Middlebury register. (Middlebury, Vt.) 1886-1937, 1894-02-09
THE VERMONT INVESTMENT AND
GUARANTEE co.

GOARAN E6 CO.
AsTAI EMENT BY RECEIVER ORMSBEE.
Hon. +. j. Orm. bee of Brandon, re-
ceiver of the Vermont Investment and
Guarantee Co. of Orwell, has sent out
statement of the affairs of the corpora
ton for the information of its stock
holders and creditors. 1t is of such
general interest that we reprint it in
full. He says;
1t has been suggested to me that
statement to you of this date in respect
to the condition of the company, its
assets and liabilities, and, so far AS may
be, the prospective results of liquidation,
Is quite in order: and such suggestion
being in accord with my view of the
matter, hereby make report as follows:
The company suspended on the 18th
day of May. 1893, and | was appointed
receiver on the 10Th.
The statement of the company as to
its financial condition at the close of
business ON the day of suspension
showed the assets of the company at
81, OBS. 3lG.l0, and the liabilities (not
including the capital stock, S300.0O0),
to be SLIPS, 346.l0. The S2.02S, 34G. 10
included II profit and loss" item of
$9.95l.70.
Said assets, as given by said state
ment, were as follows: Real estate
loans. 81 .299. Gl4.6l; loans and dis
. counts, S25l.5ll.0; bonds and invest
ments, SG7,l22; real estate (acquirrd
under mortgage, S44GS ST. other
specified items amounting to S43,GO2 IL.
The liabilities Mere stated as follows:
Debentures of the company then out
, standing, Sl,llS900; bills payable and
acceptances, S247. l706 &c; other specified
items amounting to $50, 46l .G4--Which
statement (of liabilties) | believe to be
. correct.
Loans and discounts sold and guaran-
teed, then outstanding, S3ll ,S40.S0.
This, as will be seen, was Il contingent
liability of the company. 1t has since
. been reduced tC Sl46,544.S2. | have
made a careful examination OF the now
unpaid guaranteed paper, and, in my
opinion, there will be "A loss TO the com
pany upon this liability of S65. ZOO.
OF tie above item of real estate loan,
Isl 800 GA CD, Sl,l4l.3Sl.9 S were in
, the hands of the trustees for the security
! of debeuture holders. to secure the pay
ment of $l.llS, 10000, debentures then
' outstanding.
At the time of the suspension, of the
So .l22 (bonds and Investments S3l.-
600 were Pledged to various credit
ors of the company to secure the pay
ment of loans, $1,000 of which have since
been sold or realized upon and applied
in reduction of liabilities of the com
pany; and of the mortgage securities,
outside Of those pledged for the security
of debentureS (SljS, 232 63), S42. 900
were also pledged for the payment of
liabilities of the company. $4,000 of
which have been sold and the aVails APP
:. piled on the liability. for the payment
of which they we're pledged; and of The
above items of assets of S26l oil -
(lOans and discounts, S3S, S749l were
also pledged, all of which have been
e paid and the availS applied III reduction
of liabilities.
OF the real estate securities not in the
hands of the trustees ($ljS.232 So. ST.
q 1928 were at the time of the suspen-
sion on the collection book. and hut
; little of this has since been paid, and, so
- far as | am able to Judge, there will be
loss in this item of not less than
: $40, 900; and expect that large num-
Der of the mortgages making up this
item must sooner or later be fOreclosed.
if title is not otherwise obtained, or
payment of the debt accepted at IA
shTinkage, when opportunity offers.
q 1t is also my judgment that the real
9 estate item (S44,GS4.Sll will be subject to
. a shrinkage of $4,000. This estimate
" or opinion is, however, liable to be wide
of the mark, for should business revive
and season of prosperity be not far
ahead of us, this estimated shrinkage
= might be largely avoided. | deem ii
y my duty to say, however, in this con-
nection, that a forced sale of land,
under the present condition of things,
! would doubtless largely increase the
above estimate of shrinkage.
OF the loans and discounts on hand at
the time of suspension, pledged and UNI
pledged, S26l .5ll.77, it is my Judgment
after careful examination, that there
will be loss TO the company, on this
paper, of $4,000.
As to the item of assets, "bonds and
investments" (S67, l22), there will
probably be a loss to the company OF
S25, 900; and it is needless to say that the
, present affords no suitable opportunity
- for realizing on this class of property.
As to the above item of assets of $43,
u G02 II. it is my opinion that the value Of
this does not exceed $4,000, thus en-
, failing a loss, as to tins item, of abou
S32, 900.
-, In view of the seeming and alleged
l fact that you have IA pecunIary interes
+ IN the question, "will the avails of thu
\ securities in the hands of the trustees
L for the benefit of debenture holders
/. pay the debentures in full?" | say as t
this subject that, as a whole, these Sc
ourites are good, end that, taking int
| consideration the fact that the rate o
interest they bear exceeds, oman aver