Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1892-02-11
A BURSTED BUBBLE.

Collapse of the Western Farm Mortgage
Trust Co., of Denver, Col.--Severai At
tachments Run on the Concern which It
was Unable to Cover-Eastern Investors
will Suffer Henvily-Some of the Opera
tions of the Company Partale of n Crimi-
nal Flavor.
DENVER, COL, Feb. 6.-The Western
Farm Mortgage Trust Co. has been at
tached and an application for re-
ceiver will be made to-day. The at
tachments were for small amounts, the
largest being $1,000, nevertheless the
company was unable to pay. 1t is stated
that arrests of directors and officers are
not improbable. The company was or
ganized in Lawrence. Kan, and after
wards reincorporated in Denver. There
was meeting of stockholders in
Rochester, N Y. New York creditors
are represented here and will file at
tachments against 5000. 900 securities
this morning.
The compan Y is capitalized ostensibly
for So, 600, 600. and it is said they have
been doing a business of $40, 900, 900 a
year, principally with other peoples
money. The company's manner of bust
ness was to loan money at high rate
and take mortgage to secure pay
ment. This mortgage was sold at a
premium to eastern investors. the COM.
pany collecting the interest. The
money paid by purchasers was rein
vested until the business reached an
enormous aggregate. The farmers,
were unable to pay the high
interest and the company, to main.
tain It's standing, advanced it to-
purchasers. They drew on the Third
national bank of New York city
until all their funds were exhausted,
when it changed tactics. This was Oc-
tober.1, 1891. Then the press of credit
ors became too great to be withstood.
When the directors saw that the crash
was coming. it is claimed they formed
the American Real Estate Investment
Co. and secretly begun to turn over the
stock of the trust company to the new
corporation. Some of the acts of the
directors in this state it is alleged, are
criminal offenses. The losses of the
eastern purchasers will aggregate hun
dreds of thousands, as the securities
they can attach are considered very
poor.
1t is expected that an investigation
of the affairs of the company will de-
velop some very peculiar, to say the
least, methods of dealing with both
borrowers and investors
A Good Wheat Crop in Kansas Assured.
TOPEKA, Kas., Feb. GA heavy rain
has been falling in Kansas during the
past forty-eight hours. All sectious
received thorough soaking and the
ground is in fine condition for spring
blowing. This rain virtually insures a
magnificent wheat crop, as the plant is
in fine condition and looks better than
in any previous year at this time
There will be little over 5000, 900
acres in winter and spring wheat in the
state, and if conditions are favorable
the total yield of the state this year
will be $4,000. 900 bushels, an increa Sc
over last year of $4,000, 600 bushels
Doubtful, but All Right If True
WASHING ton, Feb. Gin the absence
of definite information respecting the
reason for the placing of a police
guard around the United States lega-
ton in Santiago, as reported by the COR
respondent of the London Times, yes-
terday, officials of the state department..
are inclined to doubt the correctness Of
the report. If it be true, however, they
look upon it as friendly Intervention
in behalf of Mr.. Egan against the prob
able assaults of some unruly charao-.
tiers in the city, disposed still to hold
unfrlendly sentiments toward the rSs.
resentative of this government