The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-10-19
dividing the property Into parcels for such

dividing the property into parcels for such
purposes
Eustis, w. A. Barnes, J. M. Bartlett James
MCMILLAN and w. w. Huntington, under the
direction, OF the directors Thomas Lowry H.
e. Fletcher, w. H. Eustis, George Pillsbury
L. Fletcher, G. H. Petit and P N Nehr and
IN reporting as to such appraisals these gen.
tlem.,.. state that 1.-The securities are, In our
Judgment, all on ample margin, ana wrUn O.
few exceptions are taken on the basis of from
40 per cent to so per cent Of their values there
of, as appears by a comparison of the several
reports made by said appraisers with the
amount OF loans made thereon"
AS to the loans thus reported upon this
office accepted the report as sufficient evidence
of the value of\ the securities. In regard to
the securities In the mortgage loans account
not SO reported on, not having funds to
make exhaustive personal examination / have
avalled myself of the public records and OBJ
tanned assessed valuations by correspondence
with the officers in the various localities, and
found $3.50 621 loaned on property assessed at
1896 $780, and I'm most cases the officers in
formed me that the assessed values are much
below actual values. ss 'a.
The officers and directors of the company
are (see page 5, report of the examiner):
L. F. Menage, presi- Loren Fletcher,
dent; G. HI. Petit
Thomas Lowry, vice J. NJ. Addleman
president w. II. EUSTIS,
W. S. Streeter, vice w. G. Croker,
president; F. j: 2Percival, secre-
w. D. Washburn, tary;
p. H. Neher, II. X. Cole assistant
Charles Robinson, as secretary
sistant secretary; S. M. Stoughton SUI
William H. Clark perintendent loans:
George A. Pllsubry, F. r. Chase cashier
In general the companys affairs appear to
be in good condition and apparently well and
carefully managed. Respectfully
M. D. Kenyon, Public Examiner
BURKES EXPOSURE.
Relative to the fraudulent practices
and the insolvent condition of the COM
pany, as laid before the directors and
the public examiner in the charger
preferred by John H. Burke. both the
Eustis committee and Examiner Ken,
yoR are silent and eVasive. The Burke
circular of Nov. 26, $780, which was
sent to both Eustis and Kenyon, con,
tanned the following significant par
ticu1ars:
Since 1884 Louis F. Menage. as
president of the Northwestern Guar.
anty Loan company, has paid Louis F
Menage, as an Individual, nearly s., 000,-
600 He has been both payor and
payee, lender and borrower, and not
always upon the best or most approx
ed securities. These transactions are
constructively, if not actually. fraud
ulent and frCWned upon by all courts
and every honest man."
During the same period the company
paid
approximately the following sums:
B. S. Bull Gather-in-law of Menace. ss7. S7S
T. NJ WoodInan tattorney for same).. 1000
~ ~, y. Merrltt .................. 106. 500
GIarence swanson. clerk ...iI........... g., $50
w. =. hobart, plumber ................ 5000
w. II. Grams, clerk ................. &495
Charles SorentZ clerk .sI............... II, 500
blsseIi M master, clerk ................ 81, S05
SAINT r Ellis clerk observation-disclosures. "a 445
James Robertson, c.e ............. 144 Off)
Jesse F. Madam tanttorlN. w G. L.. SO ,s4
Approximately amounting to .s54 oOo
In book Il CT Mortgages, viii appear
contain mortgages made by =. E. Mer-
rift for large sum on lots IN McNair
Park, the amount loaned spp.oach
between $4,000 and $4,000 er acre. when
cannot find the said iand is worth
over $1,000 to $4,000 per acre. If all
loans made to Menage o. clerks, jani-
tors, ETC., were made on the anne basis
II VIII not take an expert accountant
TO demonstrate that your company is
bankrupt
Notwithstanding the solvency of the
company at that time, Notwithstanding
the millions of loans to Menage and his
friends, notwithstanding the fake loans
to janitors and clerks, ard the $4,000. 600
of straw paper and forged notes and
mortgages, the Northwestern Guaranty
Loan was advertised to the world by
TIE directors as a solvent and we'll
managed institution. Menage and
Streeter were elected and reelected by
the directors as president and vice
president, Menage himself, was eulo-
g1zed by them as an official of honor
and integrity, and the investing public
was invited to sink it's money
William II. Eustis, as a director and
member of the board oflinspectfon and
committee on loans, either knew the
company's financial condiio and .prac-
tees, or he did not, # he knew the
facts and concealed them by evasion
and denial, he was guilty as a principal
or accomplice in the preparation of
fraud upon the public. If he did not
know the facts, while holding the re-
sronsible position Of director and loan
examiner, he was guilty Of gross negli-
eence and unfaithfulness to a great
financial examiner, he was guilty Of
gross negligence and unfaithfulness to
a great financial trust. .f..
Do the voters of Minnesota want
such man for governor? Do they
want as the chief executive trustee Of
the state a man who by either con-
nfvance or negligence could permit to
develop under his responsible control
such gigantic sWindle as the North
western Guaranty Loan company?