The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-09-23
The TRUTH COMING OUT.
\ Minnesota Grand Jury Looking
Into the Northwestern Guaranty
Company's Condition.
V;ca-Presidont and General Man
agsr Streeter Arrested on a
Serious Charge.
How Menase MIXED tho Concern -Noarly
d. nnn nnn q. vVDraIASa YnyAR
How Menase MIXED tho Concern -No1rlJ
$4,000 900 In Worthless Paper
Eloateu in Vermont.

The moro the affairs Of the Northwestern
Guaranty Loan company OF minneapolis
are investigated, the moro criminal doea
the management of Louis F. Menags, the
president. appear. Menage 10 now IN
Chill, safe, he believes, from arrest; Blu
the other officers and directors, who may
be innoocnt, will probably have to suffer
for his crimes. Asnage has had a Nemesis
on his trail ever since 1890, In the person OF
John IL. Burke. OF Minneapolis. Helena
people do not seem TO know who Burke Ii.
but he is q very persistent fellow. As far
back as 1889 Burke made an Investigation
ON his own account of the affairs OF the
Guaranty company. and as a result of this
investigation sent the following lettcr in
1890 so the board Of directors:
I'm accepting the positions occupied by
you il is assumed you fully Appreciated
your responsibilities-lspal and moral
both toward the corporation of which you
ars officers and the general public, mas
much as Your we'll known standing must OF
necessity beget in the minds of the public
confidence in the financial standing OF the
institution and integrity OF its management
that the institution owes to all or nearly ali
Its credit, and IL is now on the strength OF
your names that the widow, the orphan and
the charitable institutions in the east may
have been led to entrust their little savings
10 the sender CD meroies of the individual
Who evidently has had too much to say
what disposition has been made thereof.
'.Is ia evident that in the multitude Of
your other cares the majority Of You havs
,A .t n A.. l-k;,, I cor uiv =, ~ Hynn won
BY reason Of your positions az directors,
else it would have been impossible for Louis
F. Menag to successfully carry on the long
series of transactions TO which your atssn-
ton is called, for 4. is doubtful whether
any one of yeu would have tolerated any
such transactions in the management OF
your own private business.
The situation az disclosed by the county
records is a grave one, and the duty de-
volving upon me not ut all pleasant. But
il is fenred, Judging from the disclosures
made by such records that the Northwest
ern Guaranty Loan company IL on the
verge Of bankru, toy which must ensue
unless you and each of you can DO b'oughs
TO a realizing Eense OF the situation
md your duty in the matter-deem-
ing is she pat of a friend, and hoping you
will 40 regard ito call your attention to
these records and other facts rather than
have an investigation made by a state 9th
cial or through the courts, in the hope that
you will see your way clearly to pursue the
latter ceurse. yourselves as plalntlHs fatner
than as defendants. Since the law Is such
that you, and each OF you. jointly and sew
orally, are liable for every dollar which
may have been misappropriated, whether
with or without your knowledge or consent,
provided you have by silence or neglect
acauiesoed In these aots, for by that sileneo
or negleot 70 disavow you may have been
accessory before or after the fact.
ITO ono less charitablY disposed the rec
cHds of the county disclose a state of atfai 8
that might possibly warrant the suspicion
that on the part OF ono of the officers OF
your company, at least, there existed q de-
liberata and constantly executed plan to
wreck the company at the outset and trans-
fer its monies to his own pockets in return
for alleged securities, while one might be
pardoned for suspeoting on she oircumssan-
tlal evidence afforded by the records that
both fraud and conspiracy had been perpe-
trated.
'Sinca 1884 Louis F. MenaRe, as presi-
dent Of the Northwestern Guaranty Loan
individual nearly 81. 600, 900. lie has been
both payor and payee, lender and borrower,
and not always upon the best or most ap-
proved securities. The transactions are
constructively, If not actually fraudulent
and trowned upon by all courts and every
honest man.
During the same period the company on
alleged adequate security has paid approx
mately the following sums: b. s. Bull
fatber-in-law Of MenaRe). $97. 1878; 2. Nj.
Weodmsn (sttorney for same), $4,000; J.
X. Merritt, $106, 800; Cla,enoe swanson.
clerk, S62,0s0; W.. c. HobR !. plumbsr.
S., 600; W.. Fl. Grams. clerk. 1926, 425; Charles
Sorrento, cle:k, $17, 800; BisselL Nj. Master,
So, S05; Saint +. Ellis, clerk, 1854, 445; Jas.
Robertson, Sl44, 900; Jesse 7. MADAM, JAM
tor N. w. g. l., $50. 1924; app foximatelt
amounting TO 1861, 600"
So far "a the reeords show the directors
paid no attention to Burke'a letter, Menape
probably explaining the situation in some
way satiatactorily. Blu Ike shen made a
detailed statement of the condition OF the
company to the governor of the state and
to the state examiner. asking that a thor
ough examination be made. An exRmina-
ton was made, but Burke commended IL was
a kalsomining affair. Last tuesday, how
eve Burke got some results from his
work. though he missed the man he was
after. On that day Burke swo.e out q
complaint charging VIM s. Strsstsr, vice
president and general manager OF the
Guaranty company, and one of the directors,
with having. as "a member of the board OF
directors. declared II dividend on the stock
of she com any when he knew the profss
were insufficient to lay it, and that at the
same time the COMPANY was not even able
to meet it's liabilities. Str eter waived
an examination and was oil assd on "a, 0GO
bail pending che result of she grand jury's
investigation. The ar lest was a complete
SURF rise to StgeeteY, who IL is alleged was
arranging to leave Minneapolis. Prosecut-
ing Attorney Nys, of Minneapolis, says he
is convinced that the affairs of tho wrecked
institution need investigation and thai
eve tythiDg possible will be done to find the
parties res onslble for the condition of at
fairs. AS to the res 4onsibility OF di'~ ectors
in the affair, he says they can in a MEASURE
be held to account uuder the Mimi sofa
laws. The full measure of the RESPONSE
bijty, however, viii fall on tle virtual
managers. lr espcnsibls parties. such as
office boys anu otGsrs whose names appear
on mnoh of the company's pa er in all
probability Will be Heed rs Witnessed
agHipst the renl moyots in transactions
The amount of claims ngainst the Gunr-
anty Loan company on notes, alleged to be
Nalueless, and the slgneIS Of which cannot
be found. II is stated By an attorney who
has been investigating the matter, amounts
10 over 81 100000 ut present. The grenter
part of tins paper Is held in Caledonia,
Orleans and the counties in the immediaio
vicinity in VermoEt buEpicion WAS aroused
soon after the COMPANY made AN assign.
nens that all was not right. and In July
Nr. Ptouty. q prominent alto ney of 81.
Johnsbury. went TO Minneapolis to investi-
gate the claims of the Vermont stockhold-
eys, with tho above result.
The best loans made by tho company
were those in Montana, and tho inyastiQa-
ton go far has shown that !ts buslness in
the state will bear the closest scrutiny.
The Park Hotel at Great Falls sam Open