9734. Guaranty Loan Company (Minneapolis, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
May 14, 1893
Location
Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model
gpt-5-mini
Short Digest
b4813124

Response Measures

None

Description

The Guaranty Loan Company suspended in mid-May 1893 (articles cite May 14 and May 19). Suspension was due to internal fraud/embezzlement by president Louis F. Menage; the company was insolvent and an assignee/receiver (St. Paul & Minneapolis Trust Company) was appointed by July 1893 and pursued suits. No article describes a depositor run on this company; sequence is suspension followed by receivership and settlement => permanent closure.

Events (3)
1. May 14, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Company suspended because it was insolvent after systematic plundering/fraud by president Louis F. Menage; assets were largely worthless and loans were uncollectible.
Newspaper Excerpt
the suspension of the company on May 14, 1893.
Source
newspapers
2. July 1, 1893* Receivership
Newspaper Excerpt
assignment to the St. Paul and Minneapolis Trust company last July (receiver) as reported in November articles; suit of the Minneapolis Trust company, receiver, vs. L. F. Menage was later settled and dismissed in Jan. 1894.
Source
newspapers
3. November 1, 1893 Other
Newspaper Excerpt
Menage began the systematic plundering ... kept it up persistently until the suspension of the company on May 14, 1893. In that time Menage secured $823,131 in cash ... Menage's total personal liabilities ... about $1,700,000.
Source
newspapers

Newspaper Articles (8)
1. May 18, 1893 New-York Tribune New York, NY
Article from New-York Tribune, May 18, 1893

Click image to open full size in new tab

Article Text

A MINNEAPOLIS STATE BANK SUSPENDS. Minneapolis, May 17.-A good deal of surprise was manifested this morning when the Citizens' Bank suspended payment. The notice on the door says that depositors will be paid in full. The officials declare that the bank is perfectly solvent. and that the suspension Is due simply to its inability to realize promptly on its securities. The Citizens' is one of the smaller State banks of this city. Its statement at the close of business May 4 shows loans and discounts $478,844 cash on hand and due from banks, $60,000; deposits, 8283,913; surplus and profits, $16,800; rediscounts, $76,500. The capital is $250,000. The suspension is at worst only temporary. There had been no run on the bank and the action was taken to protect all depositors alike. The run on the Farmers and Mechanics' Savings Bank is about over, only a few of the more Ignorant depositors appearing at the paying teller's window this morning. The bank has come out with flying colors and faith in its solidity is renewed. Goodnow & Lawther, coal dealers, made an appllcation In Judge Russell's court 10-day asking that the Guaranty Loan Company be required to show cause why a receiver for the company should not at once be appointed to take charge of Its affairs. Judge Russell granted the application and signed an order citing the Guaranty Loan Company to appear at 2 p. m. to-morrow in answer to the application. It is understood that the proceeding is of a friendly character. and that the application was made by agreement of and after consultation between the company and some of its creditors.

2. May 18, 1893 St. Johnsbury Caledonian Saint Johnsbury, VT
Article from St. Johnsbury Caledonian, May 18, 1893

Click image to open full size in new tab

Article Text

ANOTHER CRASH. object lesson in this Western week One more has been given the Northinvestments the embarrassment of Company by Guaranty Loan W. S. western Minneapolis, in which has of formerly of this town, much Streeter, prominently interested, vicinity been stock held in this his perhaving of the been placed through sonal solicitation. Northwestern is about on ten a The old, and has carried inyears business and extensively guaranteebanking in the floating and Most of dulged commercial paper. in ing of has been negotiated has this paper England. The company and a New stock of $1,250,000, commercapital about $3,000,000 of business in holds It has done cial paper. which cost $1,800,000, big a been looked upon as a and has Coming so closely failure concern. building after break at Sioux City, the quite a the Northwestern created in cerof the in financial circles, yet realripple tain quarters the news was not ly surprise. a Lowry, the vice president, Thomas the failure to thestringen- which, he attributes of the money market, for our cy "made it impossible their customers says, to take up or renew we canand, unfortunately, notes, realize on the collateral." is due He not claims that the disaster polialso the lack of a financial largely the to part of the government. been cy on the officials have So far from as at all on the subject, heard a belief that the compathey express its depositors ny will be able they to admit pay that stockin full, but are likely to lose heavily. holders Minneapolis dispatch anOne the prospective suspension nouncing that as the Northwestern wasa not stated failure locally." was "new company," "cut a large its figure likely to the size of the figure company's which Whatever calamity cuts in the nothing immediate this vicinity, there is which about the misfortune in St. small result in this section; for quite will alone nearly or and estimates Johnsbury $100,000 of the stock is place held, the amount conservative held by parties and between Derby River Junction White Line at from $250,000 that to $300,000. the failure It will "new company" thus be seen willcut quite ofthis figure hereabouts-which is most sincerely a to be regretted. money stringency of the lack The and the government's have had market financial policy may break in of a to do with the something North western, as Mr. embarass- Lowry althe but the company's natural leges, may be regarded as a the basis ment of doing business on Western result by this and other turned adopted which have lately concerns faces to the wall. No institu- so far their of this kind can operate live for tion beyond the safety line and and people any great their length trust of time; in these promises will who of big put returns for investments of so door later see the folly to sooner The losses which promise Northing. from the failure of the but if result are to be deplored; have been western overturnings which the these frequent of late shall open at the so of would-be investors cautious, eyes and make them more altogether in East they will not have been vain. Menage is said to of the be President that the liabilities without callconfident can be paid and those company the stockholders, certaining on directly interested will right in his guess. ly most hope that the president is

3. May 24, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, May 24, 1893

Click image to open full size in new tab

Article Text

KENYON STANDS PAT. He Will Wait Until the Receiver's Report Is Made. Burke's Charges Snugly Repose in the Governor's Desk. No little excitement pervades the state house just at present. It has the out of the imbroglio between grown state bank examiner, M. D. Kenyon, and John H. Burke, the self-constituted of of state affairs, and all sorts things censor upon the same general plan. been Burke has for two or three years the sleuth role. of his time has been over public records, an interminable energy devoted poring enacting portion The and spent he in greater of trac- has the in the financial Loan company, of insolvent. He has a to a malcontent lis, tic ing Guaranty now contributor up condition been Minneapo- avowed weekly causpublication that has had for its of all the drastic arraignment occasions things purpose that be. On several the seBurke has openly charged that curities of the company mentioned has of the most rotten sort. He charged were that the company has habitloaned vast sums of money could upon ually shaky mortgage securities that never be realized on. Carrying the war into Africa, Merriam Burke the case to Gov. and something presented over a year ago, that rep- exthat he cited records institution. resented the rottenness of the affairs of posed then demanded that the given a He Guaranty Loan company be expert, the investigation by an Kenyon to searching Gov. Merriam cited Mr. done by and make the inspection. and This the was report to the bank examiner, was to the effect that that the the governor was perfectly solvent. business-like and concern the methods were of a character. excited Burke to additional the All this through his mouthpiece. administration attacks paper, upon the Little weekly the Guaranty Loan. however. and upon was paid to these. fallacious attention were denounced as and They but when the crash came, vaporings, financial institution suspended. the in high glee, proclaimed His Burke, had been vindicated. charges that he led him to file formal exrelation Gov. Nelson against the bank relate with Just what these charges way. aminer. not known, save in a general refuses to Mr. to is Kenyon peremptorily for publicaupon the subject the city. converse Gov. Nelson is out of official tion, and the belief obtains office in he Moreover, that if he were at his publicircles not give the document investigation. for would advance of an excation in connection it should be states In this that the bank examiner inplained courts the most searching folthat he and this will doubtless to vestigation, the return of the governor is now in low upon house. The latter it is rethe Cloud, state and tomorrow night, But he St. he will go to Winona. the week. ported, the latter part of is will return intimated that the charge that the It is made by Burke returns to specifically examiner falsified his this for bank Merriam, and that he did all events, Gov. consideration. At and the a valuable in office is charged, dismalfeasance demands the summary from office. complaint of the bank examiner belligerent missal all this that led to the upon Mr. It was of the bank examiner Monassault in front of the capitol on for an day. Burke Mr. Kenyon was waiting to Minneapointerurban Burke car to came go over up. Without his say- left lis when word Kenyon feinted with shoulder and ing a landed straight The from battle the was short with decisive. his right. Kenyon won in the a single capibut and Burke hurried into at tal round, to once more lay his grievances the feet ot the to governor. both of the principals. is it In fairness be related that public opinion the war. should the merits of hostilities divided upon be cessation of rendered until There a will verdict shall have been in the case.

4. November 11, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, November 11, 1893

Click image to open full size in new tab

Article Text

PLUNDERED ON A SYSTEM. Louis T. Menage Secured Nearly Two Million Dollars. HE WAS PRESIDENT OF THE LATE GUARANTEE LOAN COMPANY. In One Day, Menage Borrowed Over One Hundred Thousand Dollars of the Com. pany-All Told He Got About One Million Dollars From the Loan Concern and From Others He Raked In Nearly Another Million. Minneapolis, Minn., November 1-New revelations in the affairs of Louis F. Menage, the president of the insolvent Guarante Loan company, are of a rather startling nature. The schedules of his liabilities, which were filed at the time of his assignment to the St. Paul and Minneapolis Trust company last July, have finally come to light and are said to show that Menage began the systematic plundering of the company, of which he was president, in November, 1892, and kept it up persistently until the suspension of the company on May 14, 1893. In that time Menage secured $823,131 in cash, to say nothing of $161,550 which he had secured previous to the time mentioned above. On the 26th of last April he borrowed $55,000 from the company; four days before the suspension he got $43,516 on one note, and on the day before the suspension he took a last pull and secured $15,000. One day in January last he drew $120,000. Besides these amounts, which were borrowed from the company on Menage's personal notes, secured by "collateral securities," other parties, private individuals, banks and corporations were played for about $700,000 more. Menage's total personal liabilities, therefore, are about $1,700,000. The greater part of this amount stands on the books of the Guaranty Loan company as assets. Menage's private assets are for the most part in paper of doubtful value, although it contains some stock that may be realized on.

5. November 11, 1893 New-York Tribune New York, NY
Article from New-York Tribune, November 11, 1893

Click image to open full size in new tab

Article Text

MENAGE'S COLOSSAL STEALING. TOOK NEARLY $1,000,000 FRAUDULENTLY FROM A BANK OF WHICH WAS PRESIDENT. Minneapolis, Minn., Nov. 10.-New revelations in the affairs of Louis F. Menage, the president of the insolvent Guaranty Loan Company, are of a rather startling nature. The schedules of his liabilities, which were filed at the time of his assignment to the St. Paul and Minneapolis Trust Company last July, have finally come to light, and are said to show that Menage began the systematic plundering of the company of which he was president in November, 1892. and kept it up persistently until the suspension of the company on May 14, 1893. In that time Menage secured $823,131 49 in cash, to say nothing of $161,550 which he had secured previous to the time mentioned above. On April 26 last he borrowed $55,000 from the company; four days before the suspension he got $43,516.17 on one pote, and on the day before the suspension he took a last pull and secured $15,000. On one day in January last he drew out $120,000. Besides these amounts, which were borrowed from the company on Menage's personal notes, secured by "collateral securides," other parties, private individuals, banks and corporations, were played for about $700,000 more. Menage's total personal liabilities, therefore, are about $1,700,000. The greater tart of this amount stands on the books of the Guaranty Loan Company as assets. Menage's private assets are for the most part in paper of doubtful value, although it contains some stock that may be realized en.

6. November 11, 1893 The Providence News Providence, RI
Article from The Providence News, November 11, 1893

Click image to open full size in new tab

Article Text

STARTLING DISCLOSURES. President Menage of Guaranty Loan Com pany Began Stealing In 1892. MINNEAPOLIS, Nov. 11.-New revelation in the affairs of Louis F. Menage, thi president of the insolvent Guaranty Loai company, are of rather a startling nature The schedules of his liabilities, which were filed at the time of his assignment to the St. Paul and Minneapolis Trust com pany last July, have finally come to light and are said to show that Menage began the systematic plundering of the compan: of which he was president in November 1892, and kept it up persistently until th suspension ot" the company on May 14 1893.

7. November 16, 1893 Delaware Gazette and State Journal Wilmington, DE
Article from Delaware Gazette and State Journal, November 16, 1893

Click image to open full size in new tab

Article Text

MINNEAPOLIS, MINN., Nov. 10.-New revelations in the affairs of Louis F. Menage, the president of the Insolvent Guaranty Loan Company, are of a rather startling nature. The schedule of his liabilities, which were filed at the time of his assignment to the St. Paul and Minneapolis Trust Company, last July, have finally come to light and are said to show that Menage began the systematic plundering of the company of which he was president in November, 1892, and kept it up persistently until the suspension of the company, May 19th, 1893. In that time Menage secured $823,131.49 in cold cash. to say nothing of $161,550 which he had secured previous to the time mentioned above. April 26th he borrowed $55,000 from the company; four days before the suspension he got $43,516.17 in one note, and one day before the suspension he took a last pull and secured $15.000. One day in January last he drew $120,000. Besides these amounts. which were borrowed from the company on Menage's personal notes, secured by "collateral securities," other parties, private individuals, banks and corporations, were "played" for about $700.000 more. Menage's total personal liabilities, there1 fore, are about $1,700,000. The greater t part of this amount stands on the books of e the Guaranty Loan Company as assets. e Menage's private assets are, for the most part, in paper of doubtful value, although S it contains some stock that may be realized on.

8. January 26, 1894 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, January 26, 1894

Click image to open full size in new tab

Article Text

The Cases Were Settled. Two important suits were marked "settled and dismissed" on the calendar at the district court yesterday. One suit was that of the Minneapolis Trust company, receiver, vs. L. F. Menage: the other was the suit brought by the Farmers' and Mechanics' Savings bank against Menage. The first suit was brought by the trust company as receiver of the Guaranty Loan company against the assignee of Menage and the Victoria Land company, to recover $100,000 worth of stock issued by that company in payment for land at Bozeman, Mont., which had been transferred by Menage to this company. The suit was settled upon the receiver securing three-fourths of the stock, the face value of which is $75,000. The suit with the bank involved a piece of property in Remington's addition, Minneapolis. The bank had redeemed the land from the sheriff's sale with the understanding that Menage and W. S. King were to take it. The amount due was $17,074.08.