The Portland daily press., 1892-03-28
FINANCIAL.
REPORT OF
Examining Committee,
Lombard Investment Co.

KANSAS CITY, Mo-, Feb. Goth, 1892.
To the Stockholders and Investors OF the Lom-
bard Investment Co.:
The undersigned, at the request of many OF
the larger stockholders, and the managing
officers of your Company, have recently visited
Kansas City and given an extended and careful
examination to the affairs of that corporation
in their important detail, and now submit:
First: That every facility that could be de-
sired to accomplish this result was most cordial
ly granted by the officers and employees of the
Company.
Second: That the various departments into
which the Companys business is divided were
found to be under the care of experienced and
faithful managers, whose system OF accounts
was found to be admirable
Third. The value of the farms in which the
Company is interested could not, of course, be
estimated by personal visit thereto, but we have
made special efforts to arrive at a just estimate
of the real value of this property, realizing that
it is one of the most important questions fol- us
to consider. For greater clearness, brief men
ton is made of the methods pursued and actual
facts obtained by which conclusions were
reached
1t was found that those having charge of the
Real Estate Department have kept very carefui
record of all items of cost of each piece OF prop
erty. From reports OF examiners Sent TO LOOK
at the farms, from actual offers made, and II
other ways, price was fixed at which we estl-
and comparing them with the results of actual
sales, it was clearly shown that the amounts
realized exceeded the price. at which the Com
pany estimated the property IN it's assets; what
sales were taken, covering all the transactions
over given period, and after charging these
properties with all attorneys fees, court cost,
delinquent interest and interest on sums thus
advanced, the amount realized showed SUD-
Stantial profit.
fers were received and sales made, and these in
variably showed that the price at which the
Company carried its land and which never ex-
ceeded the cost, were conservative. .s
Fourth: AS confirming what has been sald
respecting the value at which the company
carries its real estate in its assets the follow
ing will be especially gratifying Every PIECE e,
Company, with single trifing exception, was
examined; value was placed on same with the
aid of careful and disinterested expert, supple
mented by independent appraisalS by proml-
nent and well-informed citizens, with the result
of showing that the aggregate value thus hxed
was in excess of that put upon 1t by the Com,
pany in its statement of assets Since SAID
examination, actual offers have been mace for
some of this property at higher prices imam those
at which they were appraised.
With these facts thus clearly established, anu
with the abundant evidence produce to snow
that the value of real estate, especially farm
lands, are constantly approaching, the con-
clusion is that real estate Of the Company Will
eventually prove source of profit.
Fifth: We have also given care I'll attention
to the matter of foreclosures, and are pleased 10
state that while in the depressed condition OF
the past the company has been compelled to take
considerable real estate, the tide is now turned
and it is reasonable to except that it will sell the
property it now holds much faster than 1t viii
acquire additional real estate. This is plainly
evidenced from the fact that during the last
month $4,000 of mortgages in foreclosure
were either paid off or settled by all delinquent
interest and costs being paid in full, thus rem,
stating the mortgage, This Is at least ao9bie
the amount settled during the corresponding
month OF last year.
SiGth; All the personal property including
i'm the cOmpany's statement OF feD. ISL iasl
was carefully considered item by item; and an
estimated value placed on the same. A careful
analysis of the earning power OF the several Sc
curities and an earnest effort to determine thelI
intrinsic value from the latest advlces and
Statements concerning the condition of the sey-
eral corporations, were made in each case.
Seventh: All important books and accounts
OF the Company We're csfeiqly eXan S d ~
of the Central Vermont Railroad sysrem fol
many years., their statements verified, and the
possession of every certificate OF property pc
longing to the Company proved by actual IN
Eighth: In summing up the Company's pro
perty in order that we might place conserva
some som s Of The items appearing in the Company
statement Of Feb 1st., 1892, at lower figures, The
total difference being $2o5,78o.2o (say about
1-s per cent. Of the total sum-, which amount
we recommend the Directors to charge out o.
future earnings. But inasmuch as there would
still be surplus of $113,917.49, even if these
reductions were now made, we cannot forbeal
to express our confidence in the value of the
Company's stock and its guarantee.
In conclusion, as the result of our obServa
lions, we are satisfied that there is decided i'm
State, the outlook for crops and business is very
favorable, as attested by the general cOncensus
Of opinion, which should inspire confidence in
the future of the company and its securities.
ISAAC P. T. EDNANs, Boston, Mass.
EDWARD F. MORRIS, Monson, Mass.
CHAs. P. PERoT, Philadelphia, Pa
VIM MCGEoRGE JR., Philadelphia, Pa