The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1905-09-02
DEPEW COMPANY
PAYS EQUITABLE
SATISFIES MORTGAGE HELD BY
INSURANCE coNcERN-sENA-
TOR Is ExoNERATEp.

NEW YORK. Sept. 1.-Announce.
ment was made Thursday By the ON.
GERS of the Equitable Life Assurance
society that the Indebtedness to the
society of the Depew Improvement
Company was paid this afternoon, the
principal and interest amounting to
$685., s50.s2. Tho correspondence In
cident to the transaction was also at
the suggestion OF President Paul Nor
ton made public, to the end, Mr.. Nor
ton said. that an impression unjust
TO Senator Chauncey NJ. Depew
might be removed.
The correspondence consists of
three letters. the first addressed to
Mr.. Morton by the attorneys for the
Improvement company, announcing
that the reorganization committee Of
the Depew Improvement Company.
having perfected the title to the prop.
erty 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 Mr.. Morton. is from Senator De.
pew, who states, among other things:
] had nothing to do with the organ.
ization 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 its incorporation, l purchased,
for 100000 in cash, one-ffteenth
interest.
The Equitable Life loaned $25O00O
upon 1,575 OF the company's lots. The
valuation placed upon the plot by the
Equitable appraisers at that time was
sS93.75o, and upon the balance Of the
land owned by the company $40 900,
total valuation Of the property of
$sSS,15O. 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,0O0.
In 1901 a real estate depression
set in in and about Buffalo, which low
cred values and checked the growth
in the town Of Depew. 1t was at this
time-october Z, 1901-and not when
the loan was made, in January, 1895
that the insurance department ap.
praised the part of the property GOV.
cred by the Equitable's mortgage at
$3.50. 200.
Mr.. Depew then recites the charges
that have been made against him,
denying each. OF the charges which
related to transactions resulting from
the default of the company and the
foreclosure OF the loan by the Equita.
BILE, he says that as a result of the
company's embarrassment a reorgan.
ization was determined upon, and
though there were unavoidable de.
lays, the plan was progressing as ran.
idly as possible.
The foregoing communications were
acknowledged in the following let
ter:
August 81, 1905.
My Dear Senator: am very much
pleased to receive your letter and the
communication of the reorganization
committee of the Depew Improvement
Company. which disposes of the mat.
ter in a manner entirely satisfactory
to the Equitable. An impression Of
the situation which was erroneous
and unjust TO you has prevailed. l
think that It can best be removed by
making these two communications
public, and will do so If that action
will be agreeable to you. Yours very
truly,
(Signed) PAUL MORTON.