NORTHWESTERN
UNIVERSITY
LIBRARY
EVANSTON
ILLINOIS
LOMBARD
//■
INVESTMENT COMPANY
AND ITS SEVERAL
AUXILIARY COMPANIES.
REPORT OF
EDWARD P. MOXEY,
ANDREW J. REILLY,
Accountants.
Philadktphia, Dec. 30th, 1892.
PHICADKCPHIA :
McUaughlin Bros. Co., Printers.
1893-
Jj;?, (o
¿fv/-/
304 Chestnut Street,
Philadelphia, February 20, 1893.
Hon. Wayne MacVeagh,
H. La Barre Jayne, Esq.
Dear Sirs:—In accordance with your instructions, contained in your
letter to us of June 14th, 1892, we have made the examination of the hooks
and accounts of the Lombard Investment Company therein directed, and
herewith submit the following report thereof.
Yours respectfully,
(Signed) Edward P. Moxey,
Andrew J. Reilly.
Philadelphia, February 24, 1893.
Messrs. Moxey and Reilly.
Dear Sirs :—We beg leave to acknowledge your communication of the
20th inst., enclosing report prepared hy you of your examination of the books
and accounts of the Lombard Investment Company in accordance with our
instructions contained in our letter of June 14, 1892.
(Signed) Wayne MacVeagh.
Henry La Barre Jayne.
304 Chestnut Street,
Philadelphia,
December 30, 1892.
Hon. Wayne MacVeagh,
Counsel for George Bumham, Esq., Chairman.
H. LaBarre Jayne, Esq.,
Counsel for the Lombard Investment Company.
Gentlemen ; In accordance with your instructions, we have
visited Kansas City, Missouri, and made an examination of the
books of the Lombard Investment Company for the purpose
as outlined in a letter of the Hon. Wayne MacVeagh to H.
LaBarre Jayne, Esq., dated June 6th, 1892, and confirmed in a
letter to us dated June 14th, 1892, in which, among other
things, you directed us :
"To ascertain and report such facts as the books of the
Company show in respect of each item of assets and each item
of liabilities."
" To report the facts without the slightest coloring of bias
or inference, but to state the facts so fully and extensively as
would enable an intelligent judgment to be formed upon each
of the subjects embraced in such report."
Among the transactions you requested us to investigate
were those made by the officers of the Company in the purchase
of certain stocks, bonds, and real estate, as follows :
Keith and Perry Coal Company Bonds,
Colorado and Kansas Canal and Reservoir Com¬
pany Bonds (known as Koen Ditch Bonds),
Seaboard Manufacturing Company Bonds,
People's Cable Railway Company Bonds,
First National Bank Stock of Kansas City, Mo.,
and certain real estate known as
Ravenna Flats and
Lenexa Property.
3
4
We commenced the work June 20th, 1892, and discon¬
tinued the same December 14th, 1892, owing to the Directors
of the Company passing the following resolution :
Extract from the Minutes of the Regular Meeting of Directors of
the Lombard Investment Company, held at Kansas City, Mo.,
on Thursday, the 27th of October, 1892, at 9 o'clock A. M.
" The matter of the expense to the Company of the expert examination
arranged for several months ago, and the necessity for an early report by the
experts employed to audit the accounts, was then discussed, and the following
resolution was offered by John Perry, seconded by I. P. Dana, and duly
carried, James L. Lombard not voting :
" ' Whereas, The experts sent to examine the accounts of this Company
by agreement between the representatives of certain stockholders have now
been engaged in the work since June i6th, 1892, at a large expense to the
Company—$3,432.10 having already been paid to them for their work up to
October ist, 1892, with no prospect of their finishing the same soon : Be it
resolved. That it is the sense of the Directors that this examination, which has
already exceeded by several months and several thousands of dollars the time
and amount contemplated and spoken of when the arrangement was made,
and has in other ways caused considerable loss and expense to the Company,
should be brought to a close at an early day, so that the expense and loss
shall cease. It is therefore ordered that it shall not be prolonged beyond
December ist next, and any expense on account thereof, so far as the Com¬
pany is concerned, shall cease on that date.
" ' A copy of this resolution shall be sent to the attorneys who made the
arrangement and to the Advisory Board.' "
I hereby certify that the above is a true and correct extract from the
Minutes of the Regular Meeting of the Board of Directors of the Lombard
Investment Company, held at Kansas City, Mo., on Thursday, the 27th
October, 1892, at 9 o'clock A. M. The Directors present were I. P. Dana,
John Perry, J. F. Richards, W. E. Swentzel, D. H. Ettien, and James L.
Lombard.
(Signed) H. E. Mooney,
Secretary.
Subsequently the time was extended by the President to
December 14th, 1892.
The above action of the Board of Directors prevented us
from making this report as complete as it should be.
We found the system of book-keeping entirely unsuited, in
many respects, for the requirements of a business of such volume
and detail ; the same system being in use as when the Company
was in its infancy. The principal books kept consist of a
s
journal and cash-bock combined, and a ledger. The trans¬
actions of a day's business are subdivided and entered upon five
separate journals, and it takes the combined balances of these
books to make a cash settlement. All the entries upon the
journals are made from tickets, and the clerk entering the same
has no means of ascertaining from his books whether the tickets
have been made for the correct amounts, as he only enters the
part that belongs in his journal, while the contra part of the
transaction is entered upon a different journal by another clerk.
The accounts being in this shape, it necessitates the exam¬
ination of several journals to ascertain the meaning of a single
entry. The number of clerks in the different departments, who
are allowed to issue these charge and credit tickets, make a
defalcation an easy matter of accomplishment. All that is
necessary is to increase or make a false charge ticket ; decrease
or not enter a credit ticket, taking the difference from the cash.
This careless method struck us so forcibly that we recommended
the keeping of a separate cash-book showing the actual money
received and paid out daily. We also suggested that, instead of
having the mail distributed unopened to the different depart¬
ments, one clerk should open all letters received by mail and
express, and enter the remittances contained therein upon a
register giving a complete description of the same. Both of
these suggestions have been adopted, excepting that the mail
for the Foreclosure and Farm Departments is made an excep¬
tion. This change works admirably, the cash settling each day
correctly, which was unknown before, for any number of days
in succession. This separate cash-book acts also as a check
upon the entries made in the journal. While these are impor¬
tant improvements to a very poor method, still the system can
only be perfected by the introduction of more modern ideas.
In our examination of the books, we discovered two defalca¬
tions in the Treasurer's Department—one by the late Treasurer,
Henry W. L. Russell, and the other by Montgomery H. Lewis—
the details of which will be found further on. We also found
irregularities in the Interest Department, which, on account of
the want of time, we were unable to properly investigate to
ascertain whether they were clerical errors or other defalcations.
We were also unable to give any attention to the Foreclosure
6
Department. Both of these should receive a thorough and com¬
plete audit, as all the interest received by the Company on
mortgages passes through the former, and all expenses incurred
in foreclosure proceedings are paid by the latter, and there is no
check whatever upon such payments. In investigating the real
estate, we often had to consult the books of the Foreclosure
Department, and a more miserable system of keeping the same
would be hard to devise.
We will present under headings the specific items which
you requested us to investigate, and some others which came to
our notice, following with an account of the defalcation of
Russell and Lewis; then statements of the Guaranty Fund;
Collaterals to Debentures ; the amount of Outstanding Guaran¬
teed Loans ; earnings of the Parent and Auxiliary Companies,
with an account showing the difference between the Company's
statement and the one made by us ; the assets and liabilities of
the Parent and Auxiliary Companies at the close of business,
February ist, 1892, with an analysis of the same.
No statement of the Lombard Investment Company is
complete without being accompanied with that of the several
Auxiliary Companies, the stocks of which are owned by the
Parent Company (excepting the requisite amount to qualify
Directors). The bulk of the real estate in which the Company
is interested is not carried by the Parent Company, but by the
several Auxiliary Companies, and represented in the assets of
the Parent Company by their stocks, bills payable, and mort¬
gages, the details of which will be found under the heading of
Real Estate.
AUXILIARY COMPANIES.
These Companies are used to carry the real estate acquired
by foreclosure proceedings or deeds ; to create new mortgages
upon the same, which are guaranteed and sold by the Parent
Company; to purchase tax certificates upon properties which
the Parent Company has outstanding guaranteed loans upon,
and are frequently used to transfer and re-transfer real estate
from one Company to another, any difference in price being
7
either charged or credited to a profit and loss account. The
amount credited over and above that charged exceeds 100,000,
which increase is thus added to the assets of the Company.
There are five of these Companies, the stocks of which
(excepting the requisite number of shares to qualify Directors)
are owned by the Lombard Investment Company, as follows :
Valley Loan and Trust Company,
With a capital on February 1st, 1892, of $150,000,
but which was increased on
August 25th, 1892, to $250,000.
Concordia Loan and Trust Company,
With a capital on February ist, 1892, of $100,000,
but which was increased on
June 4th, 1892, to $250,000.
City Real Estate Company,
With a capital on February ist, 1892, of $250,000,
but which was increased on
August 8th, 1892, to $350,000.
Alliance Trust Company,
With a capital on February 1st, 1892, of $5,000,
but which was increased on
August 27th, 1892, to $500,000.
Investors Company,
With a capital on February 1st, 1892, of $50,000.
The Valley Loan and Trust Company, Alliance Trust Com¬
pany, and City Real Estate Company were organized by the
officers and employees of the Lombard Investment Company,
and the capital paid in cash by the said Company. The stock
of the Investors Company and the Concordia Loan and Trust
Company was purchased at par, and assets appraised at the
purchase price were in the treasuries of these Companies, includ¬
ing certain real estate in Concordia, Kansas, formerly used as
an office of the Company, and valued at $12,000. The Com¬
pany is also interested to the extent of $54,700 in the stock of
the Jackson Investment Company, which has a capitalization of
$150,000.
8
KEITH AND PERRY COAL COMPANY.
The Keith and Perry Coal Company was originally organized
under the laws of the State of Missouri, with a capital of
$300,000, divided into 3000 shares, owning property in Kansas
and Missouri, located about 130 miles south of Kansas City, on
the Kansas, Fort Scott and Memphis Railroad. The profits of
the company, before charging interest on borrowed money, but
after charging management and all trading expenses, according
to the statement of accountants who examined their books, were
as follows :
For the year ending May 31st, 1887 $125,602.30
" " " 1888 207,062.99
" " 1889 170,725.51
" " " 1890 162,006.46
or an average per year of $166,349.31.
The following dividends were paid by the company :
June 20th, 1887, 10 per cent $30,000
Jrme i8tb, 1888, 10 " 30,000
May loth, 1889, 25 " 75,000
December i6th, 1889, 20 pei* cent 60,000
The Investors Company, a corporation having a capital of
$50,000, of which James L. Lombard and his wife and nephew
(W. A. Lombard) were the sole owners, purchased in May,
1890, from various parties, all of the stock of the Keith and
Perry Coal Company of Missouri, paying for the same, accord¬
ing to the statement of James L. Lombard, corroborated by that
of John Perry, $700,000. The books of the Investors Com¬
pany, containing the entries of this transaction, are not in the
possession of the Lombard Investment Company, and could not
be examined for verification.
The property of the Keith and Perry Coal Company of
Missouri was sold to the Keith and Perry Coal Company of
Kansas for $800,000 of its stock and $800,000 first mortgage
6% bonds due May ist, 1900, interest payable on the first of
February, May, August, and November of each year.
9
Of the new stock, Messrs. Keith and Perry received ^40°)-
000 for services rendered in securing options to purchase the
old stock and assisting in the reorganization, and agreed to
remain with the company for four years, which contract has
recently been changed, they agreeing to remain until the bonded
debt of the company is reduced to 1^400,000.
The Investors Company received the $800,000 bonds and
$400,000 of stock, less $21,400 stock delivered to B. Lombard,
Jr. On June 20th, 1890, the Investors Company sold to the
United States Trust and Guarantee Corporation, Limited,
$690,000 of the bonds, at 88 per cent., and about the same time
$50,000 to the Anglo-American Land Mortgage and Agency
Company, Limited, of London, at 90 per cent., and $60,000 to
Messrs. Keith and Perry at par.
Taking the amount of money received from the sale of
bonds and deducting the amount paid for the stock of the
Missouri Company and about $4000 for legal expenses in the
reorganization, the profit to the Investors Company on the
transaction was $8200 in cash (being 12% profit on $60,000
bonds sold to Messrs. Keith and Perry, and 2% profit on
$50,000 bonds sold to the Anglo-American Company), and
$378,600 stock of the Kansas Company.
These $690,000 of bonds were returned by the United
States Trust and Guarantee Corporation, Limited, of which
James L. Lombard was the Manager in America, to the Investors
Company, which paid for them as follows;
August 22d,
1890 . . .
. . 176,000
for
$200,000 bonds.
Septemljer 2d,
H
, . . 44,000
50,000
nth.
a
n
50,000 "
13th,
n
«
50,000 "
30th,
. . . 44,coo
(i
50,000
October 8tli,
u
. . . 44,000
«
50,000 "
" 22d,
({
((
50,000 "
November 5th,
«(
44,000
it
50,000
" 22d,
i(
ÍÍ
50,000 "
" 29th,
44,000
50,000 "
December 4tb,
. . . 35,200
**
40,000 "
$607,200
n
$690,000 "
10
The Investors Company sold to the Lombard Investment
Company all the $6^0,000 bonds at 88 per cent., and delivered
as a bonus ¡8325,000 stock of the Coal Company. A portion of
the transaction was made through the Alliance and Valley Trust
Companies, two of the Auxiliary Companies of the Lombard
Investment Company. On March 14th, 1891, James L. Lom¬
bard returned to the Lombard Investment Company ^26,400
stock of the Keith and Perry Coal Company and $500 cash, and
on April 4th, 1891, Wm. A. Lombard returned $17,600 of
the Keith and Perry Coal Company stock and $333-33 in cash.
In the journal of the Lombard Investment Company is the
following explanation of this transaction: "176 shares Keith
and Perry Coal Company stock returned by W. A. Lombard as
his proportion of stock dividend on Keith and Perry Coal deal
with Investors Company." Also, "Cash dividend on Keith
and Perry Coal deal returned by W. A. Lombard," and a
similar explanation of the amount returned by James L. Lom¬
bard.
At the time the Lombard Investment Company purchased
these bonds, they entered the same upon their books as an asset
at par, and used them at that value as a collateral to debentures
—crediting the difference, $82,800, as a profit. They also car¬
ried as an asset the 3690 shares of coal stock (less 15 shares sold)
at $242,625.
The Company has sold, to November 15th, 1892, $260,000
of these bonds at par, guaranteeing the payment of principal
and interest, and $35,500 at about 96 per cent., unguaranteed;
and in addition they sold on July 6th, 1892, to the Keith and
Perry Coal Company and to John Perry, $160,000 at about 90
per cent., giving in addition as a bonus 720 shares of coal stock,
which was carried upon their books as an asset at $47,534.40.
These sales leave $284,500 bonds on hand. In part payment
of the $70,000 bonds sold to the Keith and Perry Coal Com¬
pany, the Company received their notes with the bonds as col¬
lateral at 70 per cent., $25,000 due March 9th, 1893,
$25,000 due January 9th, 1893, of which $40,000 has been sold
without recourse.
And in part payment of the $90,000 bonds sold to John
Perry, they took a first mortgage of the Bolen Coal Company,
II
10,000 due November 7th, 1893, ^10,000 due November
7th, 1894, bearing 7 per cent, interest, payable May and
November, also national bank stocks valued at ^26,950 which
the Company has sold, excepting the following :
50 shares First National Bank of Memphis, Tenn
valued at
10 shares City National Bank, Fort Scott, Kansas
valued at
25 shares Manufacturers National Bank, Pittsburg
Mo., valued at
fo.ooo
1.150
2,500
$9,650
The $20,000 mortgage of the Bolen Coal Company was
sold August 29th, 1892, to the Edinburgh Lombard Investment
Company, Limited, and guaranteed.
COLORADO AND KANSAS CANAL AND
RESERVOIR CO.
(Known as Koen Ditch Bonds.)
B. Lombard, Jr., and James L. Lombard, being the owners
of large tracts of land in Hamilton and Kearney Counties,
Kansas, organized the Hamilton Lánd Company, and on July
ist, 1885, sold to that corporation 77,636 acres for $152,728.23,
receiving $150,000 of the stock of the company in part pay¬
ment. The Hamilton Land Company at various times borrowed
large amounts of money from the Lombard Investment Com¬
pany, and gave mortgages on the said lands.
The Hamilton Land Company or the Lombard Brothers
deeded certain tracts of these lands to different persons in the
employ of the Lombards or the Lombard Investment Company,
who gave mortgages upon the same which were sold to or by
the Lombard Investment Company, and the proceeds paid to
the Lombard Brothers.
Among the names used were those of E. H. Dobbs, George
J. Crosse, D. M. Conner, Otis A. Turner, John W. Gish,
and H. E. Mooney. These mortgages were principally sold to
the Anglo-American Land, Mortgage and Agency Company,
Limited, of London, and the Edinburgh Lombard Investment
Company, Limited, of Edinburgh, Scotland—those sold to the
12
latter company being guaranteed by the Lombard Investment
Company.
On May 31st, 1889, the Anglo-American Company held the
following mortgages :
Of E. H. Dobbs .... $io,ooo bought June, 1885
" Geo. J. Crosse . . . 11,200 " January, 1887
" H. E. Mooney . . . 9,800 " "
" D. M. Conner . . . 13,800 " "
" John W. Gish 16,700 " "
" Hamilton Land Co. . 21,700 " "
" Otis Turner 23,200 " November,
J106,400
And on the same date the Edinburgh Lombard Investment
Company, Limited, held fifty-nine (59) mortgages of the Hamil¬
ton Land Company, aggregating $47,550, purchased in November
and December, 1887. The mortgages sold to the Edinburgh
Company were all guaranteed by the Lombard Investment Com¬
pany. who received 8 per cent, interest from the Hamilton
Land Company and paid the Edinburgh Company 7 per cent.
On May 28th, 1889, the Lombard Investment Company
purchased of the Hamilton Land Company its mortgages,
aggregating $164,000, 6}4% interest. May and November,
principal due May, 1894, which it carried as collateral to
debentures; and on May 31st, 1889, the 8% mortgages held by
the Anglo-American and the Edinburgh Companies, amounting
to $153,950, were paid.
The Hamilton Land Company sold a portion of its lands
in Hamilton, Kearney, and Grant Counties, Kansas, to the
Colorado and Kansas Canal and Reservoir Company, which, on
July ist, 1889, executed a mortgage on 73,311 acres to James
L. Lombard, trustee, and issued $350,000 first mortgage 6%
bonds due April ist, 1899, interest payable April and October.
The entire issue was purchased by the Lombard Investment
Company on June 5th, 1890, from the Hamilton Land Com¬
pany, at par, and used as collateral to debentures. The $ 164,000
6j4 % mortgages previously given by the Hamilton Land Com¬
pany were paid out of the proceeds of the sale of the Reservoir
Company bonds; $86,500 was placed to the credit of the
13
Reservoir Company on the books of the Lombard Investment
Company, and afterward used in paying the 1890 taxes upon the
property and the October, 1890, and April and October, 1891,
interest, and retiring ^^50,000 of the bonds.
A commission of $70,000 was paid by the Reservoir Com¬
pany, consisting of. $3500 in cash and a second mortgage of
$66,500, payable $3500 semi-annually in nineteen payments.
The commission paid to the Lombard Investment Company was
$17,500 in cash. This second mortgage was afterward fore¬
closed and the property purchased by James L. Lombard,
subject to the first mortgage of $350,000.
On April nth, 1891, B. Lombard, Jr., and James L.
Lombard executed to the Lombard Investment Company the
following guarantee :
For Value Received, the undersigned, B. Lombard, Jr.,
and James L. Lombard, hereby guarantee the collection of the
principal and interest (in the proportion of two-thirds for
B. Lombard, Jr., and one-third for James L. Lombard) of all
the bonds made by the Colorado and Kansas Canal and Reser¬
voir Company to the Lombard Investment Company of Kansas,
dated the first day of July, 1889, amounting in the aggregate to
three hundred and fifty thousand dollars ($350,000), secured by
mortgage on certain lands formerly owned by the Hamilton
Land Company in Western Kansas, and on the ditch owned by
the said Canal Company ; and the undersigned, in the above
proportion (two-thirds for B. Lombard, Jr., and one-third for
James L. Lombard), also guarantee the collection of the prin¬
cipal and interest of any bonds that may be given in exchange
for the above-mentioned bonds ; and they further guarantee the
principal and interest, in the above proportions, of any increased
issue of said bonds up to fifty thousand dollars ($50,000), mak¬
ing the total so guaranteed four hundred thousand dollars
($400,000).
In Witness Whereof, we have hereunto set our hands and
seals this eleventh day of April, 1891.
(Signed) B. Lombard, Jr. (Seal.)
(Signed) James L. Lombard. (Seal.)
Witness : Irving Wood.
Witness: F. L. White.
M
Under this guarantee, the Lombards have taken up 1175,000
of the bonds as follows :
Reducing the Lombard Investment Company's holdings to
$125,000. In part payment of the bonds taken up October 4th,
1892, James L. Lombard gave the Company a $15,000 second
mortgage of Solon O. Thatcher on 870 acres of land in Douglas
County, Missouri, dated January 14th, 1892, (>% interest, pay¬
able February and August; said mortgage was payable as
follows :
$3,000 February, 1893
6,000 " 1894
6,000 " 1895
and is subject to a first mortgage of $13,500, given to the
Lombard Investment Company. The second mortgage was
received at its face value, $15,000, and accrued interest, $150,
and was endorsed " Collection guaranteed. (Signed) B.Lom¬
bard, Jr., and James L. Lombard," this firm signature being
executed by James L. Lombard.
The Seaboard Manufacturing Company of Mobile, Ala¬
bama, executed to the Lombard Investment Company, trustees,
a mortgage upon all its property and franchises owned or
which may be hereafter acquired, and also upon $216,000
first mortgage bonds of the Seaboard Railroad Company, being
an issue of twelve thousand dollars ($12,000) per mile upon
eighteen (18) miles of road constructed and in operation in
Washington and Mobile Counties, State of Alabama. The
bonds under this mortgage are an issue of $300,000, 6% interest,
payable the first of June and December of each year; the prin¬
cipal being payable as follows :
November i6th, 1891
March 12th, 1892
July 20th, 1892 . .
October 4th, 1892 .
$45,000
20,000
20,000
90,000
$175,000
SEABOARD MANUFACTURING CO.
15
December ist, 1891, ^50,000, and a like amount each year
thereafter until the whole issue is paid. These bonds are
endorsed by the Seaboard Lumber Company of New York and
Josiah Lombard and Marshall Ayres, of which the following is
a copy:
For Value Received, the Seaboard Lumber Company,
a corporation under the laws of the State of New York, hereby
guarantees to the holder hereof, expressly waiving demand of
payment and protest, payment of the interest on the within
bond of the Seaboard Manufacturing Company, and also the
payment of the principal thereof when the same becomes due
and payable according to the tenor thereof.
In Witness Whereof, said Seaboard Lumber Company
has caused these presents to be signed by its Secretary and its
corporate seal to be hereto affixed by express authority of its
Board of Directors at New York City, New York, this 26th day
of November, A.D. 1890.
Seaboard Lumber Company,
(Seal.) By H. C. Burrows, Secretary.
For Value Received, we, the undersigned, Josiah Lombard
and Marshall Ayres, do hereby jointly and severally guarantee
to the holder hereof, expressly waiving demand of payment and
protest, the payment of the interest on the within bond of the
Seaboard Manufacturing Company, and also the payment of the
principal thereof when the same becomes due and payable
according to the tenor thereof.
In Witness Whereof, we have hereunto set our hands and
seals at New York City, New York, this 26th day of November,
A.D. 1890.
Josiah Lombard. (Seal.)
Marshall Ayres. (Seal.)
In December, 1890, the Lombard Investment Company
purchased of the Seaboard Manufacturing Company the entire
issue of this loan, $300,000, and received a commission of
$25,000. The bonds due in December, 1891 and 1892, amount¬
ing to , $100,000, were sold to the United States Trust and
Guarantee Corporation, Limited, and a commission of $3494.17
was allowed them.
i6
On March 6th, 1891, there was sold at par with the Com¬
pany's guarantee one thousand dollars due 1896, of the remain¬
ing $199,000 the Company holds; there was, on February ist,
1892, $110,000 used as collateral to debentures, which was
increased at different times until on November 22d, 1892, the
whole amount, $199,000, was so used. The interest on these
bonds, which is payable at the Chase National Bank, New York,
has been promptly paid, also the $50,000 bonds due December
ist, 1891, and $50,000 due December ist, 1892.
LA PLATA COAL AND COKE CO.
This company was incorporated March 27th, 1890, by
J. P. Airy " "
with a capital of $175,000 Common stock and $75,000 Preferred
stock; the latter entitled to 10% dividend before the Common
stock received any, but at the expiration of five years it had to
be exchanged for Common stock and canceled. While the Pre¬
ferred stock was outstanding, no bonded debt could be placed
upon the property.
The company owned coal lands near Durango, Colorado,
and also all the stock of the La Plata Railroad Company, a
corporation incorporated December 2d, 1889, and owning a
small railroad connecting the Coal Company's property with
the Denver and Rio Grande Railroad.
A copy of the trial-balance from the Coal Company's book
shows that
William H. Rusch held , i>46,37S Common stock.
B. Lombard, Jr 11,000 " "
William McGeorge, Jr 11,500 " "
James L. Lombard 9,000 " "
F. K. and C. O. Atkins 47,125 " "
In the treasury 25,0:0 " "
Purchased by the Lombard Investment Co. 25,000 " •'
B. Lombard, Jr
William McGeorge, Jr. . .
William A. Rusch . . . .
Boston, Mass.
Philadelphia, Pa.
New York, N. Y.
F. K. Atkins
C. O. Atkins
F. O. Blake
Denver, Col.
Durango, Col.
$175,000
17
On August 18th, 1890, the following were the holders of
the Preferred stock :
United States Trust and Guarantee Corporation, Limited . 24,000
September nth, 1890, sold to Lombard Investment Co. . . 25,000
This Preferred stock was sold at ^80 per share, par value
gioo. The proceeds, $60,000, paid into the treasury of the
company in cash and expended in development, building the
railroad, &c., as per the letter of F. K. Atkins, of January 30th,
1891, to William McGeorge, Jr.
Of the incorporators and holders of stock, B. Lombard, Jr.,
James L. Lombard, and William McGeorge, Jr., were officers
of the Lombard Investment Company ; F. K. Atkins and C. O.
Atkins were respectively Vice-President and Cashier of the
Colorado Savings-Bank of Denver, Colorado, which institution
is the Denver Branch Office of the Lombard Investment Com¬
pany; the United States Trust and Guarantee Corporation,
Limited, is an institution which was organized by J. L. and
W. A. Lombard, and of which the Lombard Investment Com¬
pany is a stockholder.
On September nth, 1890, the Lombard Investment Com¬
pany purchased 250 shares of the Preferred stock at $80 per
share, $20,000, and paid for the same with its check No.
186,793 on the First National Bank of Kansas City, to the order
of C. O. Atkins, Treasurer. On October 24th, 1890, or 44
days after the above purchase, an agreement was entered into
between James L. Lombard and F. K. Atkins to reorganize
the Coal Company, giving as a reason for such reorganization
" that the La Plata Coal and Coke Company of Colorado has
become involved and has incurred a large amount of indebt¬
edness."
This statement is .confirmed by the balance-sheet of the
Company, which shows that, after the receipt of the $20,000
William H. Rusch . ,
B. Lombard, Jr. . . .
F. K. and C. O. Atkins
$12,500
6,000
7,500
$50,000
$75,000
i8
from the Lombard Investment Company, the Coal Company
was in debt over 138,000.
The following is the balance-sheet :
ASSETS.
Real Estate and Railroad J243,000.00
Railroad Construction account 15,448.08
Development account 18,273.27
Personal Property account 4,169.31
Individual account 2,821.22
Bills Receivable 289.22
Colorado Savings Bank, Denver 37-50
First National Bank, Durango 27.50
Cash 273.80
Excess of Liabilities over Assets 4,326 28
»288,666.18
LIABILITIES.
Capital Stock, Common »175,000.00
" " Preferred 75,000.00
Bills Payable • 13,300.00
C. O. Atkins, Treasurer . 15,582.70
Denver & Rio Grande R.R. . . . .... 9,783.48
$288,666.18
Under the terms of the agreement referred to, clause 2, J. L.
Lombard agreed to purchase 250 shares of the Common stock
at $40 per share, $10,000, which was paid for by the Lombard
Investment Company on November 7th, 1890, and charged to
"La Plata Coal and Coke Company, Stock Account." Under
clause I of the agreement, James L. Lombard agreed to " pur¬
chase paper of the La Plata Coal and Coke Company to an
aggregate amount of $25,000 at 90 days from the date hereof,"
said paper to be endorsed by F. K. Atkins and C. O. Atkins and
to be discounted at the rate of 10 per cent, per annum and to be
secured by $99,500 of the stock of the La Plata Railroad Com¬
pany. The Investors Company, a corporation at that time
entirely owned by the Lombard Investment Company (with the
exception of the requisite number of shares to qualify Directors),
on November 24th, 1890, discounted three notes of the La Plata
Coal and Coke Company at 90 days, aggregating $12,500,
endorsed by F. K. Atkins and C. O. Atkins and secured by
497 shares of La Plata Railroad stock; and on December 23d,
19
1890, discounted three more notes for the same amount,
endorsed by F. K. Atkins and William H. Rusch and secured
by 498 shares of La Plata Railroad stock. The notes discounted
November 24th, 1890, were renewed on February 6th, 1891,
and, with the notes discounted on December 23d, 1890, were,
on February ist, 1892, held by the Investors Company and
unpaid. On December 8th, 1890, the Lombard Investment
Company made a demand loan to the La Plata Coal and Coke
Company of 110,000, with interest from date at 10% per
annum, and placed the proceeds to the credit of said company
upon its books, which amount and 1183.30 in addition was
drawn by said Coal Company. On June 19th, 1891, the
Lombard Investment Company made a demand loan to the
Coal Company of giving check on î"irst National
Bank, Kansas City, to the order of J. W. Harper, for the
amount.
The cost of this property, and at which it was carried on
the books of the Lombard Investment Company and the Invest¬
ors Company, on February ist, 1892, as an asset, is as follows:
LOMBARD INVESTMENT CO.
Demand Loan, dated December 6th, 1890 10,000.00
Demand Loan, dated June 19th, 1891 . . . 317 91
Ledger account, amount overdrawn . . . 183.30
250 shares Preferred stock purchased . . . 20,000.00
250 shares Common stock " ... 10,000.00
$40,501.21
INVESTORS COMPANY.
Three notes discounted and endorsed by
F. K. Atkins and C. O. Atkins $12,500.00
Three notes discounted and endorsed by
F. K. Atkins and William H. Rusch . 12,500.00
25,000.00
Total cost $65,501.21
On February 20th, 1892, the Investors Company sold the
La Plata Railroad Company stock, which it held as collateral,
to the Lombard Investment Company for $9959.07. Under
judgment of the Lombard Investment Company, all the prop¬
erty of the La Plata Coal and Coke Company was sold at
Sheriffs sale and purchased by the Lombard Investment Com¬
pany. In October, 1892, the company was reorganized as the
20
Southwestern Coal Company, with a capital of ¿¡82,000 ; William
H. Rusch, paying one-fifth of the debts of the old company and
contributing one-fifth of the ;^io,poo placed in the treasury of
the new company as a working capital, received one-fifth of the
stock of the new company ; the Lombard Investment Company
retaining the remaining four-fifths, ¿65,600, and contributing
four-fifths of the working capital, ¿8000. The amount of
money invested in this enterprise by the Lombard Investment
Company is as follows :
Total cost, February 1st, 1892 ¿65,501.21
Foreclosure expenses 1,771.10
Four-fifths working capital 8,000 00
¿75,272.31
Cash received from William H. Rusch . . . . 10,431.45
¿64,840.86
Received from F. K. Atkins ¿2000, Loutzen-
hizer Ditch Company bonds taken at par and
accrued interest in settlement of his guarantee 2,021.77
¿62,819.09
Which is carried upon the books of the company November
15th, 1892, at ¿62,100.
FIRST NATIONAL BANK STOCK, KANSAS
CITY, MO.
In regard to this transaction, we examined the books of the
Lombard Investment Company and the First National Bank.
We find there was charged on the books of the Lombard Invest¬
ment Company 350 shares of the First National Bank, to
" Bonds and Stocks," as follows ;
January 27th, 1888 . . . 240 shares at 145 . . . ¿34,800
February ist, 1888 ... 10 shares,at 145 . . . 1,450
March 9th, 1888 .... 100 shares at 150 . . . 15,000
350 shares. Total. .¿51,250
Between February 17th, 1889, and July 15th, 1890, there
were sold 280 shares, and the remaining 70 shares were settled
for January 5th, 1891, by a note of ¿10,500, which was paid on
February 17th, 1891. From a casual examination of the books
21
of the Lombard Investment Company, it would appear that this
stock was purchased as an investment ; but, on a closer scrutiny,
it is very evident that such was not the case, but that the Lom¬
bard Investment Company was merely a lender of the amount
of money invested in the transaction at 8% per annum; for
monthly from March, 1888, to February, 1891, the First National
Bank paid the interest upon the same, amounting to $3803.45.
The profit on the 280 shares sold, amounting to $1382.87, was
paid to the bank on January 5th, 1891, and credited on its
books.
RAVENNA FLATS.
This property is located at Sixteenth Street and Troost
Avenue, Kansas City, Mo., and consists of twenty-eight suites
of four and five rooms each.
From an examination of the books of B. Lombard, Jr.,
and James L. Lombard, we find that they purchased this prop¬
erty from J. W. Drinkwater, November, 1887, subject to a
mortgage of $32,500 ; giving, in exchange for the same, two
lots of ground and thirty-two farms, of which fourteen had
been previously purchased from the Lombard Investment Com¬
pany for $9500, paying a cash commission of $1000 for con¬
summating the trade. Taking the properties they gave in
exchange at the price they carried them upon their books,
adding all money afterward expended in completing the build¬
ing, interest, taxes, mortgage of $32,500, janitor's services, coal-
bill, and other expenses incurred, deducting from the same all
revenue received in the shape of rents, &c., for the seven
months which they owned it, the net cost, June 12th, 1888,
was $76,411.95.
They sold this property June 12th, i888, to the Lombard
Investment Co. for $80,000
Also $20,000 6 per cent, bonds, People's Cable Railway
Co. of Kansas City, Mo., for 20,000
Total .... $100,000
Receiving, in payment for the same, sundry
second mortgages amounting to $67,132.55
Less discount 2,586.99
Cash
^64,545.56
35.454.44 $100,000
22
Of the cash, $33,430.50 was paid to the Jarvis Conkling
Mortgage Trust Company on June 6th, 1888, to pay off a
mortgage on the Ravenna Flats and interest to August ist, 1888.
On the properties given to J. W. Drinkwater in exchange for
the Flats, the Lombard Investment Company loaned $37,500
for five years at 8% per annum.
This property and bonds were used as collateral to debent¬
ures at a valuation of $100,000.
The income received from this property, after deducting
taxes, repairs, janitor's services, &c., exclusive of any interest
upon the $80,000 invested, was as follows:
For the year ending June 30th, 1889 $5,258.55
" " " 1890 3,643.01
" " " 1891 1,328.99
" " " 1892 1,38677
We find no entry upon the firm books of B. Lombard, Jr.,
and J. L. Lombard, showing the purchase of the Cable Com¬
pany's bonds, it being an individual transaction. When the
bonds were originally issued by the Cable Company, every sub¬
scriber to Siooo of bonds received a bonus in stock of $1000.
J. L. Lombard informs us that he and B. Lombard, Jr., were
not original subscribers to the bonds, but purchased the same
at par, J. L. Lombard receiving a stock bonus of $6000 on the
$10,000 bonds purchased by him, and B. Lombard, Jr., receiv¬
ing a stock bonus of $2500 on the §10,000 bonds purchased by
him. This stock was retained by them, as they claim to have
guaranteed the payment of the Cable Company's bonds to the
Lombard Investment Company, and the latter Company in
return guaranteed the payment of the second mortgages given
in the trade.
During the time the Lombard Investment Company held,
the Cable Company's bonds, it paid two assessments on the
same—June loth, 1890, one of 10%, amounting to $2000, and
December 15th, 1890, one of 5%, amounting to §1000. On
March 21st, 1891, the Lombards paid the $20,000 bonds, the
two assessments of $3000, and interest on the bonds from July
ist, 1888—$3356.32.
23
LENEXA PROPERTY.
This land is located near Lenexa, in Johnson County,
Kansas, about fourteen miles from Kansas City, Mo., consisting
of three tracts, 1643 acres. The Nelson tract of 1200 acres and
the Justice tract of 243 acres are located about half a mile north
of Lenexa, and the Reynolds tract of 200 acres is located about
two and a half miles south of Lenexa.
The Lombard Investment Company, on July 6th, 1887,
made thirty-eight loans on, 1543 acres, to G. W. Strayer,
F. K. Moody, R. M. Stewart, T. A. Scott, S. F. Scott,
G. F. Coomber, T. F. Durham, Thomas Durham, and J. W.
Strayer, aggregating ^186,500, due July ist, 1892, 6% interest,
payable January and July, the Company receiving a commission
of ^13,676.64. The proceeds of these loans, less the com¬
mission, recording expenses, &c., were paid by drafts as follows :
To the order of William Justice $22,483.62
" " George R. Nelson 138,000.00
" " Strayer, Coomber & Co 12,251.74
From the books of B. Lombard, Jr., and J. L. Lombard,
we find that they bought, on August loth, 1887, eighty acres
adjoining the Nelson tract, for $12,000, which was paid by
checks of the Lombard Investment Company, one to the order
of Thomas Durham for $11,325, and another to the order of
Strayer, Coomber & Co. for $675, which amount was charged
to their account. We find that on September 12th, 1887, they
sold to John 1. Dunn, John W. Gish, Harry E. Mooney, and
George W. Mathews, four employees of the Lombard Invest¬
ment Company, ten acres each for $1500. They each borrowed
$750 from the Lombard Investment Company on the same, for
five years, at 8% interest. On October 25th, 1887, the Lom¬
bards sold the remaining forty acres to the Lombard Investment
Company for $6000. The latter Company carries this real estate
at its cost price as collateral to debentures.
On thirty-four of the thirty-eight loans above referred to,
the first coupon, due in January, 1888, was paid, which was the
only interest ever received on any of these loans, except some
notes and real-estate equities which are hereafter noted.
24
On June 30th, 1887, the Lombard Investment Company
purchased of the Fidelity Trust Company of Kansas City, Mo.,
two mortgages of ^5000 each, of Thomas F. Durham, on a
loo-acre tract, dated June ist, 1887, due June ist, 1889, 8%
interest, payable annually, the Company receiving a commission
of ;g2oo. These loans were sold on August 2d, 1887, to the
Edinburgh Lombard Investment Company, Limited, on a basis
of 7% per annum and guaranteed. The interest being in
default, the mortgages were foreclosed and the property acquired
by the Lombard Investment Company and carried on its books
as collateral to debentures at 1111,090. Had the interest and
principal of this loan been promptly paid when due, the profit
to the Company on the transaction would have been ^^400.
Thirty of the loans made on the 1543 acres, the property
has been acquired by the Alliance Trust Company either by
foreclosure proceedings or deeds from the borrowers; the remain¬
ing eight loans, representing ^36,500, have not yet been fore¬
closed.
The cost, taxes, and accrued interest on these thirty
loans amounted to $30>345.95
Which, with the amount originally loaned .... 186,500.00
Make a total, February ist, 1892 $216,845.95
to which must be added the interest, costs, and taxes on the
eight remaining loans. After acquiring the properties, settle¬
ments were made with the mortgagors whereby the Company
received the following:
From Frank H. Moody, his notes, aggregating $8999.98,
secured by 50 shares Metropolitan Passenger Railway, Kansas
City, Mo., and real estate mortgage of $4000. These notes
were carried as collateral to debentures by the Company, and
the amount credited to profit and loss on the books of the
Alliance Trust Company.
From T. A. Scott, equity in a Wyandotte property valued
at $2500, subject to an encumbrance of $4000, and which rents
for $240 per annum. The entries upon the Alliance Company's
books for this transaction are a charge to real estate account of
$2500, and a credit to profit and loss of a like amount.
25
From G. W. and J. W. Strayer, equity in a Kansas City
property located on Troost Avenue, valued at ;^45oo, subject to
an encumbrance of $5000, and which rents for ^480 per annum ;
also equity in a Kansas City property located at the corner of
Lexington and Park Avenues, valued at ^^4000, subject to an
encumbrance of $2000, which rents for ^240 per annum.
The Troost Avenue equity was charged on the Alliance
Trust Company's books to real estate and credited on the Lom¬
bard Investment Company's books in payment for overdue
interest. The Lexington Avenue equity was sold to the City
Real Estate Company for $4000, and the proceeds credited on
the Lombard Investment Company's books in payment for over¬
due interest.
From S. F. Scott, three mortgages of ^5000 each, on
Kansas City property located near Mellier Place, southwestern
part of the city, dated November 7th, 1890 (8% interest. May
and November), due as follows :
$5,000, November, 1893;
$5,000, November, 1894;
$5,000, November, 1895.
The May, 1891, coupon was paid on August 26th, 1891 ;
the November, 1891, and the May and November, 1892, remain
unpaid. These mortgages were purchased by the Lombard
Investment Company and carried by it as collateral to debent¬
ures: the proceeds, $15,000, being credited on the books of
the Alliance Trust Company to profit and loss.
Of the four employees of the Company who borrowed $750
each, John W. Gish has promptly paid all his interest coupons ;
John I. Dunn and G. W. Mathews have paid all their coupons,
excepting the ones due October, 1892. H. E. Mooney, the
present Secretary of the Company, still owes the April and
October, 1891, and the April and October, 1892, coupons,
amounting to $120. This mortgage is owned by the Anglo-
American Land Mortgage and Agency Company, Limited, of
London ; and although the same is an unguaranteed loan, the
Lombard Investment Company paid the Anglo-American Com¬
pany the April, 1891, coupon, and the same remains unpaid
by Mooney. When the loan of $186,500 was made on the 1543
20
acres, the Company's examiner, John 1. Dunn, estimated the
land to be worth and the buildings thereon at I6300;
and when the Company purchased the |¡io,ooo mortgage from
the Fidelity Trust Company, in which James L. Lombard was
interested, he appraised the property as being worth $2^,000.
On December 19th, 1891, the Company sold eighty acres
of the Nelson tract for ^4900, and in October, 1892, forty acres
of the same tract for $1750 ; unless the balance of the property
be sold at higher figures, the Company will not realize forty per
cent, of the money it has invested in it.
BELMONT BLOCK.
Manuel A. Diaz was erecting a building at the corner of
Fifteenth and Tracy Streets, Kansas City, Mo., known as the
Belmont Block; he, on June 17th, 1887, borrowed from the
Lombard Investment Company ^72,000 upon mortgage on said
property, giving the Company a building loan bond for ^72,000
to secure them against any liens. Being unable to complete the
building, and failing to pay his interest on the mortgage, the
Company foreclosed ; and, in order to obtain a clear title, was
compelled to settle with the holders of mechanics' liens—the
bond given the Company as security proving worthless.
In November, 1888, the Company obtained title, subject to
the liens, which were afterward compromised.
The cost to the Company was as follows :
$y2,000.00
6,360.00
246 38
4,487.98
1,596.00
First mortgage
Commission mortgage
Costs of foreclosure
January and July, 1888, interest on loan . .
Interest, July ist to November 13th, 1888 .
$84,690.36
Total cost to November 13th, 1888 . .
Amount paid in settlement of liens and neces¬
sary work done to preserve building . . . 25,641.17
«'10.331-53
The Company, having compromised the mechanics' liens,
determined to complete the building, altering the same into an
apartment-house containing twenty-four separate flats, and have
27
expended, up to November 19th, 1892, $35,862.71; which,
with the estimated amount necessary to complete it, will make
a total outlay of $52,000 for the reconstruction. Although the
building is uncompleted, all of the flats have been rented. The
President of the City Real Estate Company, the Auxiliary Com¬
pany of the Lombard Investment Company, which owns the
building, estimates that " the total rent will foot up something
in excess of $10,000 per annum; and the running expenses,
including insurance, taxes, and janitor's wages, will not be
more than $3000."
When the building is completed, should the estimate of
reconstruction expense not exceed the amount named, the
property will cost the Company $162,331.53, exclusive of any
interest from November 13th, 1888. Of this amount, $43,049.10
has already been charged to profit and loss, reducing the cost
on the Company's books to about $120,000.
In this transaction, we observed that this real estate used
as collateral to debentures was changed in price or valuation
from time to time. Thus, this property, which had cost the
Company on November 13th, 1888, $84,690.36, and against
which there were sundry mechanics' liens filed, and which were,
subsequent to this transaction, purchased for about $25,000, was
used as collateral to debentures at a valuation of $100,000,
which was, on December 22d, 1888, increased to $120,000, at
which value it remained until April i8th, 1889, when it was
reduced to $70,000, and again reduced on January 23d, 1891,
to $50,000, at which value it remained until sold to the City
Real Estate Company in May, 1892.
STEWART FLAT AND STEWART BLOCK.
The Stewart Flat is located at Fourteenth and Holmes
Streets, Kansas City, Mo., and consists of twenty suites of five
rooms. The Stewart Block is located at Fourteenth and Camp¬
bell Streets, Kansas City, Mo., and consists of three houses and
two stores with dwellings. The Company acquired these prop¬
erties July 5th, 1889, by accepting a deed from Robert M.
Stewart for his equity therein, being accepted in whole or part
settlement of the loss to the Company on loans made on the
2S
Lenexa property, he being one of the makers of those mort¬
gages.
At the time the Company took the deed from Stewart, he
was indebted to them to the amount of $32,500 previously
loaned upon these properties, and accrued interest; and, in
addition, there were second mortgages and other claims against
the property. The Company foreclosed under their first mort¬
gage May 2d, 1890, in order to obtain a clear title.
The cost to the Company at the time of acquiring title was
as follows :
Loan June l8th, 1886 $10,000.00
Loans April ist, 1887 25,000.00
$35,000.00
April 2d, 1888, less payment on account 2,500.00
$32,500.00
April 28th, 1889, Sheidley mortgage, $20,000 . . . 17,185.63
Sundry expenses 22.90
September l8th, 1889, two mortgage notes of R. M.
Stewart, order of C. Dault 7,500.00
Interest on same 654.80
November 13th, 1889, Bogart claim (note of R. M.
Stewart, $10,000) 6,560.66
April 24th, 1890, George Sheidley claim 10,586.67
Attorney's fee on same 135.00
May 24th, 1890, expenses of foreclosure . ... 319.87
Trustee's fee ... 125.00
October, 1888, April and October, 1889, April, 1890,
coupons on $20,000 loan 2,400.00
October, 1888, and April, 1889, coupons on $2500
loan 150.00
July, 1889, and January, 1890, coupons on $10,000
loan 600.00
Interest, January, 1890, to June, 1890, on $10,000
loan ... 250.00
$78,990.53
This property was on May 2 7th, 1890, sold to the Valley
Loan and Trust Company for $100,000. On January 20th,
1891, the Valley Loan and Trust Company sold the property
back to the Lombard Investment Company for $125,000,
â9
crediting the difference in price, ^25,000, to profit and loss.
The Lombard Investment Company carried this property on its
books as an asset at ^125,000, and from March 9th, 1891,
used it at this value as collateral to debentures until December
2d, 1891, when it was withdrawn as a collateral and sold to the
City Real Estate Company for $12^,000, and was carried as an
asset by that Company at that price until May 19th, 1892, when
the price was reduced to $100,000 by crediting $25,000 and
charging the same amount to the value of another property
owned by the Company, known as the Grimes building.
DEFALCATIONS OF RUSSELL AND LEWIS.
Under the system of book-keeping used, it was an easy
matter for anyone who made the charge and credit tickets or
entered the same upon the books, and who handled the money
or had access thereto, to embezzle the funds of the Company.
The usual method adopted by defaulters is to use a profit and
loss account for the covering up of their transactions, and the
cases of Russell and Lewis were no exceptions.
Periodical examinations have been made of the books, and,
in addition, they have been audited by well-known accountants
of both New York and Philadelphia, by several State Com¬
missioners, and various committees; and yet these defalcations,
extending over years, were not discovered.
Part of the duties of the late Treasurer, Henry W. L.
Russell, was the examination of the daily "Account of sales,"
"Interest collected," "Coupons paid," "Commission and
expenses paid," of the Boston, New York, and Philadelphia
Offices.
Prior to March 3d, 1887, the commission and interest
received on loans and the expense paid for procuring the same
were entered in separate accounts, designated by the State in
which the loan was made ; on this date, the system was changed
and this income and expense all entered to one account known
as "Brokerage" account, and in many cases in a lump sum,
thus making the falsification of the books that much easier.
There is no doubt in our mind that this change was made by
Russell for that purpose, as on the following day he began his
peculations by taking $100, and systematically continued the
same until March 7th, 1891, during which period he took a
total of 5109,964, distributed over the following months:
00
00
1888.
1889.
1890.
1891.
January . .
3.230
3,170
2,050
2,040
February . .
2,810
2,800
3,290
3,270
March . . .
520
1.750
2.380
940
April
1,050
1,700
3,700
May ....
1.464
4.350
3,590
June . . .
. . 300
2.505
5,600
1,910
July ....
2.495
5.000
2,180
August . . .
2,000
. .
2,260
September
. . . 2,500
2.050
1.350
2,415
October
■ • . 2,300
800
2,880
2,020
November
. . . 2,560
2.150
3,650
3,590
December . .
. . 2,100
3,200
1,420
2,035
Í5I4,350
524,274
«33,670
531,420
56,250
SUMMARY.
1887 ?'4.3SO
1888 24.274
1889 33.670
1890 31,420
1891 6,250
5109,964
To ascertain this amount, we examined over thirty-five
thousand reports of sales of the Eastern offices. From March
4th, 1887, to July 27th, 1889, his method of falsifying the books
was to add to the amount of commission paid by the Eastern
offices the amount he took, and charge the same to Brokerage
account j and from September i6th, 1889, to March 7th, 1891,
in crediting the amount of interest received by the Eastern
offices to Brokerage account, he entered a less amount than that
actually received, taking the difference out of the cash. The
Company for several years had an annual surety bond of 520,000,
issued by the American Surety Company of New York, for the
faithful performance of his duties as Treasurer. The last bond
is dated October 31st, 1891, and no shortage was found after
that date. Each year, before a renewal of a bond is made by
the Surety Company, they require a certificate that the accounts
31
of the party to be reinsured have been examined and found
correct, which certificate was given by the officers of the Lom¬
bard Investment Company.
Montgomery H. Lewis was a clerk in the Treasurer's
Department, and the methods adopted by him were the altera¬
tion of charge and credit tickets before they were entered upon
the books, the making of false entries and the alteration of
entries upon the books from one account to another before or
after the cash had been settled, the alteration of additions,
taking in cash the difference between the false and the cor¬
rect entries. But the method adopted by him of obtaining
large sums of money at one time was the alterations above
referred to, and, instead of taking the money out of the cash,
crediting the amount to a deposit account, where he allbwed it
to remain for a short period, and later drawing the cash by
means of the Company's draft on New York banks.
From an examination of the journal upon the days that he
made the entries, we find that he took from the Company
112,670 on the following dates;
1890. 1891.
August 7th . . .
jSioo
February 14th . .
$100
<(
9th . . .
200
"
:6th . .
1,000
«
I2th .
200
tt
17 th .
500
It
13th . . .
200
tt
i8th . .
450
(C
15th . . .
100
tt
19th . .
100
((
i8th . . .
300
May
ISth . .
100
((
19th . . .
2,100
tt
i6th . .
100
t<
20th . . .
100
tt
i8th . .
400
«
2ISt . . .
800
tt
19th . .
100
t<
23d ...
500
tt
20th . .
100
tt
2Sth . . .
500
tt
2ISt . .
100
tt
26th . . .
200
tt
23d . .
.♦ 100
ft
28th . . .
300
October
6th . .
300
it
30th . . .
20
September ist . .
200
Í3r45o
it
2d . .
300
November 26th . .
1,500
SUMMARY.
«
28th . .
1,000
December 4th . .
400
1890 .
. $g,220
it
sth . .
200
M
00
vo
■ 3.45°
Í9,220
^12,670
32
Many of the alterations upon the books are poorly executed,
while others are of a more complicated nature. The vast
amount of work that we had to do prevented an exhaustive audit
to determine the exact amount of his defalcation, which can
only be ascertained by a complete audit covering the period of
his connection with the Company.
The Company has no security from Lewis in the shape of a
bond. It must be borne in mind that the money taken by
Russell and Lewis has already been charged to a profit and loss
account, thereby reducing the net earnings, but does not affect
the present assets of the Company.
GUARANTY FUNDS.
The Directors, as an additional security, decided to reserve
a portion of the profits of the business to meet any loss or losses
that might arise upon the loans guaranteed by the Company ;
and for this purpose, on October 31st, 1882, adopted the fol¬
lowing by-law :
" Whenever this Company, by its President or its Vice-Presi¬
dent, shall place upon any loan its guarantee of collection, it
shall be the duty of the Manager of the Company to set apart
from the profits of the Company a sum equal to 4% of the note
or bond thus guaranteed, and shall continue to do likewise with
all such loans made by the Company, and invest the money as
he shall determine ; which amount shall be held and known as a
Guaranty Fund of the Company, and shall only be used to make
good any losses which may occur to the Company by virtue of
its guarantee thus given."
Second. " Such Guaranty Fund is to be held and invested
until the maturity of the loan upon which the guarantee was
placed and until the payment thereof."
On March 5th, 1884, the by-law was amended by adding
the following :
" The General Manager is authorized to reduce the Guaranty
Fund to be set aside on each bond or note to 2%, at his discre¬
tion, after April ist, 1884."
This was again amended April isth, 1886, by reducing the
amount to be set aside from 2 % to i % on all loans made after
33
February 15th, 1886. This by-law remained in effect until it
was repealed on November 17th, 1887, to take effect on close
of business November 30th, 1887.
The amount of money remaining in this fund February rsth,
1886, was $150,000; and by resolution at stockholders' meeting
held April 15 th, 1886, this fund shall belong, when paid, as
follows :
One-half to the holders of Preferred stock of date prior to
February 15th, 1886 (to the amount of $232,500), and one-half
to B. Lombard, Jr., and James L. Lombard, pro rata to the
respective amounts of Common stock held by them on that
date.
There has been charged against this account, between March
2nd, 1889, and January 23rd, 1892, losses on foreclosure, $19,-
715.75 ; and there has been credited as profit on property sold,
which had been previously taken under foreclosure, $8,376.93 ;
also the balance due original stockholders July 31st, 1886,
$6,061.78. From this fund, there was paid in dividends;
March ist, 1889 . . to Common stockholders .
" " . . to Preferred stockholders .
August 3d, 1889 . . to Common stockholders .
" " . . to Preferred stockholders .
April 18th, 1890 . . to Common stockholders .
" " . . to Preferred stockholders .
Total
Leaving to the credit of this fund a balance of .
$11,625.00
11,625.00
11,625.00
11,625.00
13,950.00
• i3.9So-«>
$74,400.00
• $70,322-96
There still remain unsettled many cases where a liability
exists under this- guarantee, and in which the loss should be
determined and charged to this fund.
The 1% on all loans made from February i6th, 1886, to
November'30th, 1887, reserved from the profits as a guaranty
fund, wascredited to a separate account known as " Reserve " ac¬
count. There was to, the credit of this account a balance of $160,-
000, which, at the time of winding up the affairs of the Kansas
company was credited to undivided .profits and distributed to the
stockholders at the time of the increase of the capital stock
to $4,000,000. After the increase of the capital stock from
34
|¡r,875>ooo to ;J4,000,000 there was no separate reserve or
guaranty fund account for the losses arising on loans made
after February 15th, 1886, which were assumed by the present
Missouri corporation.
There are in existence three other Guaranty Funds, as
follows :
Colorado Savings-Bank,
Chattanooga Savings-Bank,
Montana Savings-Bank.
By agreement, the Colorado Savings-Bank of Denver, Col¬
orado, deposited with James L. Lombard, trustee, as a guarantee
against all loss on loans made by it for the Lombard Investment
Company, 2 % of the amount of the loan ; which has, owing to
the lower rate of interest paid on loans, been reduced to 1%,
and in a few cases to one-half of one per cent. On February
ist, 1892, there was in the hands of the trustee of this fund,
mortgage securities representing 134,700, and on the books
of the Lombard Investment Company, awaiting investment,
¿>3,712,71; making the total amountof this fund, ^^38,4x2.71.
The Chattanooga Savings-bank of Chattanooga, Tennessee,
has deposited with the Lombard Investment Company, trustees,
I % on all loans negotiated by said bank for the Lombard Invest¬
ment Company, as security until the principal and interest of
said loans are paid in full. On February ist, 1892, there was,
in the hands of the trustees of this fund, $g,;^oo, invested in
mortgage securities, and 1,158,65 on the books of the Lombard
Investment Company, awaiting investment ; making a total of
^10,478.65.
On all loans made by the Montana Savings-Bank of Helena,
Montana, for the Lombard Investment Company, there has been
deposited with the Lombard Investment Company, trustees, 2%
of the amount loaned, as security for the payment of the same.
There was, on February ist, 1892, in the hands of the trustees,
;^i,ooo represented by mortgage securities, and $¡22.^0 awaiting
investment in the hands of the Lombard Investment Company ;
making the fund a total of $1,^22.^0. The loans made by the
Montana Savings-Bank bear a higher rate of interest, and con¬
sequently a larger guarantee is provided.
35
DEBENTURES.
We find that the Company had outstanding, on February
ist, 1892, sixty-one series of debentures, amounting to ^4,278,-
893.28, the collateral of which is held in trust by the Atlantic
Trust Company of New York, the New York Security & Trust
Company of New York, the Philadelphia Trust, Safe Deposit and
Insurance Company of Philadelphia, the Union Trust Company
of Philadelphia, the Edinburgh Lombard Investment Company,
Limited, of Edinburgh, Scotland, and the personal trustees, B.
Lombard, Jr., James L. Lombard, and H. W. L. Russell.
Under the personal trust agreement, " it is expressly under¬
stood that, in case of the death, resignation, or inability to act
of any of said trustees, the vacancy shall be filled by the Board
of Directors of the Lombard Investment Company." H. W. L.
Russell, having resigned as one of the trustees, the Directors ot
the Company, on June i8th, 1892, elected Alfred D. Rider to
fill the vacancy.
" Each series of debentures shall be wholly independent of
any other series in the matter of securities " deposited with said
trustees. " The Company has the right at any time to withdraw
any of the securities upon substituting others which in the opinion
of the Company have equal value." Owing to this authority
and the nature of the business, the collateral is often changed.
The collateral deposited with the several Trust Companies
as Trustees is First Mortgages upon Real Estate, while that
deposited with the Personal Trustees consists of :
First and Second Mortgages upon Real Estate.
Chattel Mortgages.
Railroad, Municipal and Industrial Companies bonds.
National and State Bank stocks.
Trust Companies stocks.
Auxiliary Companies stocks.
Real Estate and Real Estate Contracts.
Certificates of Deposit, and
Bills Receivable.
The following tables will show the collateral and the amount
of outstanding debentures, each series separately, as of February
ist, 1892 :
36
Series C.
Six per cent., dated November 28th, 1882, due November ist, 1892, and
May ist, 1893.
Collateral.
First mortgages not due $8,431.40
First mortgages due • • 1,901.00
Second mortgages . 1,065.50
Commission mortgages 445-45
Keith and Perry Coal Co. bonds 3,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds .... 8,000.00
$22,843.35
Amount of Debentures sold :
Due November ist, 1892 .... $15,000
Due May ist, 1893 5,000
$20,000.00
Series D.
6 per cent., dated March ist, 1883, d"® 1^93.
Collateral.
First mortgages not due . $1,200.00
First mortgages due 3,550.00
Second mortgages 180.00
Commission mortgages 1,150.15
Keith and Perry Coal Co. bonds 6,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds . 8,000.00
City Real Estate Co. stock ... .... 4,600.00
$24,680.15
Amount of Debentures sold $19,500.00
Series E.
37
6 per cent., dated May ist, 1884, due May ist, 1893.
Collateral.
First mortgages not due í!lo,ooo.oo
First mortgages due . . 3,185.00
Second mortgages 1,094.00
Commission mortgages 527.25
Keith and Perry Coal Co. bonds 3,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds ... 1,000.00
City Real Estate Co. stock 5,000.00
1123,806.25
Amount of Debentures sold . 820,000.00
Series F.
6 per cent., dated September ist, 1884, due September ist, 1894.
Collateral.
First mortgages not due 81,400.00
First mortgages due 2,750.00
Second mortgages 689.00
Commission mortgages 874.02
Keith and Perry Coal Co. bonds . ... 3,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds .... 11,000.00
City Real Estate Co. stock 5,000.00
824,713.02
• '
Amount of Debentures sold . 820,000.00
38
Series H.
6 per cent., dated September ist, 1884, due September 1st, 1894.
Collateral.
First mortgages not due ;$4,045.oc>
First mortgages due 4,750.00
Second mortgages 95-oo
Commission mortgages 1,512.90
Keith and Perry Coal Co. bonds 3,500.00
Colorado and Kansas Canal and Reservoir Co.
bonds 5,ooQ.oo
City Real Estate Co. stock 5,000.00
823,902.90
Amount of Debentures sold Jlao,OOO.oo
Series I.
6 per cent., dated September ist, 1884, due September ist, 1894.
Collateral.
First mortgages not due 84,000.00
First mortgages due 2,200.00
Second mortgages 942.50
Commission mortgages 222.20
Keith and Perry Coal Co. bonds 3,500.00
Colorado and Kansas Canal and Reservoir Co.
bonds 8,000.00
City Real Estate Co. stock ¡,000.00
823,864.70
Amount of Debentures sold
820,000.00
39
The Collateral to secure the Debentures of Series C to I,
inclusive, is deposited with B. Lombard, Jr., and James L.
Lombard, Trustees, and they have endorsed the following Cer¬
tificate on each Bond :
trustees' certificate.
This Bond is one of Series (Series letter inserted), of like
tenor and effect, amounting in the aggregate to Twenty Thou¬
sand Dollars, and secured by the transfer of Twenty-two Thou¬
sand Dollars of well-secured paper belonging to the Lombard
Investment Company, which is held by us as a Guaranty Fund
for the payment of these bonds, and is subject to the inspection
of the holder or holders at all reasonable times.
(Signed) B. Lombard, Jr., Trustee.
James L. Lombard, Trustee.
Series J.
6 per cent., dated October ist, 1888, due October 1st, 1898.
Collateral.
First mortgages not due .... . $36,105.00
First mortgages due ... . . 18,300.00
Second mortg^es 6,776.25
Commission mortgages 14,516.35
Real Estate 4,900.00
Keith and Perry Coal Co. bonds . . . . 13,000.00
Seaboard Manufacturing Co. bonds ... . 6,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 12,000 00
City Real Estate Co. stock ... . . 10,000.00
$121,597.60
Amonùt of Debentures sold $100,000.00
Series L.
40
6 per cent., dated July ist, 1887, due July ist, 1897.
Collateral.
First mortgages not due ^117,900.00
First mortgages due . . . . . 11,400.00
Second mortgages 3>79S SO
Commission mortgages . 15,703.40
Real Estate 28,000.00
Keith and Perry Coal Co. bonds . . . ii,coo.oo
Seaboard Manufacturing Co. bonds . . . 6,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds . 3,000.00
City Real Estate Co. stock 20,000.00
Concordia Loan and Trust Co. stock 5,000.00
$121,798.90
Amount of Debentures sold $100,000.00
Series M.
6 per cent., dated July ist, 1887, due July ist, 1897.
Collateral.
First mortgages not due $17,190.00
First mortgages due 9,875.00
Second mortgages 3,345-^o
Commission mortgages 24,414.40
Real Estate 36 545.00
Keith and Perry Coal Co. bonds . . . 16,000.00
Concordia Loan and Trust Co. stock . . . 4,000.00 ■
Certificates of Deposit 10,000.00
$121,370.00
Amount of Debentures sold $100,000.00
41
Series N.
6 per cent,, dated July ist, 1887 ,due July ist, 1897.
Collateral.
First mortgages not due . . $15,850.00
First mortgages due 2,950.00
Second mortgages 4,368.00
Commission mortgages 28,741.06
Real Estate 25,765.00
Keith and Perry Coal Co. bonds .... 13,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 11,000.00
Delaware, Lackawanna & Western R.R. bonds 10,000.00
City Real Estate Co. stock 10,000.00
Concordia Loan and Trust Co. stock . . . I,oo0.0o
$122,674.06
Amount of Debentures sold $100,000.00
Series O.
6 per cent., dated October ist, 1887, due October ist, 1897.
Collateral.
First mortgages not due $30,900.00
First mortgages due . . 8,800.00
Second mortgages 2,492.25
Commission mortgages 7,086.23
Real Estate 10,550.00
Keith and Perry Coal Co. bonds 8,000.00
Seaboard Manufacturing Co. bonds . . . 20,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 7,000.00
City Real Estate Co. stock 20,000.00
Concordia Loan and Trust Co. stock . . . 6,ocx).oo
$120,828.48
Amount of Debentures sold $100,00000
Series P.
42
6 per cent., dated January 2d, 1888, due January ist, 1898.
Collateral.
First mortgages not due ÍS6,800.00
First mortgages due 4,000.00
Second mortgages 7,743.01
Commission mortgages 2,280.25
Real Estate 30,665.00
Real Estate Contracts 19,350.00
Keith and Perry Coal Co. bonds 11,000.00
Seaboard Manufacturing Co. bonds 9,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 6,000.00
Boston & Lowell R.R. bonds 20,000.00
Concordia Loan and Trust Co. stock , . . . 7,000.00
$123,838.26
Amount of Debentures sold $100,000.00
Series Q.
6 per cent., dated April 2d, 1888, due April ist, 1898.
Collateral.
First mortgages not due $50,625.00
Commission mortgages 9,376.27
Keith and Perry Coal Co. bonds 34,000.00
City Real Estate Co. stock 10,000.00
Montana Savings Bank stock 20,000.00
$124,001.27
Amount of Debentures sold $100,000.00
43
Series R.
6 per cent., dated April 2d, 1888, due April ist, 1898.
Collateral.
First mortgages not due ... $22,725.00
First mortgages due 9,375.00
Second mortgages 2,425.50
Commission mortgages 5,870.62
Real Estate 25,000.00
Keith and Perry Coal Co. bonds 12,500.00
Seaboard Manufacturing Co. bonds . . . 12,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 13,000.00
City of St. Paul bonds 20,000.00
$122,896.12
Amount of Debentures sold $100,000.00
Series S.
6 per cent., dated July 2d, 1888, due July ist, 1898.
Collateral.
First mortgages not due $29,800.00
First mortgages due 4,750.00
Second mortgages 5,724.05
Commission mortgages 15,631.76
Real Estate 750.00
Keith and Perry Coal Co. bonds 19,000.00
Seaboard Manufacturing Co. bonds 3,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
Concordia Loan and Trust Co. stock .... 5.000.00
Pueblo National Bank stock 23,500.00
Trinidad National Bank stock 7,600.00
$124,755.81
Amount of Debentures sold $100,000.00
Series T.
44
6 per cent., dated October ist, 1^8, due October ist, 1898.
Collateral.
First mortgages not due Î25,475.(50
First mortgages due 5,050.00
Second mortgages 10,709.35
Commission mortgages 29.009.71
Real Estate 21,960.00
Keith and Perry Coal Co. bonds 7,(Xiq.oo
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
City Real Estate Co. stock \ 0,000.00
Concordia Loan and Trust Co. stock . . 1,000.00
{120,204.06
Amount of Debentures sold {ioo,(XX).oo
Series U.
6 per cent., dated October ist, 1888, due October rst, 1898.
Collateral.
First mortgages not due {ll,3(x>.oo
First mortgages due 2,715.80
Second mortgages 10,062.75
Commission mortgages 14,674.94
Real Estate . . 13,000.00
Keith and Perry Coal Co. bonds 12,00000
Seaboard Manufacturing Co. bonds 5,000.00
City Real Estate Co. stock • . 15,000.00
Concordia Loan and Trust Co. stock 39,200.00
{122.953.49
Amount of Debentures sold .
. $100,000.00
45
Series V.
6 per cent., dated January 1st, 1887, due January ist, 1897.
Collateral.
First mortgages not due $7,600.00
First mortgages due 848.40
Second mortgages 2,824.60
Commission mortgages 23,341.52
Chattel mortgages . . 139.00
City Real Estate Co. stock 10,000.00
Concordia Loan and Trust Co. stock .... 10,900.00
Pueblo National Bank stock 8,000.00
Planters' and Mechanics' National Bank stock . 53,000.00
Lancaster (N. H. ) Trust Co. stock . . . . 5,000.00
$121,653.52
Amount of Debentures sold $100,000.00
Series W.
6 per cent., dated April ist, 1887, due April ist, 1892.
Collateral.
First mortgages not due $14,000.00
First mortgages due 20,700.00
Second mortgages . 2,459.10
Commission mortgages 19,058.42
Real Estate 8,950.00
Keith and Perry Coal Co. bonds . . n,ooo.oo
Seaboard Manufacturing Co. bonds .... 6,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds ro,ooo 00
City Real Estate Co. stock 20,000.00
Pueblo National Bank stock 2,000.00
Trinidad National Bank stock 8,000.00
$122,167.52
Amount of Debentures sold
. $99,800.00
46
Series X.
6 per cent., dated June ist, 1887, due June 1st, 1897.
Collateral.
First mortgages not due 115,150.00
First mortgages due 9,500.00
Second mortgages 2,532.70
Commission mortgages 15,548.10
Real Estate 15,985.00
Keith and Perry Coal Co. bonds 16,000.00
Seaboard Manufacturing Co. bonds 2,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 16,000.00
City Real Estate Co. stock 20,000.00
Concordia Loan and Trust Co. stock 9,000.00
^121,715.80
Amount of Debentures sold ^100,009.00
Series Y.
6 per cent., dated June ist, 1887, due June ist, 1892.
Collateral.
First mortgages not due {27,425.00
First mortgages due 8,200.00
Second mortgages 2,824.25
Commission mortgages 18,760.37
Real Estate 6,500.00
Keith and Perry Coal Co. bonds 14,500.00
Seaboard Manufacturing Co. bonds 9,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
City Real Estate Co. stock 20,000.00
Concordia Loan and Trust Co. stock 7,000.00
{124,209.62
Amount of Debentures sold {97,000.00
47
Series Z.
6 per cent., dated January ist, 1889, due January ist, 1899.
Collateral.
First mortgî^es not due ... ^31,425.00
First mortgages due .... 4,875.00
Second mortgages • .... 6,743.02
Commission mortgages . . . • i3)S9°-30
Real Estate 18,650.00
Keith and Perry Coal Co. bonds 13,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 2,000.00
City Real Estate Co. stock 20,000 00
Concordia Loan and Trust Co. stock 2,000.00
Bills Receivable 7,999.98
$120,283.30
Amount of Debentures sold $100,000.00
Series A A.
6 per cent., dated February 1st, 1889, due February ist, 1899.
Collateral.
First mortgages not due $16,100.00
First mortgages due 14,145.50
Second mortgages i .898.00
Commission mortgages 21,593.99
Real Estate 12,475.00
Keith and Perry Coal Co. bonds 15,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds ... 10,000.00
City Real Estate Co. stocks 20,000.00
Bills Receivable 9,400.00
$120,612.49
Amount of Debentures sold
$loo,coo 00
48
Series B B.
6 percent., dated February ist, 1889, due February ist, 1899.
Collateral.
First mortgages not due ^47,826.00
First mortgages due . . 18,050.00
Commission mortgages . ... . 6,633.40
Keith and Perry Coal Co. bonds .'.... . 22,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds . 10,000.00
City Real Estate Co. stock . . 20,000.00
Concordia Loan and Trust Co. stock . . . 2,000.00
5126,509.40
Amount of Debentures sold . . 5100,000.00
The Trustees for Debentures, Series J to B B, inclusive,
are B. Lombard, Jr., James L. Lombard and H. W. L. Russell.
Under the Trust Agreement the collateral shall consist of " Real
Estate Mortgages and other evidences of indebtedness, which
are liens upon Real Estate, and Real Estate." And "said
Trustees shall not certify or countersign any Debentures for
which they do not hold at least 20 per cent, of securities in
excess of the bonds so countersigned."
Series C C.
6 per cent., dated July ist, 1889, due July ist, 1899.
Collateral.
First mortgages not due 539,695.00
First mortgages due .... 15,090.00
Second mortgages 347.48
Commission mortgages 9,494.59
Keith and Perry Coal Co. bonds 15,000.00
Seaboard Manufacturing Co. bonds 2,000.00
Colorado and Kansas Canal and Resen'oir Co.
bonds . . 10,000.00
Certificates of Deposit 13,495.00
5105,122.07
Amount of Debentures sold .... .... 5100,000.00
49
Señes D D.
6 per cent., dated July ist, 1889, due July ist, 1899.
Collateral.
First mortgages not due
First mortgages due 24,762.33
Second mortgages 433-00
Commission mortgages 11,449.78
Keith and Perry Coal Co. bonds 15,000.00
Seaboard Manufacturing Co. bonds 3,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
Certificates of Deposit 5,000.00
ili7,570.ll
Amount of Debentures sold $97,200.00
Series E E.
6 per cent., dated July ist, 1889, due July ist, 1899.
Collateral.
First mortgages not due
First mortgages due 15,350.00
Second mortgages 1,180.42
Commission mortgages 19,096.08
Chattel mortgages 110.00
Keith and Perry Coal Co. bonds 20,000,00
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
Certificates of Deposit 5,000.00
$108,986.50
Amount of Debentures sold $99)5°®-°®
Series F F.
6 per cent., dated June ist, 1889, due June ist, 1899.
Collateral.
First mortgages not due $58,823.80
First mortgages due 14,250.00
Second mortgages 160.00
Commission mortgages 22,171.66
Keith and Perry Coal Co. bonds 6,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 4,000.00
$105,405.46
Amount of Debentures sold $"94)35° °°
5°
Series G G.
6 per cent., dated June ist, 1889, due June ist, 1899.
Collateral.
First mortgages not due ¿¡45,460.00
First mortgages due 23,600.00
Second mortgages 35-oo
Commission mortgages 7,913.70
Chattel mortgages 50.00
Keith and Ferry Coal Co. bonds 19,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
5106,058.70
Amount of Debentures sold . 599,200.00
Series H H.
6 per cent., dated June ist, 1889, due June ist, 1899.
Collateral.
First mortgages not due 531,460.45
First mortgages due 23,250.00
Second mortgages 1,072.60
Commission mortgages 13,384.98
Keith and Perry Coal Co bonds 18,000.00
Seaboard Manufacturing Co. bonds 2,000 00
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
New York Central and Hudson River R.R.
bonds 10,000.00
5109.168.03
Amount of Debentures sold 5100,000.00
Series I I.
6 per cent., dated June ist, 1889, due June ist, 1899.
Collateral.
First mortgages not due 531,650.00
First mortgages due 29,486,50
Commission mortgages . 10,904.50
Keith and Perry Coal Co bonds 6,000.00
Seaboard Manufacturing Co. bonds 19,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 15,000.00
5112,041.00
Amou' t of Debentures sold . 597,20000
51
Series JJ-
6 per cent., dated June ist, 1889, due June 1st, 1899,
Collateral.
First mortgages not due ;f6l,150.00
First mortgages due 20,850.00
Commission mortgages 17,819.08
Keith and Perry Coal Co. bonds 6,000.00
5105,819.08
Amount of Debentures sold 581.250.00
Series K K.
6 per cent., dated July 1st, 1889, due July ist, 1899.
Collateral.
First mortgages not due 538,400.00
First mortgages due 12,100.00
Second mortgages Std.35
Commission mortgages 19,193.07
Keith and Perry Coal Co. bonds 30,000.00
Certificates of Deposit 5,000.00
5105,209.42
Amount of Debentures sold 590>8oo.oo
Series L L.
6 per cent., dated July ist, 1889, due July ist, 1899.
Collateral.
First mortgages not due 532,325.00
First mortgages due 26,050.00
Second mortgages 150.00
Commission mortgages 17,789.67
Keith and Perry Coal Co. bonds 6,000.00
Seaboard Manufacturing Co. bonds 3,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 10,000.00
Boston, Concord and Montreal R.R. bonds . 5,000.00
Certificates of Deposit 5,000.00
5105,314.67
Amount of Debentures sold
599,750.00
52
Series N N.
6 per cent., dated August ist, 1890, due August ist, 1900.
Collateral.
Commission mortgages $16,211.95
Second mortgages 208.15
$16,420.10
Amount of Debentures sold $5,000.00
Series O O.
6 per cent., dated September ist, 1890, due September ist, 1900.
Collateral.
First mortgages not due $47,800.00
First mortgages due .... 27,825.00
Commission mortgages . 165.00
Keith and Perry Coal Co. bonds . ... 6,000.00
Seaboard Manufacturing Co. bonds . . . . 3,000.00
Colorado and Kansas Canal and Reservoir Co.
bonds 5,000.00
Certificates of Deposit . . . 16,711.25
$106,501.25
Amount of Debentures sold $63,200.00
The Trustees for Debentures, Series C C to O O, inclusive,
are B. Lombard, Jr., James L. Lombard, and H. W. L.
Russell. Under the Trust Agreement the Company deposits
with the Trustees " Evidences of indebtedness, Real Estate
Securities, Real Estate or other Securities." And "said
Trustees shall not certify or countersign any Debentures for
which they do not hold at least 5 % of securities or Real Estate
in excess of the bonds so countersigned."
53
Series No. 21.
5 per cent., dated July ist, 1889, due July ist, 1899.
Collateral.
First mortgages not due Í 100,000.00
Amount of Debentures sold #12,901.00
Series No. 23. .
5 per cent., dated July 1st, 1889, due July 1st, 1896.
Collateral.
First mortgages not due #37,500.00
Amount of Debentures sold" #873.00
Series No. 25.
5 per cent., dated July 1st, 1889, due July ist, 1894.
Collateral.
First mortgages not due #11,500.00
Amount of Debentures sold #11,155.00
Atlantic Trust Company of New York, Trustees, Series
Nos. 21, 23, and 25. Under the Trust Agreement Debentures are
issued for the full amount of the mortgages, which must not
exceed 40% of the value of the property loaned upon.
Series No. 22.
4j^ per cent., dated July 1st, 1889, due July ist, 1894.
Collateral.
First mortgages not due #100,000.00
/
Amount of Debentures sold #97,000.00
54
Series No. 24.
4^ per cent., dated July 1st, 1889, due July 1st, 1894.
Collateral.
First mortgages not due .
|lioo,ooo.oo
Amount of Debentures sold
Í97,ooo.oo
Atlantic Trust Company of New York, Trustees for Series
Nos. 22 and 24. The principal and interest is guaranteed by the
Northern Counties Investment Trust, Limited, of Bradford, Eng¬
land. Under the Trust Agreement, Debentures are issued for
the full amount of the mortgages, which must not exceed 40%
of the value of the property loaned upon.
Series No. 26.
4j^ per cent., dated July ist, 1889, due July ist, 1896.
Collateral.
First mortgages not due $72,475.00
Amount of Debentures sold $27,063.00
Series No. 28.
4j^ percent., dated July ist, 1889, due July ist, 1899.
Collateral.
First mortgages not due
$37,550.00
Amount of Debentures sold
$10,088.00
Series No. 30.
4j^ per cent., dated January 1st, 1890, due January ist, 1895.
Collateral.
First mortgages not due .
$80,000.00
Amount of Debentures sold .
$72,750.00
55
Atlantic Trust Company of New York, Trustees for Series
Nos. 26, 28, and 30. The principal and interest is guaranteed by
the Mortgage Insurance Corporation, Limited, of London, Eng¬
land. Under the Trust Agreement, Debentures are issued for
the full amount of the mortgages, which must hot exceed 40% of
the value of the property loaned upon.
Series G C.
5 per cent., dated September ist, 1890, due February ist, 1901.
Collateral.
First mortgages not due Jloo,l 13.00
Amount of Debentures sold Í 98,800.00
Series G D.
S per cent., dated April ist, 1891, due April ist, 1901.
Collateral.
First mortgages not due
{100,060.00
Amount of Debentures sold
{63,00.00
Series G E.
5 percent., dated April 1st, 1891, due April 1st, 1901.
Collateral.
First mortgages not due
{15,000.00
Amount of Debentures sold
. {3,000.00
Series G F.
5 per cent., dated October ist, 1891, due October ist, 1901.
Collateral.
First mortgî^es not due
{10,000.00
No Debentures sold.
56
Series H B A.
5 per cent., dated January 2d, 1891, due January 2d, 1901.
Collateral.
First mortgages not due 5100,300.00
Amount of Debentures sold . . .... 599,200.00
Series H B B.
5 per cent., dated January 2d, 1891, due January 2d, 1901.
Collateral.
First mortgages not due 592,000.00
First mortgages due 8,000.00
5100,000.00
Amount of Debentures sold 5ioo,ooo.oo
Series H B C.
5 per cent., dated January 2d, i8gi, due January 2d, 1901.
Collateral.
First mortgages not due . . . 5100,000.00
Amount of Debentures sold . . 541,400.00
Series H B D.
5 per cent., dated January 2d, 1S91, due January 2d, 1901.
Collateral.
First mortgages not due 520,000.00
No Debentures sold.
Series H B E.
5 per cent., dated January 2d, 1891, due January 2d, 1901.
Collateral.
First mortgages not due 55,ooo.oo
No Debentures sold.
57
Series N G A.
5 per cent., dated September ist, 1890, due September ist, 1900.
Collateral.
First mortgages not due $75,000.00
No Debentures sold.
Series N G B.
5 per cent.; dated July ist, 1891, due July ist, 1901.
Collateral.
First mortgages not due $50,000.00
No Debentures sold.
Series U S, No. i.
6 per cent., dated March 2d, 1891, due March 1st, 1901.
Collateral.
First mortgages not due $81,000.00
Amount of Debentures sold $48,700.00-
Series USA.
6 per cent., dated October ist, 1891, due October ist, 1896.
Collateral.
First mortgages not due $100,150.00
Amount of Debentures sold $76,100
Series USB.
6 per cent., dated December 1st, 1891, due December ist, 1898.
Collateral.
First mortgages not due $45,000.00
Amount of Debentures sold $6,100.00
58
Atlantic Trust Co. of New York, Trustees for Series G C
to USB, inclusive. Under the Trust Agreement, Debentures
are issued for the full amount of the mortgages, which must not
exceed 50% of the value of the property loaned upon.
Series G A.
5 per cent., dated October ist, 1889, due October ist, 1899.
Collateral.
First mortgages not due ......... 899.000.00
First mortgages due 1,000.00
$100,000.00
Amount of Debentures sold $100.000.00
Series G B.
5 per cent., dated April ist, 1890, due April ist, 1900.
Collateral.
First mortgages not due $100,000.00
Amount of Debentures sold . $100,000.00
New York Security and Trust Co. of New York, Trustees,
Series G A and GB. Under the Trust Agreement, Deben¬
tures are issued for the full amount of the mortgages, which
must not exceed 50% of the value of the property loaned
upon.
Series Philadelphia.
5 per cent., dated August 2d, 1886, due August ist, 1896.
Collateral.
First mortgages not due . $135,200.00
Amount of Debentures sold
$125,000.00
59
Philadelphia Trust, Safe Deposit and Insurance Co. of
Philadelphia, Trustees. Debentures are issued for the full amount
of the mortgages, and no provision is made for the limit of
percentage to be loaned upon each property, but the Company
maintains a 40% basis.
Series S A.
5 per cent., of various dates and due at various times.
Collateral.
First mortgages not due ;Í37,300.00
Amount of Debentures sold ^36,704.80
Series S B.
S per cent., of various dates and due at various times.
Collateral.
First mor^ages not due $42.800.00
Amount of Debentures sold $30,409.50
The Edinburgh Lombard Investment Company, Limited, of
Edinburgh, Scotland, Trustees, Series S A and S B. Under the
Trust Agreement, Debentures are issued for the full amount of
the mortgages, which must not exceed 40% of the value of the
property loaned upon.
Cumulative Bonds, A, B, and C.
Collateral.
The Union Trust Company of Philadelphia, Trustees for
Cumulative Bonds. Under the Trust Agreement, the Trustees
shall hold 5 % of security in excess of the amount of money paid
upon each bond, and the mortgages so deposited shall not exceed
50% of the value of the property loaned upon.
First mortgages not due . .
. . . $34,160.00
Debentures outstanding :
Series A . .
Series B .
Series C . . .
. . 6,136.46
. . 16.472.86
$8,289.66
-$30,898.98
6o
MORTGAGE LOANS.
The Company has sold two classes of mortgage loans—one
bearing 7% interest, known as Unguaranteed Loans, for which,
in the event of the principal or interest not being paid by the
borrower, the Company assumes no liability; the other bear¬
ing 6% interest, and known as Guaranteed Loans. On all 6%
loans made prior to September ist, 1886, the following guarantee
of the Company was attached :
For Value Received, the Lombard Investment Company hereby
assigns this bond to or order, and guarantees : (l) The
prompt payment of the coupons attached hereto; (2) the collection of the
principal of the within bond.
In Witness Whereof, the Lombard Investment Company has signed
and delivered these presents by its President, this . . . day
of , 188 . .
President.
Commencing with September ist, 1886, the following guar¬
antee was used :
For Value Received, the Lombard Investment Company hereby
assigns this bond or note to or order, and agrees :
First. To guarantee the payment of the coupons attached hereto at the
maturity thereof.
Second. To collect at its own expense, and to pay over the principal
hereof at maturity, provided the same is paid by the maker.
Third. In the event of default being made by the maker, to collect at
its own expense and to pay over the principal hereof, within two years from
the maturity of the same, and to pay interest thereon at the rate of six per
cent, per annum, payable semi-annually, until the principal is paid.
In Witness Whereof, the said Lombard Investment Company has
caused its corporated seal to be hereunto affixed, duly attested.
Dated this .... day of in the year of our Lord
one thousand eight hundred and eighty- . .
Lombard Investment Company,
[Seal.] by
President.
6i
From March 8th, 1889, to January 6th, 1892, the following
guarantee was used :
For Value Received, the Lombard Investment Company hereby
assigns this bond or note to or order, and guarantees the
payment of the coupons attached hereto at maturity. It also guarantees
the payment of the principal hereof within two years after the same becomes
due, and to pay interest thereon semi-annually, after maturity, at the rate of
six per cent, per annum, until paid.
The Lombard Investment Company reserves the right, when necessary,
to redeem this note at any time before maturity, at par and accrued interest.
In Testimony Whereof, the said Lombard Investment Company has
caused its corporate seal to be hereunto affixed, duly attested, under the hand
of its ... . President, this .... day of . . . . . , in the year of
our Lord one thousand eight hundred and ....
Lombard Investment Company,
[Seal.] by . . ....
President.
And in conjunction with the above the following was used :
For Value Received, the Lombard Investment Company hereby
assigns a certain bond made by , for | , dated
the .... day of , l8 . , and due on the . . . day
of . . . , 18 . . , and numbered ... , to . . . or order,
and guarantees the payment of the coupons attached hereto at maturity.
It also guarantees the payment of the principal hereof within two years
after the same becomes due, and to pay interest thereon semi-annually, after
maturity, at the rate of six per cent, per annum, until paid.
The Lombard Investment Company reserves the right, when necessary,
to redeeih this note at any time before maturity at par and accrued interest.
In Testimony Whereof, the said Lombard Investment Company has
caused its corporate seal to be hereunto affixed, duly attested, under the hand
of its . . . . President, this .... day of. ' in the year of
our Lord one thousand eight hundred and ....
Lombard Investment Company,
[Seal.]
by
President.
62
Beginning with January 7th, 1892, the Company has been
using the following guarantee :
For Value Received, the Lombard Invesiment Company hereby
assigns a certain bond made by for $ . , dated
the . . . day of , 18 . . , and due on the .... day
of 18 . . , and numbered . . . , to . . . . or order,
and guarantees the payment of the coupons attached hereto at maturity.
It also guarantees the payment of the principal hereof two years after
the same becomes due, and to pay interest thereon semi-annually, after
matiu-ity, at the rate of six per cent, per annum, until paid.
The Lombard Investment Company reserves the right, when necessary, to
redeem this note at any time before maturity at par and accrued interest.
In Testimony Whereof, the said Lombard Investment Company has
caused its corporate seal to be hereunto affixed, duly attested, under the hand
of its . . . . President, this .... day of , in the year of
our Lord one thousand eight hundred and ninety ....
Lombard Investment Company,
[Seal.]
President.
GUARANTEED FIRST MORTGAGE LOANS.
On February ist, 1891, there was outstañding :
Guaranteed Loans to the amount of ... . ^^42,875,898
Loans guaranteed by the Company, from
February 1st, 1891, to February ist, 1892 . . 4,189,895
Í47.O6S,793
Amount canceled by payments of loans, &c.,
from February ist, 1891, to February ist,
1892 6,995,128
Amount of outstanding Guaranteed Loans Feb¬
ruary ist, 1892 140,070,665
63
The following table will show the subdivision according to
States.
Table A.
Table B.
Table C.
Table D.
Alabama . . .
8421,750
872,200
81,500
$492,450
Arkansas . . .
214,700
23,050
400
237,350
Colorado . . .
1,791,300
25,300
85,274
1,731,326
Georgia . . .
9,500
54,700
64,200
Iowa . . .
• 2,727,575
288,150
573,635
2,442,090
Idaho ....
286,500
81,600
7,850
360,250
Kansas . .
13,076,686
591 135
2,481,637
11,186,184
Minnesota . .
1,678,825
157,450
70,250
1,766,025
Mississippi
164,780
113,900
8,460
270,220
Missouri . .
7,708,197
664,010
1,683,445
6,688,762
Montana . .
68,800
. . .
68,800
Nebraska .
• 9,107,170 ■
319,550
1,901,727
7,524,993
Oregon ....
937,725
87,900
32,050
993,575
South Dakota .
348,460
1,700
21,950
328,210
Tennessee . .
567,155
266,300
19,800
813,655
Texas . . . .
123,025
262,650
400
385,275
Utah
.337,775
282,000
619.775
Washington. .
• 3,237,225
829,500
106,750
3,959,975
Wisconsin . .
96,550
96,550
Wyoming . .
41,000
41,000
^42,875,898
$4,189,895
$6,995,128
^40,070,665
Table A.—Amount of outstanding Guaranteed Loans, February ist, 1891.
Table B.—Loans guaranteed by the Company from February 1st, 1891, to
February ist, 1892.
Table C.—Loans paid by borrowers or property acquired by Foreclosure
proceedings or Deed, February ist, 1891, to February 1st, 1892,
releasing company from its guarantee.
Table D.—Amount of outstanding Guaranteed Loans, February 1st, 1892.
The above table does not include any loans known as
Unguaranteed Loans, which had been sold to the Edinburgh
Lombard Investment Co., Limited, and which, by a special
agreement with that company, were guaranteed; nor the un¬
guaranteed loans sold after June 23d, 1891, to the Anglo-
American Land, Mortgage and Agency Co., Limited. These
are included in the table of Unguaranteed Loans, and amount
to about $334,300-
64
UNGUARANTEED FIRST MORTGAGE BONDS.
The amount of outstanding Unguaranteed
Loans on February ist, 1891 $1,794,188.00
Loans made by the Company from February
1st, 1891, to February 1st, 1892 .... 692,574.00
$2,486,762.00
Loans paid by borrowers, &c., from February
1st, 1891, to February ist, 1892 .... 572,270.00
$1,914,492.00
table will show the subdivision according to
The following
States :
Arkansas .
Colorado . .
Iowa
Kansas
Minnesota . .
Mississippi .
Missouri . . .
Nebraska
South Dakota . . .
'Tennessee
Texas . .
Washington ....
Table E.
Table F.
$2,400
$ . . .
12,000
197,552
71,185
349,248
343,874
48,020
2,400
3,767
5,370
562,564
115,565
585,831
67,800
500
3,900
6,700
18,006
69,780
7,600
12,700
$1,794,188
$692,574
Table G.
Table H.
I300
$2,100
650
11,350
128,687
140,050
145,536
547,586
1,150
49,270
3,312
5,825
201439
476,690
89,796
563,835
500
3,900
900
5,800
87,786
20,300
$572,270
$1,914.492
Table E.—Amount of outstanding Unguaranteed Loans, February ist, 1891.
Table F.—Loans made by the Company from February ist, 1891, to Feb¬
ruary 1st, 1892.
Table G.—Loans paid by borrowers, &c., from February ist, 1891, to Feb¬
ruary 1st, 1892.
Table H.—Amount of outstanding Unguaranteed Loans February 1st, 1892.
On December ist, 1892, the amount of outstanding Guar¬
anteed Loans had been reduced to $36,945,257, and the
Unguaranteed Loans to $1,389,066.
Prior to November 1890, as soon as a guaranteed loan
became due and was not paid by the borrower, the Company
paid the holder thereof for the same ; but since that date it has
taken advantage of the two-year clause in the guarantee agree-
65
ment, and as a consequence there remained unpaid on December
ist, 1892, the following overdue loans:
^Investors Unpaid—, Held by Lombard
Months.
Unguaranteed.
Guaranteed.
Investment Co.
Total.
January, 1891.
00
en
G
$14,850
February, "
",525
11,525
March, "
$149
21,800
21,949
April,
46,150
46,150
May, "
600
21,100
21,700
Juné, "
850
38,300
39,150
July,
3,000
66,625
69,625
August, "
27,450
27^450
September, "
$1,650
23,650
25,300
October, "
4,702
27,005
7,000
38,707
November, "
23,77s
3',40o
55.175
December, "
5,400
38,635
12,800
56,835
January, 1892.
2,500
41,900
21,100
65,500
February, "
6,000
46,075
39,000
91,075
March, '■
46,275
22,000
68,275
April, "
1,300
71,200
40,200
112,700
May, "
15,000
98,350
24,000
137,350
June, "
1,500
141,300
25,000
167,800
July,
2,200
121,200
60,000
183,400
August, "
1,000
233,300
22,IOO
256.400
September, "
3,000
106,450
6,300
"5,750
October, "
23,000
69,620
31,000
123,620
November, "
41,000
135,700
11,300
188,000
Totals,
. $111,201
$1,202,435
$624,650
$1,938,286
REAL ESTATE.
The Annual Statement of the Lombard Investment Com¬
pany, February ist, 1892, shows the amount of Real Estate
owned by the Company to be 5412,298.59, which is made up of
the following items :
Real Estate held by Personal Trustees as
collateral to Debentures #259.695.00
Real Estate held by Company .... 73.3SO-34
Real Estate Equities (subject to ^19,800) 6,107.30
Foreclosure Costs expended on mortgages
in process of foreclosure . . . 73,145.95
$412,298.59
The above expense of S 73,145-95 is carried as an asset.
66
A large proportion of the Real Estate is carried by the
several Auxiliary Companies, and is represented in the assets of
the Parent Company by their stocks, bills payable, and mort¬
gages. The Real Estate owned by the Parent and Auxiliary
Companies on February ist, 1892, according to the books of
the several Companies, is as follows :
Lombard Investment Co.
Real Estate ... $333.045-34
Real Estate Equities 6,107.30
Equity mortgages ... ... 19,800.00
Foreclosure costs 73.i45.95
$432,098.59
Alliance Trust Co.
Real Estate $505,288.62
Real Estate Equities 414,360.12
Equity mortgages 1,049,575,00
$1.969.223.74
Valley Loan and Trust Co.
Real Estate $256,641.01
Real Estate Equities 92,661.17
Equity Mortgages 206,916.00
$556,218.18
City Real Estate Co.
Real Estate $220,422.76
Real Estate Equities . ... ... 14.635-33
Equity Mortgages 55,490.00
$290,548.09
Concordia Loan and Trust Co.
Real Estate .... $313,227.82
$3.561,316.42
The properties owned by each Company and represented
by the above amount, and the number of those which have
never produced any income, are as follows ;
Properties Producing
Owned. Xo Income.
Lombard Investment Co. . . . . 12S 36
Alliance Trust Co '.579 937
Valley Loan and Trust Co 396 236
Concordia Loan and Trust Co 141 83
City Real Estate Co 15 ■ -
2,259 1,292
6?
From February ist, 1892, to December ist, 1892, there
were 555 properties acquired by the several Auxiliary Companies
by foreclosure proceedings or by Deeds, representing a cost of
Ji,233,604.36, as per their books, as follows:
Foreclosure Costs,
No. of Second Mortgages, First
Properties.
Interest, Etc.
Mortgages.
Alliance Trust Co
■ 411
$225,528.30
$514,889.10
Valley Loan and Trust Co.
. . lOI
38,483.68
93,445.60
City Real Estate Co. . .
. . 41
92,242.26
, 262,950.00
Concordia Loan and Trust Co.
. . 2
2,465.42
3,600.00
555
$358,719.66
$874,884.70
Making the real estate owned by the several Companies on
December ist, 1892, to be as follows:
Acquired to February 1st, 1892, 2,259 properties .... $3,561,316.42
Acquired from February 1st, 1892,
to December 1st, 1892, 555 properties . . . 1,233,604.36
2,814 properties .... $4,794,920.78
On December ist, 1892, there was in process of foreclosure
(under first mortgages, second mortgages, or overdue coupons),
1405 properties, upon which the Company had outstanding loans,
as follows :
First Mortgages . ... $1,989.460.00
Second Mor^ages . . 107,018.04
$2,096,478.04
It has been the custom of the Companies to charge on their
books as the cost of their real estate, the first mortgages, second
mortgages (if any), cost of foreclosure proceedings, overdue
interest, and delinquent taxes.
On all real estate owned by the Companies, upon which they
had executed mortgages, the interest upon the same and the
taxes were charged to expense account, while on the real estate
equities, prior to July ist, 1892, the interest on the equity mort-
68
gages and taxes when paid were added to the cost of the prop¬
erties; the rents received from the same being credited to a
profit and loss account, thereby adding to the assets of the Com¬
panies the amount of interest and taxes so charged. We called
the attention of the officers of the Company to this method,
and from July ist, 1892, the interest and taxes have been
charged to expense account, where they properly belong.
We have heretofore stated that the Real Estate was some¬
times transferred from one Company to another, any difference in
price being either charged or credited to a profit and loss account,
and that the amount credited over and above that charged
exceeded «5100,000.
The amount of foreclosure costs, accrued interest,
delinquent taxes, and differences which have been credited to
the profit and loss account above referred to, and which is added
to the cost of Real Estate and Real Estate Equities by the
several Companies, is as follows :
Lombard Investment Company Jlil,826,79
Alliance Trust Company 393>204.57
Valley Loan and Trust Company 156,575.16
City Real Estate Company 56,293 09
Concordia Loan and Trust Company .... 74,067.63
8791,967.24
To illustrate how the Real Estate is transferred from one
Company to another, we select five mortgages of various sizes
from the transactions of this character, as follows :
Loan No. 03,023—Frances Wilkerson, $5,000.
Was made upon 400 acres of land in Johnson County,
Missouri, dated November loth, 1884, due December ist, 1889,
6% interest, payable June and December; sold to the Franklin
Savings-Bank of Franklin Falls, N. H., and held by that bank
until property was foreclosed. The Company received a com¬
mission mortgage of $2^2.gi, due December ist, 1886, which was
sold to B. Lombard, Jr. The December, 1886, coupon being in
default, the mortgage was foreclosed. November ist, 1888, and
69
the property acquired by the Lombard Investment Company at
the following cost :
First mortgage $5,000.00
Second mortgage 252.91
Interest 870.00
Foreclosure costs 4'3 09
$6,536.00
On July 25th, 1889, this property was sold to the Alliance
Trust Company, and a difference of $207. r4 was credited to a
profit and loss account. The Alliance Trust Company mortgaged
this property for $7,000, which mortgage was used as collateral to
Debentures, Series S, until June 30th, 1890, when it was sold
to the Anglo-American Land, Mortgage and Agency Company,
Limited, which now holds the same, $1,000 having been paid
on account September 27th, 1890, and $1,000 September ist,
1891. \
On April 17th, 1890, the Alliance Trust Company sold the
property to the Valley Loan and Trust Company for $7,500,
subject to the $7,000 mortgage noted above, crediting a differ¬
ence of $7,304.26 to a profit and loss account.
Since this property was acquired, in November, 1888, the
rent received from the same has been as follows :
For the year 1889 $62.50
" 1890 150-95
" 1891 150.00
For six months, 1892 75-00
M38 45
This property is carried upon the books of the Valley Loan
and Trust Company as an asset at $14,500.
Loan No. 9,315—Solomon L. Osborn, $1,500.
This loan was made upon a 143-acre tract in Cherokee
County, Kansas, dated October 27th, 1885, due November, ist,
1890, 7% interest, payable May and November.
70
The Company received a commission mortgage of ;ii5o,
due May, 1887. The first mortgage was sold December 7th, 1885,
to Mrs. L. P. Wood, 31 Pine St., New York, who held the same
until June, 1889. The May and November, 1886, coupons were
paid by the borrower, which was the only interest ever received
by the Company. From June 8th to August 28th, 1889, the
mortgage was used as collateral to Debentures, Series Y. On
the latter date, being then nearly three years in default of
interest, it was sold to the Edinburgh Lombard Investment
Company, Limited, which held the same until February 15th,
1890. The commission mortgage of ^150, due May, 1887, was
sold on December 29th, 1885, to the Anglo-American Land,
Mortgage and Agency Company, Limited, which held the same
until February 15th, 1890. These two mortgages were fore¬
closed and the property purchased on February 15th, 1890, by
the Alliance Trust Company, the cost being as follows :
First mortgage $1,500.00
Second mortgage 150.00
The latter Company, on June 27th, 1890, sold this property
to the Valley Loan and Trust Company for $4,600, crediting upon
its books a difference of $2,476.80 to a profit and loss.account.
The Valley Loan and Trust Company carries this property asan
asset upon its books at $4,600.
The revenue received in the shape of rent amounts to
$127.67.
Loan No. 010,315—F. B. Nelson, $500.
This loan was on pioperty located in Butler County, Kansas,
and was dated February i6th, 1886, due March ist, 1891,
interest payable March and September. The Company received
a commission mortgage of $100.70, due September ist, 1888.
The first mortgage was sold August 7th, 1886, to Mrs. Susan
Peck, of Stow, Mass. No interest has ever been paid by the
Interest
Cost of foreclosure .
400.25
69.50
$2,119.75
71
borrower. The property was foreclosed and deed received by
the Lombard Investment Company, January 29th, 1889, the cost
being as follows :
From February 6th, 1889, to July 29th, 1889, the real
estate was used as collateral to Debentures, Series S, at a valua¬
tion of $800. The property was sold on July 29th, 1889, to the
Alliance Trust Company for ^800, which gave the Lombard
Investment Company, in payment for the same, a mortgage upon
this property, payable as follows :
which mortgage was used by the Lombard Investment Company
as collateral to Debentures, Series S, until it was paid.
On April i8th, 1890, the Alliance Trust Company sold this
property to the Valley Loan and Trust Company for $1,^00,
crediting a difference of ^867.28 to a profit and loss account.
On October 28th, 1891, the Valley Loan and Trust Com¬
pany deeded this property to William Arnold, who executed
a mortgage for 1^900 to the I.,ombard Investment Company,
dated November ist, 1891, for five years, interest payable May
and November. On January i8th, 1892, Arnold and wife
deeded the property back again to the Valley Loan and Trust
Company, subject to the above $goo mortgage. This mortgage
was, on November 17th, 1891, used as collateral to Debentures,
Series L; on December 22d, 1891, it was sent to the New
York office ; on December 30th, 1891, it was deposited with the
Atlantic Trust Company, New York, as collateral to Debentures,
Series US No. i ; on January 25th, 1892, $^00 was paid by the
Valley Loan and Trust Company. The mortgage, now reduced to
;g5oo, was, on January 26th, 1892, used as collateral to Debent-
First mortgage . . .
Commission mortgage
Interest
Cost of foreclosure .
$¡00.00
100.70
91.07
90 IS
$781.92
$100 due July, 1890,
100 due July, 1891,
200 due July, 1892,
400 due July, 1894,
72
ures, Series Y ; transferred on June 9th, 1892, to Series X, and
on July 30th, 1892, sent to the St. Louis National Bank for sale.
The latter sold the same to Carl Palfrey, of St. Louis, Missouri,
who now holds it.
This property is carried as an asset on the books of the
Valley Loan and Trust Company at ^1,700, and has never
produced, according to the books of the Company, a dollar
of revenue since the Company loaned ;^soo on the property,.
February i6th, 1886.
Loan No. 013,696—William McWhorter, $300.
On 80 acres of land in Holt County, Nebraska, dated
October 2 ist, 1886, due November ist, 1891, interest 6%,
payable May and November ; sold November nth, 1886, to an
investor in Castleton, Vermont, who held the same until the
property was foreclosed, April nth, 1890, when the Alliance
Trust Company acquired title to the same at a cost of $¿,21.22^
as follows :
First mortgage Í300.00
Interest from May, 1888 46.50
Costs of foreclosure 80.72
Î427.22
The property was sold June 28th, 1890, to the Valley Loan
and Trust Company, which sold the same January loth, 1891, to
the Lombard Investment Company, which sold it on July 23d,
1891, to the Alliance Trust Company for ^850.
The Alliance Trust Company created a mortgage of $850
upon this property, which is now used as collateral to Debentures,
Series R. This property has never produced any income, and
is carried by the Alliance Trust Company as an asset upon its
books at ^850.
Loan No. 016,278—Charles Smith, $200.
Dated November 19th, 1886, due December ist, 1891, 6%
interest, payable June and December. The property is in
Greeley County, Nebraska, and consists of 80 acres. The Com-
73
pany received a commission mortgage of ¿¡30.15, due December
ist, 1888, which was sold February 28th, 1887, to the Anglo-
American Land, Mortgage and Agency Company, Limited.
The first mortgage was used as collateral to Debentures until
February 14th, 1887, when it was sold to an investor in Prov-
incetown, Massachusetts. The property was foreclosed Febru¬
ary 7th, 1890, and acquired by the Alliance Trust Company at
the following cost ;
First mortgage $200.00
Second mortgage 30.1S
Interest 45-52
Foreclosure costs 7i.i3
11346.80
The Alliance Trust Company mortgaged this property on
April ist, 1890, for $$¡0, which mortgage was used at different
times as collateral to different series of Debentures. On April
17th, 1890, the Alliance Trust Company sold the property to the
Valley Loan and Trust Company for I450, subject to the above
mortgage of ^350, crediting a difference of ^449.30 to a profit
and loss account. The Valley Loan and Trust Company carries
the property as an asset upon its books at $800. There has never
been a cent of income received in the shape of rent or interest
paid upon the original loan.
UNITED STATES TRUST AND GUARANTEE
CORPORATION, LIMITED.
This Company was organized in London, February, 1890,
principally by James L. Lombard and his nephew, William A.
Lombard, the latter devoting his attention to the promotion of
the enterprise in America, while James L. Lombard was in Lon¬
don supervising the business there.
The capital stock was 140,000 shares (^^700,000) Ordinary
stock and 200 shares (^200) Founders stock, of which amount
50,000 shares (^^250,000) Ordinary stock and 200 shares (;^2oo)
Founders stock were sold. Of the stock placed in this country
the Lombard Investment Company subscribed for and pur¬
chased from different parties 3,527 shares (^17,635) Ordinary
74
stock and i Founders share. There was sold by the Lombard
Investment Company to the Jackson Investment Company (a
corporation of which the Lombard Investment Company was a
large stockholder), 3,275 shares Ordinary stock for $76,225.62
and I Founders share for $242.50, at a loss of $3,193.13. The
remaining 252 shares are in the treasury of the Company; the
Jackson Investment Companystill owns this stock. At the time
the Company was organized and the stock placed, James L.
Lombard and William A. Lombard were respectively Vice-
President and Secretary of the Lombard Investment Company,
both drawing salaries, the latter $7,500 per annum. During
James L. Lombard's visit abroad, from July, 1889, to April,
1890, the Lombard Investment Company paid $5,499.76 of his
expenses and also his salary. According to a prospectus issued
by the United States Trust and Guarantee Corporation, James
L. Lombard was to act as Manager of the Company in A.merica,
which position he accepted at a salary of $7,500 per annum.
The Lombard Investment Company received from James L.
Lombard $11,548.31, being the balance of commission received
as per the books of B. Lombard, Jr., and James L. Lombard.
William A. Lombard received 10 Founders shares ($2,500),
which was charged to this commission account, and there was
also charged to the same account 20 Founders shares ($4,850),
thereby reducing the profit to the Lombard Investment Com¬
pany $7,350, which is represented by $2,500 of stock given to
W. A. Lombard and an error of $4,850, which amount is
undoubtedly due the Company. Neither of these items should
ever have been charged as an expense. The net profit to the
Company is as follows :
Commission received from James L. Lombard . $11,548.31
Profit on exchange (;Í30,835) sent to London . 1,385.07
Profit on Founders shares sold 314.70
$13,248.08
Deduct expenses, James L. Lombard
in London . 15,499.76
Deduct loss on stock sold to Jackson
Investment Co 3,193.13
8,692.89
Í4,S5S.i9
75
JACKSON INVESTMENT COMPANY.
The Jackson Investment Company was organized in April,
1890, with a capital of $150,000, of which the Lombard In¬
vestment Company is a holder to the extent of $54,700, the
other stockholders being as follows :
United States Trust and Guarantee Corporation,
We find that this Company was a trader in the stock of the
Lombard Investment Company, between May 17th and July
nth, 1890, purchasing 736 shares of the Kansas stock at prices
varying from $140 to $150 per share, of which, on June 24th,
1890, 250 shares were purchased from James L. Lombard at
$150 per share, and on June 25th, 43 shares from B. Lombard,
Jr., at $150 per share. On this Kansas stock the Jackson In¬
vestment Company received a stock dividend of 50%, which,
with 96 shares of the Missouri stock purchased, made a total of
1,200 shares, which, on July 24th, 1890, was sold to the United
States Trust and Guarantee Corporation, Limited, at $96.50
per share, making a net loss on the transaction of $1,840. Sub¬
sequently the Jackson Investment Company purchased 500
shares of Missouri stock at $103 per share, and sold 250 shares
at the same price; the remaining 250 shares it carries as an
asset at $25,750. We find that the Jackson Investment Com¬
pany purchased from the Lombard Investment Company 3,275
shares of the United States Trust and Guarantee Corporation,
Limited, for $76,225.62 ; also one Founders share for $242.50.
On January 31st, 1890, the Lombard Investment Company
purchased a mortgage made by J. P. Ryan for $18,000 upon
eight houses located in Kansas City, and in June, 1890, the
Jackson Investment Company purchased second mortgage
notes of J. P. Ryan, amounting to $2,000, upon these proper¬
ties, the notes being endorsed by W. E. Otis and Newton Evans.
Ryan never paying any interest on his loan, the property
was foreclosed January 21st, 1891, and purchased at Sheriffs
Limited . . . .
B. Lombard, Jr. . .
James L. Lombard .
To qualify Directors
$85,000.00
5,000.00
5,000.00
300.00
76
sale by the Jackson Investment Company, which afterward
made a settlement with Otis for its claim against him as endorser
upon Ryan's paper, accepting an equity in a property which he
had previously mortgaged to the Lombard Investment Company
for Í15,000, and on which it also held second mortgages amount¬
ing to ^300.
The Concordia Loan and Trust Company purchased the
Ryan and Otis properties from the Jackson Investment Com¬
pany at a valuation of ^18,824 and $2^,600, respectively, the
supposed cost price to the Jackson Investment Company. On
these properties the amount previously loaned by the Lombard
Investment Company was ;ii8,ooo and ^^15,000.
In examining the books of the Jackson Investment Com¬
pany to ascertain the cost of these properties to that Company,
we discovered that it had added the notes of Ryan, endorsed by
Otis, for $2,000, and accrued interest, to the cost of both proper¬
ties. At the time these entries were made the attention of John
A. Sly and J. C. Lester (President of the Jackson Investment
Company) was called to the overcharge, but it has never been
rectified. In a letter dated November 29th, 1892, we called
Mr. Lester's attention to the matter, and a claim will now be
made by the Concordia Loan and Trust Company for this over¬
charge of $2,213.33.
Statement of the Assets and Liabilities of the Jackson
Investment Company, February ist, 1892 :
ASSETS.
Real Estate $22,681.61
First mortgages (guaranteed by the Lombard
Investment Co.) 40,000.00
Second mortgages 1,800.00
Collateral loan 2,000.00
Hamilton Courrty (Kansas) Warrants . . . 1,034.35
3,275 shares United States Trust and Guar¬
antee Corporation 76,225.62
I Founders share United States Trust and
Guarantee Corporation 242.50
250 shares Lombard Investment Co. . . . 25,750 00
^169,734.08
77
LIABILITIES.
Capital 8150,000.00
Mortgages payable i8,loo.oo
Lombard Investment Co. overdraft .... 1,361.34
Undivided Profits 272.74
{«69,734.08
SUNDRY STOCKS.
Our limited time prevented a thorough investigation of the
various bank and other stocks which you requested us to trace,
in order to ascertain who bought them and at what price, from
whom and under what circumstances they came into the posses¬
sion of the Company, what was paid for them, and what
income has been received from them. We therefore confined
ourselves to some of the stocks remaining in the possession of
the Company on February ist, 1892.
On September 3d, 1890, the Company purchased from the
Investors Company (which Company was at that date owned
entirely by the Lombards) sundry bank stocks at a cost of
^46,041, of which the Companystill holds:
133 shares Trinidad (Colorado) National Bank at
8112 $14,896
40 shares Citizens' National Bank, Fort Scott,
Kansas, at $115 4,600
25 shares Le Mars (Iowa) National Bank at $120 . 3>®®®
49 shares American National Bank, Galveston,
Texas, at $105 5>«4S
827,641
Fifty shares Lancaster (N. H.) Trust Company were sub¬
scribed for at par and paid for by the Boston Office on July
i8th, 1891.
Two hundred shares Montana Savings-Bank, Helena, Mon¬
tana, cost the Company par. This was a subscription, the
78
money being deposited to the credit of the Savings-Bank in the
First National Bank of Elansas City, Missouri, on April 25th,
1891.
Fifty shares First National Bank, Webb City, Missouri, cost
the Company par, the money being paid November ist, 1890,
to the First National Bank, Kansas City, Missouri.
Five hundred shares Planters' and Mechanics' National
Bank, Houston, Texas, cost the Company ^¡104 per share. The
money was paid October 25th, 1890, to the First National Bank,
Kansas City, Missouri. Forty shares same stock were purchased
at par by the Dallas (Texas) Office on March 26th, 1891.
The stocks of the Anglo-American Land, Mortgage and
Agency Company (Limited), the Anglo-American Debenture
Corporation (Limited), and the Edinburgh Lombard Investment
Company (Limited) were principally subscribed for and the
money paid to the several Companies. We find that on June
23d, 1887, the Edinburgh Lombard Investment Company, Lim¬
ited, was charged with a commission for placing 12,100 shares
of stock $2,200.68, of which amount $1,654.50 went to the
credit of Undivided Profits of the Lombard Investment Com¬
pany and $515.14 was paid to B. Lombard, Jr., and James L.
Lombard.
The income received from these stocks for the year ending
February ist, 1892, will be found in the Accountants' Statement
of Earnings, under the head of Dividends.
LOMBARD INVESTMENT CO.
COMPANY'S STATEMENT of Earnings and
EARNINGS.
U. S. Court Certificates $1,031.10
Foreign Exchange 4,193.88
Ravenna Flat, rent account 981.74
Stewart Block, rent account 338 72
Insurance Department 1,161.23
Tax Department 394-74
Brokerage account 836,667.34
264 shares Keith and Perry stock received from
J. L. Lombard 19,800.00
Cash received from J. L. Lombard, being cash profit
on Keith and Perry deal 500.00
Salary rettu"ned by B. Lombard, Jr 10,000.00
Amount from coupon interest account 10,000 00
Edinburgh Lombard Investment Co. profits . . . 595 56
Hamilton Land Co. commissions 9,381.31
Premium on stocks 1,140.29
Franklin Investment Co. commissions 8,982.92
Balance of Dividend Fund, January, 1891 .... 283.31
Expenses for the year ending February ist, 1892.
EXPENSES.
Boston Office Í3Si434-69
New York Office 17,627.86
Stewart Flat, rent account '. . . . 44.80
Farm Department 9,898.51
Foreclosure Department 6,466.84
Mortgage expense 289,088.54
Interest on deposits 4,638.50
Debenture interest 203,829 98
$567,029.72
SUMMARY. ^
Earnings $905,452.14
Expenses 567,029.72
Net profit $338,422 42
Dividends paid to Stockholders of Lombard Investment Co.
April 30th, 1891 $49,321.05
July 27th, 1891 50,000.00
$905,452.14
$99,321.05
LOMBARD INVESTMENT CO.
ACCOUNTANTS' STATEMENT of Earnings and Expenses for the year ending February 1st, 1892.
EXPENSES.
EARNINGS.
Interest.
Interest, foreclosure costs, and taxes
from brokerage account .... 1491,136.50
Amount charged to accrued interest
on debentures . 22,029.97
Amount charged to accrued interest
on loans 19,661.13
Difference between interest collected
on mortgages and the amount paid
Edinburgh Lombard Investment
Co
Interest from banks
Interest on notes of Auxiliary Com¬
panies .
595.56
5,050.01
22,160.57
Interest.
Interest, foreclosure costs, and taxes
from brokerage account .... {218,605.72
Amount credited to accrued interest
on debentures 36,304.59
Amount credited to accrued interest
on loans 3,363 47
Debenture interest 203,829.98
Interest on deposits . 4,638.50
Interest from Real Estate expense
account 2,001.00
Interest from Mortgage expense ac¬
count 15.07
{468,758.33
Western Commissions.
Amount paid to agents for procur¬
ing loans
50,934.08
Discount on Commission Mortgages.
{75,077.28 sold on a basis of 7%
per annum guaranteed, principally
sold to the Anglo-American and
Edinburgh Lombard Investment
Companies .... ... 9,002.26
Interest on the following bonds :
English Consols 53-53
City of St. Paul 900.00
Keith and Perry Coal Co. . . . 34,072.50
Seaboard Manufacturing Co. . . 11,910.00
Colorado & Kansas Canal Co. . 33,388 50
Union Pacific R.R 720.00
Delaware, Lackawanna & West¬
ern R.R 700.00
Boston & Lowell R.R 800.00
Boston, Concord & Montreal R.R. 350.00
Northern Pacific R.R 600.00
Pennsylvania R.R. . ... 959.70
New York Central & H. R. R.R. 700.00
People's Cable, taken up by B.
Lombard, Jr , and James L.
Lombard ■ • • 3.356.32
$649,14429
Amount carried forward, J649.144.29
Boston Office.
Salaries and expenses $35,434.69
Commission on loans and debentures 15,288.85
New York Office.
Salaries and expenses $17,627.86
Commission on loans and debentures 9,243 62
Philadelphia Office.
Salary . ... ... $4,500.00
Commission on loans and debentures 17,974.92
Foreign Offices.
Salaries, rents, trave.ing expenses,
printing, stationery, and adver¬
tising.
London $6,234.31
Edinburgh 1,414.85
Amsterdam 1,200.00
Berlin 6,328.45
Frankfort 4,997.56
50.723-54
26,871 48
22,474.92
20,175 17
Commissions on loans and debent¬
ures sold 23,659.79
Southern Trust Co.
Allowance in lieu of commission . 10,000.00
Amount carried forward.
$682,599.57
Lombard Investment Co.—Accountants' Statement.—(Continued.)
EARNINGS.—(Continued.)
Amount brought forward, Jji649,144.29
Dividends.
London New York Investment Co. Í334.00
Edinburgh Lombard Investment Co. 1,222.01
Anglo-American Loan Mortgage Co. 1,006.59
Anglo-American Debenture Co. . . 125.30
Planters' and Mechanics' National
Bank, Houston, Texas .... 1,590.00
Trinidad National Bank 320 00
Citizens' National Bank, Fort Scott 200 00
Le Mars National Bank 200.00
American National Bank, Galveston,
Texas 318.50
Jackson Investment Co •,367.5o
6,683.90
EXPENSES.—(Continued.)
Amount brought forward, ^682,599.57
Anglo-American Land Mortgage
and Agency Co., Limited.
Settlement on contract
November I5tb, 1890 .
expiring
Debenture Expense.
Foreign guarantees on debentures,
i'lustees' fees, and stamp duty .
Western Offices.
Salaries, rents, taxes, traveling ex¬
penses, printing, stationery, and
postage account.
Concordia, Kansas . '.
. . . . $2,394.25
Dallas, Te.\as ....
. . . . 10,247.74
Lincoln, Nebraska . .
. . . . 15,672.86
Salt Lake, Utah . . .
. . . . 7,846.57
St. Paul, Minnesota . .
. . . . 5,12994
Sioux City, Iowa . . .
. . . . 3,643-22
Wichita, Kansas
. . . . 4,458.19
Portland, Oregon, and
Tacoma,
Washington
36,093 71
1,000.00
5 »396.37
Cash Commissions on Loans.
Brokerage account ^203,701.32
Hamilton Land Co 9,381.31
Franklin Investment Co 8,982 92
222,065.55
Mortgage Commissions on Loans.
Brokerage account . . ... 249,254.49
Insurance Department.
Commissions on insurance premiums 4)623.33
Amount carried forward, $1,131,771.56
Salaries.
Officers, clerks, collectors, and ex¬
aminers.
Kansas City Office $97,946.27
Foreclosure Department .... 10,423.58
Farm Department 5,081.50
Insurance Department 3,014.05
Tax Department 2,510.25
U. S. Court Department .... 300.00
Janitor, Ravenna Flats .... 587.24
" Stewart Flats 279.50
120,142.39
Office Expenses, Kansas City
Printing and stationery . . . . $14,517.84
Postage 8,797.49
Kent 8,074.92
Telegrams 3.043-47
Advertising 2,413.56
Express 1,105.19
Livery 295.50
Law books 396.20
Surety bonds 1,324.50
Directors' meetings 4S0.00
Donations '>975 00
Examinations by committees and
experts S-243 33
47,637.00
Amount carried forward, $942,261.81
Lombard Investment Lo.—Accountants' Statement.—(Continued.)
EARNINGS.—(Continued. )
Amount brought forw.ird, 81,131,771.56
Tax Department.
Interest on tax certificates . . . 2,404.78
U. S. Court Department .... 1,331.10
Foreclosure Department.
Amount received for attorney's fees,
&c 3.698.21
Salaries.
Amount returned by B. Lombard, Jr. 10,000.00
Office Expense.
Allowance on stationery bill . 100.00
EXPENSES.—(Continued.)
Amount brought forward, $942,261,81
Traveling Expenses.
Collectors, examiners, and officers
on Company business $18,558.21
Eoreclosure Department 5.240 87
Farm Department 2,263.36
26,062.44
Taxes.
Kansas City and different States,
transacting business therein . . $11,786.33
Real Estate tax as follows.:
Ravenna Flats 142.24
Stewart Flats 328.12
Stewart Block 55-27
Other properties 9,300.20
21,612.16
Insurance.
Office furniture $251.96
Ravenna Flats 75 00
Other properties 473-38
800.34
Gas and Water.
Stewart Block . . $85.60
Stewart Flats . . ... 221.90
Ravenna Flats . . . 251.32
558.82
Rents.
Real Estate expense account . ¿¡8,866.47
drain sold 2,104.89
Ravenna Flats 3,084.28
Stewart Flats 2,088.50
Stewart Block 819.47
Brokerage account 235.75
17,199.36
Miscellaneous Items.
Credited to the following accounts :
Brokerage $606.54
Mortgage expense , . i>S79-3S
Amount carried forward, $1,168,690.90
Repairs.
Kansas City Office furniture, &c. $1,134.45
Ravenna FUats S®3'25
Stewart Flats 496.10
Stewart Block 94.22
Other properties i.959-92
Coal.
Stewart Block $233.36
Stewart Flats 726.77
Ravenna Flats 289.73
Real Estate Commissions.
Recording
Abstract of titles, recording mort¬
gages, assignments and releases
of same, charged to the follow¬
ing accounts ;
Real Estate expense $404.42
Brokerage 2,913.98
Mortgage expense 170.20
4,187.94
1,249.86
Commission on sale of properties
and collection of rents. <??
Ravenna Flats $107.90
Other properties 1,480.52
1,588.42
3,488.60
Amount carried forward, $1,001,810.39
Lombard Investment Co.—Accountants' Statement.—(Continued.)
EARNINGS.—(Continued.)
Amount brought forward, 168,690.90
Premium.
On Lombard Investment Co. stock,
less commissions paid 1,140.29
Difference
Between the approximated amount
due to and that paid to English
stockholders for January, 1891,
dividend 283.31
Amount charged to
Guaranty Trust Fund .... 7,610.31
EXPENSES.—(Continued.)
Amount brought forward, ¿1,001,810.39
Legal Expenses.
Charged to the following accounts :
Brokerage ¿940.00
Mortgage expense 853.42
Stewart Block 12.30
Stewart Flats 2.00
Ravenna Flats - 25.85
Foreclosure Department .... 25.60
1,859.17
County Treasurer's Fee.
For tax certificates 928.21
Hauling Garbage and Ashes.
Stewart Flats ¿70.05
Ravenna Flats 109.95
180.00
Seed Purchased 72.60
Proñt on Real Sstate.
Credited to the following accounts ;
Brokerage $433 99
Real Estate expense 3,618.23
Profit on Stocks
Loan No. 08,944.
Charged June 23d, 1887, to undi¬
vided profits
Profit on Bonds
Equity in Shroyer's House and Lot.
Charged in error November 15th,
1889, to Real Estate expense, now
sold to the City Real Estate Co. .
4,052.22
260.00
900.00
4,635.00
4,000.00
fivnomt carried forward, Jl,191,572.03
Sundry Expenses.
Charged to the following accounts :
Brokerage ^1,417.14
Mortgage expense 1,853-33
Insurance Department 448.05
Tax Department 7i-S8
Real Estate expense ... . 198.53
Ravenna Flats 10.06
Stewart Flats 8.86
4,007.55
Amount credited to
Guaranty Trust Fund 5/137-36
Loss on Real Estate.
Charged to the following accounts :
Brokerage ^7,094.88
Real Estate expense 1,252.67
8,347.55
Loss on Stocks 8,075.63
Loss on Mortgage Loans.
Owing to defect in title 2,376.19
Loss on Bills Receivable . . 47-50
Loss L. Showalter.
Disputed account 398.99
Amount carried forward, $1,033,241.14
Lombard Investment Co.—Accountants' Statement.—(Concluded.)
EARNINGS.—(Concluded.)
Amount brought forward, 191,572.03
Amount returned by
\v. A. Lombard 1333-33
James L. Lombard
I'heir cash profit in the Keith and
Perry deal.
500.00
833-33
$1,192,405.36
SUMMARY.
Earnings $1,192,405.36
Expenses 1,060,042.14
Net Profits of Parent and Auxiliary
Companies $132,363.22
EXPENSES.—(Concluded.)
Amount brought forward, $1,033,241.14
Sundry Amounts.
Credited to Brokerage account in
error 3,315.86
Furniture and Fixtures.
10 per cent, reduction in value . . 2,500.00
Errors in Addition.
Brokerage account $910.00
Mortgage Expense 300.00
Being part of the shortage of
M. H. Lewis. — 1,210.00
Auxiliary Companies.
Net loss for the year as per state¬
ment, page 93 i9.77S-»4
$1,060,042.14
CONCORDIA LOAN AND TRUST CO.
ACCOUNTANTS' STATEMENT of Earnings and Expenses for the Year Ending February ist, 1892.
EARNINGS. EXPENSES.
Tax Interest ^22,582.61 Loss on Ryan's rent account . . <53^2.45
Less estimated amount incoirectly Directors' meetings 75 o°
credited to this account as a prolit Water and gas 29 40
and added to the cost of the real Repairs 182,78
estate which the Company had Recording deeds, &c 488.29
acquired 9,000.00 Insurance 390.02
$13,582.61 Interest on notes 4)294-o8
Interest on mortgages, &c 1,364.21
Rents 1,269.38 Taxes 38419
Commissions 130.10
$14,851.99 Janitor services 2000
==^= -= Sundry expenses 41-23
S7.761.75
SUMMARY.
Earnings $14,85199
Expenses 7.761.75
Net Profit $7,090.24
Dividend paid to Lombard Invest¬
ment Co. $16,000.00
VALLEY LOAN AND TRUST CO.
ACCOUNTANTS' STATEMENT ok Earnings and Expenses for the Year Ending February ist, 1892.
EARNINGS.
Rent Account.
Cash rents received Í3.IS9-2S
Grain sold 2,535.65
Buildings sold 261.71
Furniture sold 452 95
Interest 62.00
Profit on Real Estate
Profit on Debentures and Mort¬
gages purchased
SUMMARY.
Expenses
Earnings
Net Loss
ii7.532.75
8,717.76
$8,814.99
$6,471.56
826.76
1,419.44
$8,717.76
EXPENSES.
Rent Account.
Repairs $955-25
Commission and collection . . . . 173.16
Leasing . . 274.25
Insurance 329.02
Sundry expenses '93 49
Profit and Loss Account.
Interest on notes $1,415.00
Interest on mortgages, &c 9,223.20
Taxes 3.79803
Recording, &c 755-40
Commission 297.70
%
Expense Account
Dividend paid to Lombard Invest¬
ment Co $6,000.00
$1.925.17
$'5.489.33
118.25
$17.532-75
INVESTORS CO.
ACCOUNTANTS' STATEMENT of Earnings and Expenses ior the Year Endinc; Ferruaky ist, 1892.
EARNINGS.
EXPENSES.
Proñt and Loss Account.
Profit on stocks and bonds and
accrued interest on same . . 82,950.07
Discount and interest .... 5,946,60
Insurance . . ■. 1,162.48
Rent account SS-OO
Profit on mortgages bought .... 275.00
Dividend on Lombard Investment
Co. stock ... 7.00
Interest Account
$10,376.15
62.52
$10,438.67
Profit and Loss Account.
Discount and interest $2,183.81
Interest on notes 267.49
Salary, II. E. Mooney, Secretary 1,041.61
Loss on four shares Lombard In¬
vestment Co. stock .... 100.00
Commission 90.00
Expense account 34-62
Accrued Interest.
On La Plata Coal and Coke Co.'s
notes credited to profit and loss,
but not received
Í3.717S3
1,771 16
$5,488.69
SUMMARY.
Earnings
Expenses
Net Profit
$10,438.67
5,488.69
$4,949 98
Dividend paid to Lombard Invest¬
ment Co. ...
Dividend paid other stockholders . .
$6,972.00
28.00
$7,000.00
ALLIANCE TRUST CO.
ACCOUNTANTS' STATEMENT of Karnings and Expenses for the Year Ending February 1st, 1892.
EARNINGS.
Rent Account.
Cash received $17,398.15
Grain sold 14)495-2^
Buildings sold . .... 487.10
$32,380.51
Profit and Loss.
Profit on real estate $18,408.24
Less amount added to the cost of
real estate and credited to this
account as a profit .... 8,127.01
10,281.23
$42,661.74
SUMMARY.
Expenses $65,221.54
Earnings 42,661.74
EXPENSES.
Rent Account.
Repairs $3,563.20
Leasing 1,048.38
Insurance 867.10
Water-rent S 3-OS
Seed and grain 119.24
Collection and commission . . . 1,430.37
Legal expenses 147.41
Sundry exper ses 573-73
Profit and Loss.
Recording $1,290.18
Interest on mortgages 9,958.44
Interest on notes 16,140.00
Taxes 11,590.21
Commission 2,625.32
Attorney's fees 2,055.00
.Sundry expenses 96.16
Loss on real estate '3.537.65
57,292.96
Expense Account 126.10
Net Loss
522,559.80
$65,221.54
CITY REAL, ESTATE CO.
ACCOUNTANTS' STATEMENT of Earnings and Expenses from November 19TH, 1891, to February 1st, 1892.
Proñt and Loss.
Rents received .
Expenses
Earnings
Net Loss
EARNINGS.
SUMMARY.
$2,897 59
2,457.02
$44057
EXPENSES.
Profit and Loss.
$2,457.02 Tax on capital ....
— State and County taxes
Recording deeds . .
Gas and water . . .
Coal-bill
Repairs and fixtures .
Interest
Janitor's salary . . . .
Insurance . . . .
Sundry expenses . .
$150.00
1,049.61
160.25
114.22
276.25
842.75
92-12
71.67
34 90
105.82
$2,897.59
CM
RECAPITULATION.
Alliance Trust Co Loss $22,559.80
Valley Loan and Trust Co. . . Loss 8,814.99
City Real Estate Co Loss 440.57
$31,815.36
Investors Co Profit $4,949 98
Concordia Loan and Trust Co. . Profit 7,090 24
12,040.22
Net Loss of the Five Auxiliary Com¬
panies
$19,775-14
LOMBARD INVESTMENT CO.
ITEMS OF DIFFERENCE between the Company's and Accountants' Statements of Earnings and Expenses for the
Year Ending February ist, 1892.
ADD
Amount charged reduction Keith & Perry stock . $33,000.00
Amount charged from Coupon Interest account to
correct error, November 23d, 1889 14,401.11
(Not an expense item of this year.)
Amount second mortgages delivered to Valley
Loan and Trust Co 11,006.50
(Not an expense item of this Company
nor a profit of the Valley Loan and Trust
Co., and, therefore, omitted from the state¬
ments of both companies.) '
Amount charged fur 9 shares Concordia Loan
and Trust Co. stock 900.00
(Not an expense item, and should be car¬
ried as an asset.)
DEDUCT
Amount credited for 176 shares Keith
and Perry stock $13,200.00
Amount credited for 264 shares Keith
and Perry stock 19,800.00
Amount credited as profit on Foreign Exchange
(This account should not have been closed
into Undivided Profits, but carried as a lia¬
bility, as it only represents the difference
between the nominal and the actual price of
exchange. When remittances are made for
maturing loans, the difference between the
actual and the nominal price of exchange
will be charged to this account. Any remain¬
ing difference, either a profit or loss, should
then be closed into Undivided Profits.)
Amount credited to the Foreclosure Department
a; Attorney's Fees received
(This amount is incorrectly credited as a
profit, being added to the cost of Real Estate
by the following Auxiliary Companies :
Alliance Trust Co. . , . . $2,450.00
Valley Loan and Trust Co. . 450 00
Concordia Loan and Trust Co. 2,625.00
t33,ooo.co
4,193.88
5,525.00
Amount charged for 3 shares City Real Estate
Co. stock 300.00
(Not an expense item, and should be car¬
ried as an asset.)
i59.607.61
SUMMARY.
Profit for the year as per Company's statement . $338,422.42
Add items in Accountants' statement not in Com¬
pany's statement .... 59,607.61
$398,030.03
Deduct items in Company's statement not in
.^ccountants' statement $265,666 81
Actual net profit of the Parent and Auxiliary
Companies $132,363.22
Dividends received from Auxiliary Companies as
follows :
Concordia Loan and Trust Co. . $16,000.00
Valley Loan and Trust Co. . . 6,000.00
Investors Co 6,972.00
28,972.00
(These dividends are based wholly upon
book-keeping profits. The combined busi¬
ness of the Auxiliary Companies show a loss,
as per statement below.)
Amount credited from Foreclosure Account . . 82,700.79
(This being an expense, should not be car¬
ried as an asset. Any profit derived from the
sale of foreclosed properties when sold should
be closed into Undivided Profits.)
Amount credited from Coupon Interest .... 90,000.00
(In no sense can this item be construed as
an earning of the Company during this year,
but represents an amount of delinquent
interest formerly charged as a loss, but now
credited as a profit and carried as an asset )
(Estimated) amount credited to Tax Depaitment
as a profit, and charged to the cost of Real
Estate 1,500.00
Net Loss of Auxiliary Companies 19,775.14
vo
cn
$265,666.81
LOMBARD INVESTMENT CO.
COMPANY'S STATEMENT of Assets and Liabilities February ist, 1892.
ASSETS. LIABILITIES.
A.—Mortgages, Bills Receivable, and Ac- 1.—Capital $4,000,000.00
crued Interest on same. -
J.—Guaranty Dividend Fund 60,000.00
Bills Receivable $681,145.89 c ,
Valley Loan and Trust Co. . . . 16,387.16 Surplus 60,000.00
lackson Investment Co 1,361.34 i tt j- -j j t> c. ^ ^
Concordia Loan and Trust Co.. . 27,503.07 L.-Undivided Profits 199.697-69
Seaboard Manufacturing Co. first
mortgage bonds 89,000.00
Keith and Perry Coal Co. first mort¬
gage bonds 68,000.00
Bond interest 35-oo
Collateral deposited with Personal
Trustees 3,551,496.46
Collateral deposited with Atlantic
Trust Co., New York 1,440,648.00
Collateral deposited with New York
Security Trust Co 200,000.00
Collateral deposited with Philadel¬
phia Trust, Safe Deposit and
Insurance Co 135,200.00
Collateral deposited with Edin¬
burgh Lombard Investment Co.,
Limited 80,100.00
Collateral deposited with Union
Trust Co., Philadelphia .... 34,160.00
vo
Mortgages in hands of sub-offices
and agents 977,625.00
Mortgages in bands of Kansas City
Office 151,111.37
Mortgages deposited with Treas¬
urer State of Vermont .... 12,300.00
Mortgages and Debentiures pur¬
chased and charged to Valley
Loan and Trust Co. Loan account 34,395 00
Collection account 110,469.10
Insurance account 17,776.20
Guaranteed Interest paid and due
to Company ........ 355.193.64
Unguaranteed Interest paid and due
to Company 19,140.34
Interest due to February 1st, 1892,
on mortgages and bills receivable
owned by Company 168,097.31
Deduct—
Coupon Suspense account .... 1523,473.29
Certificates of Deposit held as col¬
lateral by Trustees for Debentures
transferred to Statement H . . 60,206.25
Bonds held as collateral by Trustees
for Debentures transferred to
Statement F 65,000.00
Real Estate held as collateral by
Trustees for Debentures trans¬
ferred to Statement B . . . . 259,695.00
Stocks held as collateral by Trus¬
tees for Debentures transferred
to Statement F . . . . . 475,800.00
-58,171,144.88
884,174.54
Amount carried forward, $7,286,970.34
M.—Debentures and Accrued Interest on
same.
Endorsed by Personal Trustees . $2,943,750.00
Endorsed by Atlantic Trust Co.,
New York
Endorsed by New York Security
Trust Co
Endorsed by Philadelphia Trust,
Safe Deposit and Insurance Co.
Endorsed by Union Trust Co.,
Philadelphia
Endorsed by Edinburgh Lombard
Investment Co., Limited . . .
Sold by Frankfort . . $8,000.00
Sold by Amsterdam . . 39,000.00
(Awaiting mail advice before
entering on Kansas City books
to proper " Series.")
4,278,893.28
Interest due to February ist,' 1892,
on outstanding Debentures . . 70,555.20
4,349,448.48
865,130.00
200,000.00
125,000.00
30,898.98
67,114.30
47,000.00
Amount carried forward, $8,669,146.17
Lombard Investment Co.—Company's Statement.—(Continued.)
AS.SETS,—(Continued.)
Amount brought forward, {7,286,970.34
B.—Real Estate.
Real Estate $79,278.05
Amount transferred from Statement A 259,695.00
Foreclosure account . . ... 73,145-95
Belmont Block '79-59
412,298.59
C.—Tax Certificates.
Tax certificates $26,508.39
Sundry taxes 4>953-43
Tax deeds 891.63
$32,353.45
D.—Over Drafts.
Sundry accounts 8,615.82
E.—Furniture and Fixtures 22,500.00
f.—Railroad and Municipal Bonds and other
Stocks and Bonds.
Bank stocks . . $16,745.00
I.a Plata Coal and Coke Co. stock . 30,000.00
Bonds and Stocks 391,697.40
Bonds, amount transferred from
Statement A 65,000.00
Stocks, amount transferred from
Statement .\ . . . 475,800.00
979,242.40
N.
LIABILITIES.—(Continued.)
Amount brought forward, $8,669,146.17
-Principal paid by borrowers awaiting
presentation of mortgages.
Lewis Lombard, agent, due
Lewis Lombard, agent, prepaid
McGeorge, Jr., agent, due . .
McGeorge, Jr., agent, prepaid
Sly, agent, due
Sly, agent, prepaid
Ramsden, agent, due and prepaid
Deas, agent, due and prepaid . .
$213,886.65
87,189.00
141,225.00
25,900.00
39,575-00
30,950.00
17,775.00
4,550,00
561,050.65
O.—Interest paid by borrowers awaiting
presentation of coupons 109,513.89
ù.—U. S. Bonds and Premium.
Í5I ,500 U. S. Government 4 per cent. Bonds . 60,000.00
H.—Cash with Company's Bankers.
Banks and Trust Companies :
First National, Kansas City . . . $194,662.03
National Broadway, New York . . 296,043.48
Chase National, New York . . . 28,817.29
Western National, New York . . 508.27
Gansevoort, New York 30,290.38
Atlantic Trust Co., New York . . 89,884.45
Central National, Philadelphia . . 22,468.57
Commercial National, Philadelphia 7.80
Hide and Leather National, Chicago 1,103.5 '
Union Trust Co., Philadelphia . 737-00
First National, Chicago 4,675.25
Traders'National, Boston .... 8,011.27
Maverick National, Boston .... 7,166.48
Maverick National, Boston . . . 5,423.58
Southern Trust Co., Memphis . . 526.54
Trinidad National, Colorado . . . 10,269.90
State National, Wichita i5>374-23
Branch Offices:
Lincoln, Nebraska 10,106.49
Portland, Oregon 31,842.27
St. Paul, Minn 2,844.67
Salt Lake, Utah 3,058.95
Lombard Mortgage Co., Wichita . 4,701.86
New York, Jordan, Cashier . . . 500.00
Amounts cat tied forward, $769,024.27 $8,801,980.60
P.—Loaning funds awaiting investment in
Lombard Investment Co. Securities.
Alliance Trust Co $10,705.76
City Real Estate Co 74,401.34
Edinburgh Lombard Investment Co.,
Limited, principal 20,093.62
Edinburgh Lombard Investment Co.,
Limited, interest 4,407.29
Anglo - American Land, Mortgage
and Agency Co., Limited, principal 5,7 24.08
Anglo - American Land, Mortgage
and Agency Co., Limited, interest 12,797.56
Philadelphia sundries 41,629.50
New York sundries 4,291.57
Colorado Savings Bank Trust Fund 3,712.71
Chattanooga Savings Bank Trust
Fund 1,178.65
Montana Savings Bank Trust Fund 522 50
179,464.58
Amount carried forward, $9,519,175.29
l,OMHARD Investment Co.—("ompanv's Statement.—(Concluded.)
Amounts brought forward, Í769,024.27 $8,801,980.60 ' Amount brought forward, $9,519,175.29
New York, Sly, Manager .... 1,013.45 R.—Other Deposits.
Boston, Milton, Ca.shier . 503.00 Certificates of Deposit $34,609.45
Boston, Sundries 111,493.50 Investors Company 2,438.95
Boston, Maverick National . . . . 20,000.00 Valley Loan and Trust Co. . . . 1,626.34
London, England, Ramsden, agent 12,776.57 Sioux City Office 5>335-39
London, England, sundries . . 5,620.32 Dallas Office 1,32614
Edinburgh, Scotland, Deas, agent . 2,66690 Edinburgh sundries 1,510.53
Berlin, Schmidt, agent . . . . 1,53286 Ouaranty Fund . ... . 70,322.96
Frankf.rt, Jager, agent .... 4.491 04 Contingent Fund 17,159.16
.Amsterdam, Boon, Ilartsinck & Van Fire insurance loss 3,904.44
T iegen • ■ 18,179.80 Insurance Subrogation 3,455.62
Mateer, Kansas City Office . . 100.00 Sundry account . . 46,856.96
Cash, Kansas City Office 2,579-49 Interest Department 75,144.94
Certificates of De|)Osit.—Amounts Abstracts loaned 448 06
transferred from Statement A: fifty six sundry accounts . . . 28,853-82
Union Trust Co., New York . . . 20,000.00 292,992.76
Metropolitan Trust Co., New York 6,711.25
Boston Safe Deposit and Trust Co. IO,0OO.<X>
Mercantile L. and T. i 'o., Boston . 10,000.00
Massachusetts L. and T. (io., Boston 13,495.00
$1,010,187.45
$9,812,168.05
$9,812,168.05
lOI
To the foregoing Statement was attached the following
certifícate :
" I fínd upon careful examination that the above Statement
of Assets and Liabilities, as reported at the close of business
February ist, 1892, by the Lombard Investment Co., is correct
and in accord with the books of said Company.
"(Signed), E. G. Lucas,
Auditor y
In the Statement issued by the Company the items making
the aggregate amount are omitted.
In preparing the Analyses of the Companies' Statements of
the Assets and Liabilities, we have subdivided them under head¬
ings, so that it will be seen at a glance of what they consist.
We have only given such explanations as are necessary to aid
you in forming an opinion of the value of the assets, as under
our instructions we are debarred from expressing any opinion.
LOMBARD INVESTMENT CO.
ACCOUNTANTS' ANALYSIS of the Company's Statement of Assets and Liabilities, February ist, 1892.
ASSETS.
Cash in Banks and Trust Companies.
First National, Kansas City . . . ;ÍI94,662.03
National Broadway, New York . 296,043.48
Chase National, New York . . . 8,817.29
Western National, New York . . 508.27
Gansevoort, New York 30,290.38
Atlantic Trust Co., New York . . 89,884.45
First National, Boston 120,696.71
Traders'National, Boston . . . . 8,011.27
Mayerick National, Boston . . . 12,590.06
Maverick National, Boston , . . 20,000.00
Central National, Philadelphia . . 22,468.57
Commercial National, Philadelphia 7.80
Union Trust Co., Philadelphia . . 737-00
Hide and Leather National,Chicago 1,103.51
First National, Chicago 4,675.25
Trinidad National, Colorado . . . 10,269.90
State National, Wichita 'S)374'23
Kansas City Office 2,679.49
Certificates of Deposit.
Union Trust Co., New York . . . 520,000.00
Metropolitan Trust Co., New York 6,711.25
Boston Safe Deposit and Trust Co. 10,000.00
LIABILITIES.
Capital 54,000,000.00
Debentures.
5838,819.69
Series C,
6 per cent. .
. 520,000.00
" I>,
6 "
. 19,500.00
" E,
6 "
. 20,000.00
" E,
6
20,000.00
" 11,
6 "
. 20,000.00
" 1,
6 "
20,000.00
" J,
6 "
. 100,000.00
" I.,
6 "
100,000.00
" M,
6 "
. 100,000.00
" N,
(> "
100,000.00
" 0,
6 "
. 100,000.00
" P,
6 "
. 100,000.00
" Q,
6 '<
. 100,000.00
" H,
6 "
. 100,000.00
" -s,
6 "
. 100,000.00
" T,
6 "
. 100,000.00
" u.
6 "
100,000.00
" V,
6 "
. 100,000.00
99,800.00
" W,
6 "
" X,
6 «
. 100,000.00
" Y,
6 "
. 97,000.00
" z.
6 "
. 100,000.00
" A A,
6 "
. 100,000,00
o
M
Mercantile Loan and Trust Co.,
Boston 10,000.00
Massachusetts Loan and Trust Co.,
Boston 13,495.00
Northrop Banking Co., Kansas City,
Kansas 2,300.00
62,506.25
Western Offices.
Amount due by
Portland, Oregon $31,842.27
Lincoln, Nebraska . ■ ... 10,106 49
St. Paul, Minnesota 2,844.67
Salt Lake, Utah 3.058-95
Wichita, Kansas 4,701.86
Southern Trust Co., Memphis, Tenn. 5^6.54
53,080.78
Eastern Offices.
Amount due by
Boston :
Cash on hand $7,086.11
Loans paid and other items not
yet entered on Kansas City
books 4,143.68
New York I>SI3-4S
12.743.24
Amount carried forward, $967,149.96
B B,
CC,
DD,
EE,
FF,
G G,
H H,
II,
JV JV,
LL,
NN,
00,
No. 21,
" 23.
" 25,
" 22,
" 24,
" 26,
" 28,
" 30.
GC,
GD,
GE,
HB A,
H B B,
HBC,
US, No. I,
USA,
USB,
G A,
6
. . 100,000.00
6
u
. . 100,000.00
6
(1
. . 97,200.00
6
(c
. . 99,500 00
6
«
. . 94,350.00
6
<(
. . 99,200.00
6
((
. . 100,000.00
6
. . 97,200.00
6
((
. . 81,250.00
6
. . 90,800.00
6
«
. . 99»75ooo
6
«
. . 5,000.00
6
((
. . 63,200.00
S
((
. . 12,901.00
S
((
873.00
5
i(
. . 11,155.00
4/^
((
. 97,000.00
AVi
u
97,000.00
AVZ
n
27,063.00
A'A
it
10,088.00
«
. 72,750.00
5
. . 98,800.00
s
«
. . 63,000.00
s
it
3,000.00
5
a
. . 99,200.00
S
a
. . 100,000.00
5
u
. . 41,400 00
6
a
. . 48,700.00
6
u
76,100.00
6
a
6,ioo.<x>
S
tt
. . 100,000.00
Amounts carried forward.
$3,908,880.00 $4,000,000.00
Lomiíari) Investment Co.—Accountants' Analysis ok Assets and Liaiulities.—(Continued.)
ASSETS.—(Continueil.)
Amount brought forward, $967,149.96
Foreign Offices.
Amount due by
London $18,396.89
Edinburgh 1,156.37
Berlin 1,532.86
Frankfort 4,491.04
Amsterdam 18,179.80
43.756.96
United States Bonds.
51,500 U. S. 4% bonds 60,000.00
LIABILITIES.—(Continued.)
Amounts brought forward, $3,908.880.00 $4,000,000.00
Debentures.—(Concluded.)
Series G B, 5 per cent
" Philadelphia, 5
" SA, 5
" SB, 5
Cumulative Bonds,
Sold by Frankfort,
" Amsterdam,
$8.000,00
39,000.00
100,000.00
125.000.00
36,704.80
30,409.50
30,898.98
-*47,000.00
-$4,278,893.28
*(As per cable advice, awaiting mail ad¬
vice before entering on Kansas City books
to proper "Series.")
Industrial Bonds.
489,500 Keith and Perry Coal Co.
first mortgage 6's $489,500.00
199,000 Seaboard Manufacturing
Co. first mortgage O's . . . 199,000.00
255,000 Colorado and Kansas Canal
and Reservoir Co. first mortgage
6's 255,000.00
943,500,00
Railroad Bonds.
10,000 Delaware, Lackawanna and
Western consolidated mortgage
7's, due 1907 $10,000.00
20,000 Boston and Lowell 4's, due
1907 20,000.00
10,000 New York Central and
Hudson River first mortgage 7's,
due 1903 10,000.00
5,000 Boston, Concord and Mon¬
treal consolidated mortgage 7's,
due 1893 5,000.00
45,000.00
Municipal Bonds.
20,000 City of St. Paul Water Works 4^'s, due
1918 20,000.00
Amount carried forward, $2,079,406.92
Principal paid by borrowers on Loans due.
Awaiting presentation of mortgages at the
following offices :
Boston $213,886.65
New York 39.575 00
Philadelphia 141,225.00
London 8,150.00
Edinburgh 1,000.00
403,836.65
Amount carried forward, $8,682,729.93
Lombard Investment Co.—Accountants' Analysis of Assets and Liabilities.—(Continued.)
ASSETS.—(Continued, )
Amount brought forward, Í2,079,406.92
Bank Stocks.
200 shares Montana Savings-Bank,
Helena. Montana, at par . . . |t20,ooo.oo
360 shares Pueblo National Bank,
Pueblo, Colorado, at par . . . 36,000.00
156 shares Trinidad National
Bank, Trinidad, Colorado, at par 15,600.00
530 shares Planters' and Me¬
chanics' National Bank, Hous¬
ton, Texas, at par 53,000.00
50 shares Lancaster Trust Co., Lan¬
caster, New Hampshire, at par . 5,000.00
10 shares First National Bank,
Salina, Kansas, at $130 .... 1,300.00
50 shares First National Bank,
Webb City, Missouri, at par . . 5,000.00
20 shares Wellington National
Bank, Wellington, Kansas, at
$200 4,000.00
40 shares Citizens' National Bank,
Fort Scott, Kansas, at J115 . . 4,600.00
49 shares American National Bank,
Galveston, Texas, at >105 . . . 5,145.00
25 shares Le Mars National Bank,
Le Mars, Iowa, at JS120 . . . . 3,000.00
152,645.00
LIABILITIES.—(Continued.)
Amount brought forward, ^8,682,729.93
Principal paid by borrowers on Loans not
due.
Awaiting presentation of mortgages at the
following offices :
Boston
New York
30.95000
Philadelphia ....
London
9,625.00
Edinburgh
3,550.00
157,214.00
Mortgage Companies Stocks.
1,196 shares Anglo-American Land,
Mortgage and Agency Co.,
Limited 511,601.20
(Carried at the amount paid
in ¿2—54.85 per £.)
200 shares Anglo-American De¬
benture Corporation, Limited . 2,910.00
(Carried at the amount paid
in ;iÍ3—Í4-85 per £.)
3,152 shares Edinburgh Lombard
Investment Co., Limited . . . 15,287.20
29,798.40
(Carried at the amount paid in £l—
54.85 per £.)
Auxiliary Companies Stocks.
496 shares Investors Co 549.6oo.oo
2,496 shares City Real Estate Co. 249,600.00
991 shares Concordia Loan and
Trust Co 99,100.00
398,300.00
(These stocks are all carried at par.
Their value depends up n the amount
realized from the assets of the several
Companies, which assets consist principally
of Real Estate.)
Amount carried forward, 52,660,150.32
Interest paid by borrowers.
Awaiting presentation of coupons 109,513-89
Amoimt carried forward, 58,949,457.82
Lombard Investment Co.—Accountants' Analysis of Assets and Liabilities.—(Continued.)
ASSETS.—(Continued.)
Amount brought forward, 1^2,660,150.32
Industrial Stocks.
3,675 shares Keith and Perry Coal
Co f 242,625.00
(Carried at about $66 per
share. This stock was given as
a bonus for subscription to the
first mortgage bonds. Full de¬
tails will be found under the
head of Keith and Perry Coal
Co., page 10.)
250 shares La Plata Coal and Coke
Co., Preferred 20,000.00
250 shares La Plata Coal and Coke
Co., Common 10,000.00
(The Preferred stock is carried at f 80 per
share, and the Common at $40. The prop¬
erty of this Company, with all its assets,
was sold at Sheriffs sale to satisfy a claim
of the Lombard Investment Co. for money
advanced. Full details will be found under
the head of La Plata Coal and Coke Co.,
page 19.)
272,625.00
LIABILITIES.—(Continued.)
Amount brought forward, $8,949,457.82
Funds awaiting investment in Lombard In¬
vestment Company mortgages.
For account of :
Philadelphia Office $41,629.50
New York Office 4,291.57
London Office 18,521.64
Edinburgh Office 24,500.91
Colorado Savings-Bank Trust Fund 3,712.71
Chattanooga Savings-Bank Tiast
Fund 1,178.65
Montana Savings-Bank Trust Fund 522.50
94.35748
Other Stocks.
252 shares United States Trust and
Guarantee Corporation, Limited ^6,174.00
(This stock is carried at
par, £S—U-9° per £■)
547 shares Jackson Investment Co. 54,700.00
(This stock is carried at par.
Statement of the assets of this
Company will be found under
the head of Jackson Investment
Co., page 76.)
127 shares Lombard Investment Co. 9,365.00
70,239.00
(This stock is carried at 373.74 per share.)
Debentures.
20,400 held by Company 20,400.00
First Mortgages due, upon which the in¬
terest has been paid.
In hands of Personal Trustees . . 3169,472.23
In hands of Atlantic Trust Co.,
New York, Trustees 8,000.00
Kansas City Office 7,211.36
184,683.59
Amount carried forward, 33,208,097.91
Due Auxiliary Cômpanies.
As per ledger account.
City Real Estate Co 374,401.34
Alliance Trust Co 10,705.76
Investors Co 2,438.95
Valley Loan and Trust Co. . . . 1,419.44
88,965.49
Amount carried forward, 39,132,780.79
Lombard Investment Co.—Accountants' Analysis of Assets and Liabilities.—(Continued.)
ASSETS.—(Continued.)
Amount brought forward, 83,208,097.91
First Mortgages due, upon which the in¬
terest has not been paid.
In hands of Personal Trustees . 8235,012.30
In hands of New York Security
and Trust Co., Trustees .... 1,000.00
Kansas City Office 14,150.00
LIABILITIES.—(Continued.)
Amount brought forward, 19,132,780.79
Due Western Offices.
Sioux City, Iowa ÍS-33S-39
Dallas, Texas 1,326.14
6,661.53
250,162.30
First Mortgages not due, upon which the
interest has been paid.
In hands of Personal Trustees . 8859,586.65
In hands of Atlantic Trust Co.,
New York, Trustees .... 1,372,828.00
In hands of New York Security
and Trust Co , Trustees . 175,100.00
In hands of Philadelphia Trust,
Safe Deposit and Insurance
Co., Trustees ... . . 118,700.00
Union Trust Co., Philadelphia,
Trustees 33,710.00
Edinburgh Lombard Investment
Co., Limited, Trustees . . . 80,100.00
Treasurer State of Vermont . . 12,300.00
Boston Office 336,450.00
New York Office 265,225.00
Philadelphia Office 282,400.00
London Office 34,200.00
Edinburgh Office 22,400.00
Kansas City Office 94,800.00
In hands of Personal Trustees . .
In hands of Atlantic Trust Co.,
New York, Trustees ....
In hands of New York Security
and Trust Co., Trustees . . . .
In hands of Philadelphia Trust,
Safe Deposit and Insurance Co.,
Trustees
In hands of Union Trust Co., Phila¬
delphia, Trustees . . .
In hands of New York Office
In hands of Philadelphia Office
In hands Kansas City Office .
Second Mortgages.
In hands of Personal Trustees .
In Kansas City Office ....
3,687,799 65
First Mortgages not due, upon which the
interest has not been paid.
566,625.00
59,820.00
23,900.00
16,500.00
450.00
6,650.00
25,800.00
1,050.00
584,892.93
4,134.62
200.795.00
89,027.55
Amount carried forward, 57,435,882 41
Guaranty Fund.
Amount to make good any loss that may occur
to the Company on guaranteed mortgages
negotiated prior to February 15th, 1886 . . 70,322.96
Amount carried forward, 59,209,765 28
Lombard Investment Co.—Accountants' Analysis of Assets and Liabilities.—(Continued.)
ASSETS.—(Continued.)
Amount brought forward, $7,435,882.41
Commission Mortgages.
In hands of Personal Trustees . . $456,157.12
In Kansas City Office 21,164.05
477.32117
Chattel Mortgages.
In hands of Personal Trustees . . $299.00
In Kansas City Office 29,662.54
29,961.54
Mechanics' Liens 15,128.47
LIABILITIES.—(Continued.)
Amount brought forward, $9,209,765.28
Certificates of Deposit.
Philadelphia Office $24,500.00
Boston Office 2,566.35
Kansas City Office 7>543-*o
34,609.45
Miscellaneous Items.
Special tax and overpayments on
Loans
Procuring deeds
Examiners' accounts unsettled
Jackson Investment Co. . .
Sundry accounts
$476.68
491.10
1,898.31
1,361.34
3,922.60
8,150.03
Collection Account.
In process of collection:
First mortgages . $86,912.05
Second mortgages 11,864.55
Commission mortgages . . . 11,692.50
110,469.10
Tax Certiñcates .... .... 31,461.82
Tax Deeds • . • , 891.63
(The above items represent delinquent
taxes paid by l^ie Company upon properties,
the mortgages upon which are guaranteed by
the Company. The estimated amount of
these which will not be redeemed by the
owners of the property, based upon the actual
experience of the Company, will be about
$12,500. When the mortgages have been
foreclosed this item has been added to the
cost of the real estate, this increase being car¬
ried as an asset of the Company.)
Real Estate
Amount carried forward.
406,191.29
#8,515.45746
Due to Depositors.
As per ledger (57 accounts) 29,060.72
Abstract Account.
Amount deposited as security for the return of
abstracts loaned 448.06
Amount carried forward, #9,273,883.51
Lombard Investment Co.—Accountants' Analysis of Assets and Liabilities.—(Continued.)
ASSETS.—(Continued.)
Amount brought forward, ;
Real Estate Equities, subject to $ig,8oo . ■
(The amount charged on the books of the
Company as the cost of the Real Estate, and
at which it is carried as an asset, is made up
as follows ;
1st. The original loan made by the
Company, and represented by the first
and second m rtgages. 2nd Fore¬
closure costs, etc. 3rd. Accrued inter¬
est. 4th. Delinquent taxes 5th. Amount
credited to a profit and loss account at
the time property was transferred from
one company to' another, the Parent, or
Auxiliary Companies, being always used
for such transfers. 6th. Foreclosure
costs upon mortgages in process of fore¬
closure, the properties representing the
same not yet being acquired by the Com¬
pany.
The amount so charged over and above
the first and second mortgages is $i 11,826 79.
The detailed explanation will be found under
the head of Real Estate, page 68.)
Real Estate Contracts.
LIABILITIES.—(Continued.)
^i5'S>4S746 Amount brought forward, #9,273,883.51
6,107.30 Fire Insurance Loss.
Amount received from Insurance Companies
awaiting adjustment with borrowers, either in
replacing burnt buildings or applying on
loans 7,360.06
Contingent Fund.
Amount due borrowers on loans in course of
completion 17,159.16
In hands of Personal Trustees
19,350.00
Bills Receivable.
La Plata Coal and Coke Co. . . . ^lo,317.91
Franklin Investment Co 6,000.00
Collateral notes 29,999.98
Sundry notes 10,265.44
Bills Receivable, Auxiliary Companies'
Notes.
Alliance Trust Co 11373,000.00
Concordia Loan and Trust Co. . . 122,000.00
Investors Co 7°>Soo
Valley Loan and Trust Co. . . . 44,500.00
Balances due by Auxiliary Companies.
As per ledger account.
Valley Loan and Trust Co. . . . $16,387.16
Concordia Loan and Trust Co. . . 27,503.07
Insurance.
56,583-33
610,000.00
43,890.23
Sundry items 17,776.20
(This represents about 750 items of in¬
surance premiums paid by the Company,
not yet collected from borrowers )
Amount carried forward, $9,269,164.52
Deposit Account.
Amount received from borrowers for loans and
interest in process of settlement . . 122,001.90
Debenture Interest.
Estimated amount due on outstanding Debent¬
ures, February ist, 1892 70,555.20
Amount carried forward, $9,490,959.83
Lombard Investment Co.—Accountants' Analysis of Assets and Liabilities.—(Concluded.)
ASSETS.—(Concluded.)
Amount brought forward, ^9,269,164.5 2
Interest due Company.
Guaranteed interest paid .... j!3SS>'93-64
(Ninety thousand dollars of
this amount represents delin¬
quent interest, formerly charged
as a loss, but during the past
year, although the same re¬
mained unpaid, credited as a
profit and added to the assets of
the Company.)
Unguaranteed interest paid . . . 19,140.34
Bond interest 3S'00
Estimated amount of interest on
mortgages and bills receivable to
h'ebruary ist, 1892, owned by the
Company 168,097.31
(This item includes interest on first and
second mortgages, whether in default or
otherwise, also on past due commission
mortgages, etc. Interest on those in default
being calculated at the rate provided in the
several obligations as penalty ; in some
cases as high as 12 per cent.)
542,466.29
Furnitur« and Fixtures
22,500.00
9,834,130.81
LIABILITIES.—(Concluded.)
Amount brought forward, $9,490,959.83
Amount due Boston, New York and Phila¬
delphia Offices for coupons paid .... 23,473.29
Undivided Profits 199,697.69
Surplus 60,000.00
Guaranty Dividend Fund ... .... 60,000.00
$9.834.130.81
AUXILIARY COMPANIES.
ACCOUNTANTS' STATEMENT of Assets and Liabilities of the
ALLIANCE TRUST COMPANY, VALLEY LOAN AND TRUST COMPANY, CITY REAL ESTATE COMPANY,
CONCORDIA LOAN AND TRUST COMPANY, INVESTORS COMPANY,
as of February ist, 1892, with an Analysis of the same.
ASSETS.
LIABILITIES.
Cash in Bank.
Chase National, New York . . . 51,202.37
Gansevoort, New York 2,087.04
First National, Kansas City, Mo. . 1,870.55
Investors Co.:
Capital.
City Real Estate Co
Valley Loan and Trust Co. .
5250.000.00
100,000.00
Concordia Loan and Trust Co. . . 100,000.00
ÍS.IS9-96
Investors Co. . .
Alliance Trust Co.
50,000.00
5,000.00
5505,000.00
Stocks and Bonds.
Investors Co.:
25 shares International Loan and
Trust Co., Kansas City, Mo . . 52,50000
4 shares Pueblo National Bank . 400.00
200 shares Kansas City Land Co. . 9,247.05
12,147.05
Amount carried forward, 517,307.01
Amount carried forward, 5505,000.00
Auxiliary Companies.—Accountants' Statement of Assets and Liabilities.—(Continued.)
ASSETS.—(Continued.)
Amount brought forward, $17,307.01
LIABILITIES.—(Continued.)
Amount brought forward, $505,000.00
Real Estate.
Alliance Trust Co.
$505,288.62
Bills Payable.
Alliance Trust Co.
$373,000.00
Valley Loan and Trust Co. . . . 256,641.01
Valley Loan and Trust Co. . . . 44,500.00
Concordia Loan and Trust Co. . . 122,000.00
City Real Estate Co.
220,422.76
Concordia Loan and Trust Co. . . 313,227.82
Investors Co.
70,500.00
1-295,580.21
610,000.00
Real Estate Equities.
Alliance Trust Co., subject to
>1,049,575 $414,360 12
City Real Estate Co., subject to
>SS.490 * 14,635.33
Valley Loan and Trust Co., subject
to $206,916 92,661.17
521,656.62
(The amount charged on the books of
the C< mpanies as the cost of their Real
Estate, and at which it is carried as an asset,
is made up as follows :
1st. The original loan made by the
Parent Company and represented by
the first and second mortgages. 2d.
Foreclosure costs, etc. 3rd. Accrued
interest. 4th. Delinquent taxes.
5th. Amount credited to a profit and
loss account at the time property was
transferred from one Company to
another, the Parent or Auxiliary Com¬
panies being always used for such
transfers.
The amount so charged over and above
the first and second mortgages is $6&o,-
140.45. The detailed explanation will be
found under the head of Real Estate, page
68.)
Second Mortgages.
Valley Loan and Trust Co 36,910.60
Bills Receivable.
City Real Estate Co.:
L. C. Teed J 100.00
Investors Co.:
Hamilton Land Co 7,000.00
H E. Mooney 2,000.00
La Plata Cual and Coke Co. . . . 25,000.00
34,100.00
(The property of the La Plata Coal and
Coke Co , with all its assets, was sold at
Sheriff's sale to satisfy a claim of the Lom¬
bard Investment Co. for money advanced,
details of which will be found under the
head of La Plata Coal and Coke Co.,
page 19. The notes of the Hamilton Land
Co. and H. E. Mooney have since been
Amount carried forward, 11,905,554.44
Mortgages Payable.
Alliance Trust Co Í39'i750-°®
City Real Estate Co 60,000.00
Valley Loan and Trust Co. . . . 183,600.00
Concordia Loan and Trust Co. . . 273,025.00
908,375.00
Amount carried forward, $2,023,375.00
Auxiliary Companies.—Accountants' Statement of Assets and Liabilities.—(Continued.)
ASSETS.— (Continued.)
■Amount brought forward, $1,905,554.44
Due by Lonnbard Investment Co.
Alliance Trust Co $10,705.76
Valley Loan and Trust Co. . . . 1,419.44
City Real Estate Co 74,401.34
Investors Co 2,438.95
88,965.49
Tax Deeds.
Concordia Loan and Trust Co 27,083.34
Tax Certificates.
Concordia Loan and Trust Co 168,071.91
(The above items represent delinquent
taxes paid by the Company upon proper¬
ties, the mortgages upon which are guaran¬
teed by the Lombard Investment Co. The
estimated amount of those which will not
be redeemed by the owners of the property,
based upon the actual experience of the
Company, would be about $77,000. When
mortgages have been foreclosed this item
has been added to the cost of the Real
Estate, this increase being carried as an
asset of the Company.)
LIABILITIES.—(Continued.)
Amount brought forward, $2,023,375.cx)
Due to Lombard Investment Co.
Valley Loan and Trust Co. . . . $16,387.16
Concordia Loan and Trust Co. . . 27,503.07
Due to Depositors.
Alliance Trust Co $385.50
Concordia Loan and Trust Co. . . 18.06
43,890.23
40356
Coupons.
Investors Co
(This represents coupons on first mort¬
gages paid by the Lombard Investment Co.,
and unpaid by the borrowers, which were
sold to the Investors Co.)
Interest on Tax Certificates.
Concordia Loan and Trust Co
(This item represents interest on tax cer¬
tificates held by the Company. When
property is acquired it is added to the cost
in the same manner as the amounts repre¬
sented by the tax deeds.)
Interest on Coupons.
Investors Co
(This represents interest on overdue
coupons on first mortgages, which were
paid by the Lombard Investment Co. and
sold to the Investors Co.)
Interest on Bills Receivable.
Investors Co 1,771.16
(This represents accrued interest on over¬
due notes of the La Plata Coal and Coke
Co., which property was sold by~ the
Sheriff to satisfy a claim of the Lombard
Investment Co. for money advanced.)
Amount carried forward, ^2,270,026.94
.61,910.17
13,421.39
3.249-04
Profit and Loss.
Alliance Trust Co
Valley Loan and Trust Co. .
Valley Loan and Trust Co. .
Concordia Loan and Trust Co.
Investors Co
Investors Co
#142,502.31
35.667.56
1.419-44
303-59
113.81
62.52
$180,069.23
Amount carried forward, $2,247,738.02
Auxiliary Companies.—Accountants' Statement of Assets and Liabilities.—(Concluded.)
ASSETS.—(Concluded.)
Amount brought forward, $2,270,026.94
Costs and delinquent interest on mortgages
in process of foreclosure.
Alliance Trust Co • 16,705.47
(This represents costs and delinquent in¬
terest on mortgages in process of fore¬
closure, the properties representing the
same not yet having been acquired by the
Company.}
Abstract^Books.
Concordia Loan and Trust Co
(These records have not been kept since 1887.)
Expense Account.
Alliance Trust Co
Valley Loan and Trust Co. . .
$126.10
118.25
Profit and Loss.
City Real Estate Co. ...*..
Concordia Loan and Trust Co. .
$440.57
409.76
635.50
24435
850-33
LIABILITIES.—(Concluded.)
Amount brought forward, $2,247,738.02
Rent Account.
Alliance Trust Co
Valley Loan and Trust Co. .
40,724 57
$34,548.26
6,17631
$2,288,462.59
$2,288,462.59
123
Too much stress cannot .be placed upon the necessity of
thoroughly auditing, at frequent intervals, the accounts of the
several branch offices of the Company, when it is considered
that such a large amount -of money is disbursed by them for
expenses.
During the year ending February ist, 1892, these payments
were as follows :
Boston Office $¡0,^23 54
New York Office 26,871.48
Philadelphia Office 22,474.92
Western Offices 85,486.48
#185,556.42
From most of these offices monthly statements of expenditures
are received, but until very recently no such statement was ren¬
dered by the Boston arid New York Offices, the expenses being
charged in a lump sum, without a voucher or audit of any
description. In fact, no vouchers are in the Kansas City Office
to represent the payments made by any of the branch offices.
Had the several branch offices a systematic method of keep¬
ing their books, and the same been properly audited, a defalca¬
tion like Russell's would have been detected at the first audit.
To show the importance of auditing as a check against
purely .clerical errors, we will state that while examining the
books of the, Kansas City Office to ascertain if the personal
guarantee given on certain mortgage loans, to secure the Com¬
pany against any loss that might arise on the same, had been
paid, we discovered errors in twenty-six out of a total of forty-
seven.
The errors against the Company amounted to . . #2,167.73
And those in favor of the Company 356-36
A difference of #1,811.37
which amount has since been paid.
In closing our report, we would state that every possible
facility was rendered by both the officers and employees of the
Company, to aid us in our examination.
Yours respectfully,
EDWARD P. MOXEY,
ANDREW J. REILLY,
Accountants.
INDEX.
PAGE.
Auxiliary Companies 6
Accountants' Statement of Earnings and Expenses 89
Accountants' Analysis of Assets and Liabilities 117
Belmont Block 26
Colorado and Kansas Canal and Reservoir Company 11
Debentures .... 35
Defalcations of Russell and Lewis 29
First National Bank Stock, Kansas City, Missouri 20
Guaranty Funds 32
Jackson Investment Company 75
Keith and Perry Coal Company 8
La Plata Coal and Coke Company 16
Lenexa Property 23
Lombard Investment Company.
Company's Statement of Earnings and Expenses 79
Accountants' Statement of Earnings and Expenses 80
Items of Difference in Earnings and Expenses . ... -94
Company's Statement of Assets and Liabilities . . 96
Accountants' Analysis of Assets and Liabilities 102
Mortgage Loans 60
Ravenna Flats 21
Real Estate 65
Seaboard Manufacturing Company 14
Stewart Flat and Block ... 27
Sundry Stocks 77
United States Trust and Guarantee Corporation, Limited . 73
332.6 479*185
L8411