The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-09-02
The esKansas Loan and Trust
Company" Lately Known
As the ''Trust Company of
America Gets Receivers.
LIABILITIES 100000.
The Assets, However, Said to
Amount to 81, 100000.
President of the Company Made
a Receiver.

The Trust company of America,
formerly the Kansas Loan and Trust
company, one of the Oldest and largest
Kansas loan companies and the last
one to survive the financial vicissitudes
of the past several years, has failed.
On application of John r. Mulvane,
John Martin and w. H. Rossington,
trustees of the debentures issued by
the company from 1888 to 1898, Judge
Williams of the United States court last
night issued an order appointing T. B.
Sweet and Geo. H. Whitcomb of this
city as receivers. The order authorizes
them to take charge of the affairs Of
the company at once.
The order was issued on an agreed
statement, and the receivership is for
the purpose of protecting the assets
of the company. The company ac-
knowledges it's inability to meet it's OBJ
legations
The assets of the Trust Company of
America amount in round numbers to
81, 2OO,O 900. They are represented largely
by real estate. The company has a
paid in capital of $7O5.3OO and the Habil-
titles amount to something over $500, 600.
Mr.. T. B. Sweet, president Of the COM
pany and one of the receivers, stated
today that the receiVerShip would last
at least two years and possibly longer,
and that at the end of that time the
company would go out of existence. He
said that all Indebtedness would be en-
tirely satisfied, but admitted that the
stockholders would probably be at
loss.
The dates of issuance of other deben-
receivership proceedings have acted as
trustees of the debentures issued by
the company since 1888. The first deben-
lures were issued for sale in Great
Britain in July, 1888. OF these there IS
still unpaid So 637.
The dates of issues of other deben-
lures, with the amounts still remain
ing unpaid, are as follows:
April, 1882 800, 900 unpaid.
January, 1891, $50, 500 unpaid.
July, 1895. $4,000 unpaid.
June, 1898, $67, $50 unpaid.
The debentures amount in total to
$347. $751; and other Indebtedness increaS-
es this to something over 100000.
The Kansas Loan and Trust company
was organized in 1873. 1t did business
under that name until February, 1893,
when the Trust Company OF America,
organized under the laws of Missouri,
absorbed it. The company passed sue
ceSsfully through the panic of 1898, and
the boast was made that it was at least
one Kansas loan company that could
command the confidence Of eastern cap
italists.
In the petition filed by the trustees it
is stated that the business of the COM
pany has always been conducted with
integrity and in careful manner, and
that it is no fault of management that
it is unable to meet its obligations. The
petition continuing, says:
But in view of the disturbances and
unsettled conditions now and for some
time past prevailing in the United
States the company has become and
will be unable to meet it's maturing OBJ
legations as they fall due and is there
fore insOlvent. The compliments be-
Iieve that the value of the property held
as security exceeds in aggregate amount
the amount of Indebtedness, and if such
property and securities are not sacri-
feed by forced and imprOvident sales
there will be realized a sum sufficient
to satisfy all Indebtedness"
On the other hand, the petition states,
if suit is brought to force the payment
of outstanding Indebtedness it win
prove disastrous to the company. On
this ground the receivership was asked, |
be prevented and the property held by
the company be disposed of to the best
possible advantage.
All the debentures are secured by
real estate and real estate mortgages.
They comprise a trust fund which will
be satisfied before any other indebted
ness of the company is paid.
1T hurts our pride to go into the
hands of receivers said Mr.. Sweet, !
but it was much the better plan for
our creditors. Practically all of the
land held by the company can be sold
to advantage if there is nothing forced
about it's sale, and under the receiver
ship it will not have to be sacrificed. |
In my opinion there will be scarcely any
shrinkage in the assets, and all indebt-
edness will be fully satisfied. The
stockholders, of course, will have to be
satisfied with what is left and there
may possibly be a loss to them"
The salary of Mr.. Sweet as receiver |
of the company is limited to So, 900 and
that of Mr.. Whitcomb to s., 400.