New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-09-02
CANNOT MEET IT'S NOTES.
A BIG CONCERN HAMPERED.
RE- EIvERS NAMED FOR THE EQUITABLE
MORTGAGE COMPANY

FINANCIAL STRINGENCY CAUSES THE SUS-
PEysION-REsrLT OF DEFAULTS ON
WESTERN FARM MoRTGAGEs-
MANY CREDITORS ABROAD.
The Equitable Mortgage Company, one Of tho
largest corporations engaged in the business Of
lending money farm mortgages in the Western
and Southwestern States, has succumbeds 70 the
effects of the financial stringency. Unable TO
meet pressing claims now due and others soon to
fall due, it has sought the protection of the courts
through friendly action for receivership.
Judge Shpnan, in the United States Circuit
Court, signed the order at Hartford Conn, on the
application Of the New-York Security and Trust
Company James o. Dloss who holds the
mortgage companys notes for S45, 900, and George
r. Giluly, who owns ten shares Of the capital
stock The receivers named are Charles n.
Fowler, president of the company and James
VI Clifford. lawyer. at No. SO WiliamSt. Shear
man 4 Sterling appeared for the plaintiffs, ana
Simpson, thatcher & Barnum for the company.
The papers were filed here yesterday
The Equitable Mortgage Company was organ
rzed July %, 1884 under The laws OF the State
of Miss s,ur by Charles n. Fowler. native OF
that State II originally local In opera
tions. but 2raduay extended its business until
it reached a prominent position among the cor
porations engaged IN this style Of financing. is
credit has stood high until within the last tcw
months when the condition Of monetary matters
at the West caused conservative Eastern bankers
scrutinize closely all concerns that were iiaole
10 feel the effects of the financial stringency
The authorized capital Of the company was
81. 900. OOO and the amount paid in is $21 0,ooe
It's board of directors is cOmposed Of William
Warner of Missouri; Charles b. Wilkinson, or
Pennsylvania; Edward II. Hobbs, Charles ~
Fowler B. p. Shawhan, and s. r. Bertron, OF
this city. and Sir Henry Cartwright, Of England.
The officers are Charles " Fowler presidents L.
b. B. Wilkinson and $. r. Bertron,, vice-presi-
dents and B. p ShawlIan, secretary and treas
urcr
LENDERS ATTRACTED BY HIGH INTEREST
The company's principal business the lend
ing of money on Western and Southwestern real
estate. principally farm property. High rates or
interest were obtained, and the company was en-
abled TO pay large rates upon the debenture bonds
which il issued against the real estate mortgages
as security and sold 10 capitalists and small in
vestors DIT the East and IN Europe. Less than
one-half Of the compdrys debentures have peen
placed abroad. The bonds paid interest at the
rate of and per cent, but the debentures
| placed abroad in the last lew years have horne
| only s per cent. The company's business mas
been Sc profitable that IN the last five years lte
dividends TO stockholders have been at the rate OF
| 10 per cent year Bankers said yesterday IN
| criticism of the company's operations that 1t made
the error Of distributing nearly all Its pron's IN
good times instead OF accumulatng substantial
surplus against which il might draw in the stress
| of times like the present.
The company has been placing debenture bonds
AZ the rate Of about S3,oO0,o0O year In tho
Western land boom OF about five years ago the
company made plenty of money. for the FARMERS
met their interest promptly and paid on tneir
mortgages at maturity. In the last few years
there has been gradual change in this respect,
and the financial crisis of 1893 has crippled many
Of the agriculturists. Many of the land mortgage
companies curtaed operations, and strengthened
their resources in view of the collapse OF the iaho
boom The suspension Of the Equitable Com
many indicates that il did not shorten sail in time
| 10 weather the financial storm. Persons who are
acquainted with the Western situation have eeti-
mated that not more than 10 per cent OF tho
Western citizens who have borrowed msney on
farm mortgages have been able to meet the inter-
e.t and in the past year and half about 80 per
cont of the mortgages are said to have been fore
closed.
CRIPPLED ny THE FINANCIAL srRTNGENcY
M statement could he obtained from the off,
the actual condition Of its affairs. The only onk
cal statement given out was as follows:
Owing to the continued strngency in the
money market and Our consequent inability 70
dispose of securities or TO collect interest on
maturing loans, we have been compelled to sus-
pend temporarily.
Only a meaerc idea of its obligations could he
obtained from the bill of complaint in the action
for the rcceycrshp The pressing obligations
to which the company pleads its inability to re-
spond include interest and principal Of its de-
benturcs falling due a. follows: On September
l. SlsOIs4: on OctoDer |. Sl93.3s3: Oh Novem
Der I; $355,522; on December l, S?lO,'So;
total S9395a9 There call loans liable to
be demanded at any time amounting 70
S463. 900: making total Of $I,402, j29. In
thcs, call leans are included the notes OF James
o Bloss one of the plaintiffs.
The last available balance sheet Of the company
was submitted on October |, ls9?, to the Bank
ing Department of tie State of Connecticut' an"
was as follows:
-safa