The Providence news. (Providence [R.I.]) 1891-1906, 1902-04-07

PANIC IS
FEARED.
Many investment Companies
Doing Business at Lexington,
ky., Have Been Wrecked.

Lexington, KY, April 7.-Kentucky is on
the border Of small financial panic.
Fourteen investment companies have been
runrang here for from three 10 eight
years. and haze gathered in from
throughout the state nearly SS.0000O and
thoucanGs from the surrounding states.
The money came from poor people who
had orly few spare dollars to lay up
The companies In many instances prom
Used 50 for every 81 invested
Six months ago the postoffice depart
ment refused longer to allow the com
pa.ies excepting two tho use OF its mails
so failures began. First. there were as
sIgnments. but when 1t was found that
the companies showed no assets, receivers
were asked for Two OF these receivers
have recently reported.
The report offered in circuit court is
from George c. Webb receiver for the
United States Mutual Investment COM
pany, Incorporated three years ago. pur-
porting TO have a paid-up capital stock
OF si00,coo After stating that he found
In cash but 5000 and the office fixtures.
upon which there was a landlords Hen,
bes!des4 lot of mortgages upon real es-
tate, the receiver declares that there are
many outstanding notes which ne could
not get hold Of
The receiver reports that the capital
stock was listed at 100000 subscribed as
follows: j II. Baker. 80 shares. $780, O.
r. Marschali, 25 shares. 1880: j. T. Up
pington, Is shares, $3.50; +. IA. Norton, 35
shares, $780, John ID. Walker 20 shares.
5000: j. =. Moore. 20 shares. $1,000: A. w.
Kratzer. 10 shares, $500: w. B. Hawkins. II
shares, $50 For these amounts the report
says the Scurbibe subscribers gave notes
which were finally surrendered 10 them
In lieu OF earned increments on their
shares
II further appears. says the receiver.
that the, company loaned $500 to a. w
Kratzer. stockholder and director of
the company. which was secured by real
estate mortgage. The receiver SAYS on
this point The receiver is informed
that these notes by order OF George Cope
land, ono OF the directors and stockhold-
ers, and at the time the secretary of tht
company, were sent and surrendered q
said Kratzer without any consideration
therefor. and the only claim against said
ceiver is informed, is simply a charg,
against him on the books OF the com
pany for said amount
The receiver asks whether a rule should
not issue against Kratzer. The receiver
again submits whether copeland's bonds
man should not be held liable FOR IN,
kfuzer Transaction.
Tho rrrsivcr saws he is further Inform
81 hy The hooks of tho COMPANY that bc
tween tho months ~ September md No
vernher 1909 the company advanced $500
90 the Anderson County Telephone com
pany. secured by certain bonds OF IN,
latter. which the investment company un
dcrtock 20 transfer 10 Copeland. Kratze
and Marschall. for certain coupons is
sued 20 them by the investment company
and Copeland and kratzers interest Il
tie compnnys stock
IT appears that neither Copeland no
Krnt-Cr ever paid "A dollar upon this capi
tai stock. nnd that II was worthless a
a.sO were thc coupons they undertook {,
transfer
Tho receiver then cites the transfer o
'h. comparys coupons. amounting Z,
tll9J,9b5 90 tho Germauia Guaranty com
Ynny of Covrgton. also notes TO IN,
eri7vrt ~ S52T.Q2 along with $500 IN cash
Tic receiver reports that this transfe
NrE Improper. ans again suggests a rul
ac9irst the Gcrmnnia.
TIE reci lver says h. is unable 90 max
onf ~ yet complete table of liabilities
TIE books show bills payable or note
rxfcnted BY the company. Sls.2o9 81 witt
credits s1s,fs2. reducing ~ 90 tls,S7i55 Tn
e1ami',afion 80 FAR made shows that Owe
f7oCn has Deen paid IN by certificate hold
crz 8Iuch the greater portion % this ha
rcysr been repaid.