Omaha daily bee., 1894-10-22


give an Omaha gentleman the actual condi-
tion Of affairs in that state. The letter is
addressed TO f. T., Hull, who is connected
with the dry goods firm Of Kelley, Stiger &
Co. MIR. Hun, desirous to know the truth,
wrote to a cousin at Concordia, who is
member Of the law firm Of Kennett, Peck &
Mattson, also doing a large loan business,
The letter is as follows;
truth ABOUT KANSAS LOANS.
CONCORDIA, Kan, oct B.-F. =. Hull,
with Kelley, StIger q Co, Omaha: Dear
Frank-Hour marked copy OF the State
journal arrived last evening, and l was
having good deal of fun over the Record
Of Ruin" when an hour later your postal
card came to light. To one who has had
considerable experience with the murtEage
laws qf both Kansas and Nebraska the ar
back in Ohio when we used to get papers
and circulars and boom editions of all kinds
in reference to the wonderful countries Of
Kansas and Nebraska? And especially Of
Kansas, for our boomers were more en-
terprlsins than our neishbors on the north,
u tinn "Tt n to e IeS 81 IN ~ ge oid
boom editions In which Kansas Is repre-
sented as being far superior 70 heaven and
strike an average and you Will have about
the facts. l!ut for details To begin with,
the pops never have passed law in Kansas
that some Of the republicans did not APP
prove of. for the reason that at no time in
their history have they possessed the gov
ernor and both branches of the legislature,
!ature without the governor. Hence, it has
been Impossible, for, them TO make laws to
cerned I don't think they would have done
anything very vicious even If they could,
The worst thing about the average pop is
his mouth. They have talked all sorts Of
wild theories necessarily, and in the early
stages Of the game there is no doubt but
this talk caused a great deal Of uneasIness
among the money loaners OF the east, and
at least partially stopped the flow of east
ern money into Kansas. However,, the
withdrawal of money from Kansas did not
begin uriIl the setting in of this present
financial panic, great deal Of Kansas
companies. When the panic. came on and
people began to press these Institutions for
their money, they in turn had to press for
simply "A squeezing process ali around. An
other thing: l have known but very few
cases where borrower has kept up his
loan has foreClosed. When a man could
pay he has sometimes been forced to do 80.
he has nothing with which to pay the
closure has been started,
least in some parts ~ the state In the
western part II is impossible to borrow
in that section. In fact, what is called
conservative money" never goes into either
western Kansas or Nebraska, The. rate
there has never been much, If any, below 3
per cent The usual rate here is about per
cent, and all gilt edge loans are made at
that rate now, Loans that are not now
considered first-Class go begging, The
cashier of the Cloud County bank told me
Yesterday that he was selling loans right
along to all his eastern customers as fast
as they had money to take them. Another
great trouble with selling Kansas loans is
that eastern people have been bit so
boom valuations. Again, many loans have
never been made i'm good faith; for instance,
see that lot Of Nebraska stuff which had
for foreclosure, Eastern people lay these
things to the state. when it is more the
fault of reckless or dishonest agents, These
causes, together with the panic. think, has
caused a great deal more commotion about
Kansas leans and Kansas credit than has
the populist party. Conservative companies
with careful agents have lost little, If any,
money in Kansas. i am safe in saying not
any. You probably noticed the statement OF
j. S Gilbert, assistant secretary of the
New England Loan and Trust company. We
have done business fer this company for
Years, and about year ago their inspector
told mo that they We're ahead or their real
estate account by considerable; that Is, that
the land they had been obliged to foreclose
and buy In they had sold for considerable
more than they had in it, Farm loans near
Topeka and In eastern Kansas generally
ought TO be made at lower rates than we
are not. Town loans generally are not con-
sidereh as good investments as the same
amount, of farms. and hence town rates are
generally higher, Of course this does not
apply to valuable properties in cities.
| think tina, answers all your questions
about as completely as | can.
our MIR Peck was in omaha today or yes
terday, and | |, told him if he had time to
hunt YOU fellows mp and see what you
looked like, I'll saw off here Yours
w. A. MATSON.
Mr.. Matson the writer of the foregoing, is
a stanch republican and is not tainted"
with the principles of the populist faith,
EASTERN BANKERS ARE NOT WORRIED.
Mayor Hardy Of Lincoln, and one Of the
prominent citizens Of that city, received
a letter from his nephew, l.. ii. Patterson
living eight or ten miles north Of Manhattan
Kan, MIR. Patterson has farm of 500 acres
A few years ago he engaged in stockraising
and became involved In debt to the extent of
$40 900, and was compelled to mortgage his
farm. Mr.. Hardy advised him to pay off
his mortg gage soon as possible, and he Is
now in receipt Of letter from Patterson,
saying that in the last two years he has paid
off $4,000 and has renewed the balance for
period OF three years at a reduced rate of
interest. He paid 61a per cent on his old
loan, but was able to renew at a lower rate
Mr. Patterson is one Of the farmers Of Kan
sas who has probably not heard Of the
Busines Mems association Of Omaha.
ONLY AFRAID OF THE RAILROADS.
Another witness whom the literary bureau
has overlooked is Mr.. ]. Henry Wood, for
merly with the Omaha Loan and Trust COM
pany. but now resident of Buffalo, N Y
Mr.. Woods standing In financial circles has
long been recognized He is a frequent CON
tributor TO the New York Investor and his
articles upon financial topics have attracted
no little attention from one end Of the coun-
try to the other. Mr.. Wood writes to The
Bee as follows;
BUFFALO, n. Y, Oct 19.-To the Editor
OF The Bee; Among bankers ! hear of no
uncasiuess concerning Investments In Ne
brHska because of Holcomb's candidacy.
Loan brokers can easily sell a good Ne
braska loan today as they could n year
ago, i'm fact, much easier. Individual in
Nestors, whose own savings are at stake, do
not Gear for their money on account of
Holcomh, What they do fear is not the
good faith or honest Nebraska farmers nor
prospective dishonest legislation if HoIcomb
II elected; ii Is not these things that they
shrink before but II is belief that unless
railroad control Of legislation in Nsbra ska
is stopped the farmer will be unable to keep
may be 10 do so. This is the condition
viii the railroad companies with their
heavy loads of deadhead passengers, their
oceans OF watered debt, and their rates high
enough to cover the cost of constant re-
pairs upon a cheaply constructed line, as
well as the passes and unearned interest, be
allowed TO retain control of state legislation
and so perpetuate the burden which farmers
and shippers find well nigh Overwh Ginning,
OF will t!olcomb be elected and bring with
him 4 cleaning out Of railroad jObbery?
IL the latter case, no one but paSshulders,
hanEersOn and spectators will be hurt
Through no fault OF the populists or Of
Judge iolcomb. the present prices Of rail-
road stocks and bonds on Nebraska roads
are as low as they are likely To get, no
matter what happens. Consequently the
loss; So far, as concerns bona dle holders of