St. Paul daily globe., 1891-12-06

The Affairs of the BushnellS
Seem Complicated Beyond
Unpavelment,
And the Absence OF the Firm
Is Detrimental to It's In
tereSt.
Damaging Stories Floating
About Without Contra
dietion.
Some OF the Investments OF
the Company Seem Pc
culiar.

The Bushnell failure, which was an
nounced about month ago. had no eff
feet on business in this city, for the
simple reason that but a small proper
tion of the liabilities were due to people
in st. Paul. This has served to attract
but little attention to the various feat
ureS of 1t. The business of the firm was
drawn from all parts of the country,
both East and West. and investors have
been placing their claims in the hands
of the various local attorneys, who have
been trying to straighten out matters.
This is found to be most difficult task
owing to the badly tangled condition of
the business rs turned over to the as
signee, the st. Paul Trust company.
This condition, bad as 1t would be under
ordinary circumstances, is made worse
by the absence of w. NJ. and A. r.
Bushnell. who, if present, could un-
doubtedly very materially aid in un
ravellng the tangled Skein. They are
not here, however. and their brother,
Omar Bushnell, declines to state where
they have gone. There are a great
many damaging reports in circulation
in regard to their business methods, as
illustrated in certain special cases,
some of which are public property. An
effort was made yesterday to get at the
Bushnell side of these deals, but it was
unsuccessful.
The case of Mrs. Hattie B. Cole, res
ident of California, is one that ought to
be explained, as it places the BushnellS
i'll peculiar light. 1t seems that Mrs.
Cole formerly owned some property in
st. Paul which was sold through the
BushnellS to George Ii. Hurd. A palt
of the consideration was two MORTGAGES,
one for $500, payable in 1898, and the
other for $3.50, payable in August, 1891.
These were placed in the hands of the
BuShnellS for collection. In Dece mber,
1890, a statement was rendered Mrs.
Cole and interest paid her due the May
previous. In August, this year, when
81, $50 mortgage became due she wrote
them, preserving a copy of her letter,
saying that they should take the money
ana not invest it unless they could get
something that could be turned into
cash at any time. At this time she sup
posed the mortgage for $500 was sIill
unpaid; but when she came Oh to st.
Paul after the failure Judge of her ur-
prise TO find the 81, $50 had been invested
in twenty-seven shares of the Standard
Investment company. and further that
the mortgage for $500 had been salts
fed of record and that sum included as
one of the private debts of the firm.
The Bushnells were accustomed to
buy large quantities of real estate with
money placed in their hands for invest
ment, and it is not to be denied that
they made some very bad investments.
But bad as they were from a financial
standpoint, if they had been made in
the name of the investor. the latter
would be sure of saving something out
of the wreck. This they did not do.
Their custom was to take the money of
number of parties and purchase real
estate with it, have the deeds made in
their names and then label the deals
Trust A, Trust B, and so on. Had
these deals been highly profitable each
of the investors would have participated
in the profits, but as the deals were
made it is alleged that they could not
become profitable.
Another transaction that the Bush
neilS' side of the story might make look
quite different concerns the plating of
an addition to South St. Paul, which
was labeled summit Park Addition"
The value of these lots is placed at a
small figure, but large mortgages. said
to be for 81, 800 for each lot, were placed
on them and then were sold by the firm.
These are now in the hands of several
legal firms in the city, who state that
their clients purchased these mortgages
thinking that they were getting security
on lots in Summit Park. this city, where
lots are worth from $500 up to $1,000,
and even $1,000. TIE Bushnell side of
the story, too, might make it look differ
ent and it ought TO be placed before the
people.
There are other stories OF this nature
going the rounds, which it is unneces-
Sary TO repeat. There are a host of the
best attorneys in the city working at the
matter, but they give 1t as their opinion
that it will take three months to
straighten things cut. The schedule of
assets published at the time of the as
signment is erroneous according to all
the attorneys. A prominent member of
the bar yesterday saying;
Il do not expect the creditors of the
Bushnells to recover over five cents on
the dollar, aud / am satisfied the
amount will not reach ten cents on the
hundred. The appraisal of the Inver
Grove property, for example, is far
above what it Is worth and what it will
bring"
The letters of the firm as we'll as all
the papers are in the hands of the st.
Paul Trust company, the assignee, and
every effort is being made 10 unraveI
the affairs Of the firm. In this CORE
Spondence authority may be found for a
great many transactions which now
look far from right.