The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-05-16
GROWING OUT OF BANK
FAILURES.
BANK OF MINNESOTA WINS
TO THE AMOUNT OF OVER $4,000
WHICH 1T PAID OUT BE-
FORE.
GHRnIANIA CREDITORS RIGHTS.
They Must Protest Against Re-
organization, If at ALI, by Thurs
day of This Week.

Judge Lewis filed his decision yes
terday in the suit of Receivers Seymour
ana Lightner, Of the Bank OF Nlnni-
sofa against w. A. Clark & Brothe:.
of Butte, Mont, and against e. M. and
E. w. Clark, of West Superior, and the
Bank Of West Superior, as intervenors.
The court finds partly in favor OF the
receivers and orders judgment Tor the
balance of the money in controversy
in favor Of E. M. and b. w. clark, OF
West Superior The case is interesting
to the legal profession, inasmuch as II
illustrates how a roundabout way OF
doing business often necessitafes the
hiring of lawyers to straighten things
out again. r
Last December prior to the failure
of the Bank of Minnesota and the BANK
Of West Superior, which closed Dec 70
E. M. and E. W. Clark, Of West SUI
perior, desiring to check out $lo,ooo
from funds they had on deposit in the
bank of the Clark Bros, in Butte, gave
the Bank Of West Superior check on
the Butte bank for $4,000 for collection.
The West Superior bank took the
check, and adding some money to 1t,sent
it to the Bank Of Minnesota to be cred
tied to the deposit account Of the west
Superior bank The court finds that
the Bank of Minnesota had no knoWl-
edge that e. M. and E. w. Clark, of
West Superior, had any interest In the
$4,000. The court also finds that at
the time of this transaction, namely,
Dec. IA, 1896, though the Bank Of Min
nesota and the Bank Of West Superior
were both insolvent, neither bank knew
that the other was insolvent.
The Bank of Minnesota sent the $10,-
600 check on to Butte for collection.
The Clark Bros, in return, mailed to
the Bank of Minnesota their draft for
$4,000, payable by the Merchants Ma
tional bank, Of this city. This draft
reached the Bank of Minnesota the
morning of the failure and might have
been cashed at once had it been pre-
scented then to the Merchants bank.
It seems. however, that it was over
looked for two or three days, and in
the meantime Clark Bros, OF Butte,
sent word instructing the Merchants
National bank not to pay the draft.
The Merchants bank therefore refused
payment Thereupon, the receivers OF
the Bank of Minnesota sued the Clark
Bros. for the amount of the draft. But
e. M. and E. W. Clark and the Bank
Of West Superior, interviewed, as they
also claimed the money.
The court finds that the Bank OF
West Superior drew checks against Its
deposit account with the Bank Of Min
nesota, and that the latter bank, act
ing in good faith, paid out to the Bank
of West Superior the sum Of $3,SlS2S
on the strength of the Clark check for
$4,000. The court also finds that, in
asmuch as the Bank of West Superior
was admittedly insolvent when it &C
cepted E. M. and e. w. Clark's check
for collection, 1t is not now entitled
to any relief in the premises. The
court further holds that the receivers
Of the Bank of Minnesota are entitled
to receive out of the proceeds of the
check for $4,000, which sum is now in
the hands Of the Merchants National
bank, the sum of s3,81S.23 paid by the
bank to the West Superior bank, and
that e. NJ and E. W. Clark, Of West
Superior, the intervenors, are entitled
to judgment for the balance of the
100000