Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-09-01
DEPEW EXPLAINS.
His Company Pays Up and He Gets a
Certificate Of Character.

His Company Pays UP and He Gets
Certificate of Character.
New York, Sept. Announcement
was made yesterday by the officers of
the Equitable Life Assurance society
that the Indebtedness of the Depew
Improvement company to the society
was paid yesterday afternoon. the
principal and interest amounting to
$293,S50
The correspondence incident to the
transaction was also, at the suggestion
of President Paul Morton, made pub
lie to the end, Mr.. Morton said, that an
impression unjust to Senator Chaun-
cey M. Depew might be removed.
The correspondence consists of
three letters of even date, the first adj
dressed to Mr.. Morton by Henry B.
Anderson of the law firm of Anderson
& Anderson, attorneys for the Depew
Improvement company, announcing
that the reorganization Of the Depew
Improvement company having perfec-
ted title to the property not covered by
the Equitable mortgage was prepared
to take over the property which secur-
ed the loan, paying in cash to the
Equitable the face of the loan and in
terest.
The second letter, also addressed to
Mr.. 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 mac
curacies in published statements thru
which a grave injustice has been done
him.
Among other things Senator Depew
says:
Il had nothing to do with the Or
ganization of the Depew Improvement
Company. not even authorizing the
use Of my name. nor was in any way
connected with it until five years after
its incorporation, purchased for $780,
600 in cash one-fifteenth interest in
the stock of the company. The COM
pany at that time had a tract of land
consisting of about 300 subdivided
lots and 265 acres not subdivided.
"The Equitable Life loaned S250,000
upon 1,575 Of the company's lots. These
lots were selected as constituting the
most valuable tracts there At the
time the mortgage was made these lots
We're selling-the lowest at $500 and
the highest at $500 each. The valu-
alton placed upon the plot by the
Equitable appraisers at that time was
$393,750, and upon the balance of the
land owned bN the company $4,000.
a total valuation of the property of
$9S3,750. 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 Buff
falo, in which he appraised the value
of the lots loaned on at s76S,000.
'In 1901 real estate depression set
in in and about Buffalo, which lowered
values and checked the growth in the
town of Depew. 1t was at this time,
Oct. Z, 1901, and not when the loan
was made in January, 1898, that the
insurance department appraised the.
part Of the property covered by thu
Equitable's mortgage at $150,000."
Mr.. 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 Equit-
able he says that as a result of the
companys embarrassment a reorgani-
zation was determined. upon and tho
there were unavoidable delays the plan
was progressing as rapidly as possible
The company was to be incorporated
and was to issue bonds for $750,0O0 to
supply funds to take up the Equit-
able mortgage, principal, and interest
and to pay the othe debts of the COM
pany There was never any other
purpose than that the Equitable should
be fully protected.
The foregoing communications were
acknowledged in the following letter,
dated Aug. 81, 1905:
My Dear Senator: am much pleas,
ed to receive your letter and the COM
munication of the reorganization COM
mittee Of the Depew Improvement
Company, which disposes of the mat
ter in manner entirely satisfactory
to the Equitable. An impression of the
situation which was erroneous and un-
just to you has prevailed. think
that it can best be removed by making
these two communications public, and
will do so IL this action will be agree
able to you. PAUL MORTON.
Chauncey M. Depew, New York City.