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

$4,000 nominal value, against which
there Were filed SIS, 500 600 of claims bv
creditors. But the aggregate loss to
innocent investors over the country al
large is much greater than the amount
of claims formally filed in court, and
is estimated at not less than S. 600. 900
Since the Republican state conVen,
ton, Republican organs have been
busy denying the correction Of W. H
Eustis with the Northwestern Guar
| anty Loan company. Many of the Eus.
tbs organs have had the effrontery to
deny that he was ever a director OF
stakeholder, or that he ever attended
a directors meeting or had any con-
nection whatever with the company,
and these denials are accompanied with
the statement that the editor has tha
facts directly from Eustis himself. The
New Paynesville Press says:
Mr. Eustis never owned dollars worth
Of stock in the company and never attended
directors meeting. In fac he nev<r was in
any way directly indirectly connected with
the concern. His name used without his
knowledge or consent by them and was print
ed on their literature together with those Of
Fletcher, Washburn Lowry, J. S. PiIlsbury
and other prominent Minneapelitans. It Is
only after he threatened to apply to the
courts for an injunction restricting Them from
using his name that they took ii from their
literature. II the Tribune has any sense Of
justice 1T will give the facts in the case as
stated above and make amends for its i'm
putation against Mr.. Eustis. We have the
above facts directly from Mr.. Eustis himself
and they can be substantiated if his word is
not sufficient"
That this denial is a falsehcod out
| Of whole cloth is shown % by the Of
fetal proceedings Of the meetings of
the Guaranty Loan stockholders and
directors; CD by the testimony of the
officers and directors in the Streeter
trial; (0 by the official report of the
public examiner; "a by the testimony
and findings in civil suits brought by
creditors against the Northwestern
Guaranty Loan directors.
The court copy Of the stockholders
and directors proceedings, showing
that Eustis was elected director of the
Northwestern Guaranty Loan COM
pany seven successive times, his first
election being on Feb. IA, 1855, and his
last election as director being on May
1, 1893, three weeks from the day the
| concern Chased its doors, is as follows:
PROCEEDINGS OF STOCKHOLDERS
Stockholders meeting, Feb. ID, 1888.
The following directors were
elected for the balance Of the ensuing
year, ending April 80, 1888: Lowry, E.
w. Herrick, George A. Pillsbury, J.
Dean, Neher, Washburn, A J. Dean,
III. Fletcher, Clinton Morrison, J. S.
Pillsbury, Loren Fletcher, c. H Pet
tit, VIM. H. EUSTIS, who, with the
two Manages, made up the board of
directors Of fifteen" These were all
reelected May 7, 1885, and again May
20, 1889, except that Streeter succeeded
H. G. Menage.
Mr.. Eustis was again elected May s,
1890; May 4, 1891; May 2, 1892; May l,
1898. 1t thus appears that Eustis was
| seven times elected director, the last
time while holding the office of mayor
Of Minneapolis. Indeed from Jan. i to
May Fl, 1898, Eustis held the positions
of mayor Of the city and director, in
spector and loan examiner Of this in
solvent and fraudulent company. There
is no record in the proceedings Of either
the stockholders or directors to show
that he ever resigned.
That Eustis retained his position
both as director and as q member of
the committee on loans to the very end
appears from the stenographic copy Of
the address Of the states attorney to
the jury. In the opening statement Of
j. A. Peterson for the state of Mime
sofa Vs. w. s. Streeter, he said:
There was one thing at that meeting of
Jan. 2S, 1891, and that this: The board
Of directors passed resolution that no money
Of the Guaranty Loan company should again
be loaned to anybody without it be examined
by a committee appointed by the board OF d.
TeclOTB CQen ana IQ6re. j want to e.
member that, gentlemen of the jury The
board OF directors Of the Guaranty Loan COM
pany at that time said: This loaning money
to Mr.. Menage has gone far enough, and no
more money shall be loaned to anybody I'm.
less the consent and approval is obtained of
this committee which was appointed I do
not remember all the names Of that COM
mittee, but do remember some of them; Mr..
Petit, Mr. Loren Fletcher Mr. H e. Fletcher,
WILLIAM HENRY EUSTIS. and some
one else, composed that committee. forget
who they all were. That was the committee.
The Guaranty Loan company ct that time
through its board of directors, You must not
loan any money, we don't care to whom It is.
but you must not loan any money of this
| company after this unless the committee shall
say that those loans are all right That coni-
mittee, SO far as the minutes of the corpora
ton disclose, was never discharged, but that
committee stood until the corporation made
an assignment in 1893, ! think the 10Th Of
May, or somewhere thereab6uts."
A sufficient answer to the statement
-one which the Eustts organs credit to
Eustis himself-that he never attended
q meeting Of the Northwestern Loan
company directors, are the PROCEEDINGS
| Of the directors themselves. 1t would
be no defense had Eustis neglected his
duty as director and failed to attend
! the meetings 1t was his official duty to
! attend. The state supreme court, in
its opinion in the two cases against
the Guaranty Loan directors, discours-
| eS upon un1dItuA ulneSS OF Cnat nature
in a manner which makes neglect Of
duty by the directors anything but a
virtue. But, while Eustis did neglect
his duty as director quite commonly,
his presence In the directors meetings
was quite marked on a number of crit
ical occasions. When John H. Burke
exposed some Of the fraud and rotten
ness of the company and the criminal
proceedings Of Menage, Its president.
| then 1t was that AYsns came h the