New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1897-07-21
Victim Of
Base Fraud
Redwood County Rottenness Strikes New
Ulm Man Heavily.
A. J. Grimmer Loses So 900 as the Inno-
cent Purchaser Of a Frau lulent
Mortgage.
Judge Webber Annuls the Scanlan Incum.
branoe Because cf Forgery.
scanlan Thus Secures the Sum Of 81, 800
"a q Gift.

Scanlan Thus Secures the Sum of 81, 800
aaa Gift.
Last week Judge Webber rendered
decision in the case of the Scanlans Of
Redwood county versus A. j. Grimmer
of New Ulm. By this decision Grimmer
loses over $4,000, through being the in
nocent purchaser of fraudulent mort
gage, and the scanlans secure 81, 900 as
a gift.
The case is interesting, not alone from
the fact that it deals with Brown county
citizens, but even more so from the fact
that it discloses much of the rotten
methods that have been in vogue for
years in the county to the west.
The facts as obtained from the judges
lengthy decision are as follows:
In 1894 Martin Scanlan, Redwood
county farmer, solicited loan from
Frank Gleason, who, with the notorious
Doc Beard, was doing loan and real
estate business at Redwood Falls. He
wanted $4,000 and was willing to secure
it with mortgage upon his farm. Glea-
son told him that he had the money of
rich Wisconsin man, which he could
loan him at 10 per cent, providing
Scanlan gave him bonus of 500 for
negotiating the loan.
The money which Gleason had was
really that of another Redwood farmer,
Sylvester Davis, but to Scanlan it was
made to appear to lie the money of one
John B. Alexander, in fact fictitious
person. With this understanding and in
order to avoid paying taxes. on the
mortgage, the instrument was made out
in favor of John B. Alexander, Scanlan
receiving $1,000, which paid off all other
membranes upon his farm.
Shortly after, power of attorney was
manufactured, son of Sylvester Davis
signing the name of John B. Alexander
and Beard and Gleason signing the
document as witnesses to Alexander's
signature. The court accordingly finds
that such a person as Alexander never
existed, and declares the mortgage, pur-
ported to he signed by him, null and.
void. ~. 9st.
Now as to Grimmer's connection with
the affair. In October of 1894, Davis,
acting under the forged power Of attor-
ney, sold the mortgage for $4,000 to
Maggie Henningsen of this city, who was
certainly an innocent purchaser.
During the same month Mrs. Henning-
sen assigned the mortgage to Al. Grim
mer who paid $4,000 for the same and
was also an, innocent purchaser.
But Notwithstanding the fact that these
parties bought and paid for the mort
gage in gool faitt, and Notwithstanding
the fact that the Scanlans received all
the money they had bargained for, the
said Scanlans did not propose to meet
their obligations. The trick of the Da-
Wis, Beard and Gleason outfit in using a
fictitious name was soon brought to light
by the Redwood Gazette, and that clever
schemer, Madigan, saw a chance to be-
come Mr.. Scanlan's attorney.
Accordingly the Scanlan property was
transferred to other members of the
family, subject to the conditions Of the
mortgage, and after this had been done,
the plea was put up that usury had been
charged in making the loan and false
representations as to the individual who
was to loan it. Legal proceedings were
commenced to have the mortgage set
aside and Grimmer was called upon to
defend himself in q very unusual suit.
s. Z. Pierce was employed as his attor-
ney while Dolllfs Of Redwood Falls rep-
resented the Scanlans. The case came
up before Weber many weeks ago and
the Judge has certainly had a1nple
time to consider it in all its teatures.
That he has done SO is evident from the
length and exhaustive character Of his
declson.
In it he scores the Beard and Gleason
outfit Without mercy, but comes to the
following conclusions Of law
That The note and mortgage were and
are usurious. !,
That The mortgage, power Of attorney
and assignment of mortgage are abso-
lutely null md void.