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MORE TROUBLE IN THE WEST. MINNEAPOLIS COMPANIES EMBARRASSED. THE NORTHWESTERN GUARANTY LOAN COMPANY WILL PROBABLY SUSPEND-A STATE BANK CLOSES. [BY TELEGRAPH TO THE TRIBUNE.1 Minneapolis, Minn., May 15.-It was reported In this city and in St. Paul to-day that the Northwestern which has become in had Guaranty financial Loan dificulties Company. of late, suspended. involved The rumor. although gaining general credence. was found to be false. It is expected, however, that the company will be compelled to suspend in a few days. Officers and directors of the concern admit as much. L. F. Menage, president of the company, will not talk for publication beyond the expression of a conviction that the company will eventually pay every dollar. Just how much time will be required for this is unknown. The trouble with the company is that from various causes many of its patrons have refused to take up or renew their notes. The company's difficulties, It is the general belief, are only temporary. Some of the wealthiest men of the city, Thomas Lowry and others are back of it, and it is believed that the company will be able to satisfy all dorands. It will not be possible to ascertain the exact condition of affairs uness the company suspends, as it expects to do. The company is about ten years old, and its stock is $1,250,000. It owns the $2,000,000 building in which its offices are situated. and holds as collateral and in fee simple a large amount of property here. in Chlcago and elsewhere. Its business is loaning commercial paper on sufficient collateral and the guarantecing of the paper. It has some $3,000,000 of this paper. One of the results of the rumors regarding the Guaranty Lean was a run on the Farmers and Mechanies' Savings Bank to-day. The depositors are largely working people. The bank is not alarmed. being able to meet all demands. It has nearly $3,000,000 of available cash and securities. and could stand a run of eight days if necessary. The run is, however, nearly If not quite over. The Farmers' and Merchants' Bank, a concern with small capital. suspended, but will undoubtedly resume in a day or two. Thomas Lowry, vice-president of the Northwestern Guaranty Loan Company, when seen by a Tribune reporter at the Fifth Avenue Hotel yesterday, said that he had not been to a meeting of the board of directors for eighteen months, but that he believed the company had collateral back of all its liabilities, and that it would be able to meet all its obligations if a little time were given to it. He said that he had received no information whatever yeste rday concerning the condition of the company. Mr. Lowry is also president of the Farmers and Mechanics' Savings Bank of Minneapolis. He said yesterday that the bank was perfectly sound. and could easily stand the run upon it. which he attributed to the general distrust and panic in financial circles. At the American Exchange National Bank, which is the financial agent in this city of the Northwestern Guaranty Loan Company, it was said that most of the company's paper was put out in small lots of $1,000 to $10,000 and was held all over the Eastern States, little if any of it having been placed in NewYork. The bank officials declared that they were not in the least affected by the Minneapolis company's embarrassment.
