The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-09
TRACING OF STATE FUNDS
Is Limited by One Decision in Su-
preme Court.


The supreme court yesterday decided that
State Treasurer Koerner could not trace
state funds amounting to 81 6S5 from the de-
funct Bank of Redwood Falls into the hands
of the receiver of the Northern Trust COM
pany. Justice Buck holds that the state can
not fiie preferred claim in this case but
may simply come in as a general creditor
! and file a claim accordingly. The state will
not lose the money, however, as either the
assets of the bank or the bondsmen will be
good for it. The syllabus is as follows
The Citizens Bank of Redwood Falls be-
came insolyent and made an assignment to
the Northern Trust company. The state
filed a claim against the estate which was
allowed as a preferred one and out of the
assets Of the bank the trust company col
lected a large sum of money out OF which
it made partial payment to the state, and
said company then wrongfully converted and
mingled with it's own funds and that of
other creditors the unpaid balance SO col
lected. The trust company then became in
solvent and a receiver of it's estate was then
appointed but none of the balance of the
money so collected by the trust company
, he paid out all moneys received by him
! from the trust company's estate except a,
small sum. The state attempted to file and
have allowed by the receiver against the
trust company's estate the balance of its
unpaid claim against the bank as preferred
claim.
Held, frst-That the money received and
converted by the trust company was not the
property OF the state.
: Second-That the state had no right to file
such claim as a preferred one against the
estate of the trust company or the receiver,
but
Third-That the state may as general
creditor of the trust company file said claim
with the receiver.
Three other cases we're also decided yes
terday. The syllabi are:
In reconfirmation of award of damages by
the CITY of Duluth, Charles A. Homer, ct.
al. respondents, vs.. City of Duluth, ap-
pelant,
Held, that the court below ruled correct
" when it denied motion made upon the
Joint trial of two appeals from an award
or assessment of damages made by commits
sioners in proceedings to condemn certain
real property for public streets, to instruct
the jury to return a verdict in favor Of
the appellant city. Order affirmed
Collins, ].
Martin Swanson respondent vs. The Realiza-
ton and Debenture Corporation of Scotland.
ct al, defendants; The Realization and De-
benture Corporation, of Scotland, appellant.
l. The mere fact that interest payments
upon loan maturing five years from GATE
have advanced so that slightly greater rate
of interest than that allowed by law is re-
served or secured to the lender will not of
itself support a finding that the loan was
usurious and that the contract was made with
a corrupt intent to evade the law.
2. A mortgage upon real estate having
been foreclosed under the power, W. claiming
d
redeemed in strict accordance with the pro-
visions of G. S. 1894, section 6044.
The Judgment under which he made the re-
demption had been obtained by another party
and had been assigned twice before it be
came the property of w, through third
assignment in writing. None of these as
signments had ever been filled or entered in
the manner pointed out by G.. S. supra. sec
ton 5431.
Held, that the redemption was valid when
made.
30 @Io ra5o
ton, the assignments remaining un-
filed, a Judgment creditor of the party
originally obtaining the judgment upon
which the redemption was made caused a
writ of execution to be issued upon his judg-
ment and levy to be made upon the other
Judgment. claiming a right so to do by virtue
of the provisions of section 5431, supra.
A sale upon this writ and levy made,
the ortgagees-judgment debtors-paid the
amount due upon the judgment to the pur--.
chaser at the sale and thereupon he satisfied
and discharged the same. Held. that this did
not invalidate or defeat the redemption pre-
viouslv made by W.
A. There can be no modification of cred
itor's right to redeem under section 6O44,
supra nor can he be deprived Of his rights,
when he has redeemed by any agreement
made between a mortgagor and a purchaser
at the foreclosure sale tolextend the statutory
period of redemption. Il
g. Although mortgagor may have parted
with his interest in real property mortgaSed
to secure the payment or note tainted with
usury he may MAINTAIN an action TO cancer
his note upon the ground OF usury when
foreclosure of the mortgage under former
power therein contained is attempted.
Collins. ].
]. E. Flint appellant, vs.. F. D. Zimmerman
ct al, defendants; H. G. Peterson, re-
snondent
]: The application under G. S: 1894, section on
5492, for the appointment of receiver IN
proceedings supplementary to execution is
addressed to the sound discretion of the
court to be exercised asian auxiliary to the
attainment Of the ends of justice, exactly as
it was prior to the amendment L. 1889, chap
ter 106, section 8.
q To require or to warrant such an ap-
pointment it is not necessary that it appear
with certainty that the Judgment debtor has h;
Judgment But it should appear that there is
reasonable ground to believe that he has. Or
der affirmed. Collins, }.
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