Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1893-07-12
HEAVY DENVER CRASH.
A Big Real Estate Corporation Goes Into
the HANDS of an Assignee.


lin Investment Company, the largest
real estate firm in the West, closed its
doors this morning The liabilities di-
rect and contingent are s., 362, lis and
the assets So 100000.
The failure was brought about by an
attachment sworn out by d. II. Fergu-
son, president of the Denver Savings
Bank, for S., 600, on which he held Sc
curities greatly in excess of the
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
of the liabilities will fall. They have
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 in our various enterprises by
clients in Denver, Eastern cities and Great
Britain. In the process of improving 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
electric railroads in each of these cities.
While in the midst of these operations came
the Barring crisis and from that time-the
fall of 1S90-we have been heavily blrrdened
with these dependent interests We
found it impossible to secure the
financial cooperation from more than
a few of those interested with us.
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 large prop
critics by Individual customers, frequent
ly on part payment, and then because they
were either unwilling or unable to pay in
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
sold these notes to investors we
have been obliged to guarantee interest
and principal and thus the contingent liza
bility was greatly enlarged. In the effort to
protect our customers we have advanced in
the last three years upwards of $780,
600. To fund the direct liabilities
OF the company for ten years at
a low rate of interest we commenced last
fall the issuance, through the Franklin
Trust Company of Brooklyn as trustee, of
5000 per cent. ten-year debentureS
placing with them the collateral of
the company independently valued
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 III fair way to place the balance,
which would have provided for the cOmpa-
nys direct liabilities. The financial condi- |
ton III the United States was such that |
there was almost no market for these
securities. As we had previ ously /
sold other securities in Great Britain |
we naturally looked there for a market |
The failures of Australian banks involving
upwards OF $500, 900 British funds |
brought about distrust 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
tunes OF stringency We have found the |
banks of Denver most willing to make |
temporary loans, but the present situation in |
Colorado has made it impossible for them to |
render assistance which otherwise we be- |
Heye we could have obtained. The nom
lnal value of our assets Is S2940, 691, while |
the direct liabilities are s., IL, 13S. There |
is however, contingent liability for mort
cages and other securities sold and guaran- |
teed amounting to s., 80, 900. The securities |
guaranteed in the latter case should pay the |
obligation under ordinary circumstances
1t Is difficult to judge what the assignee will
be able to accomplish with the assets |
of the company. Much of our collateral |
Is in the hands of creditors and there |
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 |
consummation cannot be realized if secur- |
tiles are sacrificed. The common stock of
the company, 81 100000, has never been Of !
fered for sale and is held almost exclusively
by myself and brothers. | hold $4,000 of
the preferred shares and the balance $780, |
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. Ny 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 all
claims including preference shares provided
reasonable patience and consideration is
shown by creditors holding collateral OF
sound value, but not readily realizable.
The following is statement Of assets and
liabilities;
ASSETS.
Property S12,1l0 AZ
Stocks... 105O, 2S1 81
Bills receivable S23,431 n
Accounts receiyab l lie ... 249, 867 %
Furniture. .............. 5000 90