The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1893-05-26
VERMONT MONEY LOST.

II BETTER HAVE hEbAlNED Al HUME.
A Minneapolis, Mimi, despatch of the
%, says: The troubles of the North
western Guaranty and Loan association
have come to climax by the appoint
ment of the Minneapolis Trust company
as receiver. The affairs of the guaranty
association dre said to be in such COM
plex state that it will be several days be-
fore any tangible statement of the as
sets and liabilities can be made. That
they will foot up in the millions there is
no doubt
Claims against the company are pour
ing in by every mail. An attorney of
st. Paul received from Vermont CORE
spondent list of notes aggregatingS30,
600. The correspondent said they had
been given to him by the guaranty asso-
citation in exchange for money to an
equal amount, and that the association
had assured him that they were signed
by responsible business men of Mime
apolis. The attorney was requested to
investigate and report. He has tele-
graphed his client that he had been un-
able to locate in Minneapolis as a busi-
ness man a single signer of these notes.
1t is said that there are several similar
cases. Another legal complication likely
to arise is in reference to the representa-
tiSns 96 the IN h its E5sGep5
torney here an advertisement of the com
pany, in which it is stated that the stock
holders are liable in the sum of l,25O,-
600 in addition to their stock of an equal
amount. This does not appear to be the
case. Under the law of this state a
stockholder in a corporation is liable for
double the face value of his stock. AS
the paid up stock of this concern is only
S2ON,OO0, it follows that the legal liabil-
ity of the stockholders is $780, 900 instead
of 81, ,500,0 ,000
August 5, 1884, an amendment to the
arti cles of incorporation was adopted,
fixing the amount of Indebtedness at
S25, 900, exclusive of the contingent liza
bility on notes and mortgages as a
guarantor. January 27, 1888, the articles
were further amended by vesting the dl-
rection of the affairs of the company in
the officers and board of fifteen direc-
tors, instead of the officers, as thereto
fore. November 20, 1892, the following
and last amendment to the articles OF in
corporation was adopted:
''The highest amount of indebtedness
or liability to which said corporation
shall be subject, exclusive of its deben-
lures or other obligations of this cOrpo-
ration, the payment of which is secured
by real mortgages or other securities,
and exclusive of the payments to be
made to it to meet immatured obliga-
tons due to the corporation, shall be
three. fourths of the paid in capital
stock"
This stock is 100000.
On the other hand, the Burlington,
VT, agent is in receipt of advices in re-
gard to recent suspension and the rea-
sons therefor. The company says that
the long continued stringency in the
money market throughout the entire
country, eliminating in almost a panic
last week, so far as the West was con-
cerned, checked their business to great
extent. Paper which had usually been
sent back for reinvestment was called in.
A backward spring and the late open
ing of lake navigation tended to add
seriously to the local difficulties. They
are making an effort to have such re-
ceiver appointed as will give confidence
to all creditors that the affairs of the
company are going to be arranged in a
| thoroughly satisfactory manner.
This course seems to be the wisest and
| best in order to protect the interest OF
creditors and not lessen the value of the
assets. At the time they were forced to
suspend payment, they had under nego'
tiation two or three large and important
transactions, which if consummateo
would have put them in position to have
met all maturing obligations and con
tinue business; financial disturbances il
New York and London deferred these
matters. They say there is little or nC
doubt that the company has ample re
sources to meet all its obligations ant
feel that if all who are interested will
them will exercise a little patience anC
extend friendly cooperation, it viii
tend to bring matters out in good SHAPE
finally.
Another letter from the vice-presiden
states that they were to apply for re
ceiver, to act in that capacity until tht
guaranteed notes (short time commercial
paper), were finally and satisfactorily dis
posed of, when he thought the compan.
could proceed with regular loan busi
ness, and that such an arrangement
would prove satisfactory to all, not onll
to investors, but to the stockholders, j
the end.
I,olo,co of do tg Al