New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-11
BUSINESS CRASH IN DENVER
FAILURE OF THE CHAMBERLIN INVEST
MENr COMPANY.
THE LARGEST REAL ESTATE CONCERN IN TIE
WEST, WITH BRANCHES IN MANY CITIES.
MAKES AN AS:IGNMENT-THE PRESI-

Z DENTS STATEMENT.
Denver Col, July l0-The Chamberlin Investment
Company the largest real estate concern IN the west
closed It's doors this morning. The liabilities, direct
and contingent are o. 800 Ile and assets s30O0OOo.
The failure was brought about by an attachment
sworn by ID. H. Furgeson president OF the Denver
Savings Bark, for %, COO which he held securities
greatly In excess Of the amount. The action OF Inc
bank Is not regarded favoraby by the people ii
Denver. for 1t IS known that had 1t not been Tor the
universal hard times the company would have been
able TO pull through. The Sheriff served the papers
and took possession last evening.
The vce-president Of the company Is In London
where three quarters OF the liabilities Will all IL
also has offices in NewYork. Fort Worth ana SAL
Antonio, Tex. Denver people will suffer ltle All
the personal property OF the Chambcrln brothers has
been turned into the assets. Colonel Lewis G. Els
worth formerly receiver OF the Denver ard Rio Grandc
Railway, has been appointed assignee.
II. b. Chamberlin, president OF the company. made
the following statement: During the years prior TO
1890, In which were making very large real estate
deals Of property in Denver We became largely inter
ssted In real In Pueblo Fort Worth. san Antonio
Spokane Falls, Helena and other cities We were
Joined In our various enterprises by clients In DerNer
Eastern cities and Great Britain. In the process oil
improving these properties 1t became necessary 10
build electric railways for rapid transit to ara through
them. In this way became involved In the con-
struction maintenance OF electric railways In each
the Barring crisis came. and from that time we have
been heavily burdencd with these dependent interests
We found impossible 10 secure financial coopcra'ou
from more than few Of those interested Win us.
Therefore the burden Of construction and maintenance
has fallen almost exclusively on the Chamberlih
Investment Company and the continuous draft on our
financial resources with the care OF other enterprises
we have been compelled 10 foster TO protect mrer
real estate Interests has had much to do with our
present condition. We have also encouraged the pur
chase OF large properties by individual customers
frequently on part payment ana men, p'c''sc '''s
were either unwilling unable 10 pay interest ana
the mortgage a, maturity, we have taken up ana hea
their real estate notes to prevent foreclosure ana
consequent loss 10 the customer, beyond Inc hmi's
OF prudence. Whenever we have sc't these NOTES 10
investors been Obliged 10 guarantee interest,"
and principal, and thus the contingent laol'les were
greatly enlarged In efforts TO protect our customers
we have advanced in the last three\ Years upward
of 100000
ITO fund the direct liabilities OF the company for
ten years at low rate of interest began last fall
the insurance through the Franklin Trust Company
Of Brooklyn as trustees of 100000 per cent ten
year debentures placing with them the collateral OF
the company. independently valued at three times the
amount Of the deberture certificates. Something
more half of these debenures have been certified
and put out, and we In n good way to place
the remainder, which would have provided Tor the
c0mpany's direct liabilities. The financial condition
III the United States such that there was almost no
market for these securities. As we had previously
sold other securities In Great Britain, We naturally
looked there for market The failures of Australian
banks involving UPWARD OF S5O0,0C0,CO0 OF British
funds brought about dstiust In every form OF foreign
investment These extreme financial disturbances
abroad being followed directly by American di1n-
cultes Of unparalleled scope, made 1t impossible 20
place bonds fast We needed the FUNDS 10 meet
our obligations. In other times OF S,ringenc! we
have found the banks of Denver most willing TO make
temporary loans hut the present situation III COLORADO
mas made II impossible for them TO render the assistance
which otherwise We believe we would have obtained
The nominal value OF our assets Is $20io ool, WINE
the direct liabilities are s. 1l21so. There Is, how
ever contingent liability for mortgages ana o'her
securities sold and guaranteed amounting 10 Sl"oo
600. The securities guaranteed In the latter case
would pay the obligation under ordinary circumstances.
to accomplish With the assets Of the company
Much Of our collateral Is IN the hands oil creoors anu
therefore beyond his control" 49, 49,.
The following is statement Q, me asses s,oc cu
sss ss =. 'p sc h@ssn "s y
600 hills payable, 1857 301 ~: accounts payable
sl40,o75 60: certificates of deposit, s",o'3 o7 total
NO SILVER PURCHASES By THE GOVERNMENT.
Washington July lO.-The Treasury Department
today again arrayed itself hrmly against the silver
brokers. Ii the customary day for making the
proportional purchase OF silver on the July account
and 4ss,OOO ounces were offered The prices asked
ranged from 20 TO as cents. They were regarded as
too high By Acting Director Preston. who made
counter proposition by Offering II IL cents an ounce
That IL cent less than the Department paid for
Its silver last week. and apparently the silver men
are reluctant to to these terms, for up to the
close OF offce hours acceptances were received
However some beated teiegrams may come to hand
before the calendar day closes in which case they viii
DC opened tomorrow
SENATOR CULLOM'S POSITION on SILVER.
Chicago. July 1O-"I shall vote for the repeal Of
that section OF The sherman law providing for the
purchase OF 100000 ounces OF silver bullion per
month"; said Senator Shelby VI. Cnlom yesterday.
OF the prospects for the extra session Of Congress he
said
81 presume President Cleveland has counted noses
and thinks that much of the act can be repealed and
probably 1t can. What he will recommend III MS
message 10 Congress- OF cannot be conjecturcd
law. there would be hesitation by nD ,e con,ry
without some silver legislation"
REFUSING TO ACCEPT A % PER CENT CUT.
Z Toledo, Chic, July IO.-At 10 o'clock this morning
the Mlburn Wagon Company whose works are the
second largest in the world Studebakcr's alone sur
passing them, served notice on Its 500 employees Of
q c5 per cent reduction In wages. large number
OF the men at laid down their tools and walked
Out, and this afternoon not over score of me-
rotnrned 10 work. The company thinks that most
~ Tho mon will return work tomorrow.
MOVING; AGAINST SILVER IN THE WEST.
st. Paul. MIMI. July 1O.-By unanimous vote the
Chamber Of Commerce this morning adopted rcsolu
tons calling Il convention OF delegates from com
mercial bodies In Wisconsin, Minnesota, North ana
South Dakota, Iowa, Nebraska and Missouri, to be
held I'm this city at some pricr to July 81, In
the interest Of the unconditional repeal OF the silver
purchase clause Of the so-called sherman act
A CALIFORNIA BANK RESUMES.
Los Angeles, CAL. July 1O.-The southern California
his