Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-04-15
CUT-THROAT NOTES.
The Supreme Court Decides They Cannot
be Maintained.

The Supreme Court Decides They Cannot
be Maintained.
The supreme court rendered decision
yesterday which will 60 far toward re-
lieving the people of Minnesota, and
especially the farming community,
from the injustice inflicted upon them
by the operation of what is Familiarity
known as the iron clad machine note.
The decision is in the case of the Min
neapolis Harvester works against M.
Hally, of Belle PLANE, Scott county, to
whom the harvester company sold two
reapers, taking therefor a note hedged
about with the cut-throat provisions of
this class of notes, and under which
the company recovered the machines.
The court holds in the case, and the
ruling applies to all similar transactions,
that the note will not hold, and that the
remedy of the company, if any is due it,
must be by some other means than
through the provisions of the note. The
syllabus of the decision is as follows:
The Minneapolis Harvester Works, appellant,
VS.. Matthias Hally, respondent
Syllabus-This action is brought upon the
following instrument:
BELLE PLANE, Mimi, Oct 5, 1S78-(S24n).
On or before the first day of Sept, 1879,
for value received in Q M. L. reapers,
promise to pay to the order of the Minneapo-
lis Harvester works, two hundred and forty
dollars, at the Office of the Minneapolis Har-
vester works in Minneapolis, Mimi, with in
terest at the rate of IL per cent. per annum
from date until paid; agreed that if paid at
maturity Tor in thirty days thereafter) then the
interest shall be nothing. And l further agree
in consideration of the credit herein given,
that if this note is not paid when due, and
suit is brought thereon, will pay five dollars
additional on the amount then due for attor-
ney's fees, and the same may be included in
the judgment, and / further agree to pay all
other reasonable expenses incurred in collect
ing this note.
The express condition of the sale and pur-
chase of the machine for which this note is
given, is such that the title, ownership or
right of possession does not pass from the
said Minneapolis Harvester works until this
note and interest is paid in full. And the said
Minneapolis Harvester works, or their au-
thorized agents, are hereby authorized and
empowered to proceed to collect the same at
any time they may reasonably deem themselves
insecure, and even before the maturity thereof
may take possession of said machine, sell the
same, and apply the proceeds toward the pay
ment Of this note, after paying all
costs and necessary expenses; also
this note to become due Upon the
removal of its maker from the county
wherein he now resides. This note may be
paid in good farmers notes, taken and en-
dorsed according to contract. M. HALLY,
Postofice, Belle PLANE, County OF Scott,
State of Minnesota.
Witness: p B. NETTL EToN.
1t appeared that the machines, which were
the expressed consideration of the instrument,
had been taken from the possession of the de-
fendapt by the plaintiff and sold.
Held-That the result is total failure OF
the consideration expressed in the instrument,
and that whatever remedy the plaintiff may
have in the premises, this action, which is
brought upon the instrument mentioned to
recover the price therein agreed to be paid by
the defendant for the machines, cannot be
maintained. BERRY, j.