The herald., 1898-10-28
OIL WELL EXPERIENCE
HIGH INTEREST PAID ON CASH
ADVANCES
A sHYLock's TWO PER CENT
Complaints In Foreclosure Of Mort
cages Filed on Property IN the
Eastern Extension

Mrs. Alice B. Cohn yesterday filed com
plant for the foreclosure OF two mortgages
given bv Mrs, Maria Darcy and z. M. Oar
CIV. and named II. S. Chadwick, John w
Brunton and James p. Brunton as co-defend
ants. The suit affects property IN the east
ern end of the Los Angeles oil field mort
gagged as security for the payment OF two
notes for Sl373 and $500 respectively. Both
notes are made parts OF the complaint ana
each was made to bear interest at the rate OF
2 per cent per month, one payable monthly,
the other quarterly, and one contained pro
visions for the quarterly and the other tor
the monthly compounding of the interest in
ease of delinouency. The notes were sever
ally signed by p. NJ. Darcy and Maria Darcy,
his wife, and the other defendants are made
parties to the suit on account OF interests
claimed by them in the premises. One note
was datedNovember TO- 1897, and was due
April 4, 1898; the other was dated April D,
1897, and was due one year after date. Inc
interest on both notes was paid up to July
7th last, but the payments falling due since
that date have remained unpaid, wherefore
a decree of foreclosure is asked OF the prem
ises described in the two mortgages.
There are several reasons why these tore
closure proceedings possess more than ordl-
nary interest. One of them is the eXorbl-
tant interest charged, the money having
been advanced by a local pawnbroker In re-
spect to one note, which was transferred 70
his wife, in whose name the funds were paid
out on the other note. Mrs. Cohn therefore
appears as sole plaintiff in the case. The
fact that "a per cent per annum was the rate
on mortgage security is IN itself interesting,
showing as it does the enormous profits
charged even on landed security by local
money lenders.
There is another side of the case, how
ever, which is of interest ON account OF the
oil bearing character of the land. When
Maier & Zobelein secured l0O-barrel well
on Adobe street, north of College, much ex-
citement sprung up in the neighborhood of
that property. Oil men flocked in, seeking
leases of adjacent property, and land own
ers were very exacting in their demands.
Lots 40xl00 feet in size were leased outright
for term of years at $40 cash rental per
month, and royalties much larger than any
Heretofore paid were readily allowed in the
mad rush which followed.
Among those whose property appeared to
be in line with the profitable development of
territory was ex-Chief of Police Darcy. He
had some five or six acres of land along the
side of the hill west of Adobe and north of
College streets. He was offered cash
rental of $500 month under a long lease by
the Capital Milling company, it was said,
and declined to sell his land, on which there
were only some cheap improvements, for
S35, 900, believing there was much more to
be made out of the property. In the hope
of securing the full benefit of his unique loca-
tion, Mr.. Darcy leased his land to Mr.. Chad
wick and the Brunton brothers, all we'll
known and successful oil operators, and sew
eral wells were drilled in pursuance of the
terms of the lease. It is understood they
were to meet some preliminary expenses and
that after they had been reimbursed by the
oil to be pumped from the first wells, Darcy
was to be admitted as an equal partner and
be allowed half the net proceeds of all wells
drilled, and tobecome obligated for his share
of future expenditures.
Shortly after this contract or lease was
executed, the increased production of oil
due to the opening of the eastern extension
of the local field caused a heavy drop in quo
tations. Oil went in some eases as low as
20 cents per barrel and for some months
ranged below 50 cents. The oil men were in
hard luck. and the Brunton brothers and
their associates had their share Of hardships. |
1t was about that time that the first mort
gage was executed by Darcy and wife. pre-
sumably to enable them to meet their share
Of the expenses while sales were slow and
prices below the cost OF production The
gradual diminution of the flow Of oil in the
eastern extension of the field still further
hampered operations. the per cent month
became delinquent. and the mortgages are
low presented for foreclosure.