Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1896-12-16

"A SLate OF oXcltemont or the same
nature as existed at the time Of the
Ram busch defalcation at Juneau, some
two months since, was precipitated in
our business circles last Friday morn
ing when it became publicly known
that Charles H. Hahn, real estate and
loan agent, was without doubt financial
ly embarrassed. Several DAYS previous
to this faint rumors were afoat as to
the ertangled and unsatisfactory con-
dition Of Mr.. Hahn's business affairs,
but it was not until Friday that the
same were substantiated. Then Mr.
Hahn's Office, which was in charge of
bis eldest son, O. G. Hahn, was be-
sieged by an army of clients who had
money invested through the agency,
all anxious to be informed concerning
the status Of affairs IN their own indi
vidual cases. Thejunior Mr.. Hahn ex-
planned matters as best be could and in
many instances succeeded IN pacifyIng
the excited callers by assuring them
that there would be but few losses and
that in most cases the securities are
perfectly good. This excitement con-
tinued Tor two or three days, but has
since subsidized.
1t appears that the whole trouble or
iginates with the Ramb mbusch affair, since
when the people IN this city who have
invested their money through loan
agents have been quietly conducting an
investigation of their securities. This
investigation disclosed the fact that
considerable number of securities on
Milwaukee real estate sold by Mr..
Hahn to his clients here have shrunk
in value, probably because real estate
valuations have deprecated during the
hard times. This of course caused
uneasiness among the investors, many
of whom have withdrawn their money
placed in his charge or who are trying
to dispose Of Milwaukee securities
Mr.. Hahn left the city on December
and has since been at Marshfeld,
where he has property interests. 0.
G. Hahn, in charge of the local Office,
informed our representative Friday
about his fathers affairs. He said his
father had been pushed hard by credi-
tors and that the trouble was mainly
due to unfortunate Milwaukee invest
ments. His father, he said, had placed
the utmost confidence in the Judgment
of his agent, W. Cywinski, but investi
cation now showed that the securities
had greatly deprecated from what was
represented to his father when sthe
loans were made. He said that when
his fathers creditors began to push
him, be had sacrificed all his interests
mortgagedEhis property and made every
possible effort to satisfy the claims.
Within the past few weeks some $685.
900 had been raised and paid to credi-
tors. He estimated that the losses on
Milwaukee securities will not be more
than 1000 and said that all his fathers
investments outside of Milwaukee
are good and that holders of them will
be able to realize to their full value.
The amount of loan business which
Mr.. Hahn has transacted is variousy
estimated at from 100000 to $500, 900.
Of this it is said 100000 was placed on
Milwaukee property, principally in the
extreme north and south portions of
the city, which now turns out to be
considerably deprecated from its rep
resented value. The Milwaukee busi-
ness was negotiated by Mr.. Hahn's
resident agent, ". Cywinski, located at
No. Wright street. The two parties
have had business dealings for the past
| four years.
Mr.. Hahn's usual mode of con-
| ducting business was to have all
mortgages with which he had to do,
| drawn originally in his own name and
then sell them to his patrons, giving in
most cases personal guarantee that
! they were good securities and that the
accompanying notes would be duly
paid. This method betokened feeling
Of security in his investments and
brought him a large clientage. His
operations extended not only to this
immediate vicinity and to Milwaukee,
but to counties in Northern Wisconsin
and other portions of the state.
In relation to Mr.. Hahn's business
| affairs a reporter of The Milwaukee
| Sentinel sought an interview with Mr..
Cywinski Saturday and in Sundays pa
per he was credited with having said
the following:
81 saw Mr.. Hahn last Thursday. when
be wasi in the city and called on me.
Our relations were very friendly. Mr..
Hahn had supper here with me. He
came here on business and while in the
city tried to dispose of number of
mortgages which he holds. in which
transaction [ assisted him. He told me
that since the Rambusch trouble in
juneau people in Watertown have be-
come frightened and are withdrawing
their money, and that therefore he was
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