St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-02-23

ing, as it did, suddenly and unexpect-
edly, the law suit threatened bank
ruptcy and ruin. The history of the
suit is we'll known to you and Mime
apolis generally, but not the embar-
rassments, headaches, sleepless nights
of those two years of disastrous III
.igation, when it seemed as if each week
would bring the ruin which was gener-
ally predicted for me. Thanks to
generous Eastern friends, enough mort
cages were sold through the company
to replace the paper held by banks.
which their fear of the result called in.
and to carry the other heavy pay
ments, interest and expense of those
years. Attacks made on my credit
were also directed against the conf
pany, and, as increased security tC
the holders of its mortgages, guar
anty fund of $100,GG0 was created. Crit
icism was made against the company
then and since as the mortgagee or
some 81, ,400,G0 on property involved IL
litigation, but the mortgages were OIL
my account, simply increasing the
value of the stock I held, and were
subsequently assigned without re
course.
The apparent end of the law suit was
reached Dec. 81, 1885, after the supreme
court had decided adversely to my in
terests, by my assigning to Mr.. King
81, ,25O, GOO of mortgages and notes, bear
ing s per cent interest, which L guar
anteed, and deciding him real estate
valued at 100000. While the end ap
Now
Years eve when the late Hon. Eugene
Wilson, N. B. Bryant and others, car
ried their arms full Of securities from
my office in the Kasota building, the
end came to me when my assignment
was made in July, 1893. Four years OF
most valuable time for real estate
business was lost, and I found myself
largely in debt for, money spent in the
development of that and other prop
erty, on the ebb tide after the active
years for real estate sales, and with
contingent liability of $1,250,000. Subse-
quently, upwards of $4,000 was added
to my indebtedness by payments on
this guaranty, while 100000 more was
held against me at the time of my as
signment. The great object of assum-
ing such burden was to protect the
titles of those to whom 1 had sold lots,
many of whom had made their homes
on them, which was effectually ac-
complished. Personally, 1 should have
been better off had an assignment been
made then, and the settlement of the
whole matter left to the courts. The
company had been obliged to struggle
with me during this suit, but on the
whole had made progress, with possi-
bilities for large increase of business.
With the belief that a building of it's
own would be of great benefit in ex-
tending it's connections, the matter
was laid before Mr.. Lowry, with the
result that the capital was increased,
new interest taken in the company by
Minneapolis men, the lot on which the
building was subsequently erected pur-
chased of Hon. w. D. Washburn for
about $4,000, and the building COM
menced. About this time w. S. Street
er became connected with the COM
pany, and placed a large amount of
the increased stock in the East.
Mr.. Menage digresses at this point to
speak of the magnificent building
which his enterprise reared, and says
it's completion in 81 found the COM
pany with $1,000,000 capital stock, on
which per cent dividends were eX-
pected, and a bonded debt of 5000, ,000 at
Az per cent nominally, but on which
advance interest of $4,000 was paid.
While the building was being erected
it of course paid nothing on the invest
ment, and it was necessary to do
something to increase the income of
the company. Among the enterprises
which Menage conceived to tide him
over this period, he mentions particu-
larly the following:
First-The loaning of several hun
dred thousand dollars on lots at Lake
Harriet, Minneapolis, just prior to the
acquiring of the property, and the
making of extensive improvements
thereon by the Lake Harriet Residence
Park Improvement company.
The loan was made because of
high rate of interest and the belief that
the mortgages would be cared for
through the efforts and by the opera
tions of said company.
Second-The purchase of 100000 Z
per cent bonds of the Helena Hot
Springs & Smelter Railway company,
of Helena, Mont, for $4,000. At the
time of the purchase the road ap-
peared to be in good hands and profta-
BILE, but later parallel road was built,
the strong men went out of the COM
pany, and the road went into "a re-
ceiver's hands. The Guaranty COM
pany acquired title to the road under
foreclosure of it's bonds, although the
road appeared in another's name. The
road was equipped with electricity on
a subsequent contract of sale, which
was not carried out; and in this and
other efforts to protect. the original in
vestment it was swelled to something