The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-02-07
A FINANCIAL CRASH,

| DENVER, Feb. 6-Attachments have
| been filed against the Western Farm Mort
| gage and Trust company, and an appllca-
| tion for a receiver has been made. The
attachments are for small amounts, the
largest being $1,000; yet the company could
not pay. It is said that the arrest of the di-
rectors and officers is not improbable. The
company was organized in Lawrence,
Kan, and afterward reincorporated in
Denver. The New York creditors are rep
resented here, and will file attachments
against securities representing $500 coo.
/ The company is capitalized ostensibly at
g, 600, 000 and. it is said, has been doing
an annual business of ten millions, princi-
pally with other peoples money. The
company's method was to lend money at a
high rate and take a mortgage TO secure
the payment. This mortgage was sold at
a premium TO eastern investors, the COM
pany collecting the intrest. The money
paid by purchasers was reinyested, until
the business reached au enormous aggre-
gate The farmers were unable TO pay the
high interest, and the company TO main
tain its standing, advanced the interest to
the purchasers. 1t drew on the Third
National Bank of New York City until all
its funds were exhausted. Then the pres
sure of the creditors became too great to
be withstOod. When the directors saw
that the crash was coming they formed the
American Real Estate Investment COM
pany, to which, it is alleged, the stock of
the trust company has been turned over.
Some of the alleged acts of the directors
in this state are criminal offenses. The
losses of eastern purchasers, it is believed,
viii aggregate hundreds of thousands, as
the securities in reach are considered very
poor.
DENVER, Feb. G-No more attachments
have been levied on the Western Farm
,,t
The attachments already served amount
TO 81 ,612 The only new move in the
matter was the appointment this after
noon by the district court of George W.
+. Griffith of Denver as receiver of the
company. The officers Of the company say
that the embarrassment of the company Is
only temporary.
NEW YORK, Feb. G.-The Western Farm
Mortgage and Trust company, which has
become embarrassed at Denver, has an
office in this city. The last financial state
ment issued by the company shows assets
of -, ,213, 33S liabilities of 81 539. .S11, eXcIu-
sive of capital stock of 81, ,500,0 900, aud
surplus and undivided profits of S233, ,S2l.
The sheriff lately received an execution
against the company for $E5, 000 but could
find 10 property to attach
LAWRENCE. Kan, Feb. 6-Judge T.. T..
Shaw of Leavenworth, Kan, attorney for
Abram ). Brewer and Charles BiddIe of
Pennsylvania, and other stockholders,
filed suit in the District court today
against the Western Farm Mortgage and
Trust company of Lawrence and Denver,
asking that they be restrained from dis
posing of their assets The petition al
leges that the officers of the various COM
panies are manipulating the business to
the disadvantage of the stockholders. y
temporary restraining order was issued
by the court. This suit is brought in view
of the attachments made against the
Western Farm Mortgage and Trust COM
pany at Denver.