The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-08-27

was placed in the hands of receiver
Rumors were also in circulation to the ef-
feet that large sums had been loaned to
supreme officers on their individual notes.
because these rumors were given publicity
last Monday the report was asked for
When II was read in the convention yester-
day morning member of the machine"
moved its adoption. Mr.. Shiveley, of Indi-
ana, moved that the report lie on the table
and be printed. The motion to print the
report in the daily bulletin precipitated a
spirited discussion Members of the opposi-
tion insisted that 1t was due to the entire
order that a complete. statement with re-
gard to the endowment fund be placed be-
fore them in view of the publication of dis
quieting rumors with regard to the invest
ment of the fund. There was. of course
much opposition from those who were OPP
posing an airing CT the affairs of the Su-
preme Lodge to the proposition to give the
report publicity. The men who want the ex-
act condition of affairs to be known to the
*. of p. Of the entire world were successful
in their contention and the report was or
dered printed. 1t will be placed on the desks
of the supreme representatives this morn
ing.
Supreme representatives who heard the
report read in the convention yesterday say
It was apologize in it's tone, so far as the
investments were concerned, and was not
as explicit as might have been wished for
with regard to money loaned on first mort
gage notes amounting to $1O5 ,S4736, in that
the names of the borrowers were not given.
In explanation of this fact the Supreme
Lodge was informed 1t would hardly be fair
TO the debtors to make their names public.
- Ia @xs.r
mortgage holdings are of interest. One of
them is designated as, trustees certii-
cate, $SS,772.S6, secured by a first mortgage
county. Texas; value estimated at s7OOOO."
Others are designated as follows: Two
notes, $500 each. interest 6 per cent. per
annum, payable semi-annualiy. paid to ma
turity secured by first mortgage on twenty
acres of land in the northwest part of the
city of Chicago. estimated value, $4,000
one note, $500, bearing interest at s per
cent per annum, payable semi-annually.
paid to maturity, secured by first mortgage
on an estate in Arkansas, valued at $1,000.
FIRST MORTGAGE NOTES.
A number of notes secured either by first
mortgage on improved property in the city
of Chicago, or Cook county, Illinois, are
mentioned. They are in the following
amounts: Six hundred dollars, $1,000, "a ,OO0
S2,S75, two for $3.50 each. $4,000 500, $780,
$780, three for 1000 each, two for 5000
each, $500, $1,000, $500, two for $50 each and
one for $1,000.
Another investment is designated as zone
note $1,000, interest per cent. per annum,
payable semi-annually-paid to date; Sc
cured by first mortgage on real estate"
Where the real estate is located is not
designated. although it's estimated value is
placed at $500.
Concerning the investments in the de-
funct Lexington Hotel Building Company,
IN Chicago, there is a lengthy explanation
in the report, showing that s192, 500 has been
invested in first mortgage bonds issued by
that company On this subject the report
says, in the list of bonds referred to in the
financial statement of the board of control:
One hundred and eighty-five $1,000 and
IIteen 500 first mortgage bonds issued by
the Lexington Hotel Building Company, To-
Gated on corners of Michigan avenue and
,l;ne Tvs. street CHICAGO on ninety
furniture and fixtures, $175 600; total issue of
first mortgage bonds. $3.50, 900; per cent. in
ferest. Company defaulted in the payment
OF interest on the 1st day of October 1897
foreclosure proceedings were at once com
menced in the Circuit Court of Cook county
LefCre Judge Dunno. The Lexington Hotel
Building Company made an assignment i'm
the County Court of Cook county on Satur-
part of the first mortgage bcndholders on
the following Monday. Judge Dunno APP
pointed receiver. An effort was made to
charged and the property placed in the
hands OF the receiver appointed In the inter-
est of the first mortgage bOnholders. Judge
Carter of the County Court, denied the mo-
tion for dismissal of the assignee and after
some time compromise was agreed on be-
tween the two courts and order
made on the assignee to pay to
the receiver two-thirds of the net in
retain one-third This condition of things
continued to exist until some time in April
of 1898, when an agreement was arrived at
between the reorganization committee, ap-
pointed in the interest of the bondholders.
,and the Hotel Building Company, resulting
IN the discharge of the assignee and the
placing OF the property in the hands of the
receiver. The building was leased by the
receiver for a period of two years. by di-
.rection of the court. to reorganized COM
.pany, known as the Lexington Company, at
"a rental of 10000 per annum, with the con-
EDITION that $4,000 should be applied to the
interest of the first mortgage bondholders.
less ground rent taxes and Insurance. and
$4,000 TO be paid on the chattel mortgage
Indebtedness on the furniture, issued by the
Lexington Hotel Company. The fixed
charges by way of ground rent, insurance
and taxes amount TO about $4,000. These
bonds were purchased at various times dur
ing period of about two years from vari-
Gus brokers. l do not know the owner of
any Of the bonds purchased. We COM
znenced investing in these bonds because
NnSy were Recommended DIS SdIe ana rell-
able l talked with several parties about
them, and among others Hon. Lyman j.
Gage, then president of the First National
Bank OF Chicago, now secretary of the
treasury. His advice was that they were
perfectly safesand amply secured. He would
not say that they would bring at all times,
II forced on the market, par value. but re-
garded them as safe investment at the
price we purchased them for. The unpaid
interest to date amounts TO $16,125. There
is an insurance on the building of 100000,
assigned to the trustee for the benefit of the
first mortgage bondholders in the event of
IRE. Before purchasing any of these bonds
] had the attorney of the bank examine the
trust deed and ground lease. He informed
me that under the trust deed the building
machinery and all fixtures other than fur
niture were pledged for the payment of the
interest and principal of the bonds At once
after the default in payment of the October.
1897 interest we discovered that the owner
of the real estate had permitted the hotel
company to become in arrears for rent in
terest. etc. and within few days after the
appointment of the receiver the owner of
the arrearage was paid within stated time
he would take necessary action to have a
forfeiture of the lease declared. The court
thereupOn ordered the receiver TO notify the
bondholders and require them to advance
the necessary amount to lquidate the in
than those held by the Illinois National
Bank and the Board of Control failing to
respond to the request of the receiver the
Board Of Control paid its pro rata share of
the accrued indebtedness upon the issuance
by the receiver of certificates aggregating
$4.6226S, bearing interest at the rate of per
cent. per annum, said certificates being an
absolute first lien and payable out of the
first receipts derived from the rentals after
paying fixed charges At the time of the