Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-12-09
IN FINANCIAL DISTRESS
Omaha Loan and Trust Company
With Liabilities Of a Million
Embarrassed.
shrinkaee of Values Has Re-
duced the Visible Assets Of
the Company.
Heavy Taxation Has Made Realty
Improbable in the Nebraska
Metropolis.

Omaha, Dec 9-This city, which has
seen many of its financial institutions
collapse since the boom days, is threat
ened with another serious failure-that
of the Omaha Loan and Trust Com
pany.
With liabilities estimated at $1.000000
owed principally to eastern investors,
this company. of which A. U. Wyman,
former treasurer of the United States,
is president, is admittedly in financial
DISTRESS
The directors OF the company were in
session Saturday night with represent
atives of eastern creditors, and a formal
statement was expected late Saturday
night or yesterday.
The present condition OF affairs, ac-
is due entirely to the shrinkage in real
estate values. which reduced the visible
assets of the concern
City property on which much less
than the apparent value was leaned
some years ago has lost it's earning abil-
ity, and the company was obliged to
take possession of many houses and
lots under foreclosure proceedings. The
larger quantity of this realty is on the
hands of the concern, unstable at any
thing near the figure 1t should repre-
sent as an asset.
Since the boom days In the sos, Gull
minating in the census OF 1900, which
gave Omaha population OF 140.4S0, the
city has had i'll luck. Enormous taxes
as result Of grading and paving con-
tracts in previous years, caused the ces-
sation of public work and staid private
improvements, driving numbers to seek
employment in other cities. The burden
of taxation, falling heavily on the prop
erty owners, made realty Improbable
for investment, and for ten years values
OF all outlying land have been on the
down grade.
During 1898 and the years immediate
~ following every savings bank in the
city except the one connected with the
Omaha Loan and Trust Company was
forced to close Its doors. These insti-
buttons were wrecked by the drop in
realty values upon which their money
had been loaned.
AS an example Of the shrinkage in as
sets one such institution-the McCague
Savings Bank-has paid less than per
cent to depositors, altho 1t Is six years
since the bank failed.
The Transmississippi exposition also
financial success, injured the city in
the long run by giving 1t temporary
season of prosperity. The reaction was
serious and an attempt to revive the
show the next year proved disastrous.
When the 1900 census showed Omaha
to have population of only 1o2,555. an
apparent decrease of 1853 per { ,nt, many
eastern investors fought shy of loan,
here and values took ano,;rcT drop, des-
pite proof that the 1890 census figures
had been paded almost as much as the
total shrinkage In population.
Among the directors of the company
are Senator j. II. Willard, President of
the Omaha National Bank 3. w. Nash
and Guy C. Barton of the Omaha and
Grant Smelling company, w. w. Wal
lace, e. M. Morsman and George B.
Lake. A. u. Wyman's son, w. T. Wy
man, is secretary and treasurer.
The critical condition of the COM
pany's affairs developed with the APP
pearance here OF Edward BEETLE, a Phil
adelphia broker who is acting for cred
itors in this city whose claims amount
to 100000. Liabilities of approx
mately s1.0o0.0o0 and assets Of un-
known and apparently undiscoverable
value We're under investigation Satur-
day and the interested parties at work
say 1t will be only matter of hours
before an open admission will me made.
President A. U. Wyman Of the COM
pany has been considered a man of
wealth and influence. He was United
States Treasurer under the first Cleve-
land administration and Is well known
in financial circles turnout the country.
When seen at his office Saturday
and asked as to the condition of the
affairs and IL 1t were true
that the company was insofvent, he
admitted that the company was in dis
tress. and with regard to the solvency
of the concern said:
IF real estate values were such that
we could realize from property what it
to us there would be no ques-
ton about the solvency of the COM
pany. The condition of the company
is as uncertain as real estate values
on outlying property have been for the
last few years."
In the boom days Of Omaha between
5000 900 and 100000 was loaned by the
company on suburban real estate.
The Omaha Loan and Trust COM |
pany was organized in 1885 with a
capital Of 100000, which was fully
paid up. It's business had been that
IF making loans on city property and
farm lands. In the last sixteen years
The company has placed between $12.-
300, 900 and $15,000.000 in real estate
In the majority of cases 1t
made its own loans and then sold it's
mortgages to eastern investors. These
oans have all been made in Nebraska
md Missouri.
The company formerly operated
savings bank, but this has been di-
,orced under the name of the City Saw
ngs Bank. The bank is now entirely
separate and will not be effected by
he affairs of the Loan and Trust COM
pany.
Saved His Life.
81 feel owe my life to Kodol Dys-
oepsia Cure" writes III. G. Christensen,