Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1902-06-05
Third.

From 1887 to 1890, as values then were
held, / considered my property worth con-
servatiyely from $150O0O to 100000
Practically all of this property consisted
of real estate, the identical real estate
turned over to the trustees in my recent
bankruptcy case. Ny direct personal OBJ
legations at that time QSS7 to 1890 were
approximately $4,000, practically all Of
which represented the balance of the pur
chase price due for real estate bought
by me and money borrowed for the pur-
pose of making improvements ON my real
estate. l was also liable as accommoda.
ton indorser on the notes of various
friends, but, at the time mentioned, did
not anticipate any actual liability would
attach on account of such Endorsements.
AT that time my income from rents
amounted to $4,000 per year. My fixed
charges were taxes from 81, 800 to 81, 500
year, fire insurance from $500 to 500
per year, interest on the debts just men.
toned repairs, and family expenses.
Then came the reaction that followed
the boom of 1887, and, next in order.
rents was reduced more than one half, my
taxes and insurance remained about the
same, and to this was added the failure
of parties, | will not name, that put upon
my shoulders over $4,000 of security
debts. For the larger part Of the liabili-
ties then owing by me, had to pay in
terest at from s to 10 per cent. Thus it
is apparent that notwithstanding my in
come from 1891 was increased to the ex-
tent of my salary as chancellor, the total
of my income was less than my fixed
charges and my necessary family ex-
penses. 1t is a well known fact tina;
during the period first mentioned and
even until much later date. real estate
could not be sold at any price; hence, It
seemed to me that my proper course was
to try to hold my property together and
to carry it through the depression. l made
the effort in the best of good faith, be-
lieving that / had enough to pay my
creditors and to have left a substantial
competency for my family. My family
and practiced the strictost economy, we
denied ourselves every luxury. My
neighbOrs will not say that we lived
otherwise than in simple modesty and
free from every semblance of pretentions
or extravaganza. That l might facilitate
my design to get out of debt, made two
investments between 1898 and 1901, both
OF which proved to be disastrous i fur
ther increased my liabilities a few years
ago by borrowing $1,000 with which
built a row of tenement houses on some
of my unimproved real estate Thus it is
| apparent from this brief history of my
affairs what was my income, and what
| my yearly expenses from 1887 to 1901
and how it was my Indebtedness increased
from an apparent liability of $4,000 in
1887 to the amount set forth in my
schedule Of Indebtedness. To bridge over
the depression / did borrow money.
renewed such loans as / could when they
matured and when l could not renew
| them, / borrowed the amount elsewhere
| from friends or from banks; but I assert
most positively that l never borrowed a
| cent that l did not believe / was able to
pay back and that I would pay back and
never for a moment did lose faith in my
ability to pull through until April, 1901.
! At that time, realizing ] was falling be-
| hind in meeting my payments, | called
| a meeting of a few Of my personal friends
| and principal creditors. I laid before
| them the situation. They advised me to
transfer all of my property to a trustee
/ for the benefit of my creditors. did so,
| making no effort to prefer any one. Soon
! afterwards a petition in bankruptcy was
/ filed against me, and, as already ex-
! planned, / was forced into involuntary
| bankruptcy against my will and over my
/ protest.