The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-09-02
OWES NINETEEN MILLIONS.
THE EQUITABLE MORTGAGE CoMPINx
IN RECEIpERS' HANDS.

II Has Large Assets, but They Are Mostly
Western Mortgages and state ssd City
Bonds, Which Cannot ne Turned late
| Cash just Now-Its Debentures Held In
the United states, Europe, and Canada.
Tho Equitable Mortgage Company. whose
Offices are i'll the Manhattan Bank building at
40 Wall street. went into the hands OF receive
ers yesterday. and posted the following brief
explanation on the door OF the Offices:
Owing to tho continued strinEency in the money
market aud our consequent inability to dispose Of
securities or to collect interest and maturing Loans We
have been compelled to suspend temporarily.
The officers Of the company and their attor.
| neys. Thacher & Barhum. were not prepared
to make any further statement. The company
was Incorporated in Missouri in 1884 with an
authorized capital OF S4OO0O0O. Of which
81. 100000 was paid up Its officers are: Presi-
dent. Charles n. Fowler: Treasurer Norman
+. Thompson: Directors. Charles N. Fowler,
Charles d. Wilkinson. s. r. Bertron Edward
II. Hobbs. Henry Cartwright. William Warner,
and Benjamin p Shawhan. The com pany lent
money on bond and mortgage and dealt in
municipal bonds 1t also issued and sold In.
terest bearing debentures. or notes secured by
Its bonds and mortgages. and these constitute
its chief liabilities.
The application for the appointment OF 70.
ceivers was made to Judge Shipman OF the
United States Circuit Court on Wedr esday and
granted on Thursday. 1t was made by the
New York Security and Indemnity Company
as trusteee for the holders OF $4.S75 500 Of the
Equitable's debentures: James .. Bloss. Presi-
dent OF the Produce Exchange. who holds
$4,000 OF them. and George X. Gilluly. holder
OF ten shares OF the stock. The plant sets
forth that tho company is a foreign corpora
ton chartered to lend money upon real estate
and other securities. we'll to buy. sell.
improve. and lease real estate and other prop
erty. Its principal business consisted OF lend
ing money on farm property in Missouri and
other Southern and Western States and Of
negotiating bonds and mortgages given for
such loans. The company was also q large
dealer in State and municipal bonds.
IN October. 1886. the Equitable entered into
an agreement with the American Loan and
Trust Company that the latter should assume
the trusteeship Of certain bonds and mort
cages and other evidences OF indebtedness to
be deposited by the Equitable as security
against debentures to be Issued in series Of
100000 Twenty-six such series were issued
on which the rates OF interest ranged from 5 to
7per cent. 1t was stipulated that the Equitable
should receive the income from all deposited
collateral SO long as it should pay the interest
on us uRDentuTeS. me new lOrk security ana
Trust Company was substituted later for the
American Loan and Trust Company and took
possession OF the securities deposited with the
sold by the Equitable Mortgage Company
egans the securities nov 1T II the HANDS q the
and the Security Company holds real estate
security to the value Of S4.S79.0O0.
pn assst on
!ef %niSn Tsssf essTsssbys {!
H teSsi l55Eine Co. and chsries E!SssnieII.
Patiien. and G. Wan EGlen. Amsterd am. S4e4.-
300. and W. Annecke and J. Knorcke. Berlin.
In addition to the sale Of debeptures the
compliments believe that the mortgage COM
pany has borrowed from banks Sl.D76. 1924
which are about to mature, and has deposited
against these notes municipal and other bonds
compliments further allege that the defend:
epe
the company holds unpledged mortgages.
stocks. overdue, interest, coupons. tax sales
assreea tfni s.. 7ooooO. besides owning farms
in Missouri to tho value OF 1921 900
Sherman * Sterling are the attorneys for
the EGultable Mortgage, Company. and they
eX planned yesterday that the company could
t to s SsSnf but qS that Il sbass
had been paid 1t would have been an injustice
to other holders OF debentures and that the
directors therefore considered 1t better to
allow Mr.. Boss to enter q friendly suit and
hnye receivers appointed In addition to the
s. D5. :$S3 70 payable Oct. /. S375. SOD SO pay
able Nov. !. $40, 43O so payable Dec. 1.
No schedule OF the assets is given. but the
total ia given in the company's report for
October last as 17.757.795. These were the
liabilities shown in the same report:
Capital stock S2loooo0
Surplus Observation-Disclosures. 100000
ee fund bOz<3
Undi vded profits. ............... lbI052
Bills pay All, 7O5
bonds outstanding 1264p020
Loans paid not RENTED for ............... 3ebb4S
Due borrO 268 $50
of de- post Observation-Disclosures. b5L832
Deposits waiting Investment ............... 6D,3B2