The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-10-31

1macy of His Connection With
the bankrupt Concern which
SwindIed Innocent Investors
Clear Across a COntinent-How
Dare He still Deny ItY
William Henry Eustis takes d terrific
blow at the philosophy of Pudd'nhead
Wilson.
Mr.. Eustis' lies have more lives than
any, cat that ever skedaddled across
the field of Pudd nhead or any other
philosopher, and the most absolutely
untiring lie that Mr. Eustis is work.
ing is his consistent denial that he ever
was director in the Guaranty Loan
company.
The G o e and other papers Of the
state have already given dates and
votes which show beyond peradventure
that he was director, but the supreme
court reports of this state further show
that he was sued as a stockholder, and
that the Judgment was given by the
court against the defendants in that
action as stockholders
However, lest Mr.. Eustis' sanctimoni-
Gus and oft reiterated denial that he
had any real connection with the Guar
anty Loan swindle should gull some
unsuspecting person into the belief
that this blatant exponent of a notori-
Gus policy of law notification is telling
the truth, The G o b e presents the
following facts once again:
HE WAS HELD NEGLIGENT.
AS director of the Northwestern
Guaranty Loan W. H. Eustis the Re-
publican nominee for governor, has
twice been defendant In the lower and
also the supreme court against the suits
Of creditors of that corporation. In
both cases the supreme court held that
the defendant directors, of whom Eus-
It's was one, were liable for the cor
porate debts of that fraudulent con-
Germ.
Eustis, as director, was defendant in
the suit brought by the National New
Haven bank and also by the First Ma
tional Bank Of Merrill. The supreme
court found In both cases that the di-
rectors were liable by reason of their
official negligence in permitting frauds
on the part Of inferior officers of the
corporation. The court found the di-
rectors BILE under the statute for vi
olation and neglect Of official duty and
for allowing the investing public to be
inveigled into its tolls three years after
the concern became insolvent.
Those Republican organs and orators
who confidently assert that W. H.
EUstis was not a director Of the North
western Guaranty Loan company and
was not responsible for its frauds and
losses are respectfully referred to vol4
umne 81 Minnesota Reports, pages 375
to 1876, inclusive, where that subject is
given about twenty pages of attention
by the state supreme bench. The report
Of this case by the supreme bench and
published officially by that body gives
in epitome a history of the financial OPP
erations and frauds of that concern and
also states cOncisely the responsibility
Of the directors. 1t makes a stronger
campaign document than any which an
ardent campaign editor could devise.
The title and material portions of the
syllabus and the courts summary and
opinion appear verbatim below. Any
reader may verify by taking down vol
ume 81 of the Minnesota Reports. page
375, and examining the case for him
the supreme court got through with
Eustis, Menage, Streeter and the other
Guaranty Loan defendants, they man.
out further litigation.
The material portions Of the ccurS
record follow:
WHAT THE COURT SAID.
National New Haven Bank VS.. Northwest
Guaranty Loan CoTnyNanv and OIhars
First National Bank Of Merrill VS.. s. H.
Harper and Others. June 90 1895. Nos.
1852, 1852 co. 59).
"Corporation-Liability CT Officers and
Members under G. S. 1894 Sec. 26CO Subd. g.
'Unfaithfulness.' G.. S. 1894, Sec. $780,
Subd. 8, provides that any officer, director or
member OF a corporation is liable for corpo-
rate debts when he is guilty of any fraud,
unfaithfulnes or dishonesty in the discharge
of any official duty 'Unfaithfulness, as
here used held to mean any violation or
neglect of official duty.
'Same-Contributing Fraud of Inferior Of
fcer. Under this statute a person who IL
induced to become creditor of an nsolvent
corporation by reason of the negligence or
other unfaithfulneS CT an officer thereof and
is injured thereby, may maintain action
against such officer for the amount OF his
debt And when the creditor of such insol-
vent corporation is induced to become such
by reason of the fraud of an inferior officer
and tho negligence of a superior officer, and
is injured thereby he may maintain an ac-
ton for the amount of his debt against such
superior officer.
EUSTIS WAS ONE OF THEM.
1.-TWO actions in the district court for Hen
nepin county.
1.-The defendants In the first named action
were Northwestern Guaranty Loan company,
William s. Streeter, c, H. Petit, Loren
Fletcher, w. D. Washburn, Thomas Lowry,
George A. Pilsbury. Charles Robinson, WILL
LIAM H. EUSTIS and Louis F. Menage. in
the other action the defendants were S. H.
Harper, w. G. Croker, Frank ]. PercivaI
and all the defendants in the former action.
"Canty, j.: The appeal in each of these
actions is from an order sustaining a de-
murrer to the complaint. The demurrer is on
several grounds. but the only grounds now
urged are that there is a defect of parties
plaintiff and defect of parties defendant.
The compleint in the National New Haven
bank case alleges the Northwestern Guaranty
Loan company is a corporation organized I'M
der G. S. 1894, Oh. "a, Tit. 2.Sec.2794- 2912; that
the general nature of its business, as stated
in it's articles of Incorporation, is the dis
counting and selling OF commercial paper, the
buying and selling of stocks, bonds, mort