New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-21
RYCEITER NAMED At LAST.
THE NORTHWESTERN GUARANTY AND LOAN
ASSOCIATION FAILS.
ITS AFFAIRS BADLY TANGLED-CoNvEYAN CEs
THAT NAY BE REsIsTED-A FLOOD OF
CLAIMS POURING IN.
(Br TELEGRAPH TO THE rRIBUSE.]

(BY TELEGRAPH TO THE TRIBUNE]
Minneapolis, May 20.-The troubles OF the
Northwestern Guaranty and Loan Association came
to climax to-day by the appointment OF the
Minneapolis Trust Company as receiver. ms
company is composed of conservative capitalists,
who can be relied upon to administer the estate
with due regard to the interests OF all concerned
The affairs of the Guaranty Association are said
20 be In such complex state that 1t Will De sew
eral days before any tangible statement oil the
assets and liabilities can be made mat they
will foot I'D ia the millions there is no doubt.
On Monday the company, although it had prac-
t;c.llv suspended payment, conveyed its colossal
building to the Northwestern Guaranty Building
Comnanv On Thursday it gave bill o. sale of
its valuable law library and costly restaurant.
Thu indications are that these convctGnces will
he attacked by the creditors. Claims against the
company are pouring in by every mail. IN at
torney of st. Paul this morning received from a
Vermont correspondent list Of notes aggregatins
$4,000. The correspondent said they had been
given to him by the Guaranty Association IN eN-
change for money to an equal amount, and that
the association had assured HIN 'haV
thew were signed by responsible ousi
nes meu Of Minneapolis. The f'ofncS
WAS requested to investigate and report: i'o
went 10 Minneapolis at once. This evening ho i'
turned to ST. Paul and telegraphed his client 'ha'
he had been unable to locate in Minneapolis as
a business man single signer OF these notes !"
=. .aid that there are several similar cases
Arotber legal complication likely to arse Is in
reference to the representations OF the company
l.. &c vacant advertisements creditor has sent
O.. on ATTORNEY here an advertisement OF the COM
,any ~ which it is stated that the stockholders
arc liable in TIE sum Of Sl,250,OOO in addl'ioh
IN their stock of an equal amount. ms uoes
not appear to lie the case. Under the Id" VI
this State a stoclholder i'll corporation is h"o'o
for double the face value OF his stock. AS '''o
uaid-up stock of this concern Is only S-oo'oo', !"
follows that the legal liability of the stockholders
Is 100000 instead of $2,500,COo
The latest obtainable statement OF the associa-
ton as to capital and officers is as follows: zap
ital $1,25O,OOO: guarantee fund, SloV'ooV'
profits and surplus, $4,000; Louis r Menags'
Il. Houshton. viee-presidents; p j. pe rhssa
cashier directors. W. D; wash6urn. Charles orcn
F EIs,eSs9 NJ c.: G. H. Petit j. Madaeman,
Mayor W. ii. Eustis. W. G. CrockeI, J: IL; Car
penter and Thomas Lowry. MIR Plllspury, ~ i;,i IL
now said withdrew from the concern SOM 'in,c
40. The company was organized on May L. i;
1884. with capital stock of 81 oo.ooo, Oh
which the sum of 100000 was pald up, anu a
limit of Indebtedness of $4,000 on Angus. D.
1884 an amendment to the articles of lnc0rpora-
ton was adopted fixing the amount OF the IN
Sebtedness at So, 1000. exclusive of the con'ln-
gent notes and ,1s sr &c sar
emrthar amendej bv vesting the direction OF the
affairs Of the company in the officers and board
Of fifteen directors. instead Of in the olcers as
SsreiSfore On November %. 1892. the follow
Inc and last amendment to the articles of lncor-
poration was adopted ,, ,;,hu-
The highest amount Of indebtedness or iisoii-
CIV 70 which said corporation shall be subject
SSl,s;va If its debantures issued by other
nSii@ations of this corporation. the payment of
which is secured by real mortgages or other Sc
rnrities and exclusive of the payments to he
made 70 il 10 meet immatured obligations due 70
the corporation, shall be three-fourths oil the
paid-in capital stock
This capital stock is 100000.