People's Pilot, Volume 2, Number 45, Rensselaer, Jasper County, 28 April 1893 — BIG SUMS INVOLVED. [ARTICLE]

BIG SUMS INVOLVED.

The Union Loan & Trust Company of Sioux City, Ia., Fails and Several Other Corporations Forced to Assign in Consequence—Over $1,000,000 Involved. SIOUX CITY, Ia., April 26.—At 1 o'clock Tuesday afternoon D. T. Hedges, president of the Union Stock Yards company, and the wealthiest man in Sioux City, assigned all his property, amounting by schedule accompanying the assignment to $1,998,000, to E. H. Hubbard, for the benefit of his creditors. At the same time the Hedges Trust company, of which he is president, assigned to Mr. Hubbard, liabilities being $250,000 and assets $450,000. Mr. Hedges’ liabilities are $1,024,624. Ten minutes later the Union Loan & Trust company asigned, also to Mr. Hubbard. Its statements show liabilities of $745,574 and assets of $1,468,038. The company had guaranteed notes, which were sold in Chicago, New York and other eastern cities, amounting to about $1,400,000, which are coming due and cannot be paid owing to the close money market. Two hundred and seventy thousand dollars of these were notes of D. T. Hedges, whose failure forced that of the Union company. The Sioux City Stove Works company a few minutes later filed two mortgages to the Union Loan & Trust company amounting to $350,000 and at once closed its works, leaving 100 men unemployed. A mortgage for $103,000 given by D. A. Williams on the Hotel Garrettson to A. S. Garrettson and by him assigned to the Union Loan & Trust company was filed; also a warranty deed from D. F. Hedges to the Union company for 8,000 acres of farm land in this county for $350,000. Ed Haakinson, proprietor of the Sioux City Dressed Beef & Canning company, and one of the wealthiest men in the city, assigned a large amount of property to E. A. Burgess to meet special liabilities, but will make no general assignment. He had indorsed a large amount of Hedges’ paper and it forced him to take this action. Mr. Haakinson also assigned about $150,000 worth of other property to relatives in trust. E. R. Smith, secretary of the Union Loan & Trust company, conveyed $100,000 of private property to trustees for his creditors. A. S. Garrettson, vice president of the Union company, gave a deed for about 600 acres of land to T. P. Gere for $85,000, but has made no assignment. He is president of the Sioux City & Northern and Pacific Short Line railroads, and says he will make no assignment. The Sioux City Terminal Railway company, of which Mr. Garrettson is president, filed a $750,000 mortgage to the Union Loan & Trust company. The people and companies thus involved are the leading ones of the city, representing the syndicate that has built railways, great buildings and street railways and done most to make this place a city of 40,000 people. They have carried immense burdens till the close money market made it impossible to go further. The business of the various parties was carried on mainly through the Union Loan & Trust company, which placed their collaterals in the east. No Sioux City bank is in any way involved.

The crash was totally unexpected until within twenty-four hours, and it brought a day of terror for the city. There is no panic, however, and none of the banks have had serious runs. The Union Loan & Trust company had $500,000 capital. Arrangements had been made for a large amount of money from the east and if the crash could have been postponed forty-eight hours it probably would not have occurred. But creditors were ready to attach and forced the assignments. Chicago people are underderstood to have forced the issue. The Union Loan & Trust company has a capital of $1,000,000. The general statement of liabilities is: Due to banks, $14,339; debenture bonds and interest, $233,352; due on deposits, $497,883; total, $745,574. The assets aggregate $2,000,000. The Union Loan & Trust company had indorsed the paper of heavy Sioux City concerns and an immense amount of this paper was held in the east and payment demanded and renewal refused. The loan and trust company being a local organization the failures are farreaching in their effects and may temporarily affect the interests of some of the heaviest enterprises in the city. It is believed that a reorgization of the Union Stock Yards company will be necessary, Mr. Hedges having been its president and a heavy stockholder. It is announced, however, that business at the yards will go on without interruption, the company being on a sound financial basis. It is rumored that the Cudahy Bros., who now hold two of the three packing houses, will take up Mr. Hedges’ stock. The Sioux City Cable Railway company, of whose stock Mr. Hedges owns half, it is thought, will suffer more than any other of the enterprises in which he was concerned. None of the other transit lines is affected. Tuesday evening, after business men had a chance to get something like a comprehensive view of the situation, the panicky feeling that obtained during the day subsided. It is found that none of the banks nor any of the permanent industries of the town will be seriously affected. It is believed by some that Mr. Hedges will be able to liquidate in time.