The Denison review. [volume] (Denison, Iowa) 1867-current, 1905-07-19
.DEPEw's BOOM TOWN
Community Near Buffalo Where
Equitable Lost $500, 900.

Community Near Buffalo Where
Equitable Lost $500, 900.
GIGANTIC REAL ESTATE OPERATION
History of Improvement Company TO
Which Equitable Life Society Was
a Liberal Lender-Scheme Conduct
ed In High Finance style-senntor's
! Name Heads List of Stockholders
Commenting TO Loan of 100000.
The Depew Improvement company.
which obtained $25O,OOO from the Equi-
table Life Assurance society upon
mortgage that has resulted in an up
parent loss to the society of over $780,
Geo. Is now In the hands Of a receiver,
says special dispatch from Buffalo to
1.-THE New York World. A train Of vic
Tins stretching behind 1t tells the story
OF gigantic real estate operation con-
Quoted on the principles Of high finance.
Chauncey NJ. Depew, who, when ex-
'amined by Superintendent Of Insur-
iance Hendricks, said that he did not
advise the Equitable loan of $25O,OOO to
1.-THE improvement company, heads the
list Of those who signed as stockhold-
Iers the certificate Of consent to the
mortgage filed in the county clerks
office Of Erie county on Jan. II, 1898
no oil OF no
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
DISQUALIFICATION 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 a capital
of 81 ,500,O 600. 1t 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
lcago They had the controlling stock,
and the remainder Of 1t was sold to
leading business men of Buffalo
Among them were John L. Williams,
John ]. 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 Eras-
mus G. Warren, Henry w. Box, George
Urban, Jr., James A. Roberts, Charles
H. Clark and William III. circuit.
In 1897, when the improvement COM
1pany had been reduced by the hard
times Of the early nineties to severe
straits, Webb figured out plan of un-
tloading the stock. New blood was in
5ected into the concern. A thousand
shares of stock were sold to Depew,
1888 to H. NICK. Twombly, 1000 to
John Jacob Astor, 1,547 to W. Seward
Webb. Gould reduced his holdings to
1850 shares, Spoor to GIG and II. Wal
ter Webb to Lila. Hartman & Co.
had 200 shares and the Depew Improve
ment company 800.
No sooner had these New York finan-
ciers been brought into the deal than
the Depew Improvement company de-
cided to borrow sum not exceeding
100000. The certificate of consent filed
In the county clerks Office at Buffalo
reads as follows:
I'VE stockholders do hereby consent
that the company may borrow money
not to exceed 100000 at per cent
and may issue therefor its bonds. prom
tssory notes or other evidence of debt,
and that it may secure said loan by
mortgaging its real property, together
with the improvements thereon"
The names signed to this certificate
are: Chauncey Nj. Depew, H. Mex.
Twombly, w. Seward Webb, John
Jacob Astor. H. Walter Webb, H. G.
Duval, NJ. r. Cowperthwaite Henry
". Box, Wilson S. Bissell, estate of
John L. Williams, George Urban, Jr.,
Hartman & Co., Charles A. Gould,
Daniel O'Day, Depew Improvement
company and John A. Spoor. The total
number Of shares Of stock owned by
these men was 1923.
The company succeeded in obtaining
% loan Of $25O,000 from the Equitable
Life. 1t gave in return for this sum
a mortgage on property valued by the
state insurance department ut $3.50, 600.
1t was understood by the Buffalo stock
holders in the Depew company that the
mortgage was guaranteed by Mr.. De-
pew and other New York stockholders.
Both as a stakeholder in the company
and as director of the Equitable Mr..
,Depew had passed favorably on the
mortgage.
The improvement company, instead