The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-07-22
ILLUSTRATES THEIR FRAUD
HOW CERTAIN MINNEAPOLIS
LOAN AGENTS DID BUSINESS
Judge Canty in a Decision In a Case
Arising Over Some Money In.
vested by the Firm of A. F. and
l.. q. Kelly, Doesn't Mince Words
About the Firms System of Doing
Business.

The supreme court in two decisions
written by Judge Canty yesterday at
f1rmed the Hennepin county district
court in couple Of suits brought by
Eastern people to recover amounts
placed for investment with the firm of
A. F. and L. E. Kelly, of Minneapolis.
The titles Of the cases decided are Cen
eral Convention Of Congregational Min
listers and Churches of Vermont against
Ole Torkelson and c.. M. Hanson and
James H. Hare against Ella M. Daley.
The suits arise out Of the dealings of
Kelly & Co., of Minneapolis, over whose
realty transactions there has been go
much litigation in the courts.
The court in it's opinion characteriZes
the case thus: This is another illus
tration Of the system of fraud prac-
ticed by the firm of w. F. & L. E.
Kelly, former loan agents of Minneap-
oils" The court in it's decision goes
into the merits of the case at length.
The syllabus is as follows:
General Convention of Congregational Minist-
ers and Churches of Vermont, corporation
appellant, VS.. Ole Torkelson ct al, respond
ents; Chas NJ; Hanson ct al. defendants.
Syllabus. On the evidence, held, cer-
tain firm Of loan agents had, as the agents
of the mortgage, actual authority, partly ex-
press and and partly implied to reee We for
him the amount due on mortgage then past
the note or mortgage or release OF tho
mortgage.
2. They also represented ano her principal
for whom they had money to loan, whi ch they
had deposited in their own name to their
credit in the bank. and at said time, they
agreed to loan his money to the m >r.gagor
and pay the old l0a, out of the proceeds
of the new one; in carrying cut the tranSac-
ton. they charged this principal on their
books with the amount of the loan a
credited the holder of the cd loan W tn the
amount due on his mortgage
Held under the circumstances stated In the
opinion. this constituted a payment of The old
loan although the money was never trans
mitted to said mortgage
8. Held, on the evidence, the trial court
was warranted in finding that tn agents hal
authority to make proper entries N tn ir
books as to the ioauing tran3acujns Of Sail
mortgage, ard the entries made are con-
petent ev.derce against m and his stui
qui trust. Order affirmed. -Canty, J.
James H. Hare. respondent, VS.. Ella NJ
Bailey, appellant.
syliabus-l. On the evidence, held that de-
PENDANTS agent had ecu ! au ho-itv, partly
expressed aid partly implied, to re over TO.
her the, amount due on a mortgage loan
not have at the time the note the
mortgage a release of the same:
2. The agents represented D., ano her prln-
cipal, for whom they also loaned mo ey. and
thev then had in their hands $40 of his
money to lean, which they had IN their 6wl
name deposited in Their bank to their C edit;
when defendants mortg9 ge ceme due they
agreed to loan the NOR gtgr $1,1O9 Of DIS
money, take a new mortgage on the same
land and apply the money in payment of de-
PENDANTS mortgage; in carrying ut The ans
action, they merely gave defendant credit on
their books for $1,1G0, and charged the same
amount on their books to D.; they had au-
thority to deposit defendants money in Their
own name.
Held, the transaction amounted to pay
ment of defendant although the agents never
transmitted the money to her.
3. Evidence that the agents were then in
solvent, held incompetent 10 prove that tha7
did not have authority from defeIdlu TO d.
as they did. Order filmed. -Canty, J.