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RATHER PANICKY OUT WEST RUN ON A SOLID MINNEAPO SAVINGS BANK. Northwestern Guaranty Loan Company Very Shaky, but Hopen to Pull Through Neher & Carpenter, Troy Bankers. Close Their Doora as Result of the North western's Dilemma- The Farmers and Merchants State Bank of Minneapoli Suspends Payment- A Denver Banke with a Lot of New York Creditors Falle MINNEAPOLIS May 15 -This morning there were twenty people in front of the Farmers and Mechanics' Bank before it opened its doors, and later the crowd increased until full-fledged run was in progress. But stored away in a back room was $1,000,000. while in the vaults was stored $3,000,000 in bonds. which will to-night be shipped to New York to be converted into cash. The bank is prepared to pay every dollar to its depositore. The other banks have tendered assistance, which has not been needed. and instead of being loser by the run the bank will be the gainer to the extent of $150,000, as there is due on the deposits four and a half months' accrued in terest which the depositors forfeit by withdrawing their funds The bank is prepared for a run that does not insist on the rule which requires that notice of sixty days be given of the withdrawal deposits. Aside from the presence of a vast crowd of of onlookers, there were no scenes worthy especial mention. The depositors who withdrew their money were mostly the smaller ones. Many of them were teachers in the public schools who made a rush for the bank as soon as the bell rang for the noon hour and were BO intent on getting their money that in many cases they did not return to the school building to attend to their afternoon duties. At the close of the banking hours notice was given that the bank would be open at 9 o'clock to morrow morning There were 200 people in line at this time During the day the bank paid out $100.00 and received on deposit nearly $8,000. The Farmers' and Mechanics' Bank is one of the oldest banks in this city. and is as solid as a rock. The money stringency in the East and the demand from that quarter for money intrusted to the Northwestern Guaranty Loan Company for investment has resulted in the serious embarassment of the company. It has not suspended and may not be obliged to do so, but it is i feared It will be compelled to do so n a few days. This pany was organized n 1884 by Measrs. Menage Bull. and Channell, with $200,000 capital. which has since been increased to $1,250,000. It has done an extensive business in bonds, mortgages, guaranteeing paper. as well as other securities Much of this paper now. while well secured. cannot be realized on owing to the present money stringency. and for this reason the company is unable to meet its obliga tions. The creditors are mainly Eastern peo ple, and while the failure is damaging to credit eastward the losses do not fall upon local people outside of the stockholders. The officers of the company are Manage. President: Thomas Lowry and William E. Streeter. Vice-Prest idents F. J. Percival. Secretary J. Robinson and H W. Cole. Assistant Secretaries: S. M. Houghton Superintendent of Loans: F. R Chase. Cashier The company about ten years old and has capital stock of $1,250,000. For several years the company floated paper. It took col. lateral sufficient cover the paper and then guaranteed II told, payment. The prove TROY. firm of Neher Carpenter REOPEN. The National Bank will be condition. sound President to pay all demands in the we are not plan ready would not could only
