The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1896-02-20
THURSDAY, FEBRUARY 20, 1896.
NORTH OF THE LINE.
The Dam Site Mortgaged but not
the Mill Site.

the Mill Site.
One interesting legal case has de-
veloped already out of the suspension
of the Citizens Bank and the assign
ment of o. w. Mcmillan & Co. of this
city. As is well-known the latter was
brought about through the former.
The Citizens Bank was carrying y.
w. Mcmillan & Co., as proprietors OF
the Delhi Roller Mills for So 500, mon
ey used to carry on improvements in
the mill made several years ago.
When the bank commenced to get
pinched for funds the Mcmillan notes
were sent to New York for rediscount.
They ran for 80 days, at the end OF
which time they would be renewed
and returned to the east. During the
last two years of the banks existence
the notes would be divided into small
er amounts and two or more notes
given for the whole in order to make it
necessary for the bank to rediscount
them.
The notes were renewed for the last
time few months before the failure
of the Citizens Bank. At the time of
renewal the orr inal notes were still
in New York and it was agreed that
they would be sent for Immediately.
For some reason Or other they we're
not returped to Redwood Falls. Then
the suspension came on and 0. W..
Mcmillan & Co. found that they were
bound by notes to the extent of $15,-
600, or 81 500 more than they had ey-
or received.
Several weeks before the suspension
Of the Citizens Bank Cashier Turrell
prevailed upon o. w. Mcmillan & Co.
to give the bank mortgage on the
milling property as collateral security
for the notes. The milling property
comprises five different legal descrip-
tons or tracts, the whole embracing
about eight acres. O w. Mcmillan
made out the mortgage deed, taking
the large description for the body Of
the deed, supposing that it took in the
mill, and thus leaving three acres not
encountered. This mortgage deed
was accepted by Mrs. G. A. Francois
as security for money on deposit in
the bank before the insolvency, be-
longing to the estate of the late G.. A.
Francois.
Several weeks ago O. w. Mcmillan
g. Co. demanded the first lot of notes
amounting to $500 from the North
ern Trust Go. as assignee of the bank,
claiming that the Trust Co. or the
eastern parties had no right to the
same. Of course the firm was re-
fused. As result of the refusal the
firm assigned to A. G. Burmeister and
Messrs. Somerville & Olsen were made
attorneys for the assignee.
About ten days ago Mr.. Somerville
instructed the assignee to have line
surveyed on the tract on which the
mortgage was supposed to have been
given. Surveyor Bigham was en-
ployed for the purpose and found
that the mill itself was eight feet north
of the north line of the tract mort
gagged to the Citizens Bank, which
mortgage is now held by Mrs. Fran
co.'s. On Thursday of last week Mr..
Bigham, who had run the first line
from Mill street, made another sur
yey, starting in from RAINS corner
on the south line of the mortgaged
tract. He was half day or more at
the work and made the startling dis
covery that the mill was even 18 feet
north of the north line of the mort
gagged tract.
The result of this survey created a
great deal of excitement in the city
when it became known. The mort
gage, as it stood, was practically
worthless, and left the mill, valued at
between $4,000 and $4,000 in the
complete control of the assignee, with
all the creditors sharing alike. AS
soon as Mr.. Mcmillan heard of the
case he came down town and volun
teered to go before the court and
make affidavit to the fact that it was
his intention to include the tract or
which the mill stands in the mort
gage.
1t is now probable that the cour
will be asked to allow the amendment
of the mortgage SO as to include thu
MILL This request may be fought.