, 1877-12-20
WESTERN MORTGAGES AND EASTERN
"HHAnpa"

aEFupulOuH UREHuueS8. IL LuRApb 9AulatcA ILL.,
stances Of alleged or mythical villaiay the
baafa for charging general dishonesty and
cosiusion between Western loan-agonts and
borrowers to swiudlo tho Enatern money.
londers. After lisposing Of Aiinncsota, Wis.,
consin, Iowa, Nebraska, aud Missouri In this
sweeping anl summary fashion, and an-
nouncing that 1t is not safe to mike loans Mt
25 per cent Of tho valuation, much less Mt 40
rer cent, which has boon the rule, 1t conttn-
uea concerning Illinois,
INT We hare yet more damnEinR testimony from
Illinois, a. onr readers will probably acknowledge
after ganclng at tho letter printed In another part
Of this paper. The writer is reputable ctlxen OF
Mount Auburn, wto speaks OF his uwn kMowlelgr,
aud who iiac1hfes Tint the Timer, instead Of exaE.
Eerattng Tho fascaa!.y which exists In corntctlon
With mortgages. "has not told half thu truth"
The case he nhrrates in detail certainty tonds to
sustain thu atatcHent. Tho business Of dcfrnua.
lnR Eastern lenders by faltcly representing the
snlue Of land and Its improvements Inns grown into
M osgnntzed system Of perjury and fraud. tho d.
rceknY hands being unscen and tho visible opera.
tors being nlen Of stsaw. Lanl bought atlownR
Ia used a. the foundation for loans valuation Aye
ton tin,cs tho actual selling ps'ce; money OH.
taincd on this basis passes Into lie ppckcts VI men
who incur no responsibility to tho morgngeo. tho
only personal security being that Of men uhotc
proper place IA the pcntscht1aEy. Our correspond
ens spcaks Of = loan negotiated within lbr Inst
month, tlr sworn apprafecment being nine times.
and tho loan four times, The highest casl, vn1Ws OF
thu 1and. Cascs Ut this sort ars described NJ tsr-
4ucnt In that uc'ghhorhool, and indeed ns plcn't-
full In ntlcr places worthless lands, ns cur cnrrc.
spondent remarks, being "much sought for thu
purpose OF being nscd In juat such swtndlng
transactions" We shall bo reminded Of eourss,
lint there uro trustworthy agents and appraisers
we'll AZ dishonest uncs, uni VIC have nj drhlrr to
ignore tho distinction. Wo submit, however, TINT
fncts moro thnn justify aur arraIgnmcns Of The gem
eta1 system, and our warning against tic disasters
which 1t Involves.
Tho moaning Of all this is that tho Now
York Tina, In order to maintain tho falso
position 1t had taken, soeks to 1naho single
correspondent, who cites two INSTANCES Of
Bwindto {botl evidently tho work Of tho sn.no
person), witness to prove general systcm
Of alleged swIulling. It would bo on a
plano with this roasoning Il tho New York
7im<s should select two or three instances of
oonadonce.gamo chronicled in tho local
columns Of tho Chicago papors, and shonce
argue that all business in Chicago Is con-
auctcd On that System. THO Tines has per-
sistently Ignored tho statements and reports
made by reputable loan-agents OF tho West
doing large md general business, md
presented by Tue TRIBUNE as mn answor to
tho Wholesale assault on Western invest
mcnts' but maintains That tho lew 6Winoles
1t cites arc tasr samples OF tue Whole. Now
we honr TINT a man named GowAN In Now
YORK mas 30 managed railroad as 70 do-
clare Sl6' 'ooo'ooo dividends out Of borrowed
money during q torn WHOM only S2,6oo,oW
or %, LOCO were earned; "e havo also
hoard OF New York man named GILMAN,
who swindlcd everybody who trusted him.
and man named oAsx, VINO nsea h1e'ln'
s''ranee company TO the safne end Therc
aro some othef ne" 1o19 men "Ao @fe ea8-
pected Of swindling operations Are wo to
conclude that oil tho businessmen OF Now
York should be regarded with suspiclons
Yet this would be ~ fair judgment ~ tho
1S"es makes IN denouncing tho entire class
OF Western mortgages. aud charging IN or.
ganized system OF 8wiudliu2, on account OF
individual instances II las been able to rake
and scrapa together TINT beax fraudulent
napect.
Tho simple fact Is, as tho reports OF re-
sponsiblo loan.agenta throughout tho West
attest, that tho shrinkage OF Eeal.estaso &c.
ouritias In the WesseTn cttiea and Of farm-
property In tho Western States has not oc'
casioned 30 largo proportion Of loss to the
monoy-lendors as similar investments In the
East. The margin given them In tho large,
t-A- Il