New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-01
DEPEW COMPANY PAYS.
THE SEN4TOR EXPLAINS.
Loan of Equitable Settled By Check
for So99 $50 81.

T0r S@03 500 81.
Prefaced by the payment to the Equitable As
surance Society of check for s293. $50 50. the
full amount due the society by the Depew I'M
provenlent Company. Senator Chauncey NJ. De-
pew made public yesterday the explanation of
this transaction which has been promised since
his return from Europe
The tender OF the check was made at the
offices of the Equitable yesterday afternoon,
and after the statements could be
prepared the entire facts made public.
Senator Depew's statement goes into the origin
OF the Depew Improvement Company. which
formed to sell large tract of land near Buff
falo. 1t seems that loan from the Equitable
was advisable In that it would greatly simplify
the company's effort to dispose of the lots to
individual purchasers. A mortgage was given
on the most valuable of the company's lots,
which were then appraised at a considerable
amount over the face of the loan. The real
tate depression which Buffalo and it's vicinity
suffered in 1901 brought about the depreciation
of the property. and the subsequent reappraise-
ment at a sum considerably less than the
amount lent
Senator Depew goes into the accusations
brought against him by certain newspapers,
which. he declares were responsible for his
turn from Europe at date earlier than ne in
tended. He declares that grave injustice has
been done him, as he had constantly endeavored
to get the con1panys affairs in such condition
that the Equita BILE lean could be taken UP. He
details his efforts to hasten the work of the
committee Of the Investment Company to which
this important task had been assigned
ANNOUNCEMENT OF PLAN.
Officially he first that President Morton of
the Equitable knew Of yesterdays settlement
was letter received in the morning from Henry
ment Company. with offices in the Mills Build
ing. which read:
The reorganization committee of the Depew I'm
I M Ra new w & 5he nor
the reorganization and take from the Equitable
the property which secured its loan
This plan called for the delivery OF bends to the
Equitable In payment of the property to be taken
move the conditions which MADE this necessary
part Of the plan @ aad IN cash as m h the
face of the loan and interest as soon as the de-
the liens. etc, your company holds against the
improvement company, can be arranged with your
counsel.
Depew, accompanied by Mr.. Anderson. appeared
at the EQUITABLE Building and was at once
shown to the office of President Morton, on the
third floor Senator Depew brought letter OF
| considerable length. which fully covered all con-
nection between the insurance company ana the
| Improvement company which bears his name.
This letter was to be his statement to the pun
lie and 1t was understood that MT Moftol
would give it to the public.
Tbx x-.5eels for the amount involved was turned
, q, t,sstg .sa. 1dorton and Nj. Depew left the
huidne with the same bland smile that he has
worn through even the worst of the storms
| which have centred around the company winch
| Henry B. Hyde founded.
| Mr.. Depew's letter is addressed to President
Morton and reads as follows:
Mr.. DEPEWs EXPLANATION.
With respect to the loan made by the Equitab:s
Life -, Assurance society 20 the Improvement com,
ps l'sils saInderstand aI it. and it is as follows
had nothing TO do with the orsanzatlon on rne
ing the use of my name, nor was in any way cor,
sn %n at an for Es m sa 10
interest the stock of the COMPANY ne t con, If
about 2 sqbdvidei lots apS S 2sa Pa aces not se0
dyded Padng Psd smf i oa VITA prominent
trust company in the city. under which 1t was pro 70
tirst mortgage bondI secured upon its real est
the trust COMPANY 10 Deco'i hose boe9s as cola
eraI and tha company's notes up 10 SSo9"Co'
panys counsel he though i. diflt with block
of coupon bonds to arrange Tor re saie oi ,P tls
ness of the impr9yemen5 compan2iano 6as =.
%9n'o Io9n carryng Pe with it simple plan whereby as
lots were sold the proceeds could be applied to IN
/
released from the lien OF the mortgage In conSe tha
| quence of this advice the loan wilch IS row tne
subject of discussion was secured from the Equlta
The Equitabl. Life loaned $25ocoo upon 1575 o.
the companys lots. These lots We're seIecteu 1o
constituting the most valuable tracts tneFe: 80 AT I e
time mortgage was made JheSc lots were seiI
ing the lowest 800 and the higher at $500 eac!
The ysgaon 9 Rafeq hat e HP0 and and upon the
balance Of the land Gwned by the o eSmPay s m p S
at he a time made and 6ne M fs
real OF
annraised the of the lots loaned on at S'ooNo
/ was. of course. cognZant of the negotiations ioa
fris loan considered then that the loan was a
yood one and have never doubted that the Equ ia
HE would realize the amount of It's loan, with IN
In the summer and fall of 1901 real estate de,
pression set in and about Buffalo, which prove9
disastrous to many young industries, and oWereq
S,nIras and checked the growth in the town of
Depew 1t at this time, oGtoner :. IsH tllu
not when the loan made. in January. 1888, that
the property covered by the Equtables mortgage
at s15o.oDo.
TAKES UP ACCUSATIONS.
As I understand the accusations made against me
IN the public press. they are as follows:
FIrst-That l. through my influence or position as
a director of the Equitable. secured the making OF
this loan which was ] an PTdld pt no have been
made except for the influence winch was aole 10
exert . -, .,o
time the loan was made manifestly tnadequate
that there was in existence an appasal py " dnn
Insurance Department placing Its value az Sl9oU9o
or at any rate, that such an appraisal was iidue
after. . . .a,,ro
this loan guaranteed or given my personal as
surance to the Equitable Society or ITS ohlcerS
'' FourtbNThat at the time of the foreclosure en-
tered into a written guaranty Nilcn nay SIN
declared to be not binding. ana that dlo not III
'eFh Ffth,That also personally guaranteed at the