The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-09-27
New England Loan & Trust Com
pany Has Failed.
IT OWES SIX MILLIONS
LOST MONEY DURING THE WEST
ERIN BOOM.
Salt Lake and Ogden Among the
Cities Where Improbable Loans
Were Made-Owns Five Million
Dollars Worth of Mortgag es-otto
T. Barnard Appointed Receiver.

! New I DIRK, Sept. 26.-OttO Il. Barnard
| of 80 Broad street was today APPOINT
ed receiver of the New England Loan
& Trust company by Judge Shipman of
the United States circuit court, on a
suit brought by the Real Estate Trust
company of Philadelphia and Sabiilion
Allen of st. Adams. VT. The company
was a large lender Of money on western
mortgages.
The receivers bond is fixed at $75,-
600. The complain recites that the de-
PENDANT company was organized Sept.
q, 1882, under the laws of the state Of
Iowa, with a capital stock Of SSl5 900,
and that its principal business was
conducted in the state of New York.
1t is further alleged that the business
| conducted by the company was that
| of loaning money on farming prop
erty in southern and western states.
In September, 1886, it is stated, the
defendant company made the Farmers
Loan & Trust company of this city
trustee OF securities owned by the de-
PENDANT company, as security for de-
bentureS to be issued by the defendant
company in series of 500, 900. The de-
PENDANT company, it is alleged, has is
sued and sold debentures to the amount
of 81, S9S, 600, which are now unpaid. The
Farmers Loan & 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 agree
ment with the Real Estate Trust COM
pany, in May 1891, has issued and sold
debentureS to the amount of 1,76S,
200, FOR which the Real Estate Trust
company has securities amounting to
s1,S75, $40. 1t is also stated in the COM
plant that the defendant company 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 S15I.599, and that it has further
Indebtedness amounting to over S103,-
!47: The defendant company, it is
stated, is the owner of real estate mort
cages on farm lands and other property
Of the value of $5164S1.
The COMPLAINT further alleges that
the defendant company VIII be required
to pay, on or before January, 1899,
about 1892, S45 the amount of principal
and interest on debentureS; that it was
compelled to become the oWner'of much
Improbable real estate. because of its
inability to enforce the collection of
financial conditions. and that it is I'M
able. TO realize d sufficient sum TO meet
its obligations.
The COMPLIANT, in conclusion, states
that the defendant company is COM
oietely Undermined, bat that by judic-
lous management the property of the
con -sa.-' can be saved.
jUNSEL GUERNSEY'S STATE
NEc!T
Des Moines. Ia. sept 24-An official
statement en- the -anure of the New
England Loan q Iiusj company of this
city was made this afternoon by N 7.
Guernsey, cOunsel tor the company and
Special counsel for the receiver, who
returned rom lew York today. Sum-
married il is:
The New England Loan &c Trust COM
pdny is a corporation organized under
the laws OF Iowa. It's bus II IS has been
TO deal in western securities, consist
ing almost entirely of mortgages ne
gotiated by il, and IN debenLUI es issued
by it, and secured by mortgage depos-
tied with trustees. the Farmers Loan
q Trust company of New York and the
Real Estate Trust company of Phila-
delphia.
$Sl5,0OO, undivided profits sos, 0OO MAX
ing an aggregate OF 1884 600 The
amount Of dehentures outstanding is
$5,5OO,00O and there have been nego-
tlated $5,Ooo,0OO of real estate mort
cages, the debentures and mortgages /
being almost entirely held in the east /
and abroad
a recent examination into the books /
showed there has been large losses on /
of real estate that the COM !
pany had been obliged TO take over in |
connection with its loans, which were /
made during the boom times in Kan !
sas City, Omaha, Sioux City, Lincoln !
and Salt Lake. The company is unable |
TO pay the interest and principal about /
to accrue on its debentures, and take |
care of its demand obligations.
The company is indebted to New
York bankers on demand notes for
$4,000 and time notes $4,000 Some