The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1886-07-17
WESTERN INVESTMENTS.
Some Observations on the Subject
by Bank Commissioner Richards.

To the Editor Of the Press:
Since my recent visit to the West, so many
parties have written making inquiries in re-
lation to farm mortgages and other Western
securities which are being offered to invest
ors, that it seemed to me l could best reply
to all by publishing brief statement based
upon information gathered from personal
observation.
Kansas City is most appropriately called
the Terrace City, the natural formation up
on which it is built lying in sharp inclines,
affording opportunity for handsome grades,
everywhere covered with white clover, beds
of blooming flowers, and shrubbery render
ing the grounds about the dwellings exceed
ingly attractive. The present population of
the city proper is about 10000, while the
suburbs of Wyandotte, Kansas City, Kansas,
Armordale, ETC., which are in reality part
of the commercial city, swells the number to
fully 100000. The assessed valuation of
| Kansas City, Mo-, which is far below the
market value of the property assessed, is
about S4O,OO0,oO0, and all the packing
houses, stock yards, ETC., are outside the city
limits. The bonded debt of the city is $685.,
OO0 and under the present laws of Missouri
this debt is not likely to be increased.
There can be no better criterion by which
to measure the actual business of town
than the record of its clearing house, for it
is not liable to manipulation, but discloses
| in plain figures the volume of trade. The
| total clearings of Kansas City last year was
1921, ,5S2, 1888.
| Kansas City is the great distributing point
| of the Southwest. Surrounded by a territory
rich in natural resources to almost an unlim-
| tied extent, with climate adapted to the
| growth of almost every product of the soil,
1 its commerce is of infinite variety. While
| the cultivation of corn is the leading feature
| of agriculture, grain of all kinds is grown in
abundance, and miscellaneous farming is as
| successfully practiced in Kansas as it can
| possibly be elsewhere Kansas City is, there
| fore, not dependent upon the result OF one
particular crop, The increasing !. I've e,6 stock
| to this city. 1t is the central point OF the
great Southwest for the canning and pack
| ing interest, and its six mammoth packing
houses are constantly sending. out their I'M
mense product to all parts. OF the world.
| Kansas City is the junction OF fourteen diff
| ferent railroads at present, and three others,
| including the Chicago, Milwaukee o. st. Paul
| have procured the franchise, and will, with
| in a few months, extend their lines to reach
| ing traffic under the same roof, there is no
| city in the Union better situated for business
| communication with all parts OF the country.
Last year system of cable road was built
| and is now in successful operation through
The bank capital of Kansas City has not
until recently been increased to keep pace
with the expansion OF business. Ihere are
| at present four national banks, and those al
ready established have within year lncreas-
| ed their capital stock about 100000. The
| American National Bank has just been or
| ganized with capital of 81 600, and as
| this stock to the extent of 100000 is held by
Maine investors, it seems proper to give the
particulars of its organization. The presl-
| dent is Hon. VIM. B. Grimes, who during the
| sixty years of his life has accumulated very
| large property through legitimate and con-
| servative business enterprises. He has lived
| in Kansas City long enough to have
seen itmultiply its population by ten, knows
| its people thoroughly, is q director in
business prosperity of the town, where he
enjoys the reputation of being conserya-
| tive, sagacious and upright business man:
| The vice-president is w. 2. Rice formerly OF
Bank of Clyde, Kan, which under his man
agement has made very successful and sat
| isfactory record. The cashier is I'll. ?. Slim
| son, who is a stakeholder, and has had sew
| eral years experience and acquaintance with
| the people of Kansas City as one of the Off
| GERS of the large and prosperous sayings
| bank located there. F. w. Hunton, who is
| well known in this State as the popular cash
| ier of the Gardiner National Bank, has re-
| signed and accepts the position OF assistant
| cashier of this new bank in the West, Lo-
| Gated in community where additional bank.
| ing capital is a necessity, ofticered by men OF
| acknowledged financial ability, and favorably
| connected with local banks throughout the
| State of Kansas, the American National
| Bank gives promise of successful future.
The feeling has prevailed throughout, New
| England that it was hazardous speculation
| to loan money on Kansas farms. There can
| be no doubt that mortgage on productive
| land may be as safe an investment in Kansas
| as in Maine The opportunity for making
| safe investments in farm mortgages IS lar
| greater there than in New England. While
| the center of population is constantly and
| rapidly moving west the capital is LETT be-
| hind, for the average man who leaves nome
| to become a western farmer has his fortune
| yet to make; perhaps he carries Win MN
| sufficient funds to pay for 100 acres OF un-
| broken prairie and he builds sod house
| and puts in a crop Of sod corn; he gets fair
| yield the first year, better, perhaps, than he
| has ever seen grown elsewhere. He reallzeS
| that this land he has broken and planted has
| been doubled in value by the process. His
| path to fortune is plainly visible to him. lie
| sees there are three elements essential to sue
| cess, viz: capital, land and labor. While ne
| realizes that at present only one-hfth OF the
soil of Kansas has beeu cultivated, he also
realizes that with immigrants coming into
the State at the rate of one hundred thou
sand per year, the time will not be long be-
fore the prairies will all be divided into farms,
and then the price of land will materially ad-
vance In the meantime he wishes to make
his home more comfortable for his family, to
cultivate more land, and increase ms mold
ings of acres as rapidly as possible. He has
discovered that by borrowing money at SIX OF
seven per cent. he can invest it with most
satisfactory results by acquiring more land
and making permanent improvements His
borrowing is not from actual necessary, p9t
as a matter of business, he is conn
dent that he can increase his wealth
| at a rate far above the interest
he pays for his borrowed capital
Therefore it may be said that Kansas farms
| afford a safe basis of security for loans and
| the purposes for which it is borrowed are
legitimate and reasonable The loan must
come from the east where money is aeund-
| ant and capitalists are almost begging for
safe investments. But capital is tlmld and
the eastern investor feels that in dealing in
Kansas securities he has the great dlsadyan-
tage of doing business at arms lengthi ne
cannot we'll see the property offered as Sc.
curity and he is reasonably apprehenslye OF
being made the victim of Misrepresentation.
If established confidence existed between
eastern money lenders and Kansas farmers
the result would be mutually beneficial and
the development of the natural resources OF
the west would be greatly augmented. Dur
, | ing my recent visit to Kansas City an oppor-
tunity was afforded me to investigate the
!, | methods adopted by two large agencies toi
| the negotiation of farm mortgages. One, OF
: these, the Equitable Mortgage Company has
| | a paid ND capital of $300,000. The record OF
| mortgages taken and guaranteed by this
company shows that its capital has not been
impaired by default of the payment OF inter
est; on the contrary the cases where the IN
terest has not been promptly paid are rare
: | This company appoints correspondent IL
l each good farming centre where lands are In
: creasing in value. This correspondent mus
. be a man of good reputation in the commu
! nifty and the possessor of some property. H'
l receives the application for the loan ant
e sends it to the company with his appralse
E ment of the value of the farm. These cor
9 respondents receive commission If the ap
plication is accepted, so it may be said tina
a they are interested to the extent OF their com
n mission and are likely to make as favorable
representation as possible in order to secure
4 the loan. But before the money passes,
4 special agent, who is selected by the .compa
= nv through personal knowledge OF his com
potency and good judgment of values. anu'
who is invariably paid yearly salary, /
sent to carefully examine the property, esti
i. mate it's cash value and ascertain the repu
% tation and character of the borrower l
2, this special agent recommends the loan an,
?. his recommendation accords with the opinion
: the company has formed from the informa
NnNNrN