10374. New England Loan & Trust Company (Kansas City, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
September 26, 1898
Location
Kansas City, Missouri (39.100, -94.579)

Metadata

Model
gpt-5-mini
Short Digest
78821109

Response Measures

None

Description

Multiple contemporaneous newspaper reports (Sept 26–27, 1898) state a receiver (Otto Bannard) was appointed for the New England Loan & Trust Company in Kansas City because of heavy losses on western boom town city loans. No run or depositor panic is described; the company is placed in receivership (closure).

Events (2)
1. September 26, 1898 Receivership
Newspaper Excerpt
It was announced this forenoon that Otto Bannard of New York ... had been appointed receiver for the New England Loan & Trust Company, with headquarters in this city.
Source
newspapers
2. * Other
Newspaper Excerpt
The receivership is said to have been forced by the company's inability to realize on loans made in 1888 and 1889 on western boom town property; losses on city property dragged the assets to a depth where a receivership became necessary.
Source
newspapers

Newspaper Articles (10)
1. September 26, 1898 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, September 26, 1898

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Article Text

BOOMS DON'T PAY. Investing in Boom Town Properties Is What Busted the New England Loan & Trust Company. Kansas City, Sept. 26.-The New England Loan & Trust Company for which Otto T. Bannard, of New York. treasurer of the Continental Trust company has been appointed receiver. had its headquarters in this city. The concern dealt in city and farm mortgages in the west. Its capital is given at $825,000 and the last printed statement shows a surplus of $100,000. The company is said to hold $5,000,000 debentures, $5,000,000 loans. and to have $175,000 cash on hand. The receivership is said to have been forced by the company's inability to close on loans made in 1888 and 1889 on boom town property in Omaha. which have proved a loss. The company is composed mostly of New York, Philadelphia and Des Moines men, with the home office at Des Moines, although the main office is in New York city. Besides a branch here, there are branches at Dallas and Oklahoma City. John C. Hall is the company's attorney in Kansas City. "The cause of the failure, he said, was inability to keep up our losses on loans made on western city property in 1888 and 1889. The company was organized in 1876. It did a profitable business in farm loans until 1888 when it began making loans on property in Omaha, Sioux City, Salt Lake and Ogden. When the boom went to pieces, foreclosure became necessary and we found ourselves so burdened with depreciated city property that it has taken more than the profits on our farm loan business to keep up the interest, taxes and repairs. If we had another year or two to catch up, we could have pulled through all right and we may yet if the securities behind on debenture bonds don't fail us. The company's securities were sold almost entirely in the east.

2. September 26, 1898 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, September 26, 1898

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Article Text

FINANCIAL INSTITUTION FAILS The New England Loan & Trust Company Goes to the Wall. Cause of the Failure Said to be Disast. FOUS LOADS on City Property in the West. Kansas City, Mo., Sept. 26.-It was announced this afternoon that Otto Bannart of New York, treasurer of the Continental Trust company of that city, had been appointed receiver for the New England Loan and Trust company, with headquarters in this city. The company dealt in city and farm mortgages in the West. Its capital is given as $825,000, and its last printed statement showed a surplus of $1,000,000. The company is said to hold $5,000,000 in debentures, $5,000,000 in loans and to have $175,000 cash on hand. The receivership is said to have been forced by the company's inability to realize on loans made in 1888 and 1889 on western boom town property, most of which is said to have been in Omaha and which has proven a loss. The firm also carred heavy loans on western farm property, and although this is said to have proven profitable the losses on city property are said to have dragged the assets to a depth where a receivership became necessary. J. S. Gilbert, secretary and assistant manager. has had charge of the local headquarters of the company for several years. The company Is composed mostly of New York, Philadelphia and Des Moines men. The home office company is at Des Moines. though the main office is in New York City, Beside the branch here. there are branches at Dallas, Texas. and Oklahoma City, Ot. John C. Hall is the company's attorney at Kansas City. "The cause of the failure," he said to a reporter, "was our failure to keep up taxes on western city property In 1898 and 1889. The company was or. ganized in 1876 and did a profitable business in farm loans till 1888, when it began making loans on property in western cities, most disastrous among them being loans on property in Omaha, Sloux City, Salt Lake City and Ogden. When the boom went to pieces, foreclosure became necessary. and we found ourselves so burdened with depreciated city property that It has taken more than the profits on our farm loan business to keep up the Interest, taxes and repairs. If we had had another year or two in which to catch up we could have pulled through 1

3. September 27, 1898 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, September 27, 1898

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Article Text

KANSAS CITY, Mo., Sept. 26.-It was announced this forenoon that Otto Bannart, of New York, treasurer of the Continental Trust Company, of that city, had been appointed receiver for the New England Loan and Trust Company, with headquarters in this city. The firm dealt in city and farm mortgages in the west. Its capital is given as $825,000, and its last printed statement showed a surplus of $100,000. The company is said to hold $5,000,000 in debentures, $5,000,000 in loans and to have $175,000 cash on hand. The receivership is said to have been forced by the company's inability to close on loans made in 1888 and 1889 on western boom town property, most of which is in Omaha, and which has proven a loss. The extent of these losses are not known. but are said to be large. The firm also carried heavy loans on western farm property, and although this is said to have proven profitable, the losses on city property is said to have dragged the assets to a depth where a receivership becomes necessary. J. S. Gilbert, secretary and assistant manager, has had charge of the local headquarters of the company for several years. The company is composed mostly of New York, Philadelphia and Des Moines men. The home office of the company is at Des Moines, though the main office is in New York City. Besides the branch here, there are branches at Dallas, Texas, and Oklahoma City. Oklahoma. John C. Hall is the company's attorney at Kansas City. "The cause of the company's failure," he said, to a reporter, "was our inability to keep up our losses on loans made on western city property in 1888 and 1889. The company was organized in 1876, and did a profitable business in farm loans until 1888, when it began making loans on property In western citles, most disastrous among them being loans on property in Omaha, Sloux City, Salt Lake City and Ogden. When the boom went to pieces foreclosures became necessary, and we found ourselves so burdened with depreciated city property that it has taken more than the profits of our farm loan business to keep up the interest, taxes and repairs. If we had another year or two in which to catch up we could have pulled through all right, and we may yet, If the securities behind the debenture bonds don't fall us." The company's securities were sold almost entirely In the east.

4. September 27, 1898 The Denison Review Denison, Dow City, IA
Article from The Denison Review, September 27, 1898

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Article Text

Trust company of Philadelphia, and Sabillion Allen, of St. Albans, Vt. The company was a large lender of money on western mortgages. Kansas City, Mo., Sept. 26.-It was announced that Otto Bannard, of New York, treasurer of the Continental Trust company, of that city, has been appointed receiver for the New England Loan and Trust company, with headquarters in this city. The firm dealt in city and farm mortgages in the west. Its capital is given as $825,000, and its last printed statement showed a surplus of $100,000. The company is said to hold $5,000,000 in debentures, $5,000,000 in loans and to have $175,000 cash on hand. The receivership is said to have been forced by the company's inability to close on loans made in 1888 and 1889 on western boom town property, most of which is said to be in Omaha, and which has proven a loss. Omaha, Neb., Sept. 26.-The New England Loan and Trust company has never done an extensive business in Omaha. It has had no office here, its business being carried on through a real estate agency on a commission basis. Its present representatives, who have all its local affairs in hand, say its business here is light, its losses, if any, small, and all its property here is in good condition and is well worthits price.

5. September 27, 1898 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, September 27, 1898

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Article Text

KANSAS CITY STATEMENT. Kansas City, Mo., Sept. 26.-It was announced this forenoon that Otto Bannard of New York, treasurer of the Continental Trust company of that city, had been appointed receiver for the New England Loan & Trust company, with headquarters in this city. John C. Hall is the company's attorney at Kansas City. "The cause of the failure," he said to a reporter, "was our failure to keep up taxes on western city property in 1888 and 1889. The company was organized in 1876 and did a profitable business in farm loans till 1888, when it began making loans on property in western cities, most disastrous among them being loans on property in Omaha, Sioux City, Salt Lake City and Ogden. When the boom went to pieces foreclosure became necessary, and we found ourselves so burdened with depreciated city property that it has taken more than the profits on our farm loan business to keep up the interest, taxes and repairs. If we had had another year or two in which to catch up we could have pulled through all right, and we may yet if the securities behind the debentures don't fail us." The company's securities were sold almost entirely in the east.

6. September 27, 1898 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, September 27, 1898

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Article Text

KANSAS CITY STATEMENT. Kansas City, Mo., Sept. 26.-It was announced this forenoon that Otto Bannard of New York, treasurer of the Continental Trust company of that city, had been appointed receiver for the New England Loan & Trust company, with headquarters in this city. John C. Hall is the company's attorney at Kansas City. "The cause of the failure," he said to a reporter, "was our failure to keep up taxes on western city property in 1888 and 1889. The company was organized in 1876 and did a profitable business in farm loans till 1888, when it began making loans on property in western cities, most disastrous among them being loans on property in Omaha, Sioux City, Salt Lake City and Ogden. When the boom went to pieces foreclosure became necessary, and we found ourselves so burdened with depreciated city property that it has taken more than the profits on our farm loan business to keep up the interest, taxes and repairs. If we had had another year or two in which to catch up we could have pulled through all right, and we may yet if the securities behind the debentures don't fail us." The company's securities were sold almost entirely in the east.

7. September 27, 1898 The Herald Los Angeles, CA
Article from The Herald, September 27, 1898

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Article Text

BOOMTOWN CITY LOTS NOT GOOD SECURITY FOR FUNDS LOANED The New England Loan and Trust Company Goes Into Hands of a Receiver KANSAS CITY, Sept. 26.-It was announced this forenoon that Otto Bannart of New York, Treasurer of the Continental Trust Company of that city, had been appointed receiver for the New England Loan and Trust Company, with headquarters in this city. The company dealt in city and farm mortgages in the West. Its capitalization was $285,000 and its last printed statement showed a surplus of $100,000. The company is said to hold $5,000,000 in such ventures, $5,000,000 in loans and to have $175,000 cash on hand. The receivership is said to have been forced by the company's inability to close on loans made in 1888 and 1889 on Western boom town property, most of which is waid to have been in Omaha and which has proven a loss. The firm also carried heavy loans on Western farm property, and although this is said to have proven profitable, the losses on city property are said to have dragged the assets to a depth where a receivership became necessary. J. S. Gilbert, secretary and assistant manager, has had charge of the local headquarters of the company for several years. The company is composed mostly of New York, Philadelphia and Des Moines men, with the home office, of the company at Des Moines, though the main office is in New York City. Besides the branch here there are branch offices at Dallas, Texas, and Oklahoma City. John C. Hall is the company's attorney at Kansas City. "The cause of the failure," he said to a reporter, "was our inability to keep up losses on loans made on Western city property in 1888 and 1889. The company was organized in 1876 and did a profitable business in farm loans till 1888, when it began making loans on property in Western cities, most disastrous among them being loans on property in Omaha, Sioux City, Salt Lake City and Ogden. When the boom went to pieces, foreclosure became necessary and we found ourselves so buried with depreciated city property that it has taken more than the profits on our farm loan business to keep up the interest, taxes and reIf we year or to catch up we in pairs. which had and had another could yet have If the pulled two sethrough all right we may curities behind the debenture bonds don't fail us." The company's securities were sold almost entirely in the East.

8. September 27, 1898 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, September 27, 1898

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RECEIVER APPOINTED. New England Loan and Trust Company Forced to the Wall. KANSAS CITY, Mo., Sept. 26.-It was announced this forenoon that Otto Bannart, of New York, treasurer of the Central Trust company, of that city, had been appointed receiver of the New England Loan and Trust company, with headquarters in this city. The firm dealt in city and farm mortgages as in the West. Its capital is given $825,000, and its last printed statement showed a surplus of $100,000. The company is said to hold $5,000,000 in debentures, $5,000,000 in loans, and to have $175,000 cash on hand. The receivership is said to have been forced by the company's inability to close on loans in 1888 and 1889 on Western boom town property. The extent of these losses is 'not known, but is said to De large. The firm also carried heavy loans on Western farm property, and, although this is said to have proven profitable, the losses on city property are said to have dragged the assets to a depth where a receivership became necessary. J. S. Gilbert, secretary and assistant manager, has been in charge of the local headquarters of the company for several years. The company is composed mostly of New York, Philadelphia and Des Moines men. The home office of the company is at Des Moines, though the main office is in New York city. Beside the branch here there are branches at Dallas, Tex., and Oklahoma City, Okla. John C. Hall is the company's attorney at Kansas City. PHILADELPHIA, Sept. 26. - President Frank T. Hipple of the Real Estate Trust company, of this city, when questioned regarding the action of his company in obtaining the appointment of a receiver for the New England company, explained that it was merely a precautionary measure taken to protect the holders of a million dollars' worth of the New England company's bonds for which the local company is the trustee. "There is no cause of any sort, however," he continued, "for the holders of the bonds to become alarmed, for they are all protected by good securities. Within the past few weeks we have had experts go carefully over these securities, and they report that they represent enough capital to more than pay the company's outstanding bonds and the interest on them." Bank Doors Closed. RICHMOND, Va., Sept. 26.-The Alleghenny bank, at Clifton Forge, closed its doors this morning and announced an assignment. It was organized during the boom of 1890 with a paid up capital of $20,000. and worked under a state charter. The line of deposits foots up about $50,000. It is said 60 per cent of the deposits may be paid and there is talk of reorganization.

9. September 28, 1898 Watertown Republican Watertown, WI
Article from Watertown Republican, September 28, 1898

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RECEIVER APPOINTED. A Loan and Trust Company in Straits-Cause of the Trouble. Kansas City, Mo., Sept. 26.-It was announced this forenoon that Otto Bannart of New York, treasurer of the Continental Trust company of that city, had been appointed receiver for the New England Loan and Trust company, with headquarters in this city. The firm dealt in city and farm mortgages in the West. Its capital is given as $825,000, and its last printed statement showed a surplus of $100,000. The company is composed mostly of New York, Philadelphia and Des Moines men. The home office of the company is at Des Moines, though the main office is in New York city. Besides the branch here there are branches at Dallas, Tex., and Oklahoma City, O. T. John C. Hall is the company's attorney at Kansas City. "The cause of the failure." he said to a reporter, "was our inability to keep up our losses on loans made on Western city property in 1888 and 1889. The company was organized in 1876 and did a profitable business in farm loans until 1888, when it began making loans on property in Omaha and Sioux City, Salt Lake City and Ogden. When the boom went to pieces foreclosures became necessary and we found ourselves so burdened with depreciated city property that it has taken more than the profits on our farm loan business to keep up the interest, taxes and repairs. If we had had another year or two in which to catch up, we could have pulled through all right. and we may yet if the securities behind the debenture bouds don't fail us." The company's securities were sold almost entirely in the East.

10. September 28, 1898 The Representative Saint Paul, Minneapolis, MN
Article from The Representative, September 28, 1898

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BIG CONCERN BREAKS. Receiver Appointed for the New A England Loan and Trust Co. KANSAS CITY, Sept. 26.-It was announced this forenon that a receiver had been appointed for the New England Loan and Trust company, with headquarters in this city. This firm dealt in city and farm mortgages in the West. Des Moines, Iowa, Sept. 26.-An official statement of the failure of the New England Loan and Trust company, of this city, was made this afternoon by N. T. Guernsey, counsel for the company and special counsel for the receiver, who returned from New York today. Summarized it is: The company has a capital stock of $875000 and undivided profits $109,000, making an aggregate of $984,000. The amount of debentures outstanding is $5,500,000 and there have been negotiated $5,000,000 of real estate mortgages, the debentures and mortgages