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Attachments Against the Western Form Mortgage Company. Denver, Feb. 5.-Attachments have been filed against the Western Farm Mortgage Trust company and an application for a receiver will be tosde tomorrow. The attachments were made for small amounts, the largest being $1000, yet the company could not pay. It is said that the arrest of the directors and officers is not improbable. The company was organiz. ed in Lawrence, Kan., and afterwards reincorporated in Denver. New York creditors are represented here, and will file attachments against securerities representing $900,000 tomorrow. The company is enpitalized ostensibly at $3,000,000, and it is said that it has done: a business of $10,000,000 a year, principally with other people's money. The company's method was to lend money at a high rate and take & mort. gage to secure the payment. This mortgage was sold at a premium to eastern investors, the company collecting the interest. The money paid by the purchasers was reinvested, until the business reached an enormous aggregate. Farmers were unable to pay the high interest, and the company, to maintain its standing, advanced the interest to the purchasers. It drew on the Third National Bank of New York City until its funds were exhausted. Then the press of credits became too great to be withstood. When the directors saw the crash comIng they formed the American Real Estate Investment company, to which, It is alleged, the stock of the Trust tompany had been turned over. Some DE the alleged acts of the directors in lbis State are criminal offenses. The losses of Eastern purchasers, it is believed, will aggregate hundreds of thousands, as the sureties they can attach are considered very poor.
