Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1893-10-05
VERMONrERS IN IT.


Loan Company of minneapolis.
Mayor Haselton who acted as a judge in
the department of liberal arts at the worlds
fair. visited Minneapolis in behalf of clients
toattend hearing before the District Court of
Hennepin county relative to the affairs of the
Northwestern Guaranty Loan company, now
in the hands of receivers. The receivers al
leGc that the collateral supposed by the hold
erS of notes negotiated 10y the company to be
applicable to their securities was not in fact
distributed and applied Till after the ap-
pontment of II receiver and ask that it be
converted into common fund Tor the bene-
fit of all the security holders.
Some 40 attorneys We're present at the
hearing and after some preliminary discus
sion the meeting was adjourned till October
81.
On the day of the hearing . sensation was
created 10y the announcement that w. s.
| Strecter, formerly of st. .lohnSbul'v. vice
president of the deflnct company, had been
arrested ON an indictment charging him
| with grand larceny for embezllement in con
noction with the management of the affairs
of the company. \ similar Indictment was
found against Louis F. Menage, president of
| the company, who is now believed TO be in
Chilli
of directors of the company are busy in try
ing to eXculpate themselves from all com
Ulcty in the msmanagemcnt of the com
pany The question of the liability of the
stockholders under the Minnesota laws to
the amount of their stock is likely to bc an
interesting one and one that will be sharply
contested.
The liability of the directors for the mis-
management of a corporation is also under
| investigation and suits ale now pending It
determine their responsibility. The tnan
cial standing of some of the men who hay,
figured in the hoard is such aS to make thi'
question an important one, especially from
the stock and security holders point of view
Ex- Mayor G.. \. Pill>buY who wa
subpmnacd before the grand jury, insist
that he severed his connection with the di
rcctory in 1891 and that his gifts of tn,
compauy's securities to charitable institu
tious were made in the belief that they wel,
valuable If the stockholders are found I,
he liable to an assessment the fact will b
interesting to the recipients of these gifts.
NermOnters are largely interested in tn
company, both as security holders an,
stockholders. a. has been stated heretofore
One Man Forcsaw the Outcome.
j. f. r. Foss of the Nicollet Nationa
bank was from the very outset of the North
western Guaranty Loan coupany'S caree
positive that the end would he Just what
has been Mr.. Foss' declarations were :
emphatic, and were made at all times an
in all places to such an extent that the
, called down upon him the anathemas q
many MinneapultanS outside of the officer
/ of the company, while the officers of that in
, stitution went 50 far a. to threaten him wit
damage suits. The only man who believe
that he was right was George \. rllsbuIy
, then mayor of Minneapolis, who called upo
, Mr. Foss and expressed his belief in th
crookedneSs of the institution. II was afte
q this that Mr.. Pilsbury's name appeared 4
e a director of the company.
Menage May BE ENtraditcd.
, 1t is the general impression that becau,
Louis f. Menage is out of the country, Il
;. will never he called upon to face his accll
-, crS. An attorney once in the employ of II
. company has other opinions. He stated tht
r the oiicnse was cxtraditablc, and that in a
, countries where the United States had
= treaty, he could he secured if located II
also stated that as a rule, in countries whel
there was no treaty, it was the practice
= grant eXtradtion papers out of courtesy fc
:. olfenseS of the kind charged. In his opiniC
a., Mcnage will he located and will be secure
to answer to his Indictment