The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-09-27
NEW ENGLAND COMPANY
Big Loan and Trust Concern in q r. :
ceivcr's Hands.
HOLDS TEN MILLIONS IN BONDS.
Mortgages ON Western Doom Town
Property Proved 20 he had Invest
ments--Thc Statements Made.

New York. September &c. Otto T.
Barnard, of 80 Broad street, was today APP
pointed receiver for the New E1glani Loan
and Trust company. by judge Shipman OF
the United States circuit court. on a suit
brought by the Real Estate Trust company
OF Philadelphia ana Sabillon 5. Allen OF
ST. Adams, VT The company Is said to
hold s5,00o,00o N deSentures, $4,000 900 in
loans, and to have Si75,O0o in cash on hand.
The receivershlp is said to have been forced
by the company's inability to close on loans
made in lSSS ami 1889 on Wes,ern boom
town properly, most OF which is said TO be-
In Omaha and which has proved a loss.
The extent OF these losses are not known
but are said TO be large. The firm also
Carried heavy loans on Western farm
property, and although this is said to have
proven profitable the losses on city proper
ty Is said to have dragged the assets to
where receiver Is necessary. J. A. Gil
bort, assistant manager has had charge Of
the local headquarters OF the company for
several years
This complaint recites that the defendant
company was organized September 81 1882,
under the laws Of the Saate of Iowa. with a
capital stock of sS75, 900 and that its prin
cipal business was conducted in the State
of New York. 1t Is also stated in the
complaint that the dsfendlnt has made
smaller issues of debenturss all OF watch
have been sold in Great Britain. It Is
further charged that the defendant COM
pany has borrowed from banks, d posting
securities to the amount of Si67.915 AMI
that It has further Indebtedness amounting
TO over Si0S,747. Tho defendant company.
it is stated. Is the owner of real estate
mortgages on farm lands and other prop
erty of the value OF s5l6,tSl.
The complaint further alleges that the
defendant company will be required to pay
on or before January, 1899 the sum OF
about $500 ,9l5, the amount of the principal
and interest on debe ntures that it was
compelled TO become the owner of much
unprofitable real estate because of its in
ability to force the collection OF loans and
because Of the depressed financial condi-
tons, and that it is unable to realize a sui
ficient sum IN meet its obligations
The complaint also charges msmanage-
ment of affairs.
The company is composed mostly Of New
York. Philadelphia and Des Moines men.
TIE home office Of the company is at DIS
Moines, though the main office is in New
York city. Besides the branch here there
are branches at Dallas, Texas, and okla
hcma City, .. r. John c. Hall is the com
rany's attorney at Kansas City.
THE cause of the failure" he said TO II
reporter. was our inability to keep up our
leases on loans made on Western property
in 1883 and 1889. The company was or
gcniZed in 1852 and did profitable bust
ress III farm leans until 1883. then it be-
gan making Icons on property in western
cities most disastrous among them being
loans on property in Omaha Sioux City,
Salt Lake City and ogden. When the boom
went TO pieces foreclosures became neces
sary aud we found ourselves so burdenei
with deprecated city property that it has
taken more than the profits on our farm
loan business to keep up the interest. taxes
ard repairs. If we had had another year
OF two in which to catch up we could have
pulled through and we may yet Il the s'-
curities behind the debenture bonds don't
fall us"
The compsny's securities were sold all
most entirely in the East,
Philadelphia. September 26.--President
Frank r. Nipple OF the Real Estate Trust
company Of this city when questioned re-
garGing the action OF his company in OBJ
tanning the appointment of receiver for
the New England company explained that
it was merely precautionary measure
taken to protect the holders OF 81 O0O, 900
worth OF New England company's bonds,
for which the local company eis trustee.
There Is no cause OF any sort, however.
he continued for the holders OF the bonds
t. become alarmed. for they are all pro-
tected by good securities. Within the past
few weeks We have had experts go carefully
over these securities and they report that
they represent enough capital TO more than
pay the company's outstanding debts ami
the interest on the money.