New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-27
stood, S1.5O0O0O was disposed OF IN fhiiaue'-
phia 100000 in New-York and the oaiai'ee ~
New England One OF the compah! oh|"'"'

stood. s1.5OOO0O was disposed OF IN Phiiaoe'-
phia, $4,000 In New-York and the balance IN
New England One Of the companys circulars
explains the debenture bonds as follows: -,
This company Is selling It's own per cent fhs b sGo
eRe Of payment reservcd to the company at any
interest date after .5 Eve yeaTs 20, TIC ZOO s.
and $500 The interest Is payable semi-anhuaiiy
in New York and phlladelPha +. secured by ,o2 900
Of frat mortgages Of improved and productive Ie e
estate deposited with one OF the trust companies
Sn nn ne Of and companies
savings banks. universities colleges ,us fo many
dians and private individuals have been lor many
years and now Investing IN Inc company
Conservative investors will find in these bonds the
two most desirable features OF investments nancy H
ample security and good rare od Whenever de-
ther information VIII i" '"'
sired.
So FAR es could be learned. none OF the local
financial institutions have invested In the ioah
company's securities. In the process or ISSUING
bonds the securities OF the company were uus
teed by the Farmers Loan ana lru7, ou 'Y,"riI
and the Atlantic Trust Company or New n 10 ~
and the Real Estate Trust Company OF fhla-
depha. These institutions. II Is SAID nave Ho
liability in the present action.
ALLEGATIONS IN THE COMPLAINT
The complaint in the receivershp suit recites
that the defendant company was organized sep
TENDER 81 1882, under the laws OF the STATE Oh
Iowa with capital stock OF SS'''T"' ana 'ha'
its principal business was conducted In the Sta'e
OF New-York The defendant company. II IL, IL
alleged has issued and sold debentures 10 'ne
amount OF 81 $4,000 which are now nnpaiu.
The Farmers Loan and Trust Company NOUS
as security for this amount real estate HUI
cages amounting TO about Sl.H''0ih $500,
The complaint further states that the uele I'm,
ant company. under an agreement Win ''e -
Estate Trust Company Of Philadelphia, IN MAJ,
1891 has issued and sold debentures 70 tne
amount Of 81, res. 900 for which the Real Estate
Trust Company has securities amounting u
81 S0J3i0 .
II is also stated In the complaint that the de-
PENDANT company has made small issues Oh oe
hentures all Of which have been sOld IN preat
Britain II is further charged that the COMPANY
has borrowed from banks, depostilg securiues
amounting 10 about S16I.3Io and that ~ mas
further Indebtedness amounting 10 over Hluo ~
The defendant IL is stated. is the owner or real
estate mortgages on farm lands ana other prop
erty Of the value Of Sj164Sl
The complaint further alleges that the company
will be required TO pay on or De1ore Jahuais
1899 the sum of about S3o2.94o. the amount Oh
princira, and interest on debentures. that u was
rornpelled TO become the owner or much un-
profitable real estate because Of its inapinty 70
enforce the collection of loans and because OF
the depr essed financial conditions. and that is
unable to realize sufficient sum 10 meet l's
obligations. ,.. .o,,-
II is further alleged that the defendant COM
pary IL completely undermined. but that %!
1udicious management the property or the COM
pany can be saved.