The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1895-10-26
RICHARDSON LAND COMPANY.
1t Has Struck a ShoaI Finan-
cially.
Second Mortgage Holders and Those Liza
BILE for Liens Will Be Chief Losers.

Second Mortgage Hoiders anu 1loso LA
BILE for Liens VIII Be Chief Losers.
The Richardson Land Company has
within a few days struck financial
shoal Attachments aggregating seven
thousand dollars have been filed in the
registry of deeds upon the companys
property; and the officers of the registry
have for day or two been thronged with
lawyers who are looking out for the
interests of clients.
The Richardson Land company is not a
corporation; but is the business OF Arthur
M. Richardson of Lancaster, N. H., who
came here about two years ago and began
to invest in real estate and build houses.
Mr.. Charles g. Dalton of Woodfords, has
been Mr.. Richardson's financial agent;
but several days ago sent out notice
that this connection had ceased.
Although the business done by the
Richardson Land company has been
large, the losses will probably not be ex-
tensive. A large portion of those who are
concerned in the company's affairs are
secured by first mortgages which are good
and cannot be disturbed
The method by which the company did
business was as follows: 1t began by
buying several tracts OF land at Deering
Centre, Woodfordss and East Deering.
This land was divided into house lots
and upon these lots houses were built
They would sell these houses, the
purchaser paying few hundred dollars
down, and giving. for the remainder two
mortgages, a first mortgage for about
two-thirds of the value; and then
second mortgage payable in small install
ments
The Richardson Land Company then
sold the first mortgages, using the money
thus obtained to extend its operations
These first mortgages were taken and are
held by responsible parties at reasonable
rates of interest Various building and
loan associations hold them. The holders
of these mortgages are well secured and
they seem to have no cause for alarm.
The most trouble is coming on the
second mortgages and on certain liens.
1t was the plan for the Richardson Land
Company to hold the second mortgages.
which would be tho investment for their
profits, as we'll as security for the re-
mainder not covered by the first
mortgage
This plan seems TO have worked well
for time; but when the company began
to get short for money these second mort
cages were either sold absolutely at dis
counts that wiped out the profits, OF put
up as collateral at high rates of interest
The sacrifice of these second mortgages
did not yield funds enough; and on some
of the houses completed within ninety
days there are material and mechanics
hens The total of these liens are said TO
amount to about $3500.
1t is probable that the purchasers of the
houses will have to satisfy these
mechanics and material liens.
The Richardson Land Company has
built thirty eight houses in Deering. and
several in Portland Some of these have
cost as high as $4,000; but the average
would not be far from S1S00 each.
The new streets near the railroad
station at Woodfords have been built up
largely with houses built by this COM
pany.
A few days ago Mr.. Arthur M. Richard
son left town in order to raise money to
carry the company's affairs along. He has
since written that he has been unable to
secure the money.
| Considering the magnitude of the
transactions, which must aggregate near
ly s5O, 900, the losses will not probably be
large Mr.. Richardson has ysobably lost
$4,000 or So Those who have to settle liens
wi II lose; and so also will sGdne of the
holders of the second mortgages.
These mortgages often have covered the
fair value of the property to say the least,
so there will not be a great abundance of
eau ity for the holders.
There is considerable excitement among
these second mortgage holders.