Waterbury evening Democrat., 1905-07-13
DEPEW's BOOM TOWN
Community Near Buffalo Where
 Equitable Lost $2oo, 900.
GIGANTIC REAL ESTATE OPERATION


 a Liberal Lender-Schene Conduct
 ed In High Finance style-Senator'a
 Name Heads List of Stockholders
 Consenting to Loan of S3OO,OOO.
 The Depew Improvement company, which obtained S250,O0o from the Equi- table Life Assurance society upon a mortgage that has resulted in an ap- parent loss to the society of over $20O,- GOO, is now in the hands of a receiver, says special dispatch from Buffalo to the New York World. A train of vic tins stretching behind it tells the story of a gigantic real estate operation con- ducted on the principles of high finance.
 Chauncey NJ. Depew, who, when ex- amined by Superintendent of Insur- ance Hendricks, said that he did not advise the Equitable loan of $250,000 to the improvement company, heads the list of those who signed as stockhold- CTS the certificate of consent to the mortgage filed in the county clerks office of Erie county on Jan. II, 1898. Mir. Depew's name appears also at the head of the signatures to annual re- ports of the improvement company.
 The history of this company is one of financial deals arising from the overcapitalization and efforts of few insiders to unload at the expense of friends and credulous business men. Some of the most prominent residents of Buffalo were caught in the game.
 The Depew Improvement company was organized in 1892 with capital of S1,500,o00. It bought large tract of land, since called Depew, about twelve miles east of Buffalo The prime movers in the deal were the late Walter s. Webb and Charles A. Gould of New York and John A. Spoor of Chi cago. They had the controlling stock, and the remainder of it was sold to leading business men of Buffalo. Among them were John L. Williams. John J. Albright, who became presi- dent of the company and who was re- gently named by the Ryan trustees of the Equitable as director in that socie- ty for the policy holders; the late Bras mus G. Warren, Henry W. Box, George Urban, Jr., James A. Roberts, Charles E. Clark and William H. Orcutt.
 In 1897, when the improvement com pany had been reduced by the hard times of the early nineties to severe straits, Webb figured out plan of un. loading the stock. New blood was in- jected into the concern. A thousand shares of stock were sold to Depew, 1 1,333 to H. Mex. Twombly, 2,00O to John Jacob Astor, 1,547 to W Seward Webb. Gould reduced his holdings to 1,o50 shares, Spoor to GIG and H. Wal ter Webb to 1,114. Hartman X Co. had 200 shares and the Depew Improve ment company 39o.
 No sooner had these New York fnan- ciers been brought into the deal than the Depew Improvement company de cided to borrow q sum not exceeding $500, 900. The certificate of consent filed in the county clerks office at Buffalo reads as follows:
 we stockholders do hereby consent that the company may borrow money not to exceed S300,000 at 6 per cent and may issue therefor it's bonds, prom lssory notes or other evidence of debt, and that 1t may secure said loan by mortgaging it's real property, together with the improvements thereon"
 The names signed to this certificate are: Chauncey NJ. Depew, H. McK. Twombly. ". Seward Webb, John Jacob Astor. H. Walter Webb, H. c. Duval. NJ. T. Cowperthwaite, Henry W. Box, Wilson s. Bissell, estate of John L. Williams, George Urban. IT., Hartman & CO. Charles A. Gould. Daniel O'Day. Depew Improvement and John A. Spoor. The total number of shares of stock owned by these men was 10.123.
 The company succeeded in obtaining B loan of S25O,OO0 from the Equitable Life. II gave in return for this sum 3 mortgage on property valued by the state insurance department at S150,000. It was understood by the Buffalo stock holders in the Depew company that the was guaranteed by Mir. De- pew and other New York stockholders. Both as a stockholder in the company and as director of the Equitable Mfr. Depew had passed favorably on the mortgage.
 The improvement company, instead of improving. went from bad to worse. and 1t became impossible to get enough together to do business. Nr. Depew. il is said, was one of the few men n the concern who would pven discuss it's condition. About two pr three years ago an attempt was made 10 assess the stockholders 70 per gent on their stock. in order 10 ytraighten out the company's affairs. but very few of the stockholders came lp with the money.
 The Equitable Life was finally forced 10 f0reclose on Its mortgage and but the Improvement company in the hands Of a receiver. The property was bid in by the Equitable for sJ0.0O0. which meant a loss of over s200.000. Henry ". Box, who in-1s97 was vice president Gf the company and who had general charge of the laying out 1f the new village of Depew. in a re- ,ent interview freely criticised the management of the company. He said
 Waiter Webb. General Superntend- snt spoo-. of the Wagner Palace Car company. and Charles A Gould. of