Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1893-07-13
HEAVY DENVER CRASH.
A Big Real Estate Corporation Goes Into
the Han0s of an Assignee.

lin Investment Company, the largest
real estate firm m the West, closed its
doors this morning. The liabilities dl-
rect and contingent are $2,362, lis and
the assets 100000.
The failure was brought about by an
attachment sworn out by D. II. Fergu-
son, president of the Denver Savings
Bank, for So 800, on which he held Sc
amount. The action of the bank
is not regarded favorably by the
people of Denver, for It Is
known that had it not been for the uni
versal hard times the company would
have been able to pull through. The
sheriff served the papers and took pos
session yesterday afternoon, there APP
parentlv being no Sunday law in Colo
RADIO except possibly to regulate saloons.
The vice-president of the company is
located in London, where three-fourths
other Offices in New York, Fort Worth
and San Antonio, Tex. Denver people
will suffer but little by the failure.
All of the personal property of the
Chamberlin Bros. has been turned into
the assets. Col. Lewis C. Ellsworth,
formerly receiver of the Denver & Rio
Grande Railway, has been appointed
assignee. III. S. Chamberlin, president
of the company, made the following
statement:
During the years prior to 1890, in which
we were making very Large real estate
sales of property in Denver, we be-
came largely interested in real estate
in Pueblo, Fort Worth, San Antonio,
Spokane Falls, Helena and other cities. We
were joined i'll our various enterprises by
clients in Denver, Eastern cities and Great
| In ho of INN these
properties it became necessary to build cleo
trio railroads for rapid transit to and through
them. In this way we became involved in
the construction and maintenance OF
While i'm the midst of these operations came
the Barring crisis and from that time-the
fall of 1890-we have been heavily burdened
with these dependent interests. We
found it impossible to secure the
teM o Rosa ne rom 4n than
Therefore the burden of. construction
and maintenance has fallen exclusively on
the Chamberlin Investment Company, and
the continuous draft on our financial re-
sources with the care of the enterprises,
we were compelled to foster to protect
large real estate interests, has had much
to with our present condition. We have
also encouraged the purchase of large prop
critics by individual customers, frequent
ly on part payment, and then because they
terest and the mortgage at maturity we
have taken up aud held their real estate
notes to prevent foreclosure and consequent
loss to the customer, far beyond the
limits of prudence. Whenever we have
SOD t these o notes to investors we
and principal and thus the contingent liza
bility was greatly enlarged. In the effort to
protect ourscustomers we have advanced in
the last three years upwards of $500
co., To fund the direct liabilities
a low rate of interest we commenced last
fall the issuance, through the Franklin
Trust Company of Brooklyn as trustee, of
100000 6 per cent ten-year dehentures
placing with them the collateral of
at three times the amount of
the debenture certificates. Something
more than half of these debentures
have been certified and put out and we
were in fair way to place the balance
which would have provided for the compa-
ton in the United States was such that
there was almost no market for these
securities. AS we had preyio usly
sold other securities in Great Britain
we naturally looked there for a market.
The failures of Australian banks involving
upwards of $5O0,OO0,OoO British funds,
brought about distrlst in every form Of for
eign investment. These extreme financial
disturbances abroad being followed SO
directly by American difficulties OF
unparalleled scope, made it impossible to
place our bonds as fast as we needed the
funds to meet our obligations. In other
times of stringency have found the
banks of Denver most willing to make
temporary loans, but the present situationin
! Colorado has made it impossible for them to
render assistance which otherwise we be-
! lieve we could have obtained. The nom
inal value of our assets is So, $40, 691, while
the direct liabilities are 81, 112, 13S. There
is however, contingent liability for mort
cages and other securities sold and guaran-
teed amounting to 81, 100000. The securities
guaranteed in the latter case should pay the
! obligation under ordinary circumstances.
It is difficult to judge what the assignee will
be able to accomplish with the assets
of the company. Much of our collateral
fore beyond his control. 1t is very
important to the creditors, especially the
preferred shareholders that these assets be
conserved. Ifthrown on the market at this
time very great loss will be sustained, and
while our assets should meet every liability
| outside of the common stock this desirable
contamination cannot be realized if secur-
tiles are sacrificed. The common stock of
| the company, 81 zoo, 0OO has never been Of
fered for sale and is held almost exclusively
bymyself and brothers. | hold $4,000 of
the preferred shares, and the balance, $3.50,
600, is held largely in Great Britain. The
officers of the company have used their
own assets as collateral for the company
until they have entirely exhausted their
private means. My great sorrow at this
time is the fact of the incon-
venience and anxiety to which our friends
and customers will be exposed while the
liquidation of the assets is in process. |
hope and believe they will eventually pay ali
claims including preference shares provided
reasonable patience and consideration is
lcl hxy hr1f ii Hot o.
The following is statement of assets and
liabilities:
ASSETS.
property SlZllU q!
StockS...... $50 2S1 81
Bills receivable. Observation-Disclosures. .431 "a
Accounts receivable. 249,S67 %
Furniture. 5000 90
Total So 691 As
LIABILITIES.