Omaha daily bee., 1898-09-27
CARRYING TOO HEAVY A LOAD
New England Loan ana Investment
Company I'm the Hands of
Receiver.

Receiver.
NEW YORK, Sept. 26-otto T. Barnard
OF 30 Broad street was today appointed re-
ceiver Of the New England Loan and Trust
company by Judge Shpman Of the United
States circuit court on a suit brought by
the Real Estate Trust company of Phila-
delphia and sabillion Allen Of st. Albans,
VT. The company was large lender of
money on western mortgages.
The receivers bond is fixed at $4,000. The
complaint recites that the defendant COM
pany was organized September Fl, 1857, un-
der the laws of the state of Iowa, with
capital stock of 1915, 900. and that Its prin-
cipal business was conducted In the state
of New York. 1t ia further alleged that the
business conducted by the company was that
of loaning money on farming property In
western and southern states. In September,
1886. it is stated. the defendant company
made the Farmers Loan and Trust company
of this city trustee OF securities owned Dy
the defendant company as security for de-
bentures to be issued by the defendant com
pany in series OF 800 600 The defendant
company, it is said, has issued and sold
debentures to the amount of $1,S9O,00O,
which are now unpaid. The Farmers Loan
and Trust company holds as security for this
amount real estate mortgages amounting to
about $1,935 019. The complaint further
states that the defendant company, under
an agreement with the Real Estate Trust
company OF Philadelphia in 1891,
has issued and sold debentures
to the amount OF $1,76s,2o0 for which the
Real Estate Trust company has securities
amounting to s1,S75.S4O 1t is also stated
! in the complaint that the defendant COM
pany has made smaller issues OF debentures,
| all of which have been sold in Great Brit
ain. 1t is further charged that the defend
ant company has borrowed from banks,
| depositing securities amounting to about
! $167 975 and that it has further indebtedness
amounting to over $1O3,747. The defendant
! company, it is stated, is the owner OF
real estate mortgages on farm lands and
| other property of the value Of $5l6, ,4S1
The complaint further alleges that the de-
| fendant company will be required to pay on
or before January, 1899, the sum of about
S3O2, ,945, the amount of principal and inter-
est on debentures; that it was compelled
| to become the owner of much Improbable
| real estate because of its inability to enforce
the collection of loans and because OF the
! depressed financial conditions and that 1t
| Is unable to realize a sufficient sum to meet
| its obligations. The complaint in conclu-
| sion states that the defendant company is
completely undermined, but that by judi
cious management the property of the COM
| pany can be saved.
PHILADELPHIA, Sept. 26-President
Frank T. Hopple OF the Real Estate Trust
| company, when questioned regarding the ac-
tion of his company in obtaining the ap-
pointment of receiver for the New
| England company, explained that it was
merely a precautionary measure taken TO
nnnn =. ~.
New England company's bonds for which
the local company is the trustee. -,.
There is no cause of any sort, however"
he continued, for the holders of the bonds
to become alarmed, for they are all protected
by good securities Within the last few
weeks we have; had experts go carefully
over these, securities and they report that
they represent enough capital to more than
! pay the companysr outstanding bonds and
the interest on lam. - ,.......
The New Engianndd Loan and Trust com
pany was organized twenty years ago and
has a capital stock of sS75,OpO, In the past
1t has paid off s1e0O0,O 900 or SIS, 900 900 worth
of bonds and has always been regarded as
a sound financial institution. Tt began the
issue of its bonds now outstanding, which
amount to s5,O0O,0 ,000, about ten years ago
The Farmers Loan and Trust company and
J. lH6 SftlldutlC lTuSl COlupdlys UOtH OlS view
York., are trustees for, "a 900 900 worth oi
, bonds and We hold the balance. .,,...
THE company came to us well introduced
something less than ten years ago and we
/ became the trustee for the Philadelphia
series of bonds which they desired to issue
; Since then they have always been prompt
in sending us the money necessary to pay
5 the interest and there has been no trouble
e between us. But Of late certain circum
1 stances have arisen which made US fee
more our duty to ourselves demanded tha
I our interests should be better protected thar
\ they were and so, despite the fact that tn,
S company has plenty of assets, we applied fo
a receiver"
!. KANSAS CITY, Sept. 26.-It was al
n nounced this afternoon that Otto Barnard o
= New York, treasurer of the Continental Trus
= company Of that city, had been appointed re
d ceiver for the New England Loan and Trus
d company, with headquarters in this city
= The firm dealt in city and farm mortgage
y in the west. It's capital is given as $S25, ,0OC
Il and it's last printed statement showed sur
plus Of 100000. The company is said t
hold $5,000,000 in debentures S., 600, 900 4
loans, and to have $175,000 cash on hand
= The receivership Is said to have been force
y by the company's inability to close on loan
: made in 1883 and 1889 on western boom tow
y property. The Arm also carried heavy loan
S on western farm property, and although thi
o is said to have proven profitable, the loss o
e city property is said to have dragged the as
s sets to a depth where receivership becam
b necessary. ]. S. Gilbert, secretary and as
IS sistant manager, has had charge of the locf
headquarters Of the company for severe
: years.
,, The company is composed mostly of Ne
York, Philadelphia and Des Moines mel
IS The home Office of the company is at De
+ Moines, though the main Office is in Ne
York City. Besides the branch here, ther
e are branch offices at Dallas, Tex, and Okla
=, homa City, Okl Joseph Hall is the CON
pany's attorney at Kansas City.
'.'' Business in Omaha Light.
~ The New England Loan and Trust com
q pany's agent, when asked for a statement
h the truth regarding the reported appoint
% ment of a receiver for the company, an
IS to what extent losses in Omaha real estat
| uas raanOusihla for tho anpointmant re-