The Helena independent., 1893-09-04
MENAG{'s F|AANc|taING
He Is Now In Chilli While the As
signse Is Looking Into
Il n His Methods. II
Kite Flying That Has Probably
Not Been Surpassed In Any
Country.
TIVE Transactions That IiIustreto Hew tl,s
Minneapolis Man Did Business
Hts History.


His History.
The deeper The investigation goes into
ths s6airs Of the Northwestern Guaranty
Loan oompsny Of Ainnsapolis the moro
criminal appears the management of the
Affairs Of tho company by President Loais
F. Msnsas. A few days befo the com
psny made its assignment Asnaae dieap-
peatsd. and shs next heard Of him he was
In Chilli. where he 10 supposed to be now.
The Minneapolis Trust COMPANY. tho ~.
signso of the Qua. anty company, has big
contract on it, hands to realize on the
assets, or supposed assets. and almost
every step mcdo In that direction entails
lawsuit. x few days ago the Ttust COM
pany began suit agsinat Amand A.,Nsn-
age. German p. Cross. Lima A. Gross.
the Victoria Land comvany and the 81.
Paul and Minneapolis Trust company
TO obtain possession OF certain stock
certificates In the possession Of AenaRe
or bic representatives.. The COM
plant brings ont some statements that
will make interesting reading. In April,
1899. Louis +. Menaee had great scheme
for the dsvelorment Of a Rreat water power
at Bozeman. Hc associated himself with
one Do Celle, and together they organized
the Gallatin Light. Power and Railway
company. This COMPANY laid out an addi-
tion to Bozemau. built street car lines and
started to improve the water power on land
owned by the company. 10 carry on these
undertaking. $50. 900 was borrowed from
guaranteed tho payment OF the loan and
gave deeds Of the property to secure IL. At
Mr.. Menage's request the deeds wore nsver
Of June. 1893, Menage wishing TO save
something out OF the wreck that had
ovrrtaken him, transferred the property
10 Gorham r. Gross. a resident OF Mlnne.
AT oils, by warranty deed. Il u alleged
that there was an understanding between
was to be transferred TO the latter without
anv confederation being given BY him
therefor. Further. there was an under
standing between them that the land would
he Transferred by Cross to the Victoria
Land company. The Victoria Land COM
land 1000 of its shares. valued at $l00
each. Tho Minneapolis Trust company
now wants the court to turn over the GER
tincate for these shares 10 be placed with
the assets Of the Guaranty Loan and Trust
company.
age was on Puget sound. He began his in
vestmeuts three or four years ago. and his
ambition seems to have been to found q
town. He bought some l, 290 acres OF land
between BullA d and Richmond beach. On
Sept. 8. 1891. he and others connected
With bic business inoorpo. atsd the North
Seattle company, with capital stock OF
$500 COO. to which this property was trans
ferrtd. About the Same time he bought an
iron mine. or rather prospect In the noun
tain overlooking The SkaRit river opposite
Hamilton. and incorporated the Puget
Sound 1oon with eSps'l tes
This company was to build = blast furnace
on McAlser lake and smelt the ore, and
the erection of steel works on the same site
was also talked of at the time. These In.
dustries were to be mado the nuoleus OF .
manufacturing town to oocupy the great
tract Of land he had bought. and In order
to develop 1t he proposed to build an cleo
trie railway with standard gauge track and
heavy rails from Seattle through Ballard to
the scene Of his INTENDED operations. aiv-
ing him connection with both the Northern
Pacific and Great Northern systsms. An
application to the county commissioner
for a franchise was made ON his behalf. but
whom tho time came for selling It NO one
put in an appearance to bid. and that par /
Of the scheme fell tht ough.
About the same time he bsoams interest,"
ed In property on Mercer island and bought
large tracts there, a total Of SS7 acrss and
bll lots. He organised tho Nor.hwess Trus.
company with a capital stock of 81. 600 600
on May q. 1891. to hold these properties,
but on Fob. 26. 1892. he incorporated the
Investora' Trust company with the same
amount of capital stock to take Its plHco "a
regards pn't Of the propersy; The ofticera
North Seattle company and Puget Sound
Iron company, resided in Minneapolis and
tho ofac wsre in that oits. the North
western Guaranty Loan company being be-
hind all of them.
Apparently to carry out tho improve
ments he had designed for these properties.
they were all covered with mo taaess In q
peculiar manner. The Northwestern Guar.
anty Loan company would cause piece of
property to be decided to some individual,
who was always represented to be unmar-
ried. and he would execute mortgage on
il to one OF the subsidiary corporations.
then deed the property to such OF the va
rious corporations as the Northwestern
Guaranty Loan company might direct.
Payment of the mortgages was guaranteed
by the Northwestern Guaranty Loan COM
psny and they were then taken east and
sold among the many person: Who yisneo
TO invest In ''ssfe western mortgages. An.
other company throogh which much OF
this business was done was the Philadel-
phia Associates corporation, organized
by Mr.. MenaRe under the laws OF New
jersey. None Of the men through whom
these mortgages wsre made are known on
tho sound, although some OF them purport
to BE- residsnts OF Seattle. and they cannot
bc found by ATTORNEYS to whom their motel
were sent for collection. Tho majority ol
them are believed to have bsen residents ol
Minneapolis, a. tho mortgages wsre all
made there. Some Of these are 6rss NOR
cages, all Of which n'e mnds to the North
western Guaranty Loan company; sons
are second mortgages generally made te
tho Philadelphia Associates corporation
and q few are third mortgages to che
Northwest Trust company.
An idea OF the value of these sscuvtiel
can W formed BY comparing their amoun,
with the value of the property on whict
they arc secured. The agg sgate amoun
on all of tho property-North Seattle. Met
cor island, May ydenbnuer bay and tho Ham
hton iron mines-is 81. .667 GOO. 30. OF fthes,
ths d, Of mortgages amount to $597 ,08O. th'
second mortgages 10 $747. 7.12O.3O. the thi 1
mortgages to g. 500, and ono frat mortaaa,
on the Lake Washington property to 1916,
600. The relation which these amounts
bear TO the cost of the property on whiol
they are secured 10 shown BY the e1sm,le o
the North Seattle tract, the figures in rs
gard TO the Mercer island and May,
dsnbauor bay tracts being difficult !,
arrive al without a search OF the records
Exclusive of interest. attorneys fe.a. nh
at'actors' fees and aRentn' expenses. tn
ANnn nun