The sun., 1893-05-15
CAN'T MEET IT'S GUARANTEES
THE NORTHWESTERN GUARANTY LOAN
COMPANY IN TROUBLE.

Tom Lowry Says the Loss viii Fall On the
stockhoiders. Among Whom Sc, a.or
| wa-hburn aud tho rIii.bury.-It Has
Guaranteed Commercial Paper for 81
oOOOoo-nns st.ssoyO 900 Capital. and "a
st.sOO.ooO Building In Minneapolis.
Tho following despatch received on Satur-
| day from correspondent OF THE Sun in the
Northwest. was read to Mr.. Thomas Lowry
last night at the Fifth Avenue Hotel:
| "Thcre Ia n well founded rumor that the
Northwestern Guaranty Loan Company OF
Minneapolis will not open it's doors on Mon
dav. I. F. Menage. largely interested in Chi
caeo real estate. is its President. and Thomas
Lowry President OF tho Twin City Rapid Tran
sit Company. is vicc-P President"
Mr.. Lowry said: II want to be entirely can
did with you. I do not believe anything can bo
| gained In tho present situation except by a
| frank statement OF tho company's condition.
| The company may not he compelled to close
| its doors to- morrow. but tho suspension can
| NOT be put of for more than two or throc days.
| Ihave been In constant comm unication by pri-
vne wire with Mr. MenaRe for tho last three
| dnya. was UP all last night talking with him
| over this wire. Some OF my financial friends
In New York were with me, and we came to
the conclusion that the suspension could not
| be averted.
THE compnny Is about ten years old and
has capital stock OF s1.25o.GOO For several
yenrs the company has ATTEMPTED to float
commercial paper. It took collateral sum.
cient to cover the paper and then guaranteed
tho payment Of tho paper. All told It now
holds about S3.000.Oo0 OF this commercial
paper.
Tho strin gcncy in the money market has
made It impossible for our customers to take
NJ or THAR ofa fnp fa1
We cannot realize on tho collateral
Ihave becn Vice President OF the company
for three years and attribute the trouble OF
our company largely to tho want OF n financial
policy on the part OF the Government.
1T would be wrong to say that our troubles
should be attributed to the Governments
policy. They arc attributable to tho Govern
ment's lack of policy. 1 canno. be too
specific on that point.
81" have been in hourly communication to-
day with President Menage. and hero Is de-
sratch from him snylnE that with time We
could pull out all right. have also consulted
our friends In Providence and Boston and Now
York. and all agree that in the end the COM
pany will par In full
Tho commercial paper is the best Of its
kind and comes largely from New England.
The companys building in Minneapolis cost
s1.SOO.000. including the 500 900 for the land
paid to senator Washburn. one OF our directors.
The Pilsburys nre also directors In the
company. cannot give you tonight a
complete list OF directors. I do not be-
lieve our company's troubles will involve
any other institutions in Minneapolis. st.
Paul. or Chicago. The losses OF our company
will fall upon the stockholders I believe
there IL n provision in the laws OF Minnesota
making them liable"
Mr.. Lowry said that he had teen in New
York several weeks. and as soon rs he learned
OF the comrany's trouble had established
quick communication with President Menags.
Senator Washburn. tho Pillsburys. and others.
Senator Wnshburn was at Hot Springs yes
terday. Mr.. Lowry received several de-
spatchea from him. all asking for news
OF the companY's affairs. All told Mr.. Lowry
said. he had received bask sketful OF telegrams
He also had conferences with certain OF the
company's friends in Providence.
Mr.. Lowry said in conclusion that It was no
time to criticise anybody. but for all that no
had not favored the company's business OF
guaranteeing the payment Of commercial