New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-27
TRUST COMPANY FAILS.
THE NEw.ENoLANp LOAN IN A RE-
cEIvERs HANDS.

o,-ro aASsARp TAKES CHARGE OF THE CcM-
pAxy.s ArrAIRs-pEALr IN DEBENTURE
BONDS SECURED By WESTERN
FARM MORTGAGES.
IN. New.England Loan and Trust Company
which for the last sixteen years mas oeen q"
raeed IN selling debenture bonds secureu os
mortgages on farm lands in Western ana Sou'"
ern states. with head offices in this CITY, passe'
,nto the hands Of a receiver yesterday u"ue'
an order issued in the United states Chcu''
Court by Judge Shipman The company hau
capttal OF $4,000 and according 10 It's '"''
semi- annual statement. In June. helu IoaHs ""
real estate amounting TO so,'oo'ioo7o
application for a receiver was maue u"
,be arm Of Simpson. Thatcher & Barnum. OF NO
10 wall-st. the suit being brought by SaV'i'io"
Allen. Of St Adams VT, stockholder III
a.. .ororenv and the Real Estate Trust COM
nany OF Philadelphia. trustee for portion Vi
the securities. OF the company upon which de-
benture bonds had been issued. The oroer Vi
~. Court which was signed in Hartford. named
Otto T. Barnard receiver. MI haiilaiu'
WIN n president Of the Continental Trust COM
many was informed last Saturday OF MS APP
no,ntment. and yesterday entered upon MS he"
duties assuming charge OF the affairs OF the
company. and he will convert the properly HUI
cash rs speedily as possible. Mr.. Barnard Is re-
uuired to deposit bond Of S7o,O0V'
The receiver was found yesterday AFTERNOON
n tho offices OF the company where ne hao
been busily engaged since early In the morh'ns'
"I have lust started In on my work. ne sa'u,
and am In no position 10 state the cono"'oh Oh
the company I can not even approximate 'he
assets and liabilities. The company Is one VI
the few remaining which made business U.
dealing In Western mortgages. ana IN vie" u.
the class OF securities dealt in am surpiis7u
that II losted,as long as It has may say '""'
7 nave heard no rumors Of dishonesty OF man
as4nert. The main business Of the concern
,vas s.lng debenture bonds which were &C.
cured by mortgages on real estate. II also ne
got;ated loans for clients, guaranteeing oo'H
principal and interest"
MANY CHECKS FOR INTEREST.
One Of the duties which kept Mr.. Barnard
busy FOR u good portion OF his time yesterday
wss the Endorsement OF checks which had CONS
IN through the mails during the last three oaSs
rbcre was pile o. them. and they were said
20 represent interest due on the mortgages neiu
nv tho comnarv Ny Barnard declined to state
the tota! amount. but said that 1t would no
doub, belong to the holders Of debenture ponos'
The officers OF the company were: PRESIDENT
D. O. Eshbaugh, Of New-York: vice-presioeh''
w w Wilmer, Of Des Moines: second wee
president f. d. Samson. o. Des Molnes' ana
secretary and treasurer. j. S. Gilbert; directors
Richard b Ferris, vice-president Bank OF New
York; Henry D. Lyman. vice-presiden. OF 'he
American Surety Company. No. 100 Lroadway'
New.York: G. ". Marauardt. president Of the
Marquardt Savings Bank. Des Mones iowa
Henry Wbelen. Of Townsend. Whelen & Co.
or Wal CO phiodclnhta.
wywan. retired drygoods merchant. Des Moines,
Iowa; Frank X. Nipple president OF the
Real Estate Trust Company Of Philadelphia;
w w Wilmer vice-president Of the company.
pes Moines. Iowa: II. ]. Pierce, president OF the
Manhattan Spirit Company. Buffalo; E. d.
Samson. second ce-president and attorney of
the company. Des Moines. Iowa: d. 0. Esh-
oauch presider. Of the company. No. "a Mas
sau-st, New-York.
The president Mr.. Eshbaugh. could not be
seen Yesterday He was at the once on Satur-
day and early yesterday morning. remaining
only a few minutes. z. D. Samson. the second
vice. president has made his home In New-York
for the last year. and has been prominent In
the management Of the affairs OF the office IN
this city He not at the office yesterday.
Mr. Barnard said that Mr.. Samson was pre-
pairing 10 start for Des Mones last evening
His salary ceased with the appointment OF
receiver and, inasmuch as Mr.. Barnard had
Immediately taken hold OF the company M
Samson felt Mr.. Barnard said. that he was
no longer needed ]. 8. Gilbert has held the
place OF secretary and treasurer only month
His predecessor was the late W. F. bartlett,
who. it is said. was q leading spiri' In the com
many for years ana who knew more about the
details Of tn. company,s affairs than all the
other officers together.
p c. Bartlett, OF Simpson, Thacher & Bar
mum. In conversation with a Tribune reporter.
made the statement that in his opinion Tire
death Of Mr.. Bartlett had more do with the
com9any's failure than almost any othe: cause
The late secretary had been so thoroughly post
ed as to every little detail OF the affairs and
had given them his personal attention to such
a degree. that a. his death there one
who really knew the true condition OF the con
Germ. Mr.. Bartlett remarked that the late Mr..
Bartlett hac been extremely sangune in tenn
permanent. and did not realize the danger ahead
Of the company Like Mr.. Banna.d. Mr.. Bart
LETT remarked ernphaticaiiy tina. he did not be
iieye that there had been any hint OF dishonesty
involved in the suit for a receiver. He said
the action wac friendly one. and had been
brought in order to protect the company and the
holders Of the bones. The complaint had been
drawn Up In the Office OF his firm at the reques:
NJ ,he general counsel Of the company. y. I.
Guernsey OF Des Moines who had furnished all
the necessary facts. SO far as Mr.. Bartlett
could learn. the company had been lending on
lands on which II had been obliged 70 foreclos".
anc the result was that 1t was loaded down
with a property which its income could not
support
Richard B. Ferris Of the Bank Of New-York.
and a director was seen by Tribune reporter.
lie referred 70 the system by which the COM
pany SOLD debenture bonds secured by mort
cages on Western lands, and said that the com
pany had reached point where the margin
between the sums received for interest and the