The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-09-27
N WESTERN CITIES
New England Loan and Trust
Company Lent Money
IN THE DAYS OF B00MS
Load Carried Ten Years--And
Now, a Receiver.

New York, Sept. 2s.-Otto T. Barnard, of
30 Broad street, was today appointed re-
celver of the New England Loan & Trust
company by Judge Shpman, Of the United
States circuit court, on a suit brought 10Y
the Real Estate Trust company, Of Phila-
delphia. and Sabillio Allen of st. Albany,
Vt The company was a large lender OF
money on western mortgages.
The receivers bond is fixed at $4,000.
The complaint recites that the defendant
company was organized September q.
1892 under the laws of the state Of Iowa.
with a capital stock Of $S75.0OO and that
its principal business was conducted in
the state Of New York. 1t is further al
legged that the business conducted by the
company was that of loaning money on
farming property in western and south
ern states. In September 1886, ii is stated,
the defendant company made the Farm
ers Loan & Trust company, Of this city,
trustee of securities owned by the de-
PENDANT company as security for deben-
lures TO be issued by the defendant COM
pany in series of 800 900. The defendant
company, it is alleged, has issued and
sold debentures to the amount of sl,SS0,0OO,
which are now unpaid. The Farmers
Loau & Trust company holds as security
for this amount, real estate mortgages
amounting toabout 81, 935,0l9.
The complaint further states that the
defendant company, under an agreement
with the Real Estate company of Phila-
delphia in May, 1891, has issued and sold
debentures to the amount of 81, 200, for
which the Real Estate Trust company has
securities amounting to $1,S75,S4O
1t is also stated in the complaint that
the defendant company has made smaller
issues of debentures all Of which have
been sold in Great Britain. 1t is further
charged that the defendant company has
borrowed from banks, depOsiting securi-
ties amounting to about s167,975 and that
il has further Indebtedness amounting 10
over SOB, 747. The defendant company, it
is stated, is the owner of real estate mort
cages on farm lands and other property
of the value of $5164SO.
The complaint further alleges that the
defendant company will be required to
pay, on or before January, 1899, the sum
of about 500, 945 the amount Of principal
and interest on debentures; that it was
compelled to become the owner of much
Improbable real estate because of its in
ability to enforce the collection of loans
and because of the depressed financial
conditions, and that it is unable to realize
a sufficient sum TO meet its obligations.
The complaint in conclusion states that
the defendant company is completely I'M
dermined but that by judicious manage
ment the property of the company can be
saved.
ITS WESTERN OPERATIONS.
Kansas City, Mo, Sept. 26.-tI was an
nounced this forenoon that Otto Remnant
of New York, treasurer Of the Continental
Trust company, of that city, had been
appointed receiver for the New England
Loan & Trust company, with headquar
ters in this city.
The firm dealt in city and farm mort
cages in the west. Its capital is given as
SS25 600, and its last printed statement
showed a surplus of 100000.
The company is said to hold 1000, 900 in
debentures, s. 100000 in loans and to have
S175 600 cash on hand. The receivership
is said to have been forced by the COM
pany's inability to close out loans made in
erty, most Of which is said to have been
in Omaha, and which has proved a loss.
The extent of these losses is not known,
but they are said to be large. The firm
also carried heavy loans on western farm
property, and although this is said to have
proven profitable. the loosen on city prop
erty are said TO nave dragged the assets
to a depth where a receivership became
necessary. J. s. Gilbert, secretary and
assistant manager, has had charge Of the
local headquarters of the company several
years.
The company is composed mostly OF
New York, Philadelphia and Des Moines
men. The home office Of the company
is at Des Moines. though the main Office
is in New York City. Besides the branch
here there are branch offices al Dallas.
Texas, and Oklahoma City. o. T John
c. Hall is the company's attorney at Kan
sas City.
THE cause OF the failure" he said. to
a reporter. was our inability to keep I'd
our losses on loans made on western city
property in 1883 and 1889 The company
was organized in 1876 and did profitable
business in farm loans till 1855. when II
began making loans on property in west
ern cities most disastrous among them
being loans on property in Omaha, Sioux
City. salt alike City and Ogden. When
the boom went TO pieces foreclosures be-
came necessary and we found ourselves
so burdened with deprecated city prop
erty that it has taken Qore than the prof
its on our farm loan business TO keep up
the interest taxes and repairs L We
had had another year or two in which 20
catch MP. we could nave pulled through
all right and we NAV vet Il the securities
behind The debenture bonds don't fail Us. -
The campany's securities were sold al
most entirely in the east.
OMAHA PLEADS NOT GUILTY.
Omaha. Neh.. Sept. 2s-The Ners Eng
land Loan * Trust company has never
! done an extensive business IN Omaha
Il has had no Office here, lis business
being carried on through q real estate
agency on a commission bass. Its pres
/ ent representa- lives. who have all its local
affairs in hand. say its bx ness mere is
light. It's losses. IL any, are small and
all its property here is in good condition
and is well worth its price.
CHILD-WlFE IN COURT