The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-10-19


| pany should get to the eyes and ears
| Of the public. Director Eustis became
acr~. As witness the proceedings of
January, 1891:
FROM PROCEEDINGS OF G1ecC-
TORS.
Directors special meeting, Jan. Is,
1891. Present, George A Pillsbury,
Loren Fletcher, Petit, EUSTIS, H. E.
Fletcher, Robinson, Menage and Street
er. Streeter was elected secretary of
the meeting. Mr.. Menage called the at
tention of the board to recent rumors
and printed matter of unfavorable'
character, circulated by one John H
Burke, and requested each member of
uhe board to advise us as to proper
method of treating the libelous rumors
The board of directors had before re-
celVed the printed circulars, and the
matter was fully discussed. Although
! each member of the board expressed
| full confidence in the management and
| a firm belief that all transactions have
| been entirely businesslike, 1t was DEEM
! ed best to appoint committee to make
| personal investigation of the several
| charges mentioned in the circular and
! report to the full board, that suitable
/ resolutions may be adopted for pubh-
cation, should 1t become necessary to
| do so. On motion, it was voted that
! Petit, EuStiS, George A Pillsbury and
Loren Fletcher compose the committee
| or investigation, and 1t was suggested
that the committee get the opinion of
unlnterested real estate experts upon
the value of property upon which mort
cages had been made by the corpora
ton. Meeting adjourned subject to call
of committee
Directors special meeting, Jan. %,
1871! Present, Lowry, Petit, George A.
Plllsbury, the two Fletchers, EUSTIS.
Menage, Neher, Streeter and Robinson
| A committee consisting of EuStiS, Pills
bury, Petit, Neher and the two
| fIetchers was appointed to draw I'D
| report setting forth the facts in regard
| 10 the findings Of the Investigation
committee and present the same at the
next meeting. Eustis, Petit and the
TWO F4etchers were appointed an ex-
aiming committee to examine all loans
/ hereafter made by the corporation. and
| the president and vice president were
| mace ex-oft1clo members of the com
hlttee. In passing on loans a quorum
must be present, and the approval Of
| majority of the committee present
! upon loan would be sufficient To mass
| the loan Mr. Menage rendered his res
| ishatlon as president, because he had
| Deen personally attacked. but the res
! lsHatIoh was not accepted, and each
1 ~
satisfaction with the mana gement of
the affairs of the company. and esne-
cIaly with the honor and Integrity 90
/ the president. TX
directors, special meeting adjourned
| 9elo Jan 70, 1891. Present, EUSTIS
george A. Pillsbury, the two Fletchers
| Pett1t, Neher, Menage. Streetar onS
| Robinson. The committee annointa6 81, ~
Ihe previous meeting presented the fol-
lowing report: 1"'
EUSTIS-FLETCHER "WHITEWASF5
" To the stockholders and hoard - a,uoa..--
OF the Northwestern Loan companv-Gentle-
men Inc attention of the board OF directors
having been called to certain reports cirou-
iateo as to the character of the securities
LEU ny TINS company, in which securities the
baeSI T Oh the company, Mr.. Menage is or
mas Deeh directly or indirectly Interested we
| the Undersigned directors beg tn renort +bo.
we nave made careful examination oP tbo
uoohS OF the company relating to all such
braced a. anu M nave nad all the property en-
t DIaceu IN SAID securities, appraised by Dis
IEtereSteo, reliable and competent nersonc
cCnVersant with the values of such nronertv'
t ab oaelr written appraisals thereof filed with
tne company papers, and the same are re-
Ierreo 10 as part of this report We furthsr
report that all Of said securities held NV ~
! company IN which M. Menage is directly or
indirectly interested, and all of the other
! securities referred to, in these reports tn
which the attention Of this board has been
r calIea, are IN our judgment, all on ample
margin, and with two exceptions are taken
on basis of from 40 to so Der cent of tha
Va!ues thereof, as appears by comparisons q
the several e,, reports made by the appraisers
win the amount Of the loans made thereon
mittee.'"
STRAW SECURITIES.
This examination Of Guaranty Loan
securities and loans appears to have
oeen farce and fake from start to
hnlsh. The directors submitted to the
real estate authorities only a compare.
lively few securities, being the few ap.
parentiy that had value. Everything
else was covered up.
The receiver found that of the mort
cages to secure $2,341, 300 of long time
! debenture bonds, s., 776 154 were in de-
fault at the time Of the receivership
| Or the securities for the short-time ma
| per, the receiver, the MINNEAPOLIS
| Trust company, reported April l. 1895:
The company had guaranteed and sold
| Jana same was outstanding at the time of
| the receivership) short-time paper in the ag-
gregate sum of $3,017, 776.48. OF this amount
S644OooOO was the paper discounted for cli-
! ents other than Mr.. L. F. Menage. The bal
! ance of this commercial paper was prime .palIv
| straw paper. The wherea bouts of the makers
Tor Of any OF the property belonging to them)
| though diligent inquiry has been made to as
| certain the same
AS regards the assets of the North
western Guaranty Loan, the receiver
had this to say:
| The assets now remaining In tbs
| hands Of the receiver amount to about
| S8lO,745 nominal value. The statement
filed by the insolvent company showed
assets aggTegating So, 262, 514"
Elsewhere in the receivers report Is
computation showing deductions
amounting to $4,659, 20634 in the COM
pany's alleged assets, being largely
made up Of forged, worthless and
straw paper. Both the Eustis commit.
tee and Public Examiner Kenyon. So
far as their embarrassing reports go.
were unable to find anything except
gft-edged paper and securities.
PUBLIC EXAMINERS WHITE
WASH"
The report of the public examiner,
M. D. Kenyon, on the Northwestern
Guaranty Loan, March 20, 1892, a year
after the whitewash report of the Eus.
tbs Investigation committee" is a dis.
grace to the state and q crime against
the innocent investing public. It was
utterly worthless, being based mainly
on the report of the Eustis COMMITTEES
itself. The only value that attaches
to the public examiners report is his
official notice of the fact, twice repeat
ed, that Eustis was a director and COM
mitteeman Of the Northwestern Guar
anty Loan company.
Kenyon's report in part and sub
stance reads as follows