hotel will be by the Drake Management Company, of which it was reported Mr. Marshall will be president.  Edwin L. Brashears, one of the purchasing group, will be general manager, it was said.

Purchase of the hotel for the specified amount is subject to such other liens as may exist against the hotel.  What the new management company actually bought was the name, good will, and such physical property as was in possession of the Whitestone Management Corporation, operators of the hotel.

The sale yesterday was what will be the final phase of the legal tangles in which the hotel has been involved for the last year or so.  The Metropolitan Life Insurance Company forced the hotel into equity receivership about a year ago, and several months later, it was thrown into bankruptcy.  It has been operated in receivership since that time.

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