Waterbury evening Democrat., 1905-09-01
IN DEPEW'S DEFENSE
Inj45tice Done SenatorJ Says
 Eguisafle Prs5ideint.
IMPROVEMENT COMPANY PAYS DEBT
At Morton's Suggestion Correspond. ence Incident to Loan Transaction Is Made Public to Remove
 Wrong Impression.

NEW YORK, Sept. 1.-The announce. ment is made by the officers of the Equitable Life Assurance society that the indebtedness to the society of the Depew Improvement company was paid yesterday, the principal and inter. est amounting to S293, ,850.82. The cor. respondence incident to the transac- tion was also, at the suggestion of President Paul Morton, made public to the end, Mir. Morton said, that an impression unjust to Senator Chauncey M. Depew might be removed.
 The correspondence consists of three letters of even date, the first addressed to Mir. Morton by Henry B. Anderson of the law firm of Anderson & Ander. son, attorneys for the Depew Improve ment company, and announcing that the reorganization committee of the Depew Improvement company having perfected the title to the property not covered by the Equitable mortgage was prepared to take over the property which secured the loan, paying in cash to the Equitable the face of the loan and interest.
 The second letter, also addressed to Mir Morton, is from Senator Depew, who states explicitly his part in the transaction between the improvement company and the Equitable society and points out what he declares are inac. curacies in published statements through which grave injustice has been done him.
 Among other things Senator Depew says:
 I had nothing to do with the organiza. ton of the Depew Improvement company, not even authorizing the use of my name. nor was l in any way connected with it until five years after it's incorporation purchased for S100000 in cash a one-fif- teenth interest in the stock of the com pany. The company at that time had a tract Of land consisting of about 2700 sub divided lots and 265 acres not subdivided. The Equitable Life loaned s250,000 upon 1,515 Of the company's lots. These lots were selected as constituting the most mortgage was made these lots were sell ing-the lowest at S3O0 and the highest at $500 each. The valuation placed upon the plot by the Equitable appraisers at that
 
 the land owned by the company S540, 600, a total valuation of the property of s9S3, 750. An appraisal was at the same time made and submitted to the Equitable by William B. Cutter, one of the leading real estate men of Buffalo, in which he ap- praised the value of the lots loaned on at $76S, 900.
 In 1901 a real estate depression set in in, and about Buffalo which lowered val ues and checked the growth in the town of Depew It was at this time, Oct. ', 1901, and not when the loan was made in January, 1898, that the insurance depart ment appraised the part of the property covered by the Equitables mortgage al $l50000.
 MT. Depew then recites the charges that have been made against him, de nying each. Of the charges which re- lated to transactions resulting from the default of the company and the foreclosure of the loan. by the Equita. TBIe' lie says that 4S 'if result Bf tie coin. pany's embarrassment a reorganiza. tion was determined upon and, though I there were unavoidable delays, the plan was progressing as rapidly as pos. sible. The company was to be incor. porated and was to issue bonds for $750,000 to supply funds to take up the Equitable mortgage, principal and in. terest, and to pay the other debts of the company. There was never any other purpose than that the Equitable should be fully protected.
 The foregoing communications were acknowledged in the following letter from President Morton:
 am very much pleased to receive your letter and the communication of the reor- ganiZation committee of the Depew Inn provement company, which disposes of the matter In a manner entirely satisfac- tory to the Equitable An impression of the situation which was erroneous and unjust to you has prevailed. I think that it can best be removed by making these two communications public and val do So