St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-01-11
THAT OLD LARD DEAL.
The Supreme Court Renders a
Decision Giving the Plaintiff
S1S164O.

The Supreme Court Renders a
Decision Giving the Plaintiff
$1S1, $40.
Special to the Globe.
MADISON, Wis.,, Jan. IO.-The SUI
preme court to-day rendered decision
in the celebrated suit of DanieI Wells,
Jr., VS.. Peter McGeoch, which grew out
of the famous lard deal failure in Chi
cagO in June, 1888. The courts decision
reverses the order of the county court
of Milwaukee county, and remands the
cause with directions to the superior
court of Milwaukee county, the sue
cessOr Of the county court, to render
Judgment against McGeoch for $751;;
640.63 and interest thereon at Z per cent
persannum from July 1883, to the time
OF awarding such Judgment by that
court. The suit was instituted by.
Wells to recover large sum of money
which he alleged he was induced to
pay by means of certain false and
fraudulent misrepresentation made by
McGeOch, pertaining to the settlements
subsequent to the failure of the firm of
McGeOch, Everingham d Co., of Chicago,
which failure grew out of this attempt
to corner the lard market. The defense
denied the charge OF fraud, held that
the settlements made were just, and
maintained that the transactions had by
the parties Jointly were illegal and con-
sequently Wells could not recover The
failnre of the firm occurred June 16,
1883, at which time Wells was silent
partner. One month after the failure.
when the assets and liabilities of the
defunct concern had been placed in the
hands of a receiver for settlement, and
after the receiver had found that with
S450,000 in addition to the assets in his
possession he could effect a compromise
settlement with the firms creditors at
so cents OH the dollar and thus Iiquidate
all liabilities and indebtedness, an
agreement was made between Wells
and McGeoch whereby it was agreed
that in consideration of the pay
ment by Wells of 100000 to
the National Bank of America
in Chicago; $4,000 to the Milwaukee
National Bank of Wisconsin; 1925. 900 to
the Wisconsin Marine and Fire In
surance bank, of Milwaukee; $780,
bank, of Milwaukee, aggregating
S675, 600, this amount being the value of
notes for which Wells and McGeoch
were jointly liable either as signer or
indOrSer, and the payment of 1925, 900,
being one-half of the $3.50, 900 found nee
essary to effect the compromise settle
ment,and also the REIMBURSEMENT of the
title to S100, 455.39, which at the time of
the failure stood On the books of the
firm to his credit as his share of the
profits of successful wheat corner in
1882 and other subsequent successful
deals, he should be released from all
claims of the firm and all liabilities to
its creditors, and should be Unidentified
against all losses and expenses which
might occur thereafter as a result of
any failure of McGeoch to execute the
conditions of the agreement.
The lower court held that this con-
tract was illegal; that it was contrary
to the statutes of Illinois, which provide
that profits and losses made in the pur-
chase and sale of futures and in corners
in the market in wheat or various other
commodities are illegal profits, and that
contracts in which such gains or losses
are the considerations are gambling
contracts, and therefore void. 1t also
maintained that Wells was obliged to
trace his right to his alleged claim
through such illegal transactions, and
therefore he could not recover. =