The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-12-06

SEATTLE. SUNDAY, DIED. 6.
EASTERN aoRToAGE HOLDERS.

EASTERN MORTGAGE HOLDERS.
The Boston Herald IN recent issue
osvotes several columns to a review OF
sae business affairs OF twenty-five saw
Digs banks Ia the state Of New Hamp-
snire. having deposits sggregating sls.-
eaooss, which failed during the last eight
cen rnoaths, every one Of which failures
vas due 70 the fact that the money OF
tee depositors had been loaned out.
through various Western mortgage COM
paniss. on farm and town lands in the
Ear West. the interest on which mort
gage lad not been pad
The Herald publishes also list Of fifty
elk different mortgage companies. which
four or i've years ago were doing BUSH
ness throughout the West. particularly
IN Kansas and Nebraska, add which were
she Intermediates through waich millions
OF New England savings we're loaned.
Every one Of these companies mas failed,
On account OF inability 20 make good their
guarantees as 20 the payment or principal
and interest Of mortgages placed through
them.
Not al Of these deposits viii be lost.
l. Is estimated that The twenty-five iasti-
tntEons wsu succeed In paying their de-
positoFs about - cents on the dollar. a
considerable percentage OF the mortgages
acid are good. and the back interests win
be paid ultimately. or at worst the proper
a. wili ultimately bring enough TO fully
pay the incumbrance.
There are. however. vast number OF
these Western mortgages which repre-
sent deliberate swtndlss pespeuatsd on
the New England savings banks. and
through them upon the trusting depos-
ieoFs. A fair percentage OF the Western
mortgage companies were honestly con-
Quoted institutions. conservative IN their
ioans. and prompt In meeting their obi
cations. While these concerns have
failed. the percentage OF loss in mortgages
placed By than wiz be light.
There were others. however. operating
principally In Western Kansas and West
srn Nebraska, and organized solely with
shs idea OF making commissions on loans.
These concerns did not await borrowers;
they went out and hunted them up; they
initiated the industry OF pre-empung bar
rsn and worthless claims, and selling
them 10 ths mortgage company" All that
they required OF a woald-bs borrower was
to show clean title TO leo acres OF land.
ana they would loan up 10 $1,000 on II.
ina mortgage taken would be transferred
on 20 some New England savings bank
..sssk - a.
company attached. There are thousands
OF acres o. land ia those states. the title
TO which would ssiA be Ia the United
States, had IL not been for this nefarlous
practice.
When the failures Of these mortgage
companies commenced the savings insti-
tutioas commenced to investigate the Ia
surs 81 the securities on which the money
o. their depositors had been lent. The
result q tie Investigations Is told by tae
Herald as follows:
Mortgages we're looked up In Chase
and Perkins counties, Nebraska, where
from 500 20 N.eoe had been loaned on dog
sns az tracts. tae patent 70 which had
osly been given BY the government enc.
two Or three months before he dates on
gazing parties reASnai the place the sod
hoases-s1sn had not remained on the
places long enough 10 trouble themselves
~tth frame or even log hAoitations-
were failing into decay. and rank vsgsla-
tloa Al sleelt to2d that the places had not
known residents for many years
Thea Inquiries were made as 20 the
daJs II TIE departure OF ths owners. and
81 sss almost invariably found 10 se only
q fsw uensos after the money hAi been
secarsd.
IN other places large tracts had been
tougax hy The acre near some small town
p3eSfsa OF iato town lots. and then money
vas eoFvoaed on ne rate per foot. watch
often reached c.ty prices.
stories hava often been ted OF men
less sug for econ towns IN the West when
nolhlaS but vacant areas we're TO be
found, ne stakes which marked the con
fiaes % toara los furnishing the only
Indication taat msa had ever been abon,
taeTe. ous e. Is \ fscs that thousands o.
dollars. saved hy thrifty New Hampshire
Ennn, a. loaned 81 these very lots and
that there ta nothing aoN e xst In re-
turn fer them except those same lots ga
TIE ms8dle of aralrtes. watch stand sheir
gessessors @ooaf as much as would q
soa4 Rlsa s0r s aause IA a thriving NAw
Eagssn1 village o. town.
The stories hsys rot exaggerated what
NV sR@+AAs~eaaF@ ke%ht@ placed their
tsaEey n. gAs ohly SiEsreaes being that
In theas numerous eases the lots wers
not sesn "a tine.
Thousands wsat. 80. fer buildings A
swo-stcrg er1ck structure IN a A--Ru Ne
traska. Dakota 90 hanAas town Us
Enarxsaxsd for what Il sonss cost % eye,-,
zee rxe stories hiEA IN New Eaxaena
Teen payments we're nlz5s through tAs
beads es SozuE aiss. ard for wears there
@As always great dennAna far these ra-
psrs. Tssy are ns& - uiucn xanss,a To-
asr. Scores - thousands C dollars ~
then have eesn threSn easireaV ax.av Nv
a. New Hampshire czak -snralsst7rs~s
81 ssgtc2Isax re asses % a bsnk. nra
haSdre1s ~ elsrssssfely engraved sn,-s-
sasn,s seday gEacs ths storage blxss %
Es&2y $ bank
~AAysAlnx seat oat tssrs. auytstn-
Ia ee2ss4 - described on eaosr Tss
eeesTsaEtSGs SxFe rs e. uGeh ser as
e9saSg 50 gsey we're Ter picturesque s.at-
ures. and tse-1 - 40 aaest thAt thsv
answered tasfr purpose. AZ Tar a. satts-
sytas gAa teaa3ng agents g m&ny Nea
Hampshire Ranks went
There was ljgs3e ~ nsse e. this k.-l az
woFk s. the STATE g wasateEtea. Cu.s &c
g fsw ssas-l a.a-oSk "oosa ioerk. Is
theTe hsvs eess tsw saazsgaxss naa4s =
sass ssAts wsseA az aes xSos security
g. ne neaev s5vanoe8. wbgis laee-ess
IA ssSE - sssAaas ssszs - s2s A@ss