St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-19

gentleman who had reason to suspect
the operations of Menage from transac-
tons occurring two years ago, and at
that time he gave expression to his
opinion of the man and his methods,
which, however, went unheeded An
effort was made last night to substanti-
ate the report. but the parties inter.
ested refused to talk of the matter.
The exposure of the Guaranty Loan
rOttennesS calls to mind an almost SINH
lar case occurring some years ago IN
Glasgow, Scotland, when the CITY Of
Glasgow bank went under for $30.O00,-
600. An investigation OF the affairs of
the bank revealed a corrupt state of af-
fairs, end the trial that followed result
ed in the conviction and sentence of
seven directors.
IN pronouncIng sentence Lord Chief
Justice Clark said:
Lewis Potter and Robert Stronach:
The jury, after Il long investigation and
Tull dellOeratlOn. have found you guilty
on the first branch of these three
charges, the falSitying and fabricating
OF the balance sheets of the bank. |
think 1t IS proper to say, in explanation
upon that verdict. that If the other two
charges contained in the indictment, or
either Of them, had been proved TO the
Jury. 1t would have imposed upon us
the duty OF lnflctlng very severe pun
lshmeht, because not only would these
charges have inferred a crime. but it
would have brought in the element of
personal advantage as the motive of the
act: and am DESTROYS to say that. as
your case now stands, the act which
was done by both OF you did not ueceS-
sariIy involve, and probably was not
actuated by, any desire or design of per
SOnal advantage. but was a criminal act
committed, as you thought, for the bene
lit Of the bank.
That does not remove it from the
category or crime. Very far from it:
but 1t does remove from the crime of
which you have been convicted the tle-
mtnt, as ! have said. of corrupt per
SOnal motive for personal ends. "
The sentence was eighteen months
imprisonment.
In view OF the fact that several Of the
directors or the Guaranty Loan claim TO
and probably did n0t-desire any per-
sonal gain from the acts OF the COM
panY, the above decision is peculiarly
applicable as showing how a criminal
action VIII be against them. and es-
peclally against those whom December
or January last, voted to declare 4
dividend on company that was then
InSOlVent.
Speaking of the case, a writer says:
The facts presented in these pages
Will long be regarded as standing
memorial of unparalleled commercial
disaster--disaster brought about not bv
innocent misfortune, but by the cul-
pable recklessness of gentlemen moving
III the highest social and commercial
| circles. not to say religious circles. in
| whose honor and integrity many thou
sands OF their cOuntrymen haG fer years
! placed the most unbounded confidence.
/ How much they abused this confidence.
! how they step by step converted a
| great banking institution into a mere
| machine for abStracting money from the
pockets of too cOnfiding public, in or
! der that ii might be IaYished upon their
! trends, anu that the credit Of utterly
! rotten mercantile houses might be up
! held. ana their principals allowed to
! reVei IN luxury, when in reality they
! were pennlieSS OankruptS - all this
may be seen III the evidence which we
have detailed in the speeches for the
! prosecution and defense, and in the
clear and mastery summing up of
! Lord Chief Justice Clerk"
II has Oeen well SAID that history re-
| peats itself. and there may be those
who who will consider these remarks
| peculiarly apropOs in the Minneapolis
! bubble.
In the Glasgow bank case part of the
directors mad used large part of the
bank funds; 50 also in the Guaranty
Loan. Lewis Potter, director of the
Glasgow bank. had been a liberal sup
porter of churches; and so, too, in the
Guaranty Loan directory, the pietv
racket composed part of the assets.