St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-09-24

worth about 10 per cent of that amount.
You sold to parties whose joint note for
$1,000 would not have been NEGOTIATED
by any bank in Minneapolis. The next
day this property was m~0rtgaged back
to YOU for the tull amount for which
you sold. You took 100000 of these
mortgages and started your company
with them as capital stock. You pro-
posed to issue these debenture bonds,
deposit these mortgages as collateral,
and as fast as these bonds are sold issue
more and deposit more mortgages, un-
til you have unloaded for 81 500. 900 prop
erty worth 'one-tenth of that mount.
| do not propose to have the Nicoilet
National bank advertised in connection
with any such business, and L warn you
now hat If you Send out one OF those
debenture bonds l will make a contract
with an advertising agency IN the East
to advertise your business and my re-
pudiation Of it in every newspaper east
of the Mississippi river"
Mr.. Menage arose, said GOOD day to
! you. sir" walked out of the bank and
| never again entered 1t. The bonds and
prospectuses were destroyed, and new
| ones with the name of some other bank
substituted were printed in their place.
That was the beginning of Manages
brilliant career. Unloading the Min
~neapolis property, he branched out,
pledged other tracts and deposited In
like manner.
Among the papers guaranteed by the
Loan company, and which were sent
| here for collection, is a block of $1,000
in ten notes of 81, 200 each, guaranteed
! by the company. The notes are dated
Minneapolis. Jan. L, 1893, and are for
four months. They are signed jour
mai Company" leaving the inference
that they were the notes of the Min
neapOliS Journal. They met with a
ready sale, but when the crash m
and the notes were sent in for collection
aud presented to the Minneapolis
Journal, they were repudiated by
that institution, and further in
j, vestigatiOn showed that they were
really the notes of the Journal company
at North Galveston, Texas, although
they bore the date of MINNEAPOLIS. One
note for $3.50 signed u. Riordan" is
guaranteed by the company with the
statement that he is a man who can
, meet his obligations. The directory
gives no plain J.. Roerdan. but it does
contain the name j. j. Reordan. q
plumber in the Northwestern Guaranty
, Loan building. 1t is a question whether
this note especially is not a forgery.
William S. Streeter, vice president Of
the QeIuGcI Guaranty
Loan association, whose arrest on FRI
day night upon an Indictment for grand
larceny in connection with the manage
ment Of the affairs of that concern was
announced in the GLOBE yesterday
mornIng, was arraigned before Judge
Canty yesterday morning. He pleaded
not guilty. His bail was fixed at $50
GOO, in default OF which he was COM
mitted to the county jail. His attorney,
W. A. Lancaster, made a strong appeal
to the court to fix the bail 1t a lesser
amount. 1t did not avail anthing.
He is indicted jointly with Louis f.
Menage. president of the company.
The charge is that the two took funds
OF the company to the amount of Sl63.
3o7.4S and appropriated 1t to their own
use. IL is said that other indictments
will be returned against them. One Of
them is likely to be for making two
differing statements of the condition of
the company June so, 1891. One was
made to the public examiner Of Massa-
chusetts and the other TO the same Off.
Ger in Vermont, as required by the law:
of those states. They differ to the extent
of about 81. 000, goo.