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The Bank Safe-Receiver Asked For. MINNEAPOLIS, Minn., May 17.An application was made in the District court this morning to have a receiver for the Northwestern Guaranty Loan company appointed. The run on the Farmer's and Mechanic's Savings bank is about over, only a few of the more ignorant depositors appearing at the paying teller's windows this morning. The bank has come out with flying colors, and faith in its solidity is renewed.
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THE BANK ALL RIGHT. Minneapolis, Minn.. May 17.-An anplication was made in the district court this morning to have a receiver for the Northwestern Guaranty Loan company appointed. The run on the Farmers' and Mechanics' Saving bank is about over. only a few more of the ignorant depositors appearing at the paying teller's windows this morning. The bank has came out with Hying colors and faith in Its solidity is renewed.
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The Company Said to Be In Better Shape Than At First Reported. The Run On the Minneapolis Savings Banks About Drawing to a Close. The Women's Congress Holding Long Daily Sessions and Do Much. The Financial Panic. MINNEAPOLIS. May 17.-The omerais of the Northwestern Guaranty Loan company are not ready to make statement of its condition in advance of suspension, which they are free to say will, in all probability, become necessary. It is pleasant. however, in view of the rumors of Monday, which made of this company a pretty thorough wreck, to make a much more favorable statement of its condition than people understand it to be. Probably Not Lose Anything. The Journal says on excellent authority that the investors in the company will, in all probability. not lose a dollar: that the security taken is ample to pay every dollar, and that the only poss:bility of loss is to the stockholders. and that President Menage is sure that they will be protected from loss also, providing the company is left to carry on business without forced liquidation. The reports sent here from the East were of a very discouraging nature, as they implied investors would be heavy losers, and it will be a great relief to Eastern capitalists generally to know that the institution is not in nearly as bad a way as Eastern reports have outlined. and which the refusal of the company officials to make a statement tacitly confirmed, but the officials say that as there has yet been no suspension there is no call for them to say anything. Amount of Debentures Exaggerated. The statement was made in a dispatch from Troy, N. Y., that the company had $16,000,000 in debentures. While the officials have made no statement, The Journal says that instead of any such large liability, the debentures only , slightly exceed $2.500,000, which is a e showing that need alarm no one, as 3 back of these debentures is a large amount of a No. 1 security and the liability of the stockholders. It is also 3 stated that the commercial paper ) held by the company amounts to about I the same amount as the debentures and e that this is well secured. In fact, it is said that President Menage is coufident 1 that the assets are sufficient to pay the e liabilities without calling on the stock. holders. At any rate, the other assets will have to be first exhausted before 1 1 the stockholders can be called upon for 8 amounts equal to their stockholdings.
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ANOTHER AUSTRALIAN BANK City of Melbourne Bank Joins the Long Procession. LONDON, May 17.-The failure was announced of the City of Melbourne bank, limited. The London manager of the concern i Edward Rouse, and its offices are at No. 117 Bishops Gate street. Investors in the North western Guaranty Company Assured They Will Not Lose. MINNEAPOLIS, Minn., May -The officials of the Northwestern Guaranty Loan company are not ready to make a statement of its condition in advance of suspension, which they are free to bay will in all probability become necessary. The Journal says today on excel. lent authority that the investors in the company will, in all probability. not lose a dollar: that the security taken is ample to pay every dollar, and that the only possibility of loss is to the stockholders, and that President Menage is sure that they will be protected from loss also, providing the company is able to carry on business without forced liquidation.
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FAILURES. NEW York, May 20.-A. T. Enos was today appointed receiver for the Pancoast Manufacturing company at 300 Broadway (gas and electric fixtures), ou application of a stockholder. The officers of the concern discovered that the company was unable to meet its liabilities and the stockholders decided to apply for a receiver. The capital stock is $570,000. The assets are said to exceed $1,000,000, and the liabilities will be found to be more. MINNEAPOLIS Minn., May 20. - -The Northwestern Guaranty Loan company, which has been in an embarrassed condition for some time, went into the hands of a receiver this afternoon. The Minneapolis Trust company was appointed receiver.
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HE GULLED MANY. Brilliant Financial Career of Absconder Louis Menage, MINNEAPOLIS, Minn., Nov. 18.-Louis T. Menage, the absconding president of the Northwestern Guaranty Loan company, must be written down as the colossal swindler of the century. During the last few months of his connection with the company he misappropriated the money of the corporation to his own use in blocks of thousands of dollars until his stealings footed up the gigantie total of $1,650,800.11. This all comes out in the filing of the schedule of his individual liabilities in the office of the clerk of the court of the county. In the schedule all his notes are labeled "secured by collateral security with the N. G. L." No attempt is made to define this collateral. In November, 1892, Menage was the debtor of the guaranty company to the extent of $161,550. Although not alt of this amount can be traced directly out of the coffers of the company. much of it was money which passed directly from the pockets of the patrons of the company to Menage's bank account. At that time his enormous drain on the company began, and between that time and May 18, 1893, the financial pirate has increased his indébtedness to the company by $823,131.49, making his total indebtedness to the company on account of notes and similar obligations $984,691.49. The amount that Streeter, vice president of the company, and Menage are charged with stealing in the joint indictments brought against them is $998,712.56. As d sample of the general run of the loans and the amounts taken during the last months of the existence of the Northwestern Guaranty Loan company, the record for & few days has been picked out at random. January 19 Menage took la round numbers $120,000 in seventy-four notes. January 26 he took $19,126 in nineteen notes. In February he borrowed twenty-eight notes in the total sum of $29,691.50. March 9 he again borrowed. this time $82,000 in twelve notes. April 26 the obliging officials of the company contributed $55,000 to Mr. Menage's personal fortune. But when the last days of the tottering concern are reached all doubt is dispelled, if there has been any, that Menage entered upon the deliberate fleecing of the company. Oa May 10, exactly three days before the company suspended, it had enough money to let its enterprising president have $48,516.17 in one note. But this amount of $993,712.56 is only a part of the total indebtedness of Menage. That amount represents what he got out of his company. There are other items made up of moneys contributed by other lambs. The sum to tal of cash secured from those on the outside is $163,496. Menage's miscellaneous debts foot up $36,451.84. The last item on the List amounts to $426,170.78, and is called the contingent list. The total liabilities are not footed up in the schedules, but they may be closely approximated from the figures given above. Collected, they are: Claims of the Guaranty Loan company, $984,681.49: claims of banks, corporations, ece., $163 commercial paper negotiated by Neher & Carpenter, $40,000; miscellaneous, $86,461.84: contingent liabilities, $426,170.78, making a total of $1,650,800.11. As to the assets they may be largely summed up as "collateral security" and stocks in a thousand different companies of little or no value. The assets are of no importance, for no one expected to get anything out of Menages estate.
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GUARANTY CO. COLLATERALS An Action Brought to Determine the Title to Them. Another big lawsuit has been commenced in consequence of the operations of Louis F. Menage. Yesterday the Minneapolis Trust company, as receiver of the Northwestern Guaranty Loan company, began an action against Louis F. Menage, G. S. Lacy et al. and at least fifty or sixty banks throughout the country. The complaint is a lengthy document, reciting the recent transactions between the Guaranty Loan company and the banks and individuals named, and praying the court to declare that the Guaranty Loan company is the trustee of certain securities, and then to remove such trustee and appoint some suitable person to carry out the said trust. The complaint alleges that the Northwestern Guaranty Loan company does not in fact exist, and that it is unfit and unable to carry out the trust. It is practically an action to determine the title to the collateral now in the possession of the defendants.
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office of the clerk of this court which is herewith served upon you your answer and serve a copy th the plaintiff's attorney within t after the service of this summons of the day of service, and in ca failure to appear or answer, judgr taken against you by default, fo demanded in the complaint. Plaintiff complains of defenda cause of action alleges: That the plaintiff is, andat all inafter mentioned was, a corpora ized and existing under the laws o of Montana. That the Northwestern Guar company, is, and at all times mentioned was, a corporation org existing under the laws of the sta sota, and authorized to do busin tana, having filed with the secreta and clerk and recorder of Lewis county, Montana, the certificate I law. That the said certificate coi name of the said Northwester Loan company, it corporation, giv of its principal office and place of Minneapolis, Minnesota; also give and place of its principal office a in the state of Montana, to-wit: I stated the amount of its capital amount of its capital stock actua in money, the assets of the corpo of what they consisted, the actua thereof, and the liabilities of su tion, and how the same were se stated that corporation consented in the courts of the state, and W. 11. Clark, of Lewis and Cla a citizen of the state of Montana, service of process might be made. Phat on the 200 day of Januar said defendant made, executed a to the Northwestern Guaranty Lo his certain note for one the sum and lifty dollars, due on the 22d ( 1890, after said date. That to secure the payment of : the date above mentioned, the SI Lendorf made, executed and deli said Northwestern Guaranty Loa his certain indenture of mortg north half of the north east quart north half of the north west qua tion twenty-one, township ten, no twenty west. containing one hi sixty acres, more or less, necor government survey, together " singular the tenements, heredit appurtenances thereunto belongi wise appertaining. That said mortgage further pr said note was executed to secur ment of another note executed in the said note in said mortgage me described. That on the first day of July, 18 defendant paid the sum of twen lars on said note and executed il newal for balance for the sum of : and twenty-live dollars, payable 1893, after said date. That said defendant has not pa for the sum of one hundred and dollars, above described: that amount thereof is past due, an mortgage, by agreement of said intended to be, remain and held for the payment of said note. That said note and mortgage a tached, marked exhibit A and ex are made a part hereof and asked herewith. That before the institution of I wit: on the 20th day of May, 1 Northwestern Guaranty Loan co assigned, transferted and set 0 e and mortgage to the Minneapolis pany as receiver of the said N Guaranty Loan company. That said assignment made and the time-by said Northwestern Gu company to the said Minnea company is hereto attached mai C, and made 11 part hereof and : read herewith. That before the institution of and, to-wit: the first day of Jul valuable consideration, the Trust company sold. assigned and to the plaintif said note and m that the said Missoula Mercantil now the true and lawful holder thertof. That said assignment from th neapolis Trust company is here marked exhibit D, and made 11 and asked to be rend herewith. That by the terms of said mo defendant promised and agreed event suit should be brought to same, that :1 reasonable counse fixed and determined by the cour entered as a part of the judgmen That the sum of fifty dollars is counsel fee for the forectosure o gage. Whorefore: Plaintiff pray: against said defendant for the hundred and twenty-five dollars est from the 220 day of January paid, at the rate of ten per cent and for the sum of fifty dollars, and for all costs in and about th pended. And plaintiff prays that said : foreclosed. that said land and pr tioned and described therein be the orde of this court according and customs herein: and that the applied in payment of plaintiff herein, and plaintiff prays for all special relief. Witness my hand and said Court, this 5th da [Seal.] Л. D. 1896 ALLEN E. SHAPP MARSHALL & CORBETT, Plainti
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ALL ARE TO BE SOLD BIDS ARE TO BE ADVERTISED FOR FOR THE GUARANTY LOAN ASSETS, IF GOOD BIDS ARE RECEIVED THE BIG FAILURE WILL BE CLEARED UP FROM THE BOOKS N A LUMP, GOOD WORK FOR GOOD ROADS. How a Young Man From Kandiyohi County Parted With Six Hundred. An important move was made in connection with the failure of the Northwestern Guaranty Loan company when Judge Russell yesterday made an order directing the Minneapolis Trust company, as receiver, on its petition, and the Minneapolis Trust company, as trustee of the alleged Menage collaterals, to advertise for bids for the entire assets belonging to both estates. This means that an effort will be made to clear up the failure in a lump, and if good bids are received, the assets of the insolvent company will be exhausted with the exception of the liability of the stockholders. The order signed by Judge Russell requires that the advertisement, including a complete schedule of the assets, be published in some daily paper in Minneapolis, St. Paul, Helena, Spokane and Seattle between April 6 and April 28. The reason for advertising out West is the fact that so much of the tangible property of the company is land situated in the cities mentioned. All bids are to be delivered to the Minneapolis Trust company in writing, specifying whether for a whole or a part of the assets, on or before Saturday, May 2, at 5 o'clock in the afternoon. The creditors of the Northwestern Guaranty Loan company and the defendants in the Menage collateral suits are ordered to show cause before the district court, at special term, Saturday, May 9, why such bid or bids, as the court may approve, should not be accepted, and the Minneapolis Trust company authorized and directed to sell and transfer the property to the purchaser for cash. Each bid must be accompanied by certified check, or cash, equal to 5 per cent of the amount thereof, as a guaranty of good faith. Col. W. E Dodge, attorney for the Minneapolis Trust company, after he had secured the order from Judge Russell, yesterday stated that the receiver had been working for a long time to place the assets in such a condition that they could be disposed of in this way. It means that every asset connected with the Northwestern Guaranty Loan company and the Menage estate will be offered for sale right away, and it includes every asset except the question of the liability of the stockholders. Col. Dodge exhibited a schedule of the assets. It is very lengthy, and includes some very valuable real estate.
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DIFFERENCE OF $30,000. Guaranty Loan Receiver Ordered to Deduct His Fees. Judge Russell has filed two decisions in the matter of the objections to the report of the receiver of the Northwestern Guaranty Loan company, the separate objections being made to the first and second reports. The first objection was based by the Sharon National bank and others, the chief ground being that the receiver had failed to bring an action against the directors and officers of the company. The court has overruled the objections, holding that from the facts the receiver would not be justified in bringing an action to which there would be so much expense attached. In the second objection, the court finds with the Minneapolis Trust company, as receiver, upon all counts save one. It finds that the receiver has paid out as court costs and sheriff's fees, the proper and just amounts. It also finds that the receiver did right in paying to Willie, Campbell & Ballinger, for services in relation to agreement, $7,626.46. The receiver, in the judgment of the court, paid out a just and reasonable sum for the office help in and about the business of the receiver. The court, however, differs with the receiver in the matter of the commissions for the collection of past due mortgage notes, and in its decision asks the company to make a further report, and in that report to charge itself and credit the estate with the amounts it has received as commissions for the collection of the same. In the decree, the court finds that the trust company secured the work of collecting, as receiver of the Northwestern Guaranty Loan company, and that the work was performed by the force, for which charges are made in the report. The decision does not state how much the court's order covers, but it is understood that the order will require the trust company to account to the estate for about $30,000. The matter will be-appealed.
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DEFENSE RESTS. State Takes a Turn in the Times Libel Case. Judge Russell was on the stand yesterday morning in the libel case against W. E. Haskell, manager of the Times, and swore that in the hearing of the order to show cause a large number of the attorneys present tock part in the proceedings. Among them were A. M. Harrison, Judge Shaw, W. P. Roberts, Mr. Boutelle, Judge Koon, Mr. Huddleston and others whom he could not recall. Mr. Jackson read fragments from a number of exhibits which had been entered but not fully read to the jury. The attorney then made an attempt to get in some of the exhibits which had been excluded previously and which had been argued at length and there was another argument at great leng h, the decision of the court being reserved until afternoon. In the afternoon the court ruled with the defense and allowed the showing of the receipts and disbursements of the Minneapolis Trust company ais receiver of the Northwestern Guaranty Loan company in evid nce and also the petition for an allowance of attorney fees from the court in the receivership matter. Mr. Jackson read the exhibit and then"If the court please, the defense rests," said Mr. Jackson. Stephen A. Foster was called as the first witness in rebuttal by the state. Mr. Foster is the young gent.eman whose name had been so often used throughout the defense. He is an attorney at law, from Chicago, where he has lived since May 1, 1896. His home is in Vermont, but he had been a resident of Boston for many years previous to coming to Chicago, and was in the office of John C. Coombs, of Boston. He became familiar with the affairs of the Northwestern Guaranty Loan company about the time of the receivership and was SO until he went to Chicago. The witness was asked regarding his meet ing with the trust company committee, and he remembered it very well. The matter was discussed very fully with Mr. Bassett and Mr. Lindley. One of the most important meetings there was in a room in the hotel in Chicago. They all argued that the situation was a desperate one, and that something must be done. No one in the East would lose money and then it was proposed that the best plan would be to sell the bonds. The witness stated that he represented all the parties named in the long list presented at the hearing, $700,000 of claims. Mr. Jackson tried strenuously to keep out the evidence, and the court held that the witness must specify his special authority to appear for each person and corporation named. The witness named a few from memory who had authorized him to appear for them especially at the sale hearing and promote the sale. Court adjourned until 10 o'clock this morning.
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LOBE'S MINNEAPOLIS OFFICE, 20 WASHINGTON AV. SOUTH. MINNEAPOLIS, Feb. 21.-Judge Otis, of the Ramsey county district court, today filed in Hennepin county his decision in the case of the Minneapolis Trust company, as receiver of the Northwestern Guaranty Loan company, insolvent, against Louis F. Menage et al. The trust company is required to pay $88,500 to square up its account in connection with the West Pullman bond deal. Owing to the great amount of public feeling stirred up over the matter in Hennepin county, Judge Otis was invited to adjudicate the case. The matter came up on an application of the trust company, as trustee, for the allowance of its accounts, to which the creditors entered objections. In his decision the court sums up as follows: By reason of the misconduct and bad faith of Charles N. Hamblin, imputable to the trustee, the trustee is not protected by the former order or decree authorizing the sale, but must upon this accounting be charged with the bonds at the fair and reasonable value thereof at the time of the sale. It appearing that at the time of the sale the fair and reasonable value of the bonds amounted to the full sum of $88,500, the trustee's account must be surcharged and it must be charged in its account with the sum of $88,500, instead of with the sum of $29,500, so entered on the date of March 29, 1895, and ft is so ordered. In all other respects the account is approved and allowed and the objections thereto overruled, except that the question of whether the trustee shall be charged interest, and if so, from what time and at what rate, is expressly reserved and will be considered upon the hearing and allowance of the trustee's final account. The objectors are entitled to judgment against the Minneapolis Trust company for costs and disbursements incurred by them on this hearing, to be taxed as in other cases, and judgment may be entered accordingly. -Charles E. Otis. A stay of forty days is granted.
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MINNEAPOLIS, March 8.-The hearing on the supplemental account of the Minneapolis Trust company, as receiver of the Northwestern Guaranty Loan company, will come up before Judges Elliott, Simpson, McGee and Brooks at 10 o'clock this morning. Judges Harrison and Pond are out of the city. C. E. Bracken, the young man who was accused of forging the signature of C. S. Brackett to a postoffice money order, this morning pleaded guilty and was sentenced by Judge Lochren to fifteen months in jail. The annual meeting of the Ohio Association of Minneapolis will be held Thursday evening at 8 o'clock in the parlor of the Nicollet hotel, for the election of officers and the transaction of other business. John and Herman Bates, of Company A, Thirteenth Minesota volunteers, recently discharged at Manila for sickness, have arrived in San Francisco on the Zealandia. C. E. Williamson, for a long time a resldent of Minneapolis, died at Omaha at the home of his daughter, Mrs. Steere, last Monday. The remains will be brought here for interment at Lakewood tomorrow morning. The bicycle repair men have formed an association and adopted a scale of prices which will be enforced by fines. A schedule covering the renting of wheels will also be adopted.