9737. Guaranty Loan company (Minneapolis, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
May 1, 1893*
Location
Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model
gpt-5-mini
Short Digest
76143727

Response Measures

None

Description

Articles describe the Guaranty Loan Company's suspension in May 1893, appointment of a receiver, and later insolvency tied to president Louis F. Menage's embezzlement. No run or depositor panic is mentioned. The bank remained in receivership and assets were being sold in 1894, indicating permanent closure.

Events (4)

1. May 1, 1893* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Systematic plundering and mismanagement by president Louis F. Menage leading to insolvency; assets largely worthless and large personal liabilities recorded on company books.
Newspaper Excerpt
Menage ... kept it up persistently until the suspension of the company on May, 1893.
Source
newspapers
2. May 20, 1893 Receivership
Newspaper Excerpt
proceedings for the appointment of a receiver for the Guaranty Loan company ... order ... appointing the Minneapolis Trust company to that position. Judge Russell adjourned the hearing until 9 o'clock this morning.
Source
newspapers
3. May 2, 1894 Other
Newspaper Excerpt
The Exchange National Bank of New York ... offers $1,244,170.91 for the Guaranty Loan building. ... the Minneapolis Trust company, receivers of the Guaranty Loan company, offers ... Judge Russell signed the order to show cause why the petition should not be granted at noon yesterday.
Source
newspapers
4. September 19, 1894 Other
Newspaper Excerpt
The Minneapolis Trust company, receiver of the Guaranty Loan company, will argue ... that all the collateral should be consolidated for the use and profit of all the creditors ...
Source
newspapers

Newspaper Articles (6)

Article from St. Paul Daily Globe, May 20, 1893

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Article Text

LAWYERS SUSPICIOUS. They Are Watching One Another in the Guaranty Case. The first real friction in the proceedings for the appointment of a receiver for the Guaranty Loan company occurred yesterday, when about a dozen attorneys gathered before Judge Russell, and the order, all prepared. was presented for his signature, appointing the Minneapolis Trust company to that position. The court asked if there were any objections, and James W. Lawrence, representing some of the creditors, was on his feet at once, and stated that he had no objections to the company, but that there were some of the surrounding circumstances that he did not like, and he would like time to look the matter up. Asked what the circumstances were, he stated that he had learned that in case the Trust company was appointed, Mr. Bartelson would act as the attorney for that receiver, a fact that he thought was manifestly unjust, inasmuch as that attorney had been at work for the company for so long, and knew all the ins and outs of its way of doing business. He did not think that it was fair to the creditors. Mr. Bartelson stated that as a matter of fact he had not been advised of any such proceedings, and that the company would probably appoint whoever it wanted. That was a matter to come up after the appointment of the receiver. Mr. Truesdale had an inning, and stated that he arose for a correction of Mr. Lawrence's statements. He had heard that Mr. Hale, another attorney who of late had been actively working for the Guaranty Loan company, was to be employed, and for that reason he had the same complaint to make as Mr. Bartelson. Judge Baily arose and explained for the benefit of all parties that the attorneys were not objecting to the receiver named, but only asked some time to look into it, which he thought was perfectly proper. Mr. Hale reminded the complainers that they were not parties to the action at all, to which the attorneys took issue with him, and at last Judge Russell adjourned the hearing until 9 o'clock this morning. Messrs. Lawrence and Truesdale explained themselves after the matter was over. They stated, in substantially the same terms. that the transfers of the building and assignments of a great number of mortgages had been at the advice of the two attorneys mentioned, and they did not think it was justice to the creditors to expect that these same attorneys would come into court and fight these transfers, for the benefit of the creditors, when it had been under their advice that they had been made. The argument this morning will probably be a heated one, unless some amicable arrangement is made before that the comto time. pany will It is agree understood appoint that another if attorney there will be no further objections. Mr. Hale states positively that he IS an attorney for some of the creditors, and that he does not expect to be an attorney for the assignee.


Article from St. Paul Daily Globe, May 25, 1893

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Article Text

Bank Examiner KENYON met JOHN H. BURKE near the capitol the other day and knocked him down, or slapped his face, or in some way expended a good deal of energy on him. Questioned as to the reason for his pugilistic effort, Mr. KENYON said that BURKE had been slandering him. Mr. BURKE, with what motive IS immaterial, has waged a war on the Guaranty Loan company, ot Minneapolis. He attacked it in pampliets. in the press and by circulars. He alleged that it was mismanaged, and was bound to become insolvent unless the management and methods of business were changed. His charges attracted little attention, but he is a persistent man, and finally in January, 1892, Gov. MERRIAM directed Bank Examiner KENYON to investigate the company and report. It is said that he reported the company as perfectly solvent, and its management prudent and safe. A little more than a year later the company passes into the hands of a receiver. The GLOBE suggests to Bank Examiner KENYON that, instead of wasting his energy in slapping Mr. BURKE'S face, he would serve himself much better by spending it in trying to ascertain how the concern which he pronounced a solvent and well-managed business in January, 1892, is in a receiver's hands in May, 1893. In what manner have those sound methods been changed since his examination, and those adopted which produced bankruptcy? If there was no change of methods, and they have resulted in insolvency, Mr. KENYON can utilize his energy to good advantage in explaining why he reported them as safe and conservative then. If Mr. BURKE'S slanders, for which Mr. KENYON rebuked him in a Sullivanesqu manner, were only reflections on the rapidity with which the Guaranty Loan went to smash so soon after Mr. KENYON reported it sound, solvent and well managed, then the GLOBE has serious doubts whether they were standerous. Anyway, it is willing to take the risk of saying that they were not.


Article from The Wilmington Daily Republican, November 11, 1893

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Article Text

MENAGE'S MANIPULATIONS. His Liabilities Nearly Two Millions, and Assets Comparatively Worthless. MINNEAPOLIS, Noy. 11.-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 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, 1893. Upon an investigation into its affairs he fled to South America. In that time Menage secured $823,131.49 in cold cash, to say nothing of $161,550, which he had secured previons 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 $43,516.17 on 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 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.


Article from The Evening Herald, November 11, 1893

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Article Text

MENAGE'S MANIPULATIONS. His Liabilities Nearly Two Millions, and Assets Comparatively Worthless, MINNEAPOLIS, Nov. II.-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 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, 1893. Upon an investigation into its affairs he fled to South America. In that time Menage secured $823,131.49 in cold cash, to say nothing of $161,550, which he had secured previons 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 $43,516.17 on 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 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.


Article from St. Paul Daily Globe, May 2, 1894

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Article Text

WANTS THE GUARANTY LOAN. The Exchange National Bank of New York Makes a Bid. The Exchange National Bank of New York city, through Hale, Morgan and Montgomery, attorneys of the Minneapoils Trust company, receivers of the Guranty Loan company, offers $1.244,170.91 for the Guaranty Loan building. The bank holds claims against the company aggregating $544,170.91. and proposes to assume a $600,000 mortgage, to pay in addition $100,000 for the property, of which $70,000 shall be in cash and $30,000 preferred stock of the Minneapolis Tribune company. Judge Russell signed the order to show cause why the petition should not be granted at noon yesterday. The order is made returnable May 19, at 9 a. ID. in special term.


Article from St. Paul Daily Globe, September 19, 1894

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Article Text

Want a Trustee Appointed. Tomorrow morning an important suit will come up before Judge Russell in the district court. The Minneapolis Trust company,receiver of the Guaranty Loan company, will argue that although the collaterals were assigned to different purchasers of the stock of the company, the assignment was a purely arbitrary one, and that all the collateral should be consolidated for the use and profit of all the creditors, share and share alike. The trust company will ask that some suitable trustee be appointed to have the care and custody of the collaterals. The amount which they secure is $1,063,946.57, and the par value of the collaterals themselves amounts to $1,357,600.