St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-02-24
A GUARANTY DEAL.
Oveptares Being Made by
Creditors to Secure Con-
troll Of Property.
THAT MEETING IN BOSTON.
West Pullman Company, Of
Chicago, Will Doubtless
Re Reorganized.
TWO PLANS FOR CLAIMS.
Bond Issue and Purchase OF
First Mortgage Con-
templated.
THAT MEETING IN BOSTON.
TWO PLANS FOR CLAIMS.

Close upon the intimation of Louis
F. Menage tt 1T he would enjoy re-
turning home under certain condi-
lions, comes another Guaranty Loan
sensation, although it is of the most
opposite kind. Yesterday it was
made by certain of the creditors to
secure control of the property and
put it in such shape that more can
be realized out of the debris than was
anticipated. Some time ago an at
tempt was made to reorganize for
the purpose of buying in certain
securities. A meeting of those inter-
eSted in the reorganization move
ment was held in January in BOS-
ton for the purpose of seeing what
further could be done. Behind closed
doors it vas almost impossible to get
an idea of what was going on and
the future plans of the reOrganizing
creditors. Charles N. Hamlin, of the
Minneapolis Trust company, receiver
of the Guaranty Loan and aSSOciat-
ed companies, was present, and in
terested himself largely, but he, like
all of the others. present, did not give
out any information. But it is al
most certain that the West Pullman
company of Chicago, will be reor-
gained, and a definite proposition
has been made by certain of the
Eastern creditors to the Minneapolis
Trust company with this end in
view In addition, the Northwest
ern Guaranty Loan building of this
city is to be sold to the American
Exchange bank, Of New York city
to wipe out all obligations to that
institution for $4,000 cash over and
above pending obligations, mort
cages and all other membranes.
This sum will go to the estate, and
be divided up pro rata among the
creditors, with certain contracts in
the deed of transfer, by means of
which the creditors, if they choose
to reorganize and put money into
the building, can secure possession
of it upon the payment of all present
obligations and the return of the
$4,000 cash, reckoned at the rate Of
6 per cent, the redemption of the
property to be made within two
years time.
The proposition of the Eastern
creditors, who desire to secure pos
session of the West Pullman COM
pany, shorn of it's legal verbiage,
is as follows:
We, the undersigned, hereby make
the following offer for the 1925, 600 of
West Pullman bonds now in your pos
session. These, as we understand. are
a part of total issue of bonds now
outstanding in the amount of $3.50. 900,
secured by a second mortgage in Cook
county, on which there is a nor tgage
of $l50,000 past due. The equity in the
above property so mortgaged is now
owned by the West Pullman Land ds-
sociation, of Chicago, but this associa-
ton has apparently not assumed any
liability on either the first or second
mortgage. The holder of the first
mortgage has been pressing for its
payment, and threatens immediate fore
closure unless him claim is satisfied
By the terms of said mortgage he mas
the right to take immediate possession.
There are also special assessments
levied for improvements now being
made upon the property in the amount
of $200, GOO, as levied. The West Pull
man company also has some $150,0G0 of
floating Indebtedness outstanding to
secure which it has pledged all of it's
available assets. Under these circum-
stances, the association declares itself
unable to protect it's property, and asks
for assistance from the second mort
gage bond holders. Two plans have
been presented for an extension of the
claims against the property. Under
the first of these a new bond issue is
contemplated to q sufficient amount to
take up the first and second mortgages
and floating Indebtedness, said new is
sue to be secured by lien upon sub
stantially all the property of the West
Pullman association and the Minneap-
oils Trust company has been called
upon to subscribe $4,000 in cash to pur-
chase bonds Of the new issue, and per-
sons connected with the West Pullman
company will subscribe $1,000 Under
| the second plan the trustee and bond
! holders OF the balance of the second
mortgage bonds will be called upon to
! purchase the first mortgage and grant
an extension Of the same.
Under these circumstances the I'M
| dersigned make the following offer:
| We will nav tha truStaa 10 Der cent Of
their face without interest for all of the
| so-called West Pullman association
i bonds in the possession of the trustee.
| This offer is made subject to the fol-
| lowing conditions: The Minneapolis
Trust company, as receiver for the
| Northwestern Guaranty Loan COM
pany, by reason of it's holding the
', notes, as described, is entitled to it's
pro rata interest in the said bonds in
such proportion as it's holding of notes
! bears to the total amount
| The receiver may purchase Of the
| undersigned it's proportion of said
bonds at the purchase price thereof, II
| per cent of the face value, without In
| terest.
Any defendant in this action which
| resulted in accepting this plan or other
general creditor of the Northwestern
Guaranty Loan company may partici.
pate in the purchase of bonds by the
undersigned in proportion and on the
conditions given below. The purchase
of the above bonds will require $4,000
IN addition to what the receiver is tc
| pay for its proportion, and the amount