The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-10
ASSIGNMENT FOR THE BENEFIT
OF CREDITORS BY MANKATO
CAPITALIST.
TOO MUCH DULUTH DIRT.
THE FAILURE PRECIPITATED By
SUITS ON AN INDIRECT
LIABILITY.
DIRECT DEBTS OF HALF-MILL1oN.
Twin City and Duluth Banks Will
Not Suffer by the Temporary
Insolvency.

MANKATO, Mimi, Nov. 9.-John A.
Willard made voluntary assignment
to George H. Clarke late yesterday
afternoon for the benefit of his cred
itors. Although the papers were filed
yesterday the fact of the assignment
was not given to the public until to-
day, in order that duplicate copies for
filing might be sent to counties in
which Willard owns real estate.
Mr.. Willard estimates his direct or
personal liabilities at about $480,000,
practically all more or less secured
with what, at the time the loans were
made, was believed to be good security.
He places his indirect liabilities, that
is paper Endorsed by him for concerns
in which he is interested, as consider
ably larger than his direct liabilities.
How far these will affect him cannot
now be known. In regard to his as
sets, Mr.. Willard will give no figures,
but says that they consist largely of
real estate, especially In Duluth, and
that it is difficult to estimate their
value at present sale. He states that
his entire assets, before the deprecia-
ton following 1892 set in, were at least
three or four times his direct liabili-
ties, and that their present value is
more than these liabilities. For sever
al months he has been endeavoring to
get his creditors to extend their claims
until 1900, and most of the direct and
very large portion of the indirect cred
itors have consented.
The immediate cause of the assign
ment was five suits brought against
Willard and nine other directors Of the
Motor Line Improvement company, of
Duluth on paper given for the benefit
of that company, this paper aggregat-
ing $100, 000 and being part of his in
direct liabilities Most of the creditors
of this company were willing to wait,
but a few brought suit, and nothing
could be done with them. Willard had
previously assured all his creditors that
ne would not allow suing creditors to
get advantage of others by judgment,
and as these suits could be no longer
deferred and judgment would have
been taken this week, good faith to all
creditors compelled him to make an as
signment at once. Willard is interest
ed in many land, building and other
corporations, the stock of which is an
absolute loss to an extent approximate
ing 100000. This is aside from the de-
probation of his other stocks and real
estate, due to the financial depression
following 1892.
The direct creditors, including the
heaviest, are largely outside of the
state Willard states that he owes very
little to any bank in Mankato, and
what he does owe is fully secured, also
that he does not owe Twin City or
Duluth banks to any large extent. He
has been one of Mankato's leading cap
italists, and is interested in several
concerns elsewhere. His financial
troubles are deeply deplored by all, yet
his failure does not take the commun-
ity by surprise. Last week the Will
lard Live Stock company, of Montana,
in which he is interested, was forced
to make an assignment.