The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1915-12-10

From Fridays Daily.

from fridays Daily.
While there has been quite a
change In the financial status OF the
Mayer Brothers company, Louis
Mayer and Lorenz L. Mayer are not
out of the concern. Louis Meyer Is
still the president and Lorenz l..
Mayer remains the secretary and
treasurer. The board of directors
recently terminated the old contract
under which they were engaged. They
are now serving the company under
another arrangement, and their sal
aries are different.
One story Of the affair is as fol-
lows:
'eIn January, 1914, the Mayer Bros,
company authorized a sale OF pre-
ferred stock In October, 1914, Ger
tain vacancies were created on the
board of directors at the request of
men financially interested. George M.
Palmer, W. ID. Willard and John Ny
uuist were put on the board, together
with Lorenz l.. Mayer and Louis
Mayer.
"The company then borrowed
s22. 500 from George NJ. Palmer, w.
d. Willard, John Nyquist, George E.
Brett, Leo s. Lamm, Henry Thiel-
man and DR.. J. w. Andrews. For
evidence OF this loan, notes were
made payable TO the Mankato Loan
and Trust company, at rate OF in
terest of 10 per cent per annum. To
secure the payment OF these notes,
Louis Mayer, president or the Mayer
Brothers company, and Lorenz l..
Mayer, the secretary, hypothecated
their stock in the Mayer Brothers
company, covering ia shares at a par
value of s71,40o, together with GER
tain life insurance policies.
I'm connection with this collateral
security put up by the Mayer Bros,
they assigned over to the three other
directors, Mr.. Palmer, Mr.. Willard
and Mr.. Nyquist, the voting power OF
the stock so hypothecated.
Hatcher Put In Charge.
20. NJ. Hatcher was put in charge
of the sale Of the stock in the fall OF
1914. Later on the sale OF stock was
discontinued and in May, 1915, the bus
mess of the Mayer Brothers company
was put in the charge of an execu-
tive committee. consisting Of o. NJ.
Hatcher, John Nyquist and Louis
Mayer. Since that time, o. NJ.
Hatcher has been the executive Of
flcer in charge of the business. Later
on the board of directors created the
office of acting general manager and
elected Mr.. Hatcher to that office.
"In November the Mankato Loan
and Trust company through its Of
ficers demanded their pay. No action
was taken to collect the Indebtedness
from the corporation of the Mayer
Brothers company, but notice was
given to Louis Mayer and Lorenz l..
Mayer OF the intention to sell their
stock, which was held as collateral.
1.-THE Mayer Brothers company was
then managed by gentlemen who made
up the board OF directors. At the re-
quest OF Lorenz l.. Mayer and Louis
Mayer the sale of their stock was
postponed from November 10, 1915, to
December /, 1915. This was done that
the Mayer brothers individually might
make an effort to raise money to pay
of the notes. The understanding was
that IL the brothers made a good
showing in raising the money they
would be given further time.
"In the meantime the Mayer
brothers had procured assistance of
about $4,000 with the promise of
more and this was reported to part
les holding the Indebtedness on No
vember 30, 1915. On the afternoon
of that day at a meeting OF the di-
reetors of the Mayer Brothers COM
pany. Lorenz Mayer and Louis Mayer
were asked to resign from their en-
ployment by the corporation. This
they refused to do and a motion was
passed by three directors constitut-
ing a majority of the board, termi-
mating the services of Borenz L.
Mayer and Louis Mayer on that date.
ION the forenoon of December. I,
1915, at the offices of the Mankato
Loan and. Trust company, Sheriff
Anton Osten sold the collateral stock.
Lorenz l.. Mayer and Louis Mayer
were unable to raise the money to
protect il, and the same was sold for
$500"
This stock is controlling interest
In this corporation, but the voting
power of II being tied up by con-
tract impaired its sale value"
Another Version of Case.
Another version OF the story is as
follows:
ut is reported on the street that
Louis Mayer and Lorenz L. Mayer are
out of the Mayer Brothers company
Investigation develops the fact that
on December 1 the Mankato Loan and
Trust company sold at public sale
81, 400 of the Mayer Brothers COM
pany, belonging to Louis Mayer and
Lorentz L. Mayer. This was the
the stock of the company. This stock
had been put up with the trust COM
pany as. collateral to loan OF S22.-
500. made to the Mayer Brothers COM
pany by a syndicate composed of
George NJ. Palmer, L. s., Lamm, w. ID.
Willard, DIR. J. w. Andrews, George E.
Brett, John Nyquist and Henry Thiel-
man.
This loan was made in August.
1914. Just after the outbreak Of The
war, when It was almost impossible
for anyone to get any money at any
price, and II was made to enable the
Mayer 4 Brothers company to pull
through the strenuous times and de-
velop its tractor These gentlemen
got the money on their personal credit