New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-09-21
TN THE HANDS OF RECEIVERS.
TIE LOMBARD INVESTMENT COMPANy,S
TROUBLES.
INTERNAL DIssENsIoNS LARGELY TO BLAME
CHANGES WHICH HAVE BEEN MADE
AGAINST OFFICERS OF 1T

vestment Company in st. Paul Yesterday not
unexpected in financial circles. This result has been
tookeh for the consequence OF the internal dis
s,nsons In the company. How far the affairs Of
the concern have been complicated by defaults upon
western farm mortgages taken by 1T to secure loans
&c not known here. hut of the stockholders
have made charges freely that the former president
was responsible for many njudicous investments.
Ills methods have for time also been under
criticism Of several bank officers In this city.
The Lombard Investment Company was incor-
,orated under the laws of Missouri in 1890 sue
caedine 10 a Kansas corporation incorporated In
1859 The business Of the original company dates
hack 10 1854 The capital stock was Si.0OOOo0. For
the year 1892 the company made 23Gl loans on farm
lands through the West involving 81 6SO7ii and 547
loans on city lots at the West involving NlsOs75
total Of s4ssl,Gl9 or this amount over 100000
Vas loaned in the State OF Washington. $7S5 Cos in
Missouri and s7l2,73i in Kansas The foreclosure
suits in court at the end Of 1892 covered ssiS5 At
the end Of the last fiscal year the company had
outstanding s4.24ei75 in debenture bonds. The as
sets included S. GG9S 21 first MORTGAGES s1059o
ond mortgages. sGs92iG loans collateral and per-
.onal security SINO1o2 stocks and bonds s84' Oo'
,oa, estate and ssl7,96S as ''due from banks"
One Of the former presidents. Benjamin Lombard,
r.. resigned several years ago. James l.. Lom-
hard cousin. succeeded him. He had a contest
with some OF the stockholders his hands for
the last two years The opposing faction was
largely composed of Philadelphia, people. who en-
Moved Wayne MacVeagh counsel Mr. Mac
ycagh in a report made last year TO his clients.
charged President Lombard with mismanagement.
He declared that certain Western farms, coming
20 the company by foreclosure. bought by
James L. Lombard and Benjamin Lombard. jr.,
st a price fixed by themselves. and they traded
them and other property for houses, which were
af.rward sold to the company at price fXed
by the Lombards. Mr.. MacVeagh also charged
~ Haa1 Of Nohl il
way the company. retaining the stock which
they had received when they had purchased the
bonds J. L. Lombard was also accused OF specu-
,atIon in land Kansas City which proved
improbable. and. it is alleged. was saddled upon
the company. The Koen ditch transaction was
also denounced by Mr.. McVcagh as worthless
scheme in which the Lombards had prospered at
the expense of the company, although they sub
scauenty personally guaranteed the bonds sold
10 the company. Mr.. MacNeagh also described an
other transaction follows: James l.. Loln-
bard his nephew. William A. Lombard, and
one other member of his family formed
the Investors Company with a capital of $4,000.
which purchased the stock of the Keith & Perry
Coal Company for $4,000. The capitalization
was then raised $4,000 bonds and $4,000 stock
the Investors Company taking one-half and keith
& Perry the other half. Mr. Lombard sold about
800 900 bonds 10 an English company which he had
formed but be was forced TO take them back
the Engiishmen, Of which Charles 5. Fairchild ex
ss.s5s Of Of the the aona city Ss%
York members Mr.. McVeagh then charged
S iSs coman The SPs made
by the Philadelphia interests Of the company led
to The Nav resis9a' 8 %hner of
was elected president. The publicity given to the
the operations of the company, and the stock
holders have sought receivership in self-protec-
"T The receivers appointed are Charles s. Fair
child NJ B, Whitney the president; SANFORD l, "a "a
H. E. Mooney. the vice-president' also OF Kansas
SUSPENDED BANKS REsuMING BUSINESS.
Wheeling W. Va Sept 20-The Exchange Bank.
the suspension Of which early in August almost
caused panic in the city, reopened its doors to-
day. The bank is sounder basis IMAM ever,
having 800 900 additional stock.
Denver. Col. Sept 2O-The Rocky Mountain Dime
and Dollar Savings Bank opened for business yes
terday. This is the first Of the four failed savings
banks to resume. Deposits amounted TO fully five
times the Withdrawals.
A FRAUDULENT ST LOUIS FAILURE.
St Louis Sept. 2O.-The recent failure here Of
the wholesale notion firm Of Simon. Gilman Co..
with liabilities Of $4,000. has developed a sensa-
tional phase. Attorney John Boogher says one lot
Of goods valued at $4,000 has been found at Grand
Island, Neb one OF 81 100 Memphis and others
at Springfield and Alton. ILL.,. oklahoma City and
other points New-York relatives are also impli-
Gated In the transactions. Instances Of fraud con-
tinue TO multiply. Simon and Gilman cannot be
found at present
ALL OF THE COMMITTEE ARE STILL
VIGOROUS.
The members Of the Clearing House Committee
laughed yesterday over the published rumors that
one Of their number likely 10 be retired be-
cause Of ill-health and advanced years All OF
them swear that they young In spirit, ana
they have recovered from the strain Of the July
monetary crisis The stories said to be with
out foundation.
J. Edward Simmons. president OF the Fourth
National Bank, has recovered from the attack
Of Indigestion he had Tuesday. He left the
city yesterday for Chicago. where he VIII deVots
two weeks 10 studying the Worlds Fair.
FEW INDIA COUNCIL DRAFTS SOLD.
London. Sept 2O-The India Council to-day offered
for sale drafts to the amount Of 4O.NO.U rupees.
Buyers were found for only 10000 rupees at
Is 5hd.
THE DEPOsITORS LIKELY TO LOSE NOTHING
David S. Mcclure. the receiver of the Nationai
Bank Of Deposit. which suspended in June. mas
conducted the affairs Of the institution 80 we"
that 10 all probability the creditors will receive
100 cant, an the dollar dividend Of 40 per cent
was paid thirty days after Mr.. Mcclure TOOK
charge on July 15 Another dividend OF 80 per
cent WILL be paid on September 30. MI Mcclure
thinks that the depositors VIII not lose cent
NO POSTPOyENENT OF THE ELLISON CASE
Recorder smyth could not restrain his feelings
yesterday when Charles W. Brooke. attorney Tor
Frank Ellison. asked for postponement OF ELL
sons trial from Monday next until wednesday.
The Recorder exclaimed: II thought that should
be considered in the matter also. refuse to grant
your request The case must go on Monday
FLINT'S FINE