St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-06-28
s1RttIER has |! Ills SAY,
Ne 8LAMES EVERYTHING 70 THE as
SENT MENACE.
LITTLE Observation-Disclosures
The Defending Witness Says He
Was Surprised when He
Learned 1t Aggregated Over
81, OOO.OOO-The Cross-Exam !.
tnation Communicable Prom
Uses to Be Very Warm.

@A,OOOsOOO-IOo SroSS-NX0ms
ination Commonwealth Prom
Uses to Be Very Warm.
Mr.. Streeter took the stand again yes.
terday morning. He was evidently feel
Ing better, for he did not ask to be eX.
.cused because of Illness. John II.
Burke. who stands in the capacity of
champion sleuth." so far as this case
is concerned. said yesterday that he
knew Streeter was going to be taken Ill
on the stand day or so before the oc-
currence. He does not state whether 1t
was through some process of mental
telepathy or clairvoyancy that he knew
1t. 1t Is enough, he says. that he knew
1t without entering into statement of
how he was able to foreshaduw the
event. Mr.. Streeter yesterday told Of
his connection with the Guaranty Loan
company, and how he had come to be
connected with it. He insisted that he
had nothing to do with the preparing of
the spurious notes, and that the 'riders"
were prepared in the loan department..
of which s. NJ. Houghton was superin-
teDdent. The guarantees of the notes
were signed for the most part by Men,
age, and the blank notes were kept in
his desk. Up TO the spring of 1892 the
collaterals of the company were kept in
the Guaranty vaults or those of the
Minnesota Loan and Trust company.
Mr.. Menage had access to all the col
lateralS.
In 1892 Streeter said he held con.
versation with Menage about his
(Streeter's) retirement from the COM
pany. He wanted to retire because OF
poor health, and because of Manages &C
count with tine company and the mat.
ter of the c0llateralS. Menage finally
induced him to change his mind. and
turned over to him the key Of the col
lateral vault. Then Menage closed his
account with the Guaranty Loan CON-
pany and opaned one with the Security
bank. Mr.. Streeter said he asked the
bookkeepers for statement OF Men,
ages account and Indebtedness on
short time paper, and was surprised to
learn that it was over $1,000. 900, which
was more than tine collateral held by
himself as an officer OF the company.
He asked Menage 10 reduce the indeut-
ness, and he obtained a loan from the
Security bank OH personal stock of the
Guaranty Loan company, and stated
that until he could turn his affairs in
Chicago Into cash the company would
have to carry the paper.
Menage at this time formed a syndi.
cate In Chicago. which paid him $3.50, 900
lii West Pullman bonds. Part of these
were deposited as collateral by Menage.
The collateral amounted to about $780,
00O,000. The collateral was examined
by the witness as far as i. lay in his
power, In order TO approve of the items.
At the consolidation OF Manages East
ern interests into the Chicago Dock and
Investment company, bonds OF this
company were deposited in place of
West Pullman and other bonds. Mr..
Menage said that the new company's
obligations were better than the West
Pullman bonds, as the men interested
in the scheme were better men finan-
cially.
Mr.. Streeter said he conferred with
Alr. Cole as to the renewal of Mr.. Men,
ages Indebtedness to the company dur.
ing the spring Of 1893. The notes were
to be renewed. but 10 new loans made.
LII December, 1892. Mr.. Menage wrote
to Streeter suggesting the election of
Houghton to the position of third vice
president, and Mr.. Cole as treasurer,
which occurred at the next following
elections. During the summer of 1892
and winter of '93 Streeter was engaged
in obtaining agents in the old company
for the sale OF the debenture bonds of
the company. He was endeavoring to
place $500, 900 OF these bonds.
MI. Streeter was asked If he had ever
borrowed any money from the company,
and he replied that he had secured 81 500
and the loan was secured by ten shares
OF the Security bank stock. The note
was paid by the sale OF the collateral.
That was the only loan he had secured
from the company.
leave on trip to Chicago he asked wit
ness to turn over to him the West Pull
man bonds to be sold. Streeter had re.
fused to do this, and Menage did not go
10 Chicago. MIR. Streeter stated that at
another time, buta few days before the
Guaranty Loan company failed, MIR.
Menage went to Streeter's house when
the latter was i'll and asked hin to turn
over S25.0J0 or $4,000 of the bonds,
which he (Menage) wished for private
| creditor. After conference between
MeDage and officers OF the company,
held over the telephone, witness stated
that he turned the key to the collateral
over to them. When he was we'll
enough to return to the office
he found that the collateral
had been removed to the safety
deposit vaults In the basement Of the
building. Streetea had demanded back
the possession of the collateral, which
| Menage refused. Witness threatened
TO seek legal advice and Menage CON-
promised the matter with him by allow
ing him to have key to the collateral,
Slreeter agreed at that time that Mr.
Cole should also have a key and that
neither should go to the box unless ac-
conpanied by the other and the custo-
dian of the vaults.
What was your opinion at that time
in regard to Manages solyency?" asked
Mr.. Peterson.
II believed that he was amply able to
pay all his debts" was the reply. IL
also believed that the company's secur-
tiles were more than enough to cover its
liabilities"
Now, Mi. Streeter, you say that you
had no conversation Will Mr.. Rock wood
in which You refused to give him iHfor-
mation?"