Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-01
DEPEW WITHOUT BLAME
LOAN OF IMPROVEMENT COM
PANY PAID.
President Morton of Equitable Makes
All Correspondence on Sub
ject Public.

dispatch from New York last night
says: Announcement was made today by
the officers of the Equitable Life Assurance
Society that the Indebtedness to the society
of the Depew Improvement Company was
paid this afternoon. the principal and inter-
est amounting to SOB SJOs2. The cores
pondence incident to the transaction was
also, at the suggestion of President Paul
Morton. made public. to the end, Mr.. Nor
ton said, that an impression unjust to Sen
ator Chauncey NJ. Depew might be removed.
The correspondence consists of three let
ters of even date. the first addressed to
Mr.. Morton by Henry B. Anderson of the
law firm OF Anderson 81 Anderson. attor-
neys for the Depew Improvement Company,
announcing that the reorganization COM
mittee of the Depew Improvement Com
pany. having perfected the title to the prop
erty not covered 10y 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 in
tcreSt
The second letter. also addressed to Mr..
Morton. is from Senator Dcpcw. WHO states
explicitly his part IN the transaction be-
tween the Improvement company an! the
Equitable Society. and points out what !e
declares are Inaccuracies In published state
ments. through which q grave injustice has
been done him.
use OF Name UNAUTHORIZED
Among other things. Senator Depew says:
Il Lsd nothing 20 do with the orgLnza-
ton Of the Derew Improvement Company.
not even authorizing the use of my tame,
nor was | in any way connected with it
until five years after its Incorporation,
purchased for SlOO.0DO in cash a one-fi.-
tecnth interest In the stock of the company.
The company at that time rad Il tract of
land consisting OF about ZOO subdvided
lots ana 10 acres not Subdivided
The Equitable Life loaned $50 coo upon
! 90 Of the company's lots. These lot;
selected constituting ;he most valuable
tracts there. At the time the mortgage was
made these lots were sellinS-.he lowest at
$500 and the highest ut $tno each. The val
uatiCn placed upon the plot by the Equit-
I5le appraisers at that time was 1898 $50
Dad upon the balance of the land owned
1y the company SJlu,UOO, a total valuation
}f the property of $g;s3. 100. An appraisal
was at the same time made and submitted
to the Equitable by William h. Cutter. one
of the leading real estate men of Buffalo,
In which he appraised the value of the lots
loaned on at STGS, 900.
In 1901 a real estate depression set in
I'm and about Buffalo. which lowered val
ues and checked the growth in the town of
Depew. 1t at this time. October T.
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 Equtable's mortgage at
$4,000"
Denies Each Charge.
Mr.. Depew then recites the charges that
have been made against him. denying each
OF the charges, which related to trans
actions resulting from the default of the
company and the foreclosure of the loan
by the Equitable he says that as a result
of the company's embarra ssment reor-
ganization was determined upon. and
though there were unavoidable delays, the
plan was progressing as rapidly as posi-
BILE. The company was to be incorporated.
and was to issue bonds for STJ0.0IO to sup
ply funds to take up the Equitable mort
gage. principal and interest 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 &C
knowledged in the following letter:
August 81, 1905.
My Dear Senator: I am very much
pleased to receive your letter and the COM
muniCation of the reorganiza ton commit
which GispOses of the matter in a manner
entirely satisfactory to the Equitable. An
impression of the situation which was
erroneous and unjust TO you has prevailed
/ think that 1t can best be removed by
making these two communications public
and will do so II this action will be agree
PAUL MORTON.
Hon. ,c.hauncey NJ. Depew, New York
Just who put up the money to wipe out
the obligation has not been disclosed but
II was reported that the amount had been
raised by the Improvement company's COM
mittee of reorganization consisting of Sem
ator Depew. DIR. w. Seward Webb, H.
Mex. Twombly and John Jacob Aston An
derSon d Anderson, Senator Depew's law
yerS, and counsel also for the real estate
company bearing his name. refused to give
81 IN FOR no Hon -