St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-24
CHARGED Il PER CENT.
USURf0US RATES ELtEcED To HAVE
BEEN CHARGED BORROWERS
BY THE NEW ENGLAND BANK.
Two Suits Begun Yesterday to Re-
gain Possession of Promissory
Notes Put Up as Collateral Sc
curity-Thc AIlegations-Gen
eral News of Monday of the
City of Minneapolis.

Two suits were begun in the district
court yesterday which will vitality inter
est all persons having any claims
against the Bank of New England, of
this city. The Turtle Mountain bank,
of Dunseith, n. D.. is the plaintiff in
the first suit. and the Bank Of New En-
gland, which closed about two months
ago, is the defendant. If the plaintiff
wins the suit. it will mean clear loss
to the Bank of New England of s10.-
O73.17. In other words, its assets will
be diminished by this amount.
The Turtle Mountain bank alleges in
It's complaint that between Jan. and
March 13, 1898, it made an agreement
with the Bank of New England, through
\. j. Blethen, its president. by which
the Turtle Mountain bank should bor
| row, from time to time, certain amounts.
| These loans were to be secured by de-
| posting with the Bank of New England
| promissory notes Endorsed by the Turtle
Mountain bank. These notes were to
be held as collateral.
1t was further agreed-and here is the
| meat of the entire caSe-that, as a con-
dition to said loans. the Bank of New
England should receive 1.-The usuriouS
rate OF 70 per cent per annum-" The
complaint alleges that the assignee,
John z. Rea. had full knowledge of the
existence of this 'uSurlous agree
ment." and received all the promissory
notes deposited as collateral. The COM
plant further declares that the as
| signee threatens to collect all the notes
| from the various makers. Ii he is per-
mitted to do this the complaint alleges
that there would be nothing left to pay
any Judgment the plaintiff might secure
| against him for conversion of the notes;
| inasmuch as, according to the CON-
| plant, the assets of the Bank of Eng
! land are far less than its just liabilities.
| The complaint further states that the
| assignee has refused to return the notes
of the plaintiff, although requested to
do so. Tie plaintiff therefore demands
! judgment as follows:
% That the assignee be restrained
from collecting, transferring, negotIat-
| ing or diSpoSing of any of the notes; ~
| that he be adjudged the holder of the
| proceeds of any such notes collected in
trust for the plaintiff; (3) that the
agreement for the loan he declared
usurious and void; az that the notes be
! declared to have been received as col
| lateral security for the payment of the
| uSurlOuS loans, ana TO De no part OF the
assets in the hands of the assignee: (5)
| that all OF said notes be declared the
property of tine plaintiff; (6l that the
assignee deliver all the notes to the
| plaintiff.
The court has granted temporary
restraining order, forbidding the as
signee to dispose of or convert any of the
notes until the case is settled. The
! loans made by the Bank of New Eng
land to the Turtle Mountain bank ag-
gregate S1O.173.17.
A similar suit was also brought
against the Bank of New England by
the Becker's Investment company, of
North Dakota. In this case the plain
tiff borrowed S?.167 of the defendant
bank, and asks that the transaction be
| set aside on the ground of usury, and
that similar restraining order be
issued, enjOining the assignee from dis
posing Of the collateral notes. TIE
court granted a temporary order. as in
the other case.